Decline of the American Middle Class

The nation's middle class, pillar of the U.S. economy and foundation of the American dream, has declined over the last 38 years to the point now where it no longer constitutes the majority of the adult population. As families increasingly struggle to pay the bills from month to month the American middle class is continually shrinking. It has become exceedingly clear that “the American Dream” is dying and the future is dimming for ordinary hard-working Americans.

Republicans loudly tell American voters they want to “make American great again.” But it is the conservative trickle down Reaganomics agenda that has increasingly enriched the rich by relentlessly reducing the ability of government to provide a fair and level economic playing field for American middle class workers. Government now works for the wealthiest Americans and multinational corporations, not American middle class workers.

Over the last 38 years, Americans have been working harder, producing increasing levels of economic growth, but they’re not getting rewarded with any extra pay.

Between then and now, productivity, or the amount of economic output generated by an average hour of work, grew 72.2 percent. On the other hand, pay for the typical worker rose just 9.2 percent.

Things have gotten even worse since 2000: net productivity has grown 21.6 percent since then, yet inflation-adjusted compensation for the median worker grew just 1.8 percent.

How the GOP Tax Cut Will Shrink Your Paycheck

When Republicans cut taxes, wages go down or stay flat for working people. Ultra-rich billionaires who own the Republican Party know that when working/middle-class people get a tax cut, it means that over time working-class wages will go down – which is why they’re more than happy to give us all a temporary tax cut.

This is what wealthy people know that most Americans don’t: Tax cuts for truly wealthy people increase their income and wealth; tax cuts for working people actually decrease their income and wealth over time. This is because of what economist David Ricardo referred to as the “market for labor,” as well as the different ways working class versus rich people use their “extra money.” Here’s how it works: Read the rest of the story at AlterNet: How the GOP Tax Cut Will Shrink Your Paycheck

Is Manufacturing’s Future All Used Up?

Of all the titans of our new Gilded Age, the only one to attain the status of culture hero was—and still is—Steve Jobs. This wasn’t simply a function of his personal magnetism, though he certainly outshone such apparently amiable schlubs as Bill Gates and Mark Zuckerberg, and the cipher that is Jeff Bezos. It was also because, unlike his fellow creators of cyberspace, Jobs produced the tactile, palpable portals into cyberspace. He made things—handheld objects that changed people’s lives.

And yet, few of his fans think of Jobs as a manufacturer. Certainly, his biographer, Water Isaacson, doesn’t. In his lengthy 2011 biography of Jobs, there’s only one glancing reference to the massive Chinese factories where iPhones and other Apple products are assembled—a stray remark that Jobs once made to President Obama, saying that “Apple had 700,000 factory workers employed in China.”

If those 700,000 were employed directly by Apple, of course, then Apple would be the world’s largest manufacturer. Instead, Apple conceals its factories—and responsibility for the working conditions there—behind two Chinese walls. First, it subcontracts its production work to Foxconn, a Taiwan-based company. Second, as Joshua Freeman notes in Behemoth, his fascinating history of factories from 18th-century Lancashire to 21st-century Guangdong, the massive factories of Foxconn City in Southern China are off-limits to journalists and other prying eyes. It was only the wave of worker suicides there in 2010 (many committed by workers hurling themselves from the roofs of their dormitories, which Foxconn sought to counter by installing nets beneath the roofs) that brought, however briefly, this immense complex of factories to public notice.

Read the full story at The Prospect - Is Manufacturing’s Future All Used Up?

Telling Voters What Democrats Stand For

Democrats stand for many things that are popular with a majority of Americans. They oppose cutting tax rates for the wealthiest taxpayers and multinational corporations. They oppose changes to Medicare and Social Security that would reduce future benefits or notably alter eligibility requirements. They oppose laws that disenfranchise voters and restrict reproductive healthcare access and choices. And they want some immigrants, known as "dreamers," to be able to stay in this country.

But there are hard questions for the Democrats.

What exactly is their health-care policy likely to be in the future? Expand Medicare and Medicaid benefits for senior citizens? Stand pat with the 2010 Affordable Care Act that still leaves at least 30 million Americans without healthcare, or move toward a Medicare-for-all type of plan.

What is their economic policy, other than rhetoric about helping working families? What is their response to concerns among many workers about the impact of automation and globalization that leaves increasing numbers of Americans without employment. What is their response to the weight of student load debt carried by so many, and tution costs that put college and trade school access increasingly out of reach of young Americans.

Democrats see a divided Republican Party led by Trump as an easy target for criticism. For now, that will remain the principal focus heading into the midterm elections. But as they begin what amounts to a three-year campaign cycle of midterm elections followed by a critically important 2020 presidential race, will Democrats be forthright in assessing and dealing with their own vulnerabilities?

Read more at WaPo - Democrats think 2018 will be a good year, but are they realistic about their own problems?