Fake Booms, or a Tide That Raises a Few Yachts

April 2, 2015

"Rising Tide Leaves Workers Behind" cartoon, St. Louis Post-Dispatch, September 5, 2006. (R.J. Matson). Qualifies as fair use due to lower resolution and relevance to topic.

“Rising Tide Leaves Workers Behind” cartoon, St. Louis Post-Dispatch, September 5, 2006. (R.J. Matson). Qualifies as fair use due to lower resolution and relevance to topic.

It’s been a week and a half since my last post, mostly because I’ve been busy with other projects. Kind of like the American aristocracy, as they continue to distract us plebes with controversies over “religious freedom” laws and undisclosed emails while continuing to hoard trillions in wealth.

Not that these controversies are just abstract distractions, but they follow a pattern of division, deception, and misdirection. Our nation’s elite impose their views of the country and the world in such a way as the truth itself becomes a lie. Apparently for them, the First Amendment to the US Constitution’s a lie, since this first of these Bill of Rights guarantees “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof.” This Establishment Clause has NEVER been absolute, especially in cases in which religious practice violates or interferes with others’ civil and constitutional rights.

Michaelangelo's The Creation of Adam via Sistine Chapel ceiling paintings (1508-1512), with America's Prosperity Gospel stuck in between, September, 2009. (http://www.thegospelcoalition.org/).

Michelangelo’s The Creation of Adam via Sistine Chapel ceiling paintings (1508-1512), with America’s Prosperity Gospel stuck in between, September, 2009. (http://www.thegospelcoalition.org/).

But for the purposes of my post today, this truth-as-lie isn’t the biggest one the American plutocracy has pulled on us in the past forty years. Not even close. You see, the biggest lie they’ve sold us as truth is the idea that the US has been going through bust and boom cycles as normal for any wealthy capitalist democracy since the 1970s. That with every recession, or period of inflation, or deflation, or job stagnation, or changes in the economy, that a period of unbridled growth and social mobility has followed, keeping the American middle class the richest of the middle classes on Earth, indeed, in the history of the world!

Let’s start with the reality that median income has declined enough to show evidence of a shrinking American middle class. This decline isn’t a recent phenomenon. Since the end of World War II, there have been two lengthy patterns. One is a pattern of great economic growth, coinciding with America’s dominance of the global economy between 1945 and 1973. This growth of median income by a factor of six (from $2,379 in 1945 to $12,050 in 1973) was a reflection of the US economy’s glory years. The other is the current pattern of a slow, sometimes meandering but steady decline of economic dominance. All during a period of greater competition from Europe and Asia, job outsourcing, and a reduced industrial base, the last the heart of America’s economic growth before 1973.

Median Income Since 1945, Calculated in Actual/2013 Dollars

Year

Median Income

Median Income in 2013 $

1945

$2,379

$30,699

1963

$6,200

$46,826

1973

$12,050

$65,099

1983

$24,580

$57,824

1993

$31,241

$50,549

2003

$43,318

$55,060

2012

$51,017

$51,906

Sources: US Census Bureau, Current Population Reports, P60-002, P60-043, P60-097 , P60-146, P60-188, P60-226, P60-245, Consumer Income (now Income, Poverty and Health Insurance Coverage): 1948, 1964, 1975, 1985, 1995, 2004, 2013. (http://www2.census.gov/prod2/popscan/ and http://www.census.gov/prod/). Calculations based on CPI Inflation Calculator via the Bureau of Labor Statistics and DollarTimes.com, using 2013 as the most recent calendar year baseline (http://data.bls.gov/ and http://www.dollartimes.com/).

Median income in 1973 was 20.1 percent higher ($65,000) than it is today ($52,000). In the intervening years, median income never grew enough to match or exceed the growth that occurred during the peak of the middle class’ development. Not in the years after the double-dip recession of the early 1980s. Not even after the Information Revolution under the business and credit-friendly Clinton years of the 1990s.

The dot.com boom-turned-bust, April 2, 2015. (http://www.sf-info.org/).

The dot.com boom-turned-bust, April 2, 2015. (http://www.sf-info.org/).

Keep in mind, too, that the 400 wealthiest households in the wealthiest nation of all time hold a net worth that exceeds the net worth of the bottom fifty percent of all US households. It’s simple math, really — 400 > ~100,000,000 households or roughly 155 million people with kids and other relatives. Or, $1.5 trillion for 400 > $1.4 trillion for 155,000,000.

The best measure the US currently has for different socioeconomic classes that isn’t from a complex university study or an ideological think-tank is the experimental Supplemental Poverty Measure, developed jointly by the US Census Bureau and the Bureau of Labor Statistics. The AP and dozens of other news outlets first reported the use of the SPM after the two agencies developed a report on Americans in poverty and with low-income with it in November 2011. Taking into account tax credits, non-cash benefits (e.g., SNAP or food stamps), out-of-pocket medical expenses, and other in-kind contributions, the Census and BLS constructed a Ratio of Income/Resource to Poverty matrix that accounted for both the official calculations of poverty (which the federal government originally developed in 1964) and calculations done with the SPM. The news media headlined the December 2011 results with “1 in 2 People Are Poor or Low-Income.”

As sobering as this is, it’s not the whole story, not for those Americans working under the assumption that they are middle class. According to the Census’ latest report using the SPM (November 2013), 16 percent of Americans (49.7 million) live at or below the poverty threshold of $23,000 in income/resources per year, while another 31.2 percent (97.1 million) have at most $46,000 a year in income/resources, fitting the SPM definition of low-income. Another 107.6 million Americans have incomes/resources that are between two and four times the national poverty threshold (or between $46,000 and $92,000 in total resources per year), while the top 56.6 million of Americans (18.2 percent) have annual incomes/resources above $92,000.

Large saline and silicone breast implants -- could easily be, housing boom (1999-2008), dot.com boom (1994-2001), credit boom (1973-?), April 2, 2015. (http://medcitynews.com).

Large saline and silicone breast implants — could easily be, housing boom (1999-2008), dot.com boom (1994-2001), credit boom (1973-?), April 2, 2015. (http://medcitynews.com).

There are two really simple reasons why most Americans don’t see the plutocratic lie of “prosperity for everyone” despite all evidence of the truth. One is because they believe in that dangled carrot of somehow becoming rich, through hard work, prayer, giving out of need, or sheer luck, despite the debt it takes to remain even somewhat middle class. Two is because most believe they’re prospering whenever the Dow Jones’ Industrial Average breaks 10,000 or 15,000, or because the media faithfully reports monthly declines in unemployment, or because the average White family has a net worth that’s eight times that of Black and Latino families.

And those beliefs are reinforced by the societal taboo of rarely, if ever, talking about our income, our net worth or lack thereof, by acting as if the poverty or prosperity conversation violates the US Constitution. Without this serious conversation, how can we really claim that any tide of economic prosperity has lifted any boats other than those of the yacht-owning set since 1973?


The “Invisible” Poor & The Middle Class Mythology

July 19, 2012

Transparent (or invisible) Woman (cropped), July 19, 2012. (http://cgtrader.com).

This past weekend, I found myself drawn into the discussion of the middle class and middle class aspirations on MSNBC’s Up with Chris Hayes (otherwise known as “Uppers”). It was a good and yet wholly unsatisfying discussion of technical definitions of what middle class is and of the political optics of only discussing the middle class as a socioeconomic category. Chris Hayes and his guests justified this with an all-too-common refrain. “If you’re poor, you’re aspiring to be middle class,” Hayes said on Saturday. With that, Hayes and his guests rendered America’s poor invisible, and failed to see beyond the politics of invisibility in the process.

There are two issues here, and many layers within them, about America’s poor, working, on welfare, or otherwise. One issue is that journalists, commentators, political operatives and most politicians treat the poor as if they are an unknowable group of people. It’s as if they all think the same way, as if there are all Black or of color, and a complete drag on the American economy and the federal budget. And that’s on a day in which the media and politics deem America’s poor as discussable. Most of the time, America’s poor are invisible, shoved into the middle class category by commentators and politicians at every turn.

Yes, America’s middle class is struggling too, fighting tooth and nail to not slip into the class of the invisible working poor, treading water to avoid food banks and food stamps. But they have something to struggle with — and for — at least. Their homes, their cars, a retirement account, their families’ net worth, all accoutrements of being middle class in America. America’s poor don’t possess anything to struggle with or for.

Chris Hayes on a train in Switzerland, November 10, 2008. (Matthew Yglesias via Wikimedia Commons/Flickr.com). Released to public domain via cc-Attribution-Share Alike 2.0 Generic license.

Except, maybe, with their vote, if they care to vote at all. Yet no mainstream commentator nor presidential candidate has truly spoken to their needs, their plight, to how their situation is completely interconnected with the struggles of the American middle class, not their aspirations. Not Chris Hayes, nor his weekend compadre, Melissa Harris-Perry, not President Barack Obama, and definitely not the presumptive GOP nominee, Mitt Romney.

It’s a story I’m all too familiar with, as someone who grew up in poverty in Mount Vernon, New York. Not to mention as someone who had to go to college and graduate school and then struggled for two years at part-time work before finding a job with a Ph.D. in ’99 (see my “The Five Senses of Poverty” post from July ’10). I was thirty years old by the time I earned a middle class income. Yet in all of that time, the only mainstream politician who spent time on the issues of the American poor as if these were real people was President Jimmy Carter, and we know what happened with him. Outside of my degrees and my publications, I was invisible until the fall of ’99.

Otherwise, it’s been four decades of Presidents Nixon, Reagan and Clinton concerned with “welfare queens,” “pink Cadillacs,” and “mend it, don’t end it” welfare policies, and the media following suit. It’s like being kicked hard by someone as one is laying on the ground with broken ribs and internal hemorrhaging, as if they want to poor to die, painfully.

But it’s not just the ones with microphones and word processing programs that kill America’s poor by rendering them invisible. Despite the general notion that the media and politicians nurture — that everyone not rich aspires to be firmly entrenched in the middle class — most Americans middle class and poor aspire to be rich, wealthy, well-off.

Creflo Dollar, pastor, World Changers Church International, November 1, 2010. (Zwicky Institut via Flickr.com). In public domain.

This is the other neglected issue, whether inadvertent like with Chris Hayes and his guests on Uppers, or deliberate on the part of President Obama and Romney. Why so? Because they don’t acknowledge that it’s hard to be truly middle class in America these days. To be in the middle class, one must borrow, borrow, borrow, beg and sometimes steal while struggling to pay student loans, car notes, a mortgage and child care costs.

This wasn’t the case even thirty years ago, before the severe double-dip recession, high interest rates and inflation and Reagan Revolution took full hold. Then, a high school diploma and raw initiative was all most folks needed to find a job at a GM plant or to get an administrative job in government or with a large corporation (although, typing at 90 words per minute enhanced a woman’s chances, at least). Now, two years of college or postsecondary technical training, some experience in a specialized field, and a personal connection is the floor for a living wage — not exactly middle class. Of course, no one wants to be in the basement with nearly one in five Americans, 50 million in all, working just to be poor.

Stacks of money, April 13, 2008. (Allureme via Wikipedia). Released to public domain via cc-Attribution 3.0 License.

America’s poor and fledgling middle class both aspire to be rich (or die tryin’), and not just middle class. The rise of fundamentalist Christianity, mega-churches and the cult of prosperity as these pastors reimagine the New Testament. The endless lines for Powerball and Mega Millions whenever the pot is more than $100 million. The fascination with reality shows about the well-off or about competing to be well-off. All of this is the manifestation of the warping of the American Dream since the early 1970s, where the pursuit of riches has led to debt slavery for millions.

The old American Dream has become myth, and the old American middle class is but the story of Camelot, Timbuktu and Shangri-La. In our new world, “the poor will be with us always” has been made a plain and unyielding truth by those in power, reinforced by those with a media platform.


Class Silence

September 20, 2010

Mum's the word on class.

One of the things that has driven me nuts over the past three decades is how we in this country walk in silence around issues of wealth and social class. We must never speak of our wealth, or poverty, lest we risk embarrassing ourselves or appearing arrogant. All Americans with an income between $20,000 and $20 million a year are middle class, not upper middle class, not affluent, not rich, just middle class.

Any mention of the top three percent in income (people whose income is more than $250,000 a year) amounts to class warfare, even though they control some 35-40 percent of the nation’s $57 trillion in wealth. No, poverty and affluence are relative, not absolute, and can only be measured subjectively,

Atacama Desert in Chile. Driest desert on Earth and place to stick our heads. (Public Domain)

through one’s own experience. Which is why any mention of our troubles is closer to sacrilege than declaring that there isn’t a God, especially in a nation that prints “In God We Trust” on its money.

There are ways to measure affluence and poverty regardless of cost of living and inflation. And please spare me the comparisons between the poor in the US and the poor in the Global South (Third World to those of you who like making other distinctions between fellow humans that actually dehumanize). I’ve seen too many corrugated roofs in Arkansas and Louisiana (all before Katrina), too many outhouses in rural Arkansas and Mississippi, too many families sleeping in the streets in San Francisco and New York, too many malnourished kids in Oklahoma and in DC to hear that “our poor are the richest poor people in the world” song-and-dance.

It’s simple really. Truly middle class people own a car and a home, or at least, have the option of doing both, with a steady income from a permanent job or from an established niche for work. If folks have one and rent an apartment or home, and aren’t really in a position to buy, they’re right on the borderline of the American middle class, but not quite there.

Of course, this definition does not mean that everything’s all right. Tens of millions of Americans, including yours truly, are struggling to pay car notes, student loans, mortgages and rent — not to mention credit card and other debt — and maintain a middle class or lower middle class lifestyle. Unfortunately, there are millions more who are working toward middle class, but aren’t quite there. They may say they’re middle class, but they’re really working-class or working poor.

Upper middle class or affluent Americans do more than own a house or a car. They own quality homes and quality cars, a Volvo or an Acura, maybe even a Lexus. They take at least one vacation a year with their families or friends, to other parts of the US, and on occasion, international trips. They eat at restaurants with their families at least as often as they eat a home-cooked meal. When shopping for groceries, sales are fine, as long as the sales aren’t on off-brand products like Faygo or Giant, Safeway or Krasdale. They have life insurance on every family member, 529 plans for their kids and contribute at least half as much to their 401K as their employer does in any given year (more than that if self-employed).

I’m certainly not arguing that the lives of the upper middle class or affluent or sub-rich are like being on Real Housewives or Keeping Up With the Kardashians. Yet so many in our public discourse make their lives now and times growing up sound humble, as if they grew up like me or others I’ve known over the past thirty years. People like Bill Cosby, Bill Gates or Bill O’Reilly, Dinesh D’Souza or Rush Limbaugh. It’s well beyond dishonest. It’s disgusting, and it helps to perpetuate the myth that the only reason all of us aren’t affluent is due only to our lack of hard work.

As the richest country on Earth — for the time being, at least — we’ve never reconciled our democratic ideals with our capitalistic obsessions. What helps maintain some sense of order, though, is our silence and quiet, desperate acquiescence to ever-increasing economic divisions in a country full of allegedly middle class people. As a song from Enigma goes, however, we should “question the absurd” here, as “silence must be heard.”


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