How the Middle Class Is Shrinking

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I have a friend that was put out of business by OSHA, came and inspected his wood working/cabinet shop, said his shop didn't meet federal regulations. He and 5 or 6 people out of work. OK it was ''unsafe'', but he had employed 5 -10 people for 20 years and nobody had been seriously injured in that time. No big deal... right?
I have a question: what one industry has expanded and managed to profit from the shrinking of the middle class? The answer is GOVERNMENT. Wages especially under Obama have increased approximately 50% HIGHER than the private sector. Now we like to think that this is good news... I mean after all they do have jobs. But think about it. These people do NOT produce anything of real value. These jobs don't produce any thing that can be sold. These people are hired in to bureaucratic positions.... and what do bureaucracies do primarily. They write regulations and rules that the rest of us have to follow or we are fined, fired or jailed. Those government jobs that the starting wage is approximately 50% higher than the starting wage in the private sector (those people that actually produce something) are paid by us by our taxes... actually not by all of us as about 47% of the people in this country don't pay any federal taxes at this time
Obama is NOT willing cut the deficit in our country by cutting expenses (overgrown bureaucracies). He wants to cut our deficit primarily by increasing taxes which according to him will cut $4 trillion from our deficit over ten years. Paul Ryan's plan will cut the deficit by $6 trillion over the next ten years by cutting the size of our bloated out of control govt., simply by cutting our spending back to 2008 levels. Now the liberals are going to say this is just "tooooo EXTREME". We're going to "kill women and old people", but I ask you, how many people died back in 2008 ? ?
BTW, Obama's plan will never bring the budget into balance (and I MEAN never). Paul Ryan's plan does eventually bring the budget into balance but it will take till the 2030's (sure sounds ''EXTREME" to me) The RSC/Jordan plan cuts $9 trillion and will bring the budget into balance by 2020.

David S. of TN 6:28PM April 21, 2011

Let's see... What major governmental programs went into effect prior to 1969? Oh yes, "The Great Society." This was the beginning of the slippery slope of the Nanny State, which has been made worse decade after decade by both Republicans and Democrats. Yet somehow, we are shocked by this?

Tom's Truth of SD 3:13PM April 13, 2011

People really don't like it when the data doesn't support their views. Better to cling to the vast conspiracy theories or cite examples that are consistent with the data and claim they disprove it.

Len of IN 6:10PM April 10, 2011

The bulk of the ruling class of the US decided a generation ago that they could make higher profits as retailers and merchandisers than as producers. The middle class of Post-WW 2 America existed because of an interplay between the productive capacity of industrial capitalism and the relentless struggle of working people to earn a decent living. From the 1840s through the Great Depression and New Deal era there was a vicious struggle where the US ruling class used thugs, the police, militias and the military to ruthlessly and violently smash the lower classes attempts to organize and demand decent conditions. These were the days of the 6 1/2 day week, 16 hours a day and only 8 hours on Sunday. During much of this time most of US output was put into capital goods and infrastructural development. As time went by more of the output needed to be sold as consumer goods, of course you must have money to buy consumer goods. Poorly paid, sick, disheartened people don't consume too much (does this seem familiar). As the US was basically on an upward trend at this time it was to the general advantage of much of the US ruling class to have a well paid working and middle class who could actually buy the things they made. So between the struggle of working people and the general socioeconomic conditions and a decent president who actually cared about people (Franklin Roosevelt) the greatest period of prosperity in US history occurred (1945 - 1970).
The right-wing never forgave Roosevelt for his role in saving them from their own shortsighted greed. Endless right-wing mobilization took place and certainly since the Reagan administration they prevailed. By the mid 1980s Akio Morita the founder and CEO of Sony referred to the US economy as being "hollowed out". The Asian economies climbed to world dominance by selling their goods in the US (and to a lesser degree Europe). We lost industry after industy and have become economically irrelevant in many areas. So at this point China is the "Workshop of the World" and we are roughly in the position Europe was in during the heyday of the US economy.
Of course now there are 7 billion people on earth. 90% of the big fish are gone from the oceans, biodiversity is degraded and destroyed over much of the globe, food shortages loom again, even the climate is changing. Clearly we have technologies undreamed of in the past but certainly there are no guarantees. The last great Crisis of Capitalism occurred in the 30 years from the beginning of WW 1 to the end of WW 2. Two huge wars, something like 200 million people slaughtered in war and social upheavals and major reshuffling of the global power structure occurred. We can expect no less now and the US middle class is one of the casualties. Either we rise up and demand an end to the warfare & welfare-for-the-rich type state we live in. Or we will end up in a neo-feudal collapsed country that exports food and children to the Asian powerhouses.

Desmond of KS 9:57AM April 07, 2011

I see so many misconceptions in this post. I see real people who are struggling, while people who are not struggling are making comments like, "Start your own business, etc." Unfortunately veryone doesn't have those sorts of skills. I also see some good ideasof families living together rather than in several different residences that might help financially. However, lack of privacy will be a problem.
We are a selfish lot, no doubt, but hard working people not being able to provide for their children is a real problem is this country, especially in the last 2.5 years,
during the worst of the recession. And the recession was totally unnecessary. It was caused by greed, purely and simply. That's what bothers me about what has been happening in this country: the Meism that I see---the greed and the idea that other people's problems don't matter any more. They do matter; we need to realize that and convince the upper middle class and the rich to stop this mania for cutting the taxes they pay to the bone. People are hungry out here, jobless---living in motels with their children because they can't find work. Being "flip or sarcastic" about it is not right, and it is not funny either.
I feel for the people who have been devestated by this long recession, and it seems that businesses want to beat the wages down because they know people are desperate. It reminds one of what happened during the Great Depression. Selfishness and greed.

Anita of TX 9:13PM April 06, 2011

To Ed of Florida: Whoever you are your ignorance is like a gaping hole of nothingness. Your comments are reflections of a limited exposure.

Jennifer Theard of FL 3:50PM April 06, 2011

I'm 51. I had a good career in the grocery business for 31 years. My company closed up in the trickle down effect from manufacturing outsourcing, and competiton from the big box warehouse/food outlets. My last job where I labored hard for 2 years with no benefits, or paid time off, was thankless. I asked for a week oaid vacation, and was refused. There were Ilegals working there. I was asked to sign up for the group health plan, and that would have left me with $45 take home per week. I grossed $18,000 in 2009. That was down from over $32,000 in 2007. I worked the same hours. I am no longer the bread winner. It is not worth it for me to labor like that to feed a vehicle for transport to a job. Wew do not have decent public transit in the former motor city environs. My spouse is gainfully employed, but must travel out of state most weeks, so I maintain the home now. We have two college age children who's incomes also only feed their vehicles. Tuition, and books eat up a big chunk of our income. We were offerd a postion in texas, but companies are not buying homes, and ours has depreciated below what we would need to buy a house there. I won't give it away.
I wonder what would have happend to this countries economy if president Kennedy's executive order 11110 wasn't cancelled by president Johnson. It would have allowed the US treasury to print money, and not the Fed.

Broke of MI 2:46PM April 06, 2011

Talk about polarization, these comments clearly emphasize the problem in this country:arrogance and the ignorance and the politicians count on it, that's why nothing ever changes....so sad for the rest of us!

jcrawford of IL 11:59AM April 06, 2011

This is very misleading. The author uses $35K to $99,999 to define the middle class, and comments on the shrinking share of this segment. This segment is not 'middle' anything. It is borderline poverty. That it is shrinking should be a good thing.
Some of the segment migrated upwards, and some moved downward, big deal.
Those that moved upward are now subsidizing those that migrated downward, through progressive taxation. Since our tax system has become increasingly punitive on the successful, the so called 'middle class' (as well as those below) can now have a better standard of living thanks to the hard working upper income segments.

Ed of FL 10:00AM April 06, 2011

You are a piece of shit. I'll kick your ass myself if you just name the venue. You may be rich, but if it weren't for butchers and farmers, you would starve out. I bet you don't own a gun or a fishing pole you yankee bastard! Now go eat your tofu, and play another 18 holes in your faggy pants before you hurt yourself. Ryan Rogers of Texas

Ryan Rogers of TX 1:51AM April 05, 2011