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The Vanishing Middle ClassPrejudice and Power in a Dual Economy$
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Peter Temin

Print publication date: 2017

Print ISBN-13: 9780262036160

Published to MIT Press Scholarship Online: January 2018

DOI: 10.7551/mitpress/9780262036160.001.0001

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The FTE Sector

The FTE Sector

Chapter:
(p.15) 2 The FTE Sector
Source:
The Vanishing Middle Class
Author(s):

Peter Temin

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262036160.003.0002

The FTE sector originated in 1971 when Nixon, elected by a Southern Strategy that appealed to Southern whites, replaced Johnson’s War on Poverty with a War on Drugs. Nixon also appointed Powell to the Supreme Court shortly after Powell wrote a secret memo to the Chamber of Commerce in 1971 calling American business to arms over a perceived threat to the business community. These coincident actions were backlashes from the Civil Rights Movement of the 1960s, and they were obscured by the economic turmoil of the 1970s. Reagan appears as the originator of neo-conservatism as he broke unions and lowered taxes even though this ideology arose a decade earlier. The Reagan tax cuts and the growth of finance led to rapidly growing incomes of rich people.

Keywords:   Nixon, Reagan, Southern Strategy, Powell memo, War on Poverty, War on Drugs

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