American Middle Class Continues To Be Slowly Wiped Out (bankrupt, loan, credit card)
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They have been the grow in jobs since the 70's recession . But they too often depend on foreign sales. Small business really isn't the mom and pop type that fuels the economy.Even they are becoming more and more dependent on being suppliers to foreign countries and companies.Its hard to igm=nore the fact that china and india have 1/4 of teh world's popualtion and a growing consumer market. They alos have massive savings rates.China is now the top energy consuming country and the biggest automobile market.Mnay american business suply them with very high tech equipment and parts now.heystill are a coutnry with limited elctrical gird and transportation so that much of their inductry is concentrated. Many of their workers are assmblers and not well edcuated. They have no university in the top 200 in the world.One area of concentrate industry is 125 sq miles because of these power and transportation problems.They can compete now with basic assembly manufacturing but not really high tech ;yet.
It is so hard to define the economic classes with those three levels used since I was a kid. We have a huge disparity of wealth distribution in America that goes far beyond the usual three classes of distinction. Credit of course has led some to believe they are better off than their parents and therefor middle class, but without that credit card they are actually sliding down in the rankings. It was the debt that fueled the upward mobility rocket rode by those millions of Americans who sat high and handsome throughout the last two decades, now the adjustment period is upon them and we'll see just how much yardage they can gain without the plastic. Most of all, housing prices will have to slide even further down, and in that downward spiral we'll see the balance sheets of the working class going negative. With home equity dropping and the prospect of a diminishing value for most 401K accounts we can bet that a large portion of the overall stated wealth of the US will vanish into thin air. A lot already has disappeared.
Doing away with the likes of NAFTA and WTO trade agreements wouldn't be do-able until US corporations are in dire need of new American consumer blood, then and only then will the powers that be allow any infringement upon their globalization efforts that fatten the bottom line, they hold the economic reins not the government so it'll be a long wait for the US workforce to gain ground against the massive foreign labor movement. To think that "we" can just get that legislation going that serves our best interest is naive to say the least, at worst it speaks to a kind of thinking abandoned by most savvy Americans some time back. When all this economic woe struck it was met with a type of response that is the result of accepting the ostensible view of government as it is explained in US school textbooks, that's to say that some folks think we actually count for something. The sad truth is that we have never counted for much, us working class folks, we plod through life hoping to feed our families, remain relatively healthy, and maybe even retire, those hopes are now subject to the financial ruin that will surely affect most if not all Americans, regardless of class.
It's not even clear whether laissez faire capitalism (post WWII revival of which was championed by American ruling class and shoveled down throat of every 3rd, 2nd and even first world nation under the Sun) is capable (theoretically) of supporting mass middle class (in the sense of significant chunk of population earning "good" living wage and above). I'm not aware of historical examples of such a possibility. American mass middle class is a child of WWII, Soviet scare and resulting "Great Society" vision. USSR and global communism is dead, Capitalism doesn't have to look prettier than it is to win a propaganda war over global hearts and minds, so spread your buns, Sirs. In "a winner takes all" world mass middle class is a rudimentary nonsensical glitch.
Last edited by RememberMee; 09-15-2010 at 09:48 PM..
Besides "middle class" by defaults assumes that there are lower classes that don't deserve living wage, good jobs, nurturing environment, self-respect etc., etc., etc. because of various faults of their own (obviously). Middle class saw nothing bad about the pecking order (providing cheap labor to serve its needs) when going was good. Alas, ruling class decided to extend lower classes on the expense of the middle. Now, prove that joining lower classes is not your fault Class division into untouchables, low, middle, upper ... is the root of evil, it's not "shrinking middle" that sucks, the whole concept is rotten.
-When I was a kid in the 80's, the middle class was pretty stable. People would come home from work by 6, or 6:30 pm. Commute times were reasonable. Seems like people had a balance between material goods (big tv, 2nd story addition to their house). But it didn't overwhelm people.
How many personal bankruptcies were there in the 70's or 80's? Not many compared to today. The middle class was insulated on two fronts. A. Against bankruptcy or disaster. B. They weren't being gouged and squeezed by the elite.
-Look at the rise of pay day loans over the last 20 years. That's not a sign of a solid middle class. You've got to restore usury laws. Restore basic banking laws.
You've got to massively overhaul education. Funny, that none of the things that hurt the middle class in the 2000's.....credit default swaps, declining dollar, rising debts, greed & stupidity on wall street, goldman sachs, bernanke, subprime...*none of them* were taught to middle class students in public schools in the 90's.
-You've got to teach more self sufficiency. The middle class is getting wiped out by bankers that don't want you self sufficient.
-Make it easier for small business owners and entrepreneurs. Teach entrepreneurship in highschool, instead of shipping kids off to watered down, overpriced colleges that teach "hollow" skills. 16-20 year olds in this country should have some real entrepreneurial skills. Rote memorization isn't going to reverse anything in the US.
That's the dumbest thing in the world. That's like memorizing how to save the Titanic as it's sinking.
-Stop this indoctrination of debt on young people. No one under 30 should be paying more than 6 or 9% for a loan. Anything else is sheer explotation. Taking a foothole away from a future middle class. The future middle class in this country can't start out by paying 18% on credit cards.
-Make it easier for small business owners and entrepreneurs. Teach entrepreneurship in highschool, instead of shipping kids off to watered down, overpriced colleges that teach "hollow" skills. 16-20 year olds in this country should have some real entrepreneurial skills. Rote memorization isn't going to reverse anything in the US.That's the dumbest thing in the world. That's like memorizing how to save the Titanic as it's sinking.
Rote memorization teaches discipline as well as the concept of delayed gratification. Americans are severely short on personal responsibility and working hard. We have derided rote memorization to a point where Americans can't even add fractions anymore without a calculator. Our cult of "critical thinking" at the expense of much needed rote memorization has instead created two generations of lazy retards.
Entrepreneurship is the mother of "hollow skills." If I had 100 bucks for every business card I've gotten with the word Entrepreneur on it from a person who makes barely minimum wage, I can buy a house with them.
At this point the only way the US is going to compete is by lowering the minimum wage, lower living standards and going without. The longer we avoid doing that the higher the unemployment rate. Its the only way you'll attract businesses to employ the average joe.
A recession normally doesn't last this long, we are in a depression and frankly for most other countries, unemployment of 30%+ is the norm.
I agree with most of that, but consumer prices must adjust lower if wages and living standards are lower. In India wages are quite low, but you can buy new (not the greatest cars) for around $3,000, and a home for $15,000 (US equivalent). I don't see prices falling here, no matter how much the standard of living declines here, homes will still on average go for $100K+, and new cars will still average a bit over $20K. If that's the case and wages fall to let's say $7 or $8/hr. on average, that would not be good for consumer spending which makes up a large part of the economy. I would hope prices would adjust, but who knows.
re:#2 and #3
can you clarify what you think the benefit is to protectionism and the slowing of trade?
Well, you did not hear me say "protectionism." But think about what a twisted (marketing) world we have become where to protect one's own interest has become a negative aspect?
I am saying if we have trade -- or even if we were just making trades between us (you and I) in the real world -- to be a repeatable, long-term functioning relationship, it has to fair and balanced. Otherwise, in the long-run, it would collapse, as one of us -- or even both -- were cheated and wound up broke. Same for US as a country, and the countries we trade with.
The only folks who are profiting from this are the trans-national corporations who have created the unfair and unequal trade and the banks who back it. Everyone else winds up a loser.
As far as "slowing" trade -- again to start with us as real people in the real world -- if we were having losses in the real world, it would be a good thing to have less losses. Same for US.
If you do not see what a mock of sensible action this become, consider the late-night used car salesman ad -- where the guy in the funny suit gets on and claims -- "We Lose Money on Every Sale . . . . But We Make Up For It In Volume!!" Clearly that guy is the comic relief, as a shrewd buyer will realize it is a lie, but laugh, anyway. However, in practice, when one runs the books every quarter or year-by-year, we do lose money (big money) on trade -- all under the false claims that it is so important, and the volume covers it. Those are both lies.
If America is going to survive . . . . It is going to have to get smarter than that Used Car Salesman, the Trans-National Corporations, and the Bankers.
For serious readers -- Look up Current Accounts -- the balance of Global Trade, and you will find US way at the bottom by far >>>
A more succinct way of saying all this is simply...GET RID OF THE FEDERAL RESERVE!
Ron Paul lives! Return to honest money, and all of those problems go away automatically. Read up on what the Federal Reserve really is (not a gov't agency) and if your toenails don't blanch, your hair will. Up until 1965, we had 90% silver coinage, and the only answer to our problems is to go back to that. Otherwise, they just print and print, and that causes # 1-7 above.
Sorry, but no Ron Paul fan, here -- he flagged himself with that little R, just so we can tell what side of things he is flying with. (goes for D or R, btw). I follow you probably do not want to hear that, but it is the way things are.
As far as the Federal Reserve -- sure, plenty familiar and not a fan, no loss for US without it -- but by your logic, did not the Federal Reserve exist prior to 1965?
-Stop this indoctrination of debt on young people. No one under 30 should be paying more than 6 or 9% for a loan. Anything else is sheer explotation. Taking a foothole away from a future middle class. The future middle class in this country can't start out by paying 18% on credit cards.
That one is a simple win.
And can be totally done by individual action.
Folks just need to stop payment on all non-secured debt over 9% (typical credit card). That stops the Cash Flow for the banks. By six months, it would all roll to charge-offs and we could wipe out all the big predator banks.
A very simple and beautiful thing.
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Class division into untouchables, low, middle, upper ... is the root of evil, it's not "shrinking middle" that sucks, the whole concept is rotten.
