Shell-shocked. That in a nutshell describes the American citizenry nowadays. OK, not the 1%-ers, but everyone else. They may be employed, but they know someone who’s been laid off. They are working more hours than before- and not being paid for them- because they fear they will be laid off, too. Their salaries have been stagnant. Home values- that’s an oxymoron. The middle class folks may be paying more for their health insurance and for higher deductibles, too, which means even less available income.
Since the Reagan presidency, the middle class has been losing ground. With the exception of the Clinton years, where the middle class managed to stay stable. Not the upper echelons, from the top 5% on up, their income has been growing (and the top 1% have amassed an even larger share of the overall pie).
The Gini Coefficient measures the frequency of incomes among populations; as such, it is a measure of the income inequality. And, if one plots the Gini Coefficent against economic mobility, we have what is termed the Great Gatsby Curve. Which is a measure of how hard it is for a person to achieve the “American Dream”, to move up and up in socio-economic status. Notice where the US is. ‘Nuff said.
The RightWing wants spending slashed. Which will mean more lay-offs and less available benefits for the less well-off (i.e., the working poor, the poor, and the lower middle class). And, tax cuts for the rich. Oh, wait, they call them the job creators. Except the rich don’t create jobs- they amass wealth. Jobs are created by small business- and most small businesses are owned by those solidly in the middle class. (Don’t BS me saying that the top 2% includes plenty of small business owners- the multi-LLC and multi-S corp entities own the really large (as in “really large”) companies and are not small businesses.)
And, stop stating that the rich pay all the taxes and 46% of Americans pay no taxes. Because it really is a canard, when you consider the facts. Let’s start with the folks on social security that don’t have other investments- or another job. Hmm. That covers about 11% of Americans.
And, the working poor. You know the ones who have to work one or two jobs, but do so for payrates of less than $ 10 an hour. You see, a single worker (head of household) with a child who makes $ 20,000 ($ 10 an hour) or a married couple and no kids with the same income owe no income taxes. As it should be. The poor and working poor comprise 26% of all households (or more than 1/2 the 46% who didn’t pay taxes). Oh, and while they did not pay INCOME taxes, they did pay social security and Medicare taxes, which are included in the federal budget for income, often more in that category than the rich, who don’t get salaries.
So, who doesn’t pay their fair share of taxes? The top 1% or 2%, who pay rates about ½ that of the middle class. And, businesses like GE, ExxonMobil and the like that pay NO (occasionally just very close to that) corporate income taxes.
So, let’s raise taxes on the rich (not too much- back to the rates where they were before the ridiculous Bush tax cuts came into being; which will still be lower, since the rates of the first $ 250K of their income will be at lower rates). And, we need to impose a minimum tax on any corporation that pays dividends to its stockholders. Because if the corporation can afford to pay dividends, which are supposed to be a sharing of the profits with its stockholders, they should be paying taxes, too.
And, we can split those funds with the treasury to reduce the debt and to rebuild our crumbling infrastructure. Because we need to repair, shore-up, and expand our infrastructure for the future (so business can expand and grow). When the interest rates are low and salaries have not crept up. So that the costs to deal with infrastructure will be when they are among the lowest possible.
Let’s get cracking!
I admit to be one of the shell shocked folks. Truly, I do. You know me as an optimist I hope, but the realist in me wonders if this is ever really going to get better. The cynic in me, which I detest, wonders if we aren’t so deeply rooted corp greed to really make the changes needed to make America better, stronger, and financially stable again. This is a great post, very well organized, and needed…too many folks on both sides succumb to emotionalism when expressing their side. You always lay it out with facts, and even though we know you may feel passionate about what you are saying, you always lay it out in logic!
Lisa Brandel recently posted..Heart A Glow by Lisa Brandel
Lisa, I do have hopes things will get better- but it will take some changes (which I fear won’t occur this time) in Congress. The NIMBY concept has now spread to Congress, which reminds me of a feeling I had living in Charlottesville: I have mine. F… You about yours!
Roy
HAHAHAHA!Right on Roy!
Lisa Brandel recently posted..Heart A Glow by Lisa Brandel
Amen! My husband works 12+ hrs a day, our health insurance is our largest monthly bill besides the mortgage. We are looking at selling the house and becoming renters. We have the American dream and are looking to get out of it. We can’t afford it any longer.
shawn recently posted..What a Good Marriage Has ~ Wow Wednesday
Yes, health insurance is certainly not cheap, Shawn. (I remember from when I was married; my ex was self-employed, and I was the only person in Northern Virginia, so that I could not be on our three group policies… Back then it was 1150 for our family. And, that’s ancient history- say 2 decades ago!
That makes a lot of sense to me. Since I take money from my retirement, I don’t fall under the actual amount of money I make category and so I pay taxes while working 2 and looking at a third job. In the end I am going to implode, no thanks to the government. Great explanation, Roy.
Ann Mullen recently posted..Home Healthcare Community Supports Targeted Reforms
Maybe you should have us look at what you’re doing to see if there are some suggestions you can take to keep MORE of what you earn, Ann?
I’m with you Roy. I don’t get how people don’t understand this? How is it that they continue to vote against their own best interests? It’s scary how uninformed yet rabid in their “beliefs” some of these folks are.
People don’t give a thought to infrastructure until it fails. We’ve been lucky so far, but what happens when the systems are so overtaxed that they simply fail, like our power grid. We have a very old and unstable power grid that is just waiting to fail leaving us in the dark. When the power is out it’s more than being left in the dark – you can’t use your appliances, heat or cool your home, pump gas, get water from your well that has an electric starter and so much more.
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I generally find, Julia, that those with the most rabid beliefs are those that are least informed. Because, with this lesser knowledge, there is no need to recognize the nuance in every single position one takes.
And, regarding infrastructure, you are absolutely correct. It’s why local governmental officials decry themselves as heroes for saving those funds, returning taxes or lowering rates t otheir constituents- until the piper must be paid. Then, everyone is angry and claims “I didn’t know”.
(It’s also happening with the pensions that have been promised their employees- for which, at best, 50 cents on the dollar has been allocated. And, now that the baby boomers are getting ready to collect, we are seeing city after city after city filing for bankruptcy, blaming the retired employees for creating this problem!
Roy
That is one thing I don’t understand about the Indian system of functioning too. The rich are getting richer and poor poorer. However, the country has seen a huge rise in the urban middle class population. Thanks to call centers which generate huge job opportunities, the Indian middle class has now seen a rapid increase.
My grandpa retired as a professor / scientist for a government entity and he makes great pension money that keeps his bills taken care of. But, for the past five years he has mentioned how he needs to tighten his expenses to take care of medical bills (he underwent a heart surgery).
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Hajra:
India’s corruption is part of the problem. Many folks in America point to that and feel “superior”, saying that is why it happens in India. Without ever once taking a good, hard look at the situation that is currently obtaining here and realizing “pot is calling the kettle black”.
And, your grandfather is in the same boat as many other retired folks are- they determined (or had determined for them) how much income would let them retire in a style to which they had become accustomed, or slightly below that, only to find that runaway health care or reduced benefits have left them in a completely different state.
Roy
It is to bad that we, as citizens of this country really do not have a say in it any more. It does not matter who is in office anymore, one side blocks the other side when it comes to us, and spends 90 percent of their day, working to get re-elected. I always vote, with the hope that something will change for the better…then I wait until the next election and start hoping all over again.
William recently posted..Coconut Muffins
Ah, William, the lament of those who recognize that lobbyists, with their ever-present cash, are the one who actually write the laws that once were the province of our legislators.
Roy
I feel like we have all been hunkering down for so many years that it has become the new reality. Everyone I know is overworked and stressed. Our universities are churning out a generation of people who have no jobs to go to after obtaining their degrees. I keep hoping that things get better for my child.
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Kristen:
That is an issue for me, as well. My youngest is in his last year of undergraduate education. I fear that he won’t have the opportunities to change his life – and the life of others- if we can’t eradicate those who deliberately squish the American Dream from the realm of the possible.
Roy
Roy I have to say I love the whole explanation of the whole article. I do not think I have seen some one be able to clearly state all the facts that you have. I understand what you mean and I love that term shell shocked. I think I have been living in that shell shocked state for since at least when the economy started to implode. But I have also learned oodles because of it. So while it sucks and I know I never be the 1% I am still working my way well out of the 26%.
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Gen:
I am so glad you found the explanation lucid. It is so difficult to explain some of these facts without getting into arcane definitions and terminology.
And, we can only hope that those destroying the viability of the American Dream are removed from their capability to do so- and we (America) can truly off the level playing field that is part and parcel of the definition of the American democracy.
Roy
Makes perfect sense to me. I’ve been unemployed now for just over five months, dutifully having taxes withheld from my unemployment checks. Will it be the right amount? I doubt it, so next year we’ll probably have to shell out some additional funds come tax time. I’ve never been one of those to really gritch too much about paying taxes; I understand the benefit we all gain, and I’ve known lots of folks who’ve needed to take advantage of specific social services from time to time (currently an elderly grandmother). So I’m all about being willing to pay my fair share. But it does irk me that I’m trying to skimp by with income that’s been cut in half and will likely still have a tax liability next year, all while there are people up to their eyeballs in money doing everything they can to keep from pitching in.
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Cheri:
I know this is not your primary issue, but if your only income is unemployment insurance, then you won’t owe taxes. But, if you have other income, then it could be an issue.
And, you are right- there are many folks out there (yesterday was a prime case in point) who associate folks getting unemployment or food stamps with being lazy and unwilling to work. After all, they have jobs- why don’t you. Or some of them (this person in particular) gets his money from other companies as a lobbyist, where he is paid to say exactly what he did- when those same companies are not hiring folks… Yes, it’s circular reasoning- which is why it belongs in the trash heap.