The same tax cuts have starved the public sector for revenues with which to underwrite public programs of economic opportunity and security. By contrast, the postwar era saw very substantial increases in social investments. These contributed to a more egalitarian society, both directly and indirectly. Social insurance protected ordinary people from economic setbacks beyond their personal control. Public sector jobs tended to command decent wages, benefits, and employment security. Public services allowed moderate-income citizens access to amenities (and necessities) that they might not be able to afford if they had to purchase them at market prices. This includes everything from free public parks to public health inoculations to subsidized mass transit, plus "positive externalities" such as clean drinking water.
Robert Kuttner
