American Middle Class Threatened With Extinction?

[Wolf]

Apparently, a cabal of the "economic elite" works consciously and tirelessly to destroy the American middle class. Thoughts? Opinions? Concerns? Personally, I find it interesting that the secret economic elite remain unnamed, but that we ought to stay tuned until Part II to find out. That's pretty cheesy. And he spends about as much time talking about our "desensitization" to the figures as he does talking about the figures themselves! I won't deny that his figures are accurate, or that his interpretation may even be the best one, but it seems to me the really important parts of that article would be (1) who's to blame and (2) how to fix it. Neither appears. And we're told that if we don't believe him, well, that's just because we've been fooled. Obnoxious.

But ideally Edric will vastly improve the quality of this debate.

[nemafakei]

It is to the benefit of capital that the working class has the stick of unemployment and the carrot of aspiring to join the ranks of the 'middle class'.

I'm not sure how much this was true of Reagan, but one of the defining policies of Thatcher's government was the (incomplete) efforts to eradicate social housing. With it went affordable housing, and even laws which compel property developers to create a fraction of developments as 'affordable housing' are far too weak, in that the 'affordable' housing is generally poor quality, inaccessible or unsuitable for those who need it most, and in any case well beyond the realms of affordability. Nevertheless, with house ownership (not to mention multiple-car, and tv ownership on credit) having become the norm, and with mortgage default penalties being so high, the penalties for going without work for a month or two is much more serious than having to rely on friends and family for food. Worse, when living costs increase, it is more difficult for people to secure a pay increase because they are less able to go on strike for fear of not keeping up with mortgage payments - and employers know this. The next step in the UK was the introduction of tuition fees. For the 40% of people who study at a Higher Education Institution, they will be saddled with debts of over

[athanasios]

It is not only the Americans who are suffering. It is happening all over the world. People are blind and cannot 'see' that capitalism is dead. Its circle is closed much like communism's circle closed. If no other alternative is provided, soon humanity will plunge into anarchy. No, not the real anarchy, which might be an alternative but chaos.

[Khan]

You think that capitalism will just disappear? Oh my dear boy you make me feel so old. The fact is capitalism kind of does work, it's a fucked up version of 'working', but people keep buying into it. And when people keep buying the wheels keep turning.

[athanasios]

For how long? An unemployed person is useless under capitalism, he doesn't have money to spend.

[Andrew]

For how long? An unemployed person is useless under capitalism, he doesn't have money to spend.

Programs can be created by government to make unemployed person work for economy. Either employment insurance, or programs to pay people to take care of unemployed people (social workers etc).

I don't see current capitalism going away any time soon.

Had biggest recession in 60 years and already Stock market indexes are up 50% from their lows. There's nothing better to replace it that would work.

[Khan]

That's why you wait till it's cost effective and give them a job. Or wait for the state to give them welfare and keep giving them the promise of work.

[Edric O]

I only have time for a quick comment right now...

Economic systems do not end because they "stop working." They end because a class of people rise up (literally or figuratively) and overthrow the status quo. Capitalism is safe at the moment, but not because it "works." Capitalism is safe because there is no large group of people willing and able to abolish it. When such a group appears, capitalism will no longer be safe - no matter how well it may or may not "work."

[athanasios]

That group can appear out of a sudden. People revolt not when the system works well but when it doesn't work.

You simply cannot have 25% of your workforce producing nothing and getting payed*. You simply cannot have the rest working on parasitic jobs. Only a tiny fraction bears real produce. China (not to omit other underdeveloped countries with low wages) is producing almost everything and this cannot be reverted. Western countries are mere consumers. Capitalism has committed suicide.

*Even this is not capitalism anymore.

[nemafakei]

"You simply cannot have 25% of your workforce producing nothing and getting payed*"

Actually, you can. Extraction of surplus value is often much greater than that. Much of this goes to the people with large quantities of money in the right places. But it could equally go to support for those out of work. We have the technology to produce an awful lot with relatively little effort now, but much of the global product is squandered on war, mismanagement, or consumer garbage.

[Wolf]

China (not to omit other underdeveloped countries with low wages) is producing almost everything and this cannot be reverted. Western countries are mere consumers. Capitalism has committed suicide.

So what? What do the borders matter? At one point in this country, poor workmen were producing all the steel, rubber and coal we wanted and some people got rich and most didn't. The fact that we've exported the poor workmen along with the work doesn't bother me one whit--it seems that all we've done is concentrated the people-getting-rich in about 12-15 countries and concentrated the people-making-things in a few dozen more. If anything, a return to the times when America-made-things would necessarily result in the destruction of the middle class, because the middle class is a consumer demographic! Not a producer! The middle class holds down well-paying, specialized service jobs or high-tech production or management. In any case, these are not the people who make things.

[athanasios]

But it could equally go... We have the technology..., but much of the global product is squandered on war, mismanagement, or consumer garbage.

You answered yourself. It could but it doesn't. I just highlight mismanagement. As a consequence wealth goes to the pockets of the few.

... all we've done is concentrated the people-getting-rich in about 12-15 countries and concentrated the people-making-things in a few dozen more... The middle class holds down ... high-tech production ... In any case, these are not the people who make things.

Wealth is shifting to China. That is my point.

As you state high-tech is production too. And it is the only string that keeps capitalism standing. But for how long? China and India are now beyond the stage of copying high-tech. They are producing their own tech. Not so advanced like western countries but it will soon be and then "bye-bye".