How the Super Rich Make Their Money and Avoid Paying Taxes: Economic Analysis (1990)

How the Super Rich Make Their Money and Avoid Paying Taxes: Economic Analysis (1990)




Kevin Price Phillips (born 30 November 1940) is an American writer and commentator on politics, economics, and history. Formerly a Republican Party strategist before becoming an Independent, Phillips became disaffected with the party from the 1990s, and became a scathing critic. He is a regular contributor to the Los Angeles Times, Harper's Magazine, and National Public Radio, and was a political analyst on PBS' NOW with Bill Moyers.

Phillips was a strategist on voting patterns for Richard Nixon's 1968 campaign, which was the basis for a book, The Emerging Republican Majority, which predicted a conservative realignment in national politics, and is widely regarded as one of the most influential recent works in political science. His predictions regarding shifting voting patterns in presidential elections proved accurate, though they did not extend "down ballot" to Congress until the Republican revolution of 1994. Phillips also was partly responsible for the design of the Republican "Southern strategy" of the 1970s and 1980s.

The author of fourteen books, he lives in Goshen, Connecticut.

Phillips was educated at the Bronx High School of Science, Colgate University, the University of Edinburgh and Harvard Law School. After his stint as a senior strategist for the Nixon presidential campaign, he served a year, starting in 1969, as Special Assistant to the U.S. Attorney General, but left after a year to become a columnist. In 1971, he became president of the American Political Research Corporation and editor-publisher of the American Political Report (through 1998).

In 1982, the Wall Street Journal described him as "the leading conservative electoral analyst -- the man who invented the term "Sun Belt" [a phrase also attributed to legendary Speaker of the United States House of Representatives Sam Rayburn], named the New Right, and prophesied 'The Emerging Republican Majority' in 1969."
Later, he became a critic of Republicans from the south and west, the area he had identified as the "Heartland", the future core of Republican votes. He had also identified the "Yankee Northeast" as the future Democratic stronghold, foreshadowing the current split between Red States and Blue States. More than 30 years before the 2004 election, Phillips foresaw such previously Democratic states as Texas and West Virginia swinging to the Republicans and Vermont and Maine becoming Democratic states.

Phillips uses the term financialization to describe how the U.S. economy has been radically restructured from a focus on production, manufacturing and wages, to a focus on speculation, debt, and profits. Since the 1980s, Phillips argues in American Theocracy,
the underlying Washington strategy... was less to give ordinary Americans direct sums than to create a low-interest-rate boom in real estate, thereby raising the percentage of American home ownership, ballooning the prices of homes, and allowing householders to take out some of that increase through low-cost refinancing. This triple play created new wealth to take the place of that destroyed in the 2000-2002 stock-market crash and simultaneously raised consumer confidence.
Nothing similar had ever been engineered before. Instead of a recovery orchestrated by Congress and the White House and aimed at the middle- and bottom-income segments, this one was directed by an appointed central banker, a man whose principal responsibility was to the banking system. His relief, targeted on financial assets and real estate, was principally achieved by monetary stimulus. This in itself confirmed the massive realignment of preferences and priorities within the American system....
Likewise, huge and indisputable but almost never discussed, were the powerful political economics lurking behind the stimulus: the massive rate-cut-driven post-2000 bailout of the FIRE (finance, insurance, and real estate) sector, with its ever-climbing share of GDP and proximity to power. No longer would Washington concentrate stimulus on wages or public-works employment. The Fed's policies, however shrewd, were not rooted in an abstraction of the national interest but in pursuit of its statutory mandate to protect the U.S. banking and payments system, now inseparable from the broadly defined financial-services sector.

http://en.wikipedia.org/wiki/Kevin_Ph...)