I’m 67 and have lived through some angry times: Joseph R. McCarthy’s witch hunts of the 1950s, the struggle for civil rights and the Vietnam protests in the 1960s, Watergate and its aftermath in the 1970s. But I don’t recall the degree of generalized bile that seems to have gripped the nation in recent years.
Widening inequality thereby ignites what the historian Richard Hofstadter called the “paranoid style in American politics.” It animated the Know-Nothing and Anti-Masonic movements before the Civil War, the populist agitators of the Progressive Era and the John Birch Society — whose founder accused President Dwight D. Eisenhower of being a “dedicated, conscious agent of the Communist conspiracy” — in the 1950s.
Inequality is far wider now than it was then, and threatens social cohesion and trust.
If Reich's theory is correct, the rise in inequality starting around 1980 should correlate with a breakdown in social cohesion.