I wish I had a dime for every time in the last 30 years I’ve heard people bemoan America’s loss of the middle class. It would be even better if they understood the reason why.

I thought about this sad state of affairs Monday evening while listening to commentary from Wayland City Council members who believe city employees’ paid time off and comp time benefits are too generous. It appears they plan to make changes in what has been policy for the past 10 years.

To be sure, city officials must be good stewards of taxpayers’ money. We cannot abide a city government that spends money like a drunken sailor and then goes into a financial hole. To be sure, this unpleasant policy discussion doesn’t really affect a lot of people.

What troubled me more was a common attitude that has developed slowly, but convincingly over the past 35 years in which working people who in years past were considered middle class now struggle to live paycheck to paycheck and even need their spouses to work to make ends meet. It seems we are not sympathetic at the same time we don’t bat an eye when a corporate CEO gets a hefty raise to continue widening the gap between rich and poor. They’re too big to fail.

It sounds like old hat, but it’s true — The American middle class began to decline in 1981 with the introduction of “Reaganomics.”

President Ronald Reagan’s economic policy, inspired by the Laffer Curve and shepherded by Budget Director David Stockman, featured a massive tax cut for the wealthiest citizens, from a high of 70% to 28%. The explanation was that the richest Americans would use that extra money to invest it back into the economy and the poor and middle class would benefit from the “trickle down effect.”

Stockman several years later resigned and flatly stated in his book, “The Triumph of Politics,” that it doesn’t work. Budget deficits and the national debt began to soar because the federal government was taking in less revenue, yet spending a lot more on defense.

It was in the late 1980s when I often shared my fears that the rich were getting richer and poor were getting poorer. My comments, as usual, were dismissed and greeted with laughter from people who insisted it wasn’t true.

Since then it has become common knowledge that income inequality has reached almost incredible levels, to the point that the United States is flirting with a gap as wide as many Third World countries.

Conservatives who continue to be hucksters for trickle down economics and still worship “St. Ronnie” often tell us the poor are poor because they spend their money foolishly, manage their credit badly and too many of them lack ambition to pull themselves up by their bootstraps and go out and make their fortune in the free market arena.

We have become so accustomed to worshipping rich and sometimes devious people that we seem to lead fantasy lives in which we want to be just like them, just like I’d like to be “Just Like Mike” Jordan.

Those at the top of the income pyramid want working stiffs to dream about advancement they’ll never experience, and even better, they want poor and lower middle class folks to fight with each other over whatever spoils still exist. And they want us to hate the government as the culprit.

That distracts us from the “owners” who have orchestrated this wealth disparity mess. They hide behind the spineless government officials, Democrats and Republicans alike, to do their bidding because they are paid to do so and because of court decisions such as Citizens United.

But when it happens close to home, when I hear normally decent people complain that they didn’t have such generous benefits at the private company where they worked. They would rather punish others who get “generous” benefits than lobby to improve their own benefits from their own employers. Where are unions when you need them? They disappeared with the middle class.

Two huge problems are that when you reduce wages and benefits, you may find it difficult to attract quality employees. And if you continue to lower benefits and wages, the huddled masses are less able to purchase goods and services. That’s not good for the economy.

I honestly believe our nation is in decline, and I maintain its eventual destruction began 36 years ago. Because of the skill of marketing and advertising and its massive powers of persuasion, we’ve been conned into thinking everything is all right and rich people, celebrities and athletes know and deserve best.

A troubling quote misattributed to Mark Twain — “It’s easier to fool people than to convince them that they have been fooled.” It still applies, regardless of who said it.

6 Comments

Basura
March 26, 2017
This analysis is correct. Trickle Down Economics doesn't work, because the wealth tends to accumulate rather than trickle to the people. The proposed - and withdrawn Republican healthcare plan - with great benefit to the wealthiest Americans, was the most recent example of this discredited theory (or cynical manipulation, if you prefer different terminology).
Robert M Traxler
March 26, 2017
Two problems with your theory. Incomes rose for all when President Reagan’s tax plan had time to go into effect, and you forgot the Great Depression. Talk of income inequality: we had 25% unemployment, it was very unequal. President Reagan was a very popular President, winning his second term with a huge margin. If the American people believed he was so terrible, what happened? You guys will say because we are all just stupid or fooled, but mostly stupid. “A rising tide floats all boats,” Trickledown economics, was a policy of whom? Oh, President Kennedy, that well-known Republican, what… wait, wasn’t he a liberal? Even Karl Marx saw the benefit in a free market. Nice to know you folks are to the left of Karl Marx, and please let me add that you are proud of it. Free enterprise works, Socialism always fails.
Pat Brewer
March 26, 2017
Yes, "A rising tide floats all boats"; but it does you no good if you cannot afford to buy a boat!
Free Market Man
March 28, 2017
Stating the obvious, but evidently it's not - reasons the middle class is getting squeezed smaller and smaller (not in any particular order): 1) NAFTA 2) Illegal immigration (making labor cheaper) 3) More, higher taxes and fees 4) Wonderful Obamacare (which will fail on its own) 5) People who don't question anything, not being informed, don't care, apathy to what is happening to them. 6) Politicians voting themselves raises/benefits/insurance and not under what they legislate to us. They go in regular people and come out multimillionaires. How does that happen without graft and corruption? They have expenses just like us. They don't have millionaire salaries, but they all come out rich.
David Rose
March 28, 2017
I agree with Mr. Young's timeframe but completely disagree with his cause. The explosion of technology during the 1980's and beyond has eliminated many of the low-skilled middle class jobs of the pre-Reagan era. Michigan was hammered by low-skilled manufacturing jobs that disappeared through automation. Michigan manufacturing has increased over that time despite the reduction in employment. It is happening today in retail, online versus Sears, and many other businesses. The JOLTS report published monthly by the US Bureau of Labor Statistics shows a record number of jobs that are not being filled because of the lack of skills. A high school diploma will no longer guarantee a middle class lifestyle. Post-secondary education through college or vocational training is now necessary. Mr. Young is correct in one aspect of Reaganomics; the freedom of tax and regulatory relief allowed entrepreneurs the capital and economic return to innovate and develop. The technology that we complain about and rely on came about because of this economic freedom. A much greater life than we would have had with the Carter malaise and pessimism.
Free Market Man
March 28, 2017
Add President Obama's malaise and no-growth government programs, regulations and excessive taxation, and stupid government "investments" (Cash for Clunkers, green energy like bankrupt Enron and solar panel manufacturers to name just a few). Mr. Young (and other like-thinkers) "feel" big government is good and sees nothing detrimental to the growth of government and confiscation of our money in taxes and fees. He thinks the "little people" like you and I are rubes, idiots, and knuckle-dragging Neanderthals. He and other Democrats/Moderates have no respect for the average American and loves all immigration, especially illegal aliens (yup, I said it) and thugs crossing our borders, creating chaos in our streets. The success of the nation as it was and is presently not immigrants coming to America to start up separate nations or enclaves of like thinking immigrants - they were immigrants willing to come to a new country, learn a new language, and contribute and swear allegiance to the United States of America. Diversity did not make this country great - FREEDOM and LIBERTY did! It allowed those to rise up in society (based on their hard work and grit) and prosper, and practice their religion in a new country without restrictions. We always forget the cornerstones of why this country was created and it is time we recognized what makes us great! Remember - FREEDOM and LIBERTY!!!

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