By Michael Hudson and cross-posted from Counterpunch.org
In the week leading up to last Tuesday’s election the press was busy writing obituaries for the Republican Party. This continued even after Donald Trump’s “surprising” victory – which, like the 2008 bank-fraud crash, “nobody could have expected.” The pretense is that Trump saw what no other politician saw: that the economy has not recovered since 2008.
Democrats still seem amazed that voters are more concerned about economic conditions and resentment against Wall Street (no bankers jailed, few junk mortgages written down). It is a sign of their wrong path that party strategists are holding onto the same identity politics they have used since the 1960s to divide Americans into hyphenated special-interest groups.
Obviously, the bottom 95 Percent realize that their incomes and net worth have declined, not recovered. National Income and Federal Reserve statistics show that all growth has accrued to just 5 percent of the population. Hillary is said to have spent $1 billion on polling, TV advertising and high-salaried staff members, but managed not to foresee the political reaction to this polarization. She and her coterie ignored economic policy as soon as Bernie was shoved out of the way and his followers all but told to join a third party. Her campaign speech tried to convince voters that they were better off than they were eight years ago. They knew better!…