I consider myself very fortunate and able to earn from my employment, but I find myself drifting, psychologically speaking, a feeling things really are not as prosperous in the United States as President Bush asserts. It’s a difficult thing to put one’s finger on, but I suspect many Americans in the middle class are feeling their standard of living being eroded by events they don’t fully comprehend. The statistics on those categorized as “poor” or lower socio-economic classes are even more disturbing - they have watched many of their gains from the 1990’s be totally dashed away. The recent debacle on Wall Street with a liquidity crisis arising from the sub-prime mortgage market rolling over into other financial markets - only to be bailed out by massive injections from the Fed over the past week - may be the tip of the iceberg. I suspect eachof us has their own sense of the economy starting a downward slide. The question collectively facing Americans is whether our elected leaders are paying attention to the looming crisis.
The Center for American Progress published an economic shapshot dated August 14, 2007. A review of the statistics affecting economic growth are very disturbing - especially if you’re in the Middle and Lower socio-economic classes. (All of these items may be viewed by visiting the website www.americanprogress.org and reading the post by Christian Weller.) Real job growth has been anemic; the economy needs to create at least 125,000 new jobs monthly just to absorb new entrants into the workplace. Moreover, the pressure to outsource employment either abroad (”globalization”) coupled with rising costs of employment (specifically health care benefits) has forced American companies to seek methods to cap labor costs. With all of the productivity gains of late, has the average American worked reaped any boosts in their net take home pay?
The bastion that fueled much of the growth of peoples’ sense of increased welath - their home values - seems now to be tapped out, and in many cases, a ”flat” real estate market or declining valuation of homes has caused people to alter their future expectations. Large numbers of Americans are facing the unpleasant prospect of seeing their property value fall as adjustable mortages liabilities rise, or faced with the propsect of being unable to sell their property.
Yet, in light of these disturbing trends, President Bush and the Republicans drag out the issue of tax cuts. Providing tax cuts for the wealthiest of Americans seems not only to be political folly, but fiscally irresponsible. Frankly, given the lack of candor by the Bush Administration on so many key aspects of our country, I wonder how much of the economic data is accurate. After all, if the intelligence concerning Iraq’s weapons of mass destruction were so skewed and cherry-picked to lead a nation into a war that never should have been declared in the first place, how can Americans believe anythingfrom the Bush Adminstration any more?
The recent collapse of the I-35W bridge in Minneapolis, flooding in the Midwest, the Iraq War, and a deteriorating infrastructure seem to be metaphors for our political leaders refusal to invest in the things that mattered the most to the very future prosperity of ALL Americans. The last six years of the Bush Adminstration and the rubber-stamping of stupid policy choices by a Republican-controlled Congress has been ruinous to our nation, the exception being if you’re part of the top 2% of our economic pyramid.
Yes, I’m fortunate to provide for my family’s needs and to set funds aside for my future needs, but I feel so many of our fellow Americans are in a much tougher position. It truly is a time for change to bring in politicians who are willing to represent ALL Americans and not just those who ask for our votes and then disregard our needs to repay the loyalty of the special interest groups located on K Street.
Center for American Progress - August Economic Snapshot.pdf
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