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Middle-Class Squeeze

    📂 Financial,Politics     # , ,     🗨 No Comments

I haven't looked at the details of the latest tax agreement reached between Obama and the Republicans, but judging by its face value, it's yet another jab at the middle-class who's always the punching bag of everyone else.

So let's get this straight. The super-rich get to keep their unfair tax advantages squirreling away their monies in their foreign accounts and gold and enhancing their hedonistic lifestyles. In other words they'll just keep richer and filthier. The unemployed continue to receive their unemployment checks well beyond the reasonable term the unemployment insurance was meant for. In other words they'll just get lazier and keep coasting along on other people's dime.

The twisted logic is that by making the super-rich even wealthier, they'll be motivated to hire more people thereby spurring job growth. An the other end of the twisted logic the longer the unemployed receive checks, the more they're encouraged to spend thereby spurring economic growth. The flaw in both arguments is that neither case has been able to definitively prove its intended results.

What's proven is that these reckless policies have helped balloon the country's deficit to unsustainable levels. Soon enough the US will not even be able service its debt and guess who'll have to dig the country out of the mess, the shrinking middle-class.

What the US needs real bad right now is a good dose of austerity. That means some new taxes (yes, for the rich people too), and spending cuts (yes, for the unemployed too). But the gutless politicians are too craven or too connected to the special interest to even try it. Keeping the pressure on the middle-class is hardly a formula for economic success, it's fast-track to economic ruins.

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