Saturday, July 6, 2013

Why the United States is no longer number 1

America is the richest country on Earth. We have the most millionaires, the most billionaires and our wealthiest citizens have garnered more of the planet's riches than any other group in the world. We even have hedge fund managers who make in one hour as much as the average family makes in 21 years!

This opulence is supposed to trickle down to the rest of us, improving the lives of everyday Americans. At least that is what free-market cheerleaders repeatedly promise us.  Unfortunately, it's a lie, one of the biggest ever perpetrated on the American people. Our middle class is falling further and further behind in comparison to the rest of the world. We keep hearing that America is number one. Well, when it comes to middle-class wealth, we are number 27!

The most telling comparative measurement is median wealth (per adult). It describes the amount of wealth accumulated by the person precisely in the middle of the wealth distribution – 50 percent of the adult population has more wealth, while 50 percent has less. You can't get more middle than that.

Wealth is measured by the total sum of all our assets (homes, bank accounts, stocks, bonds etc.) minus our liabilities (outstanding loans and other debts). It the best indicator we have for individual and family prosperity. While the never-ending accumulation of wealth may be wrecking the planet, wealth also provides basic security, especially in a country like ours with such skimpy social programs. Wealth allows us to survive periods of economic turmoil. Wealth allows our children to go to college without incurring crippling debts, or to get help for the down payment on their first homes. As Billie Holiday sings, "God bless the child that's got his own."

There are 26 other countries with a median wealth higher than ours. Why?

  • Weak labor laws undermine unions and give large corporations more power to keep wages and benefits down. Unions now represent less than 7 percent of all private sector workers, the lowest ever recorded.
  • Our minimum wage is pathetic, especially in comparison to other developed nations. (We're # 13.) Nobody can live decently on $7.25 an hour. Our poverty-level minimum wage puts downward pressure on the wages of all working people. And while we secure important victories for a few unpaid sick days, most other developed nations provide a month of guaranteed paid vacations as well as many paid sick days.
  • Wall Street is out of control. Once deregulation started 30 years ago, money has gushed to the top as Wall Street was free to find more and more unethical ways to fleece us.  These people do not contribute anything to society.  They make nothing tangible – they are takers.  They feed on our financial structure, sucking our country’s wealth and resources to the top.
  • Higher education puts our kids into debt. In most other countries higher education is practically tuition-free. Indebted students are not likely to accumulate wealth anytime soon.  
  • The wealthy dominate politics. Nowhere else in the developed world are the rich and their corporations able to buy elections with such impunity.
  • Big Money dominates the media. The real story about how we're getting ripped off is hidden in a blizzard of BS that comes from all the major media outlets...brought to you by....corporations.
  • America encourages globalization of production so that workers here are in constant competition with the lower-wage workers all over the world as well as with highly automated technologies.
Our tax structures favor the rich and their corporations that no longer pay their fair share. They move money to foreign tax havens, they create and use tax loopholes, and they fight to make sure the source of most of their wealth – capital gains – is taxed at low rates. Meanwhile the rest of us are pressed to make up the difference or suffer deteriorating public services.

Read more here: Big Lie – America Doesn't Have #1 Richest Middle-Class in the World...We're Ranked 27th! By Les Leopold


 

Friday, July 5, 2013

GOP is killing American exceptionalism

America is near the end of its thirty year slide into second-rate status. it is all due to the Republican drive to give most of this country's wealth to the richest one-percent. It began with Republican deregulation of the financial industry that gave Wall Street power to transfer wealth from the middle class into the coffers of the wealthy. Then they hide their money offshore to avoid paying taxes to support the country that made them wealthy.
 
The final blow was the 2008 crash caused by Wall Street's and Big Banks' derivative trading – gambling with mortgage securities. Derivative trading is what caused tens-of-millions of Americans to lose their jobs, bankrupted retirement accounts, and millions of middle class Americans to lose their greatest asset, their homes.

In many citizens’ minds, America is extraordinary, special, and the best place on the planet to live. Among those in the GOP, this perception is based on absolutist ideology and gross lack of knowledge of circumstances in other countries. Yes, there was a time when America was exceptional – over thirty years ago when people had the opportunity to attain the American dream of a middle class income through hard work and perseverance. However, about thirty years ago a b-movie actor ushered in the era of America’s decline when his directors gave him a script to convince ignorant citizens that handing over the nation’s wealth and assets to the rich and their corporations was the key to middle class success.

Trickle down economics is not working. The only thing that has trickled down is hardship. Middle class income has stagnated and even lost ground in many cases. The results have been that America is no longer exceptional and is rapidly deteriorating into an inferior second-rate status compared to the rest of the developed world.

Yes, America is the richest nation on Earth. It is home to the most millionaires and billionaires of any country on the planet. But that is where the exceptionalism ends. In just about every other category, America is very behind the rest of the world. Many Americans are led to believe the country’s “great middle class” is proof positive the nation is exceptional, but according to the “Global Wealth Data Book 2012″ America’s middle class ranks 27th in wealth – behind poorer nations such as Spain, Ireland, France, and Cyprus. And to top it off, due to thirty years of Republican policies, the American middle class is watching what little they have left transferred to the richest one-percent.

The U.S. has fallen behind the rest of the western world in standard of living. The problem is the weak labor laws that give corporations and big business the ability to pay poverty wages with few benefits. In nearly every other industrialized country, every country provides healthcare, every job provides at least a month of guaranteed paid vacation, and as many paid sick days as one needs to recover from illness or injury. Republicans are now busy passing laws making it illegal to provide paid sick leave. The Republican House of Representative just passed legislation eliminating overtime pay. They are also trying to eliminate worker compensation rules for on-the-job injuries and have said that they would like to abolish the minimum wage. America’s inadequate minimum wage is 13th among developed nations. Abolishing the minimum wage would put American labor on par with peasants in third-world countries.

ALEC’s Republican right-to-work states have more poverty-level residents than do other states while their corporations haul in record profits. Yet, these states actually get more federal dollars given to them than they pay into the national coffer.

America has the WORST healthcare system among modern nations because few can afford it, and even if they can, this country’s people have the worst health outcomes of all other industrialized countries on Earth. In the event of a serious health issue or injury, Americans are guaranteed to join the poverty ranks making the Republican drive to destroy the Affordable Care Act all the more Draconian. In many Republican states, at the behest of the Koch brothers’ Americans for Prosperity organization, the GOP is desperate to make senior citizens’ Medicare and Social Security a thing of the past regardless of the fact they paid into it their entire working lives.

In nearly every country on Earth a college education is virtually tuition-free and yet in America, Republicans decry spending on any education and are driving college students into life-long unsustainable debt to enrich the banking industry. In most Republican states, ALEC templates are diverting public school funds to private religious schools to enrich corporations and create the next generation of ignorant Americans claiming the nation is exceptional.

America’s social programs and safety nets are among the worst in the world.  Instead of bolstering them to help Americans climb out of poverty, Republicans slash them to provide tax breaks for the rich and corporations. Because of this, nearly a quarter of America’s children are living in poverty with millions of Americans earning insufficient wages to put nutritious food on the table. The idea of ever achieving anything more is being thwarted by Republicans in all areas of government, but particularly in the states. Right to work laws, banning minimum wage, eliminating Medicaid, eliminating Medicare and Social Security, prohibiting paid sick leave, robbing food and housing assistance for seniors and the poor to provide more of the nation’s wealth for the rich and their corporations are all part of the Republicans’ three decade effort to destroy the middle class.

America was once an exceptional nation due to the rise of the great middle class. This rise happened after WWII under Democratic policies. Since Reagan, Republicans’ thirty year effort to destroy the middle class is reaching fruition as we slide into a nation of peasants with a ruling wealthy class.

President Obama said, “…our country cannot succeed when a shrinking few do very well and a growing number barely make it. America’s prosperity must rest upon the broad shoulders of a rising middle class. We know that America thrives when every person can find independence and pride in their work; when the wages of honest labor liberate families from the brink of hardship. We are true to our creed when a little girl born into the bleakest poverty knows that she has the same chance to succeed as anybody else, because she is an American, she is free, and she is equal, not just in the eyes of God but also in our own.”