We disagree with a couple of points in this article, but overall he’s right. The middle class is indeed dying. A little more each passing year. But it’s not robots and foreign workers which are fundamentally to blame. That we live in a crony, highly financialized economy has more to do with it. Vast swathes of the American people are shut out of the economy because of things like occupational licensing and other regulations which benefit vested interests. Piles of red tape hold people down. And the cronies are increasingly pulling up the ladders. Perhaps some welfare or disability payments will get you through. And those of you still working, you keep at it while you can. We need to farm you for taxes.
An important part of the answer is to free the economy. Make it easier for people to start businesses, to think creatively. To find new ways of making a living. Also we should consider whether a disposition toward inflation is always what we want. “Deflation” is not always a bad thing. It messes up the debt game, but that also might not be such a bad thing. Particularly for the middle class.
(From End of the American Dream)
You can find the report that the Social Security Administration just releasedright here. The following are some of the numbers that really stood out for me…
-38 percent of all American workers made less than $20,000 last year.
-51 percent of all American workers made less than $30,000 last year.
-62 percent of all American workers made less than $40,000 last year.
-71 percent of all American workers made less than $50,000 last year.
That first number is truly staggering. The federal poverty level for a family of five is $28,410, and yet almost 40 percent of all American workers do not even bring in $20,000 a year.