13 Mar

What follows is an analysis of the American economic-social structure.

The pyramid structure:

One percent owns 15 trillion dollars :the banks.

10 percent owns 35 trillion dollars.

9 percent owns 20 trillion.

90 percent of the population owns 10-15 Trillion.

The US cities with the worst inequality include Atlanta, New Orleans, DC, Miami, NYC. On the level with Buenos Aires and Santiago and Abidjan and Nairobi.

The European safety net. Guaranteed healthcare. Greater vacation and pension benefits.

US business system is dynamic: note: Winner take all.

Elizabeth Warren, “The fragile Middle class”. Harvard.

The middle class we once knew may disappear. “The two-class economy , a substantial upper class that’s financially secure, and a large underclass that lives paycheck to paycheck.”

US News and World, Feb 9, 2009

Note: In other words, the Marxist vision of class warfare and the collapse of the middle, leading to…inevitable victory of the proletariat, after the Revolution.

“Middle class lacks security” says  Jared Bernstein, EPI

The income of the middle class is about $50,000.

Pew study middle class = $45,000  to $89,000 for a household of three. $15-30,000 per person living on.

123,000 $ is middle class in Manhattan, whereas in Houston it’s $50,000.

$45- 50,000 is the median.

“It used to be the middle class was able to achieve the American Dream of owning a decent home in a safe neighborhood with a good public school, having access to affordable health care, saving for college and retirement, and going out for the occasional meal, movie and vacation.” Bernstein. Along with “job security”.

“The problem is that many middle class families are no longer able to afford this dream.”

The m. class financed through ‘debt’. From 74 percent to 132 percent rise in debt , from 1979-2008.

Note: The very period of “Reaganomics.”

Increase in debt, dearth of savings. Total hh debt is now 132 percent of personal “disposable” income.

Translation: “If they earn 45, 000 they spend 70k or more”.

Note: 2/3 US economy is “consumer spending”. The fucking banks debt-financed this debacle.

Our savings rate dropped from 12 percent to ZERO.

The costs of the basic building blocks of the middle-class lifestyle – housing, healthcare, and education- have been rising much faster than people’s median incomes. Now as companies rescind credit lines, and good jobs disappear, this thread is breaking.

Worst job mkt, declining income opportunities, elimination of credit options, payments on homes with declining value, increasing unemployment, decreasing access to affordable healthcare for many, drastically reduced liquidity and pension-related assets. The financial standing of many families may not survive.

4/5 middle class families lack the basic financial security to weather the current ‘downturn’ (i.e. depression). They lack the net assets to survive for even three months with spending at ¾ of current expense levels, should their source of income disappear.  Source: Brandeis

Services replaced industrialism

The history of mankind is one of exploited labor. We must raise our voices for the voiceless.

There is a structure to the capitalistic system.

Chris Matthews, MSNBC reporter, noted that nearly Fifty percent of US population pays zero income taxes (the working-poor). They never move up the ladder. On workers, there is a 35 percent tax rate.

However, Zero to 15 percent pay Wall Street‘s Tax rate.

Hence,  capital is taxed less than labor, a point made by Warren Buffett.

Wal Mart pays its workers LESS than 33 percent what a union would pay. It most likely is behind the Republican Govenor Scott Walker’s yearlong move in Wisconsin to destroy the unions.

The capitalist class protects its own interest, but demands that the working-class have no one to protect its interest, its right to a livelihood. The capitalists want a defeated, impoverished, voiceless working-class.

Politics in America is CLASS WARFARE of the strong against the weak. Every time you shop at Wal Mart you are helping to enrich the few and powerful, who use the political system in order to keep the weak down.

Fifty percent of the national budget goes to the WAR MACHINE, the Pentagon and Dept. of Defense. That’s money that doesn’t go to schools, roads, bridge-repair and other necessities.


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