America’s Middle Class Crisis: The Sobering Facts

[raccoon]

By Peter Gorenstein | Daily Ticker – Wed, May 4, 2011 10:19 AM EDT

Two recessions, a couple of market crashes, and stubbornly high unemployment are all wreaking havoc on America's middle class…

Here are just some of the sobering facts:

-- There are 8.5 million people receiving unemployment insurance and over 40 million receiving food stamps.

-- At the current pace of job creation, the economy won't return to full employment until 2018.

-- Middle-income jobs are disappearing from the economy. The share of middle-income jobs in the United States has fallen from 52% in
1980 to 42% in 2010.

-- Middle-income jobs have been replaced by low-income jobs, which now make up 41% of total employment.

…The middle class is shrinking, which threatens the social composition and stability of the world's biggest economy.


http://finance.yahoo.com/blogs/daily-ticker/america-middle-class-crisis-sobering-facts-141947274.html

[OHdem10]

1. And we continue to dig the hole deeper with no change in sight

because we accept the FREE MARKET PRINCIPLES of
Conservative Economic Fundamentalism.

[CoffeeCat]

2. With an economy based 70 percent on consumer spending...

..you wonder how this all doesn't collapse in the near future.

This isn't the same economy, that it was five years ago. And the trends you mentioned (fewer middle-income jobs, more
people taking lower-income jobs, high unemployment, etc) will only continue to worsen. Companies are continuing to
outsource jobs and ship jobs overseas. That will only continue to be a drain on us.

Our economy is changing rapidly. Think back just 5-6 years ago. Everyone was spending like wild thieves. People were
using credit cards without even thinking about it. Second mortgages were so easy to obtain, and people were using their
home equity--as an extension of their income, to purchase vacations, cars and other non-essential items. Plus, the
housing market fueled so much growth. People were buying houses, purchasing furniture, appliances, etc.

All of this behavior has literally stalled out.

Plus, we're being squeezed further with higher food and gas prices. I don't know where the media is on food prices, but
I watch grocery prices closely and I've seen some items double in price. I'd estimate that food prices have risen 25-30 percent
for the majority of items in the grocery stores.

I fail to see how this improves in the near term or even in the next decade. With unemployment high and a downward pressure
on wages and decreasing high-paying jobs--all signs point to economic contraction.

[Mulhane]

4. Back to the Land II

When we accepted the insulting label "consumers" instead of "citizens" thrift was a positive, not a liability. Food was grown and "make do" instead of shop till you drop. Now the plundering of all those jobs and wealth means it's time to return to a version of life before the Consumer age that started after WWII. "Back to the Land" was a passing fad when many found the pull of the high pay and easy credit of the city impossible to resist. Now it's gone.

[bobbolink]

3. Its a damned good thing that poor people are doing just great!

:eyes:

[indepat]

5. Oh, the joys of having fully implemented radical RW fiscal, tax, and pre-emptive war policies

:patriot:

[NNN0LHI]

6. Middle class workers are the ones who pay taxes too. Real taxes. Withheld taxes

Not the paying taxes on the honor system that is set up for the wealthy.

These are the workers who pay our state and federal workers salaries.

Once we lose these workers we can pretty much kiss our ass goodbye.

Next stop. Greece.

Don

[bobbolink]

7. Absolutely. Poor people pay absolutely NO taxes.

:crazy:

[Obamanaut]

9. Most people, when making reference to paying taxes (or not paying)

are speaking only of federal income tax.

There is practically no getting around paying sales tax on goods purchased in a store, gasoline taxes when putting fuel in the car, fees (taxes) for various licenses, property tax if one has some property to tax, etc.

It is true, however, that many people who file a federal income tax form have a zero tax burden - anything withheld during the year is all returned, thus, no federal income tax burden.

And, with the earned income tax credit, many people with zero tax burden get a 'check in the mail' by virtue of that tax credit.

So, not only does practically everyone pay some taxes (FICA is another one), not everyone pays federal income tax. This is what many people are speaking of when talking of 'paying taxes.' Not everyone, but many.

[girl gone mad]

8. k & r