The large companies in the US have sent a large number of their production factories to other countries because of cheaper labor. By doing so, they have had to fire (lay off) a large number of workers in the US. When the companies did this they created a larger profit for all of their top managers/officers and their stock holders who are only interested in making money, but what does it do to their consumer base.
With a larger and larger unemployment list, there are actually less and less middle class who can buy these products, which now have to be imported. But the rich don’t mind as long as they keep getting their profits.
But what happens to the country itself? There are less and less taxes coming in from the middle class so it has to come from some-place. But where? The Congress under the Bush Administration (Bush is one of the rich people) created the tax law where the rich would pay less on their income. Just when the country needed more cash to support all the programs that were started because of 9/11.
Governments are really non-profit organisations. If an organisation was run in a similar manner they would soon be unable to help any of those they were created to help.
A company looks for ways to save money and give the person or persons a bonus to those who they feel saved them a large enough amount. A government punishes those who come up with ways to save millions of dollars for their department, by saying the department will need less money in the appropriations next year. They don’t look at how they saved the money, only that everyone is supposed to spend every penny which congress has alloted them.
One huge case in point is the US Air Force. They are alloted a certain amount of money with which to purchase their jet fuel. Only by special permission of Congress can they get any extra fuel if it is needed. But if they try to save on fuel and have extra over at the end of the fiscal year, that amount will be deducted from their appropriations. So what does the Air Force do? They wait until the last month of the fiscal year and if there is any surplus fuel, there will be a flood of “training” flights to make sure that all fuel is used.
This is all nice and clean but if the companies are no-longer producing in the country, how do they expect the middle class (which is disappearing fast) to purchase all of the now imported products?
As I said above, its good for the countries that now have the factories for with the income from all the workers, their middle class is growing. This makes their economy healthier while the US gets sicker. This is what has been happening to 2 countries in Europe, Greece and Portugal. Neither has a manufacturing base that can produce products that can be exported to other countries and bring in a larger amount to help balance their import/export flows.
Do you want your country to continue on with this type of attitude? Some thing should be done about it and Obama was punished by congress for trying to bring the tax level back to the same level it was before Bush took over.
Do I sound P.O.’d? You bet I do because I am starting to feel that if something isn’t done soon, the US will become a 3rd rate nation.
- After the crash: the pauperisation of middle-class America | Richard Wolff (guardian.co.uk)
- salestax (creditloan.com)
- In the fast lane to the middle class (csmonitor.com)
- American income inequality ignorance (rt.com)
- Workers in trouble: US middle class disappearing (rt.com)
- What the Middle Class Tax Credits Could Mean for You (turbotax.intuit.com)
- Income Inequality in America (chicagonow.com)
- Defining ‘middle class’ (csmonitor.com)
- America’s Vanishing Middle Class: A Tale of Two Economies (blogs.hbr.org)
- Reverse Offshoring? Or Yet More Evidence of Corporate America’s Squeeze on Workers? (alternet.org)
- Why the Rich Love High Unemployment (lonerangersilver.wordpress.com)
- Price and Convenience vs. Ethical Issues (savings.com)
- Corporate profits are no sure sign of economic strength (seattletimes.nwsource.com)