The problem is that something structural has changed that is causing the U.S. to become something different than it once was.
| | | quote | First, the most recent period of strong middle-class income growth was from World War II until about 1974. This was a period of strong unions and a progressive (the richer you are, the more you pay) tax structure. The public benefited through better transportation, schools, housing and corporate competition. Since 1974 middle-class incomes have fallen along with the decline in strong unions, increased international job outsourcing and the weakening of regulations requiring business competition. Most gains in worker productivity have gone to enrich a super-wealthy corporate upper class and stockholders.
In general middle-class workers have lost income and influence through deunionization and weak political representation. The loss of broad government influence is largely due to the powerful self-serving lobbying of corporations. In general, since 1974 human labor (human capital) has not paid off relative to investment in stocks and bonds (financial capital). The U.S. now has one of the most lopsided income distributions in the industrialized world -- even worse than in the so called "Golden Age" of U.S. robber barons in the early 20th century. About 10 percent of the population now owns about 70 percent of all income and wealth in America, and there is no longer a large and economically viable middle class.
The current recession is especially dangerous because in the past it had been the middle class who were the source of economic stability and mobility. But the latest economic research indicates that where you are now born economically, you will most likely die. Most often, rich kids die rich and poor kids die poor. This is not the former America, the land of opportunity. |
|
http://www.oregonlive.com/o...oor_economics_a.html[This message has been edited by spark1 (edited 03-02-2011).]
