Middle class being wiped out

Middle class being wiped out

Dec. 2, 2012

By John Seiler

It’s not just the recent economic and political nonsense by both parties that’s hurting the middle class. It’s more than four decades of it. A new study finds:

“The median net worth of American households has dropped to a 43-year low as the lower and middle classes appear poorer and less stable than they have been since 1969.

“According to a recent study by New York University economics professor Edward N. Wolff, median net worth is at the decades-low figure of $57,000 (in 2010 dollars). And as the numbers in his study reflect, the situation only appears worse when all the statistics are taken as a whole….

“Fully 85 percent of self-described middle-class adults say it is more difficult now than it was a decade ago for middle-class people to maintain their standard of living. Of those who feel this way, 62 percent say “a lot” of the blame lies with Congress, while 54 percent say the same about banks and financial institutions, 47 percent about large corporations, 44 percent about the Bush administration, 39 percent about foreign competition and 34 percent about the Obama administration.”

Typical of these polls, the real culprit was not fingered in the question: The U.S. Federal Reserve Board. In 1968, Richard Nixon — native of Orange County, Calif. — was elected to protect the “silent majority,” as he called it, a/k/a the middle class. In 1971, the fool took us off the gold standard.

Since then, the Federal Reserve Board has waged an unrelenting assault on the middle class by debasing the currency, with the dollar’s value dropping from $35 an ounce of gold in 1971 to $1,711 today. That’s a loss of 98 percent of its value.

In the 1970s, tax rates remained the same — meaning the middle-class was jammed up into higher-income tax brackets, where they remain. Reagan indexed the rates to inflation, but only as of 1985. It wasn’t retroactive.

So, in 2012 Mr. & Mrs. America  pay the high tax rates of millionaires of 1971.

Reagan’s tax cuts, although needed, mainly went to the wealthy. The middle class got tax cuts from the Gipper. But he also increased the FICA/Socialist Security tax as part of the Greenspan Commission in 1983. Those tax increases essentially repealed Reagan’s middle-class tax cuts.

And inflation is why the middle-class in California pays the staggeringly regressive state income tax rate of 9.3 percent, which in the 1960s only affected millionaires.

Greenspan later, of course, became the inflationist head of the Fed, his policies especially destroying the dollar when he panicked after the 9/11 attacks in 2001.

Today, President Obama, Democrats running the Senate and Republicans running the House don’t really care about the middle class. If they did, they would take retiring Rep. Ron Paul’s advice to “End the Fed.

And they would roll back middle-class tax rates to 1971.

If you’re in the middle class, as I am, here’s your future:

3 comments

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  1. Eric Blair
    Eric Blair 2 December, 2012, 09:55

    Nixon was’nt a ”fool”, to take us off the gold standard; He was under orders from David Rockefeller who resurrected Mixon’s political career. And it was’nt the GOLD standard; That had already been done-away with. Nixon took us off the SILVER standard. None of this has been done out of ”stupidity” it has and is being done by design. Read ”CALL IT CONSPIRACY” by the late Gary Allen and ”RULE BY SECRECY” by Jim Marrs.

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  2. Dyspeptic
    Dyspeptic 2 December, 2012, 11:44

    Most Middle Class Americans are suckers. They believe the drivel they were taught in school assuming they even learned that. Most people are low information, self absorbed with their daily lives and largely ignorant of what politicians are doing to them. How many young people get there history and political philosophy from Hollywood movies and late night TV jokers?

    100+ years of progressive government monopoly education has done an outstanding job of turning Americans into mush heads. Inadequate critical thinking skills, a stunted knowledge base and a simple lack of skepticism makes people suckers. Politicians love low information voters. They’re easily fooled with empty promises and scary attack ads. It’s de facto rule by the lowest common denominator in society.

    After Obama and his gang get done squeezing Congressional Republicans till their beady eyes pop out we will get lots more spending, absolutely no deficit reductions and higher and higher taxes FOR THE MIDDLE CLASS TOO. You can’t satisfy the voracious appetite of the tax feeders just by looting the rich. The CBO says Obama’s 10 year budget projection involves $2.6 trillion in spending increases but ending the Bush tax cuts for the “rich” only brings in $950 billion. So where are they going to get the rest? Anywhere they can. Increased payroll taxes, carbon taxes, increased gas and energy taxes, health insurance taxes, a national value added tax like they have everywhere in Europe and on and on and on.

    It will be worse in Crazyfornia because here the process of Europeanization is 25 years ahead of the rest of the country. But hey, the weather is nice right?

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  3. jimmydeeoc
    jimmydeeoc 3 December, 2012, 11:11

    As unfortunate as the message is, I always love your stuff, Dys…..

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