For over 30 years we have heard all the spin how if we just cut taxes the economy will grow and everyone will prosper. Trickle Down economics was the open salvo.
Now after all that time and all the cuts here and there trying to establish a great economy….trickle down economics has proven to be a con job on the highest order….Bush I when running against Reagan called the concept as Voodoo Economics……we should have listened.
This trash science has done nothing but kill the Middle Class and make inequality the call of the day.
I have written enough about Syria, Cruz, scandals, NSA, and shootings…..so let me change subjects for awhile…..change to economics. Okay this is where I turn my back on the class and some give me the finger, others act out choking and still others just roll their eyes and drift off…….yeah, economics is not a subject that many willing write about or talk about……and that is why I am here!
Let us begin with a look at some economic data…….
As Congress prepares for yet another fiscal showdown, new data released today by the U.S. Census Bureau should be a wake-up call that it is time to move away from a wrong-headed austerity agenda and pivot to a focus on creating jobs, boosting wages, and investing in family economic security.
The new data on poverty and income show that despite economic growth, there was no statistically significant improvement in the poverty rate or median household income in 2012.
Behind these topline numbers are data that contain real warning signs for American families and the overall economy if Congress continues down its current path.
Here are three things you need to know about the new data and how they affect the budget and policy choices before us:
- Income inequality has widened since the end of the Great Recession.
- Our safety net is working overtime to compensate for rising income inequality and the proliferation of low-wage work.
- High poverty rates among young children of color have long-term implications for our economic competitiveness.
And all that data is pointing to the Middle Class slowly disappearing….even if one does not want to admit it…..just look at any income data you like…..you can chart what is happening to the Middle Class.
The Middle Class? We could make a case that the Middle Class was an accident….that it was never intended to be a characteristic of capitalism……….
It’s a sign of Edward McClelland’s age that he remembers the middle class. He grew up in an automaking town in the 1970s, where even high school dropouts could get jobs that would support a family and a mortgage payment. Everyone assumed this was capitalism’s triumphant endpoint, that it “had produced the worker’s paradise to which Communism unsuccessfully aspired,” McClelland writes at Salon. Now, that prosperity looks like a “historical fluke,” a brief denial of normal economic trends made possible because the US emerged from World War II with its manufacturing base unharmed. “For the majority of human history … there have been two classes; aristocracy and peasantry,” McClelland observes. Left unfettered, capitalism will tend to reinforce that trend, “concentrating wealth in the ownership class.” This drift “can only be arrested by an activist government that chooses to step in as a referee.” But the US has been on a 40-year deregulation kick, running through Democratic and Republican administrations alike. The result: “The greatest disparity between the top earners and the middle earners in nearly a century.” Click for McClelland’s full column.
The US is starting to look a lot like the UK…….that is if you start in a certain strata of the economy you and your will never leave that strata…….in other words there will be two classes……the aristocracy and the peasantry……….once you are in one you will forever remain there with little chance of mobility…….
Or is it?
We seem to have great news ever month and every quarter that the unemployment is down, jobs are created and the GDP is slow but looking good……right?
The media leaps onto the news with both feet…..they have to keep high end investors happy and optimistic….they need to help them make the decision on where to put their billions that they are holding…..all in all the macro sector is looking good….the micro sector sucks and sucks big time!
Explain to me how you can say that the economy is doing well when this is happening…..
Temp jobs made up about 10 percent of the jobs lost during the Great Recession, and because of high turnover (the average length of temp employment is 3 months before a worker moves on to a permanent job), one in 10 non-farm workers were employed by a US staffing firm at some point during the past year, according to ASA. In fact, nearly one-fifth of all jobs gained since the recession ended have been temporary.
Many workers now have to periodically revalidate their status via systems of “continuous professional development”; almost all work, no matter how menial, involves self-surveillance systems in which the worker is required to assess their own performance. Pay is increasingly correlated to output, albeit an output that is no longer easily measurable in material terms. For most workers, there is no such thing as the long term.
Part time work and low wages these are what some are calling a recovery…..to me there is NO recovery as long as Americans are being hampered from making an adequate living…..the only way for the economy to truly heal is to grow the Middle Class…..and how can we do that since corporations will not?
From the CAP Action War Room….and it is a good plan…..
- Investments in growing the middle class: Investing in education, infrastructure, energy, and innovation boosts the economy today and helps create the job creators and strong middle class that will fuel economic growth tomorrow.
- Everyone paying their fair share: Tax cuts for the wealthy and huge corporations don’t grow the economy. If the wealthy aren’t paying their fair share, we simply cannot afford to make the investments in the middle we need to in order to grow the economy.
- Minimum wage: Nobody who works full time in America should have to live in poverty. Raising the minimum wage will lift people out of poverty and create more consumers to help fuel the economy.
- Health security: Millions of Americans will soon have access to quality, affordable health care for the first time and the 85 percent of Americans who already have health insurance are seeing new benefits and better coverage as a result of Obamacare.
- Retirement security: We need to strengthen both Social Security and our private retirement system so middle-class Americans can afford to retire and live with dignity, a promise beyond the reach of too many.
- Affordable housing: The housing market is recovering, but we need to implement additional policies and reforms to help those who are still underwater and the millions who can’t get a loan to buy a home today.
The sad part is that there is not a elected official at any level, federal, state or local, that is willing to show courage and work for a plan to strengthen the Middle Class……..
The American Dream is a myth, at least these days, this is a piece written by an anthropologist..,…..an excellent article….needs to be read!
The markets have hits new highs almost daily….good news for hedge funds….but what does it mean for us mere mortals?
There is little good news for Main Street….Wall Street gets all the breaks….this has got to change or there will be little left of the middle class…
The rich get richer, the poor get poorer….is not just a saying anymore!
This is where the GOP can start winning in national elections……but will they actually start showing concern for the disappearing middle class?