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Good article: why the U.S. middle class has been losing ground since 1980
Summary
The US economy’s real income growth has slowed sharply due to a secular decline in private net investment, undermining long-term prosperity.
Falling net investment rates, now near 4% of GDP from 8% in 1950–1980, are driven primarily by persistent government budget deficits and rising government size.
Structural deficits, transfer payments, and political gridlock make reversing this investment decline highly unlikely, portending further productivity and income stagnation.
Capital-light, monopoly-like firms may continue outperforming, but their success rests on an increasingly fragile macroeconomic foundation.
The US economy can no longer generate the real income gains or improvements in the general standard of living it once did, which fueled a sense of optimism and prosperity.
As real income gains continued to fall short of society’s expectations, calls for government solutions grew louder, but ultimately, these efforts worsened the problem.
The main issue is that real income growth is tied to productivity gains, and sustained increases in productivity growth require what’s called “capital deepening,” or more (and better) machinery, equipment, and physical infrastructure for workers, allowing each person to produce more in the same amount of time.
This capital deepening process requires continued investment in physical goods and infrastructure, and over the last several decades, the US economy has invested less and less in these critical areas. …
https://seekingalpha.com/article/486128 … rowth-went
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PlenisRe: Good article: why the U.S. middle class has been losing ground since 1980
It's been losing ground because the wealth class created a leaching mechanism which impoverishes the elderly and sick. The lack of generational wealth transfer is what's notable about the middle class since the 80s.
What you've written is just wealth class shuffling it's own deck, and means nothing to working class people.
To improve middle class capital, you must address the institutions which have been formed to diminish that wealth by design: Insurance, health care, elder care, child care, education and housing.
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Re: Good article: why the U.S. middle class has been losing ground since 1980
It's been losing ground because more and more low achievers from other countries are invading this country bringing with it a class of people not willing or unable to work in high paying jobs. These people also are a drag on the economy with their needed social services.
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SpankyRe: Good article: why the U.S. middle class has been losing ground since 1980
I wonder if anything interesting happened in 1980?
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VP_Spiro_T_CheneyRe: Good article: why the U.S. middle class has been losing ground since 1980
Plenis wrote:
It's been losing ground because the wealth class created a leaching mechanism which impoverishes the elderly and sick. The lack of generational wealth transfer is what's notable about the middle class since the 80s.
What you've written is just wealth class shuffling it's own deck, and means nothing to working class people.
To improve middle class capital, you must address the institutions which have been formed to diminish that wealth by design: Insurance, health care, elder care, child care, education and housing.
If you think that’s the cause, feel free to refuse health care as you age so you can pass your assets on intact.
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Re: Good article: why the U.S. middle class has been losing ground since 1980
Spanky wrote:
I wonder if anything interesting happened in 1980?
Yes. Tony Coelho convinced the Dems that they too could successfully court corporate sugar daddies, just like the Republicans had done since the 1920s.
This of course necessitated paying less and less attention to the economic interests of their trade union base, which predictably withered as a result.
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SpankyRe: Good article: why the U.S. middle class has been losing ground since 1980
wrote:
Yes. Tony Coelho convinced the Dems that they too could successfully court corporate sugar daddies, just like the Republicans had done since the 1920s.
This of course necessitated paying less and less attention to the economic interests of their trade union base, which predictably withered as a result.
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Bagger WiseRe: Good article: why the U.S. middle class has been losing ground since 1980
IOW "Give the billionaires even more money, make the common people suffer even more"
It's actually very simple: we are too top heavy.
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Bagger WiseRe: Good article: why the U.S. middle class has been losing ground since 1980
I remember the late 80s and 90s. My dad made six figures as a welder. He got the job out of high school with no college. The company had their own in-house health insurance. IT was not outsourced but their own private company insurance they owned. Both my parents worked for the company so we did not have to pay and co-pays or deductibles at all.
It was a union job. MY dad also got free legal service. When I got a seat belt violation at 17, a union lawyer actually appeared for us and it was completely free. It was almost comical really to have a lawyer for that but since it was free we had one.
Compare to today. Yeah....
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Bagger WiseRe: Good article: why the U.S. middle class has been losing ground since 1980
We've traded a strong middle class basically for "billionaire worship."
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Re: Good article: why the U.S. middle class has been losing ground since 1980
Spanky wrote:
What part of that is false?
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