Some Ancient Wisdom … And the Mysterious Disappearance of Middle Class Wealth

Peasants Contemplating Their Lord

Peasants Contemplating Their Lord

Wealth Redistribution seems to draw a bit more (but not too much more) attention when done by the Obama Administration through social spending upon specified ‘victim’ groups. Obamacare is but the latest major instance, while new immigration decrees (or ‘executive orders’) serve the same goals at lesser cost. The perennial joker in this remains the tacit fact that the cost impacts not the wealthy as claimed, but the erstwhile middle class. The poor have no money to take; the truly wealthy are armored in lawyers and lobbyists. The real money has been taken from the middle.

Another culprit is the Congress; the rules empowering corporate stockholders have altered quietly over time, emasculating the shareholders and exalting the directors. A review of CEO pay over recent decades lends wonderful clarity; the pay rocked along at a multiple of worker pay, then not long ago, shot up like a rocket. CRO pay history will show the change.

What these show inescapably is that middle class impoverishment has resulted from government policy. Further, much of the wealth conscripted from the middle has gone not to the poor, but to the wealthy. CEO pay is one example; professional athletes, actors and less generously, government workers have reaped benefits.

We’re presently informed that Obamacare  costs some $50,000 for every American with health insurance and that this unsustainable expense results in a ‘tax’ collected by the IRS from roughly, one third of taxpayers. Yeah, and the really wealthy are famously called what, these days? The “1%,” right? Not the 33.3%.

There is an ancient saying illustrative of what is going on in America (and Europe as well); it goes: “The rich get richer while the poor get poorer.” What that bit of folk wisdom leaves out is, that it is a result of government policy. A government that to date, voters still select for themselves, or at least it has that appearance. We wonder at the average I.Q. of said voters. Our politicians don’t wonder; they are assured that they know.

Best practice tugging your forelock when His Lordship rides by …

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About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much)
This entry was posted in Economics, Government, Politics and tagged , , . Bookmark the permalink.

5 Responses to Some Ancient Wisdom … And the Mysterious Disappearance of Middle Class Wealth

  1. I realise there is some difference in definition between working class and middle class between UK and the States. In UK definition of class of origin very rarely changes -however successful you are. I have known millionaire businessmen who self identify as working class (and everyone else agrees. They are NOT welcome at the high table). Likewise top managers, while eminent and respected in their respective fields, are viewed as working class by everyone else. In UK social networking/social inclusion across birth social class boundaries rarely occurs. Having no experience of USA I cannot compare your different class perception – that you sincerely believe that a person can change their class. But you might agree that the most perfect class closed shop are the ruling elite. It is extremely rare even for a person born in the middle class and successful to gain entry to that elite.
    The new/old feudal overlords never consented to the emergence of a middle class to counter their “we are above the law”/total immorality/infinite greed – those circumstances which permitted a middle class to emerge were forced on them, first by the Black Death, then the opening up of the New World.
    The middle classes in both UK and USA were slow to notice the overlords comeback because they started their attack on the working class first. Stripping out working class jobs overseas; undermining the Unions; de-skilling; undercutting remaining jobs with import of cheap labour etc. they now seem to be finishing the job by throwing what remains of the working class (people who work, not the degenerates they have been conflated with) onto the street.
    Having successfully used these methods against the working class and established the social processes involved as “normal” they are now taking out the middle class. Divide and rule. The middle class blind spots were their smug superiority to the working class so they ignored what was happening at an early stage – perhaps even profited from it, and their naive belief that the “ruling” class respects them for their middle class status. The ruling class are the quintessential xenophobes. Anyone not belonging to their aristocracy has NO status and is fair game for plunder and exploitation.

    • Jack Curtis says:

      Possession of power, wealth, education and some form of media
      celebration seem to be the primary status markers here, as I see it.
      Birth isn’t worth much, though that is quietly changing in the
      development of that ‘ruling elite.’ While snobbishness prevails across
      the social spectrum, it is most entrenched among the wealthy; “old
      money” vs nouveau etc. But it remains, compared to Europe, pretty fluid
      yet, though the trend is against that. America started as such a
      melange that class lines were simply swamped. But we manage to have as
      many social distinctions as everybody else, jut in our own fashion.

      I suspect that much of what is occurring to our erstwhile middle class
      is inherent in human DNA. We are reverting to the historical social
      mean; a significant middle class seems a historical statistical sport
      and that suggest that it is unsustainable over time?

  2. The flexibility of your class system has the world envious.
    My old Dad used to say -it’s all supply and demand. Feudalism was broken when the decimation of the population forced feudal overlords to transfer their wealth to the peasantry in higher wages. Their wealth was useless to them without workers to work the land. All wealth originates in the workers. Your New World flourished, along with the huge increase in status for women on the exact same principle. No wealth without workers. Now the world Is over supplied with workers, it’s a buyers market again – as feudalism – and most of us are expendable. I fear your image is the future for our children in their lifetime.

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