Ray From Cleveland
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- Aug 16, 2015
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- #21
It's simplistic to say the working class hate the rich due to jealousy. A couple factors overlooked in the OP include wage disparity. When the middle class was strong, those owning the means of production were not paid 200, 300, 400% more than the average wage earner. There was opportunity for a wage earner and his family to advance up the economic ladder. There were solid, well paying jobs for the sons and daughters of wage earners to enter into without the cost of college education. It's not a coincidence that when the middle class was strong, labor unions were also strong.
Then came Reagan and 'trickle down' economics. What followed was a disastrous period for middle class wage earners. Company downsizing; the loss of wages, benefits and increased hours, the decimation of union collective bargaining power and off shoring of whole segments of the economy.
What seems obvious is the stronger the middle class, the stronger the economy. Our economy is largely driven by consumer spending. A concept not unfamiliar with anyone who passed an Economics 101 course. More middle class disposable income coupled with middle class leisure time means more exchange of capital within our economy. More homes built and furnished, more consumer goods produced and sold, more activity in the economy leads inevitably to both higher rates of growth and a more stable economy.
Since it was decided that a very few people should hold more capital we have seen a series of disastrous economic bubbles and their devastating bursts. Consumer banks were let into the investment bank marketplace and we had a real estate bubble. Who benefited? Not consumers whose mortgages turned out to be nothing more than poker chips in a casino about to go belly up. And, incidentally, how does a casino go belly up? And whose casinos have gone belly up?
Get more capital into more hands as quickly as possible if sustainability in growth is anything like something you would like in the American economy. Widening wage disparity leads to two unfortunate yet inevitable conclusions: economic failure or social/political revolution. History tells us so.
Utter bull. What did Reagan do to lower wages or depressing the middle-class outside of firing union air traffic control people who went on strike?
Unions decayed because the people finally realized they were the organizations that caused our jobs to leave in the first place.