Ernie, you are so out of touch with the current economic realities, you might as well be living on another planet. In this day and age, it is possible live your life exactly have you did and still be financially screwed by the current economy.
Ronald Reagan completely restructured the US economy using many, but not all of the free market ideas touted by the Chicago School of economics, and until the worst of the damage he did is undone, nothing will change. The rich will continue to get richer, the poor will get poorer, and the middle class will continue to lose ground.
Everyone should read the Forbes article that Dad posted upthread. The bipartisan Congressional Report, which the GOP tried to bury, concludes that cutting taxes does not create jobs. All is does is facilitate the transfer of wealth from the poor and middle class, to the wealthy. This isn't the Huffington Post or MSNBC telling you this, this is Forbes, one of the most right wing, business friendly publications out there.
Prior to Reagan's economic re-structuring, every strata benefitted from growth of the GNP, and economic boom. Since the re-structuring, only the wealthy have benefitted. In addition to the tax cuts, Reagan's administration went on a spending spree the likes of which had not previously been seen, all of it on borrowed money. It gave the country the appearance of prosperity, but it was an illusion. It's like your neighbor buying a new car, new furniture and a designer wardrobe. Your think he's doing really well to be able to afford all of this stuff, but he bought everything on credit. Supposedly, the increase in tax revenues from the increased income from all of this spending, would pay for the tax cuts, but it never happened.
The next thing that Reagan did, which was straight out of the Chicago School playbook, was to declare war on the unions. His 1983 attack on the air traffic controllers union was just the opening salvo. His administratin stopped prosecuting union busting activities, and cut the Department of Labour's budget by 10%.
I'm not a huge fan of unions, personally, and I've never been a union member, but I have come to understand and appreciate that without unions, employers are free to run roughshod over their employees and there's little individuals can do to protect themselves, if the company they work for choses to ignor labour laws or even treat employees with a modicum of decency. Unions helped build a strong and resilient middle class (which is a necessity for a healthy, bibrant economy). Without them, wages, have stagnated, and the gains won through hard fought negotiations have withered away. The PR job the right has done on unions has convinced the general public that unions are the tools of Satan, and should be destroyed. They're not and they should be thanked, not vilified.
The last point I will raise in this post is that Reagan gutted the Anti-Trust Legislation. Conservatives will remind me that Reagan used anti-trust legislate to breakup AT&T early in his first administration but from that time forward, he introduced legislation which authorized the president to order an exemption for industries determined to be hurt by foreign competition. Reagan used Chicago School principles that "bigger is better" to undermine the Sherman Act, and other anti-trust laws. This set off a wave of mergers and acquisitions, which continue unabated.
With each big merger, there are job losses. Not low income job losses, but good middle class jobs. When Pfizer and Wyeth merged, and then merged with Astro-Zeneca, over 30,000 people lost their jobs among these three firms. With corporations awash with cash, they're not hiring or expanding, they're merging. Large mergers and acquisitions are slowing the recovery of jobs lost in the recession, and help to explain why there are fewer and fewer middle class jobs.
Walmart has become so large, that it can dictate wages and employment practices across the entire retail sector. And not just the retail sector, but amongst their suppliers as well. Many American companies have been forced to move manufacturing offshore to meet Walmart's price demands. Walmart's use of food stamps and Medicaid to subsidize wages are now costing every US taxpayer $2500 per year, whether you shop there or not.
It's time to break up the mega-corporations, re-write the tax code, and undo the economic damage visited upon the US economy by Saint Ronnie and the Chicago School of business, before the middle class is completely destroyed.
Who Broke America rsquo s Jobs Machine - Barry C. Lynn and Phillip Longman