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Corporate Accountability and WorkPlace

America's Middle Class Can't Take Much More Punishment

By Matt Taibbi, RollingStone.com. Posted July 23, 2008.


Whether we like it or not, America is in the midst of revolutionary economic changes that are crushing the middle class.
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The following is an adapted version of a recent article by Taibbi. You can read the original version here.

I am a single mother with a 9-year-old boy. To stay warm at night my son and I would pull off all the pillows from the couch and pile them on the kitchen floor. I'd hang a blanket from the kitchen doorway and we'd sleep right there on the floor. By February we ran out of wood and I burned my mother's dining room furniture. I have no oil for hot water. We boil our water on the stove and pour it in the tub. I'd like to order one of your flags and hang it upside down at the capital building we are certainly a country in distress. -- Letter from a single mother in a Vermont city, to Senator Bernie Sanders

A few weeks back, I got a call from someone in the office of Vermont Senator Bernie Sanders. Sanders wanted to tell me about an effort his office had recently made to solicit information about his constituents' economic problems. He sent out a notice on his e-mail list asking Vermont residents to "tell me what was going on in their lives economically." He expected a few dozen letters at best -- but got, instead, more than 700 in the first week alone. Some, like the excerpt posted above, sounded like typical tales of life for struggling single-parent families below the poverty line. More unnerving, however, were the stories Sanders received from people who held one or two or even three jobs, from families in which both spouses held at least one regular job -- in other words, from people one would normally describe as middle-class. For example, this letter came from the owner of his own commercial cleaning service:

My 90-year-old father in Connecticut has recently become ill and asked me to visit him. I want to drop everything I am doing and go visit him, however, I am finding it hard to save enough money to add to the extra gas I'll need to get there. I make more than I did a year ago and I don't have enough to pay my property taxes this quarter for the first time in many years. They are due tomorrow.

This single mother buys clothes from thrift stores and unsuccessfully tried to sell her house to pay for her son's schooling:

I don't go to church many Sundays, because the gasoline is too expensive to drive there. Every thought of an activity is dependent on the cost.

Sanders got letters from working people who have been reduced to eating "cereal and toast" for dinner, from a 71-year-old man who has been forced to go back to work to pay for heating oil and property taxes, from a worker in an oncology department of a hospital who reports that clinically ill patients are foregoing cancer treatments because the cost of gas makes it too expensive to reach the hospital. The recurring theme is that employment, even dual employment, is no longer any kind of barrier against poverty. Not economic discomfort, mind you, but actual poverty. Meaning, having less than you need to eat and live in heated shelter -- forgetting entirely about health care and dentistry, which has long ceased to be considered an automatic component of American middle-class life. The key factors in almost all of the Sanders letters are exploding gas and heating oil costs, reduced salaries and benefits, and sharply increased property taxes (a phenomenon I hear about all across the country at campaign trail stops, something that seems to me to be directly tied to the Bush tax cuts and the consequent reduced federal aid to states). And it all adds up to one thing.

"The middle class is disappearing," says Sanders. "In real ways we're becoming more like a third-world country."

Here's the thing: nobody needs me or Bernie Sanders to tell them that it sucks out there and that times are tougher economically in this country than perhaps they've been for quite a long time. We've all seen the stats -- median income has declined by almost $2,500 over the past seven years, we have a zero personal savings rate in America for the first time since the Great Depression, and 5 million people have slipped below the poverty level since the beginning of the decade. And stats aside, most everyone out there knows what the deal is. If you're reading this and you had to drive to work today or pay a credit card bill in the last few weeks you know better than I do for sure how fucked up things have gotten. I hear talk from people out on the campaign trail about mortgages and bankruptcies and bill collectors that are enough to make your ass clench with 100 percent pure panic.

None of this is a secret. Here, however, is something that is a secret: that this is a class issue that is being intentionally downplayed by a political/media consensus bent on selling the public a version of reality where class resentments, or class distinctions even, do not exist. Our "national debate" is always a thing where we do not talk about things like haves and have-nots, rich and poor, employers versus employees. But we increasingly live in a society where all the political action is happening on one side of the line separating all those groups, to the detriment of the people on the other side.


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Matt Taibbi is a writer for Rolling Stone.



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View:
With Democrats Like These Who Needs Enemies?
Posted by: mmckinl on Jul 23, 2008 12:25 AM   
Current rating: 4    [1 = poor; 5 = excellent]
It's clear that the current configuration of the Democratic Party has little to nothing for real progressives or liberals except that it is not John McCain. The rest is business as usual with the usual suspects totally corrupted in their Chairmanships.

""Our government is buying hundreds of millions of dollars worth of Defense Department crap just to throw it away!""
And much of that waste is coming from Democratic Districts from funds earmarked by Democrats. Think John Murtha Chairman of the House Appropriations Defense Subcommittee.

When is the last time we heard the Dems say " We need to cut the military budget" or "We need to close some of those 750 military bases overseas." or "We need to eliminate weapons that were designed for the Cold War"

Wall Street now gives the Dems more contributions than Republicans and we see from Barney Frank (Chairman of the House Financial Services Committee.) and Chris Dodd (Chairman of the Senate Banking Committee) their money has been well spent as tax payers are bailing out banks, brokerages, investment banks and insurance companies. What the public doesn't know, no one does is how bad the loans Fannie, Freddie and the Fed bought from these thieves. The estimate is already in the hundreds of billions ... look for over a trillion dollars of tax payers money to be spent bailing out billionaires ! ! !

What have we heard of Health Care Reform other than more use of insurance companies without any bargaining with Big Pharma. Why can't we have Medicare for everyone, the insurance companies get the healthy while the tax payer picks up the tab for the elderly , the young and the poor. When is the last time you heard the Democrats say we need a health Care Plan like all the other industrialized nations so that 50% of our bankruptcies aren't caused by health care costs?

When is the last time you heard the Democrats say that there is too much media concentration and we are going to break up these Media Conglomerates?

Unless and until there is a real debate about progressive and liberal ideas the left will be the red headed stepchild of the Democratic Party Machine. Unless and until the Democratic business as usual crowd gets the message there will be no real change, just different puppeteers pulling the strings.

As Matt Taibbi puts it so well :

"As a result the entire debate between the two major political parties in our country has devolved into an argument over just how quickly to dismantle the few remaining benefits of American middle-class existence -- immediately, if you ask the Republicans, and only slightly less than immediately, if you ask the Democrats."

Vote Green, early and often ...

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» Not yet.... Posted by: jlohman
» RE: Not yet.... Posted by: grkjr
» RE: Not yet.... Posted by: jlohman
» RE: Not yet.... Posted by: grkjr
» RE: Not yet.... Posted by: nochicagoboys
» RE: Not yet.... Posted by: Jennahluv
» RE: Not yet.... Posted by: nochicagoboys
» RE: Not yet.... Why Not ? Posted by: mmckinl
» RE: Not yet.... Why Not ? Posted by: Cybershaman
» RE: Not yet.... Why Not ? Posted by: nochicagoboys
» I don't know, Zeek 2. Posted by: mcartri
The Onion said the same thing
Posted by: strahlungsamt on Jul 23, 2008 1:12 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
http://www.theonion.com/content/news/
recession_plagued_nation_demands

(paste 2 lines together in your browser)

In Satire lies Truth.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: The Onion said the same thing Posted by: douglashoyt
It is time to change their ways to thrive
Posted by: Bobsays on Jul 23, 2008 1:21 AM   
Current rating: 2    [1 = poor; 5 = excellent]
The problem with the middle class is middle class expectations. The idea that everyone can have a monster home, several cars, a university education, tons of food, eat out six days a week in restaurants, have cable, internet, etc., lots of clothes, private health insurance, and drive for miles and miles, day in, day out, just doesn't work anymore. And nor should it: it is a wasteful and unhealthy way of life.

If people started to make significant changes to their lifestyles, they would start to thrive. A simple list is this:

1) get to somewhere where you can walk or cycle to work and the shops
2) just buy less
3) buy quality only (things that last a long time)
4) save every month and build up a savings pot
5) eat fresh and healthy food and get fit. That will lead to fewer medical appointments
6) only work for employers who pay for training and or education
7) move: if where you are can't provide for this way of life, move. Americans have always moved when it is necessary.
8) stop supporting tax-grabbing measures by Democrats

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: These don't seem responsive Posted by: peacefullaim
» RE: These don't seem responsive Posted by: helenwheels
» The last word? Posted by: PaulD
» Just a minute there Posted by: LMNOP
» RE: Just a minute there Posted by: john mont
» Excellent point! Posted by: Bobsays
» Change Their Ways troll Posted by: penstamen
» RE: It is time to change their ways to thrive Posted by: anonymous black writer
» Re: Sorry Posted by: Bobsays
Investing Social Security Trust Fund Money
Posted by: Capitalist Pig on Jul 23, 2008 3:44 AM   
Current rating: 1    [1 = poor; 5 = excellent]
The Republicans wanted to take Social Security, the signature policy underpinning of the middle class, and put it into private accounts -- which is a fancy way of saying that they wanted to take a huge bundle of American taxpayer cash and invest it in the very companies, the IBMs and Boeings and GMs and so on, that are exporting our jobs abroad.

The US Govt is the only pension fund manager in the world that can get away with investing solely in US government securities. Big institutional money (which is mainly union pension funds and university endowments) invests mostly in equities with a slice of money in higher risk investments like hedge funds and venture capital. The Social Security Trust Fund should be invested in equities; it would give better returns to Social Security and force more fiscal discipline on Congress.

Canada's version of Social Security is run with the same discipline as a private pension fund: http://www.cppib.ca/

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

IF ANDREW CARNEGIE SUPPORTED A 100% ESTATE TAX...WAS HE A COMMIE TOO !??!!!
Posted by: jay diamond on Jul 23, 2008 3:48 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Look at THIS:

http://www.swarthmore.edu/SocSci/rbannis1
/AIH19th/Carnegie.html

Hey Sean Dummity and the rest of the right-wing lying low-lifes out there. If ANDREW CARNEGIE, THE Greatest Capitalist Who Ever Lived, denounced hoarding wealth after death and recommended either giving it away or having it TAXED away, who the heck are Low-Brow AM RADIO LOW-LIFES with ZERO EDUCATION to tell Andrew Carnegie he's wrong !!??

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» Great point. Posted by: KeepsonTickn
» RE: Great point. Posted by: Animal
» RE: Great point. Posted by: anonymous black writer
When The Levee Breaks: The Katrina Model, Disaster Becomes America...
Posted by: gazooks on Jul 23, 2008 3:50 AM   
Current rating: 5    [1 = poor; 5 = excellent]
... a streaming flood of debt driven pain, poverty, hunger, and homelessness inundating America.

Battered by a relentless tide of corruption, a gale of malfeasance, our mal-engineered and neglected economic levee collapses while political impotence and indifference surges.

A howling wind of alligator shock shrieks throughout Capitol Hill as the stench of rotting lies sweeps down Pennsylvania Avenue and into the alleys of the disenfranchised.

But wait, in the sky, a hovering emblem of promise and hope chatters. It dances merrily on the media breeze and swoops in a smile and a wave of the hand.

No, no not a wave now as it transforms to a single, jeering digit of scorn... then away. Promises gone.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Massive Improvement on The Author's Pathetic 9/11 Hatchet Job
Posted by: opmoc on Jul 23, 2008 4:01 AM   
Current rating: 2    [1 = poor; 5 = excellent]
"These fantasy elections we've been having -- overblown sports contests with great production values, decided by haircuts and sound bytes and high-tech mudslinging campaigns -- those were sort of fun while they lasted, and were certainly useful in providing jerk-off pundit-dickheads like me with high-paying jobs."

Can't really argue with that.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

the bankers are now doing to family homes what they first did to family farms
Posted by: Suzon on Jul 23, 2008 4:03 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The thief who is poor is limited to what he can steal. The thief that is rich can steal from everyone.

The people to go after are the politicians as they are the enablers.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: Corp owned Housing??? Posted by: Purple Girl
» RE: Corp owned Housing??? Posted by: Quannah
Beth
Posted by: beefee on Jul 23, 2008 4:32 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Agreed. Agreed. Agreed. And after we start getting the media to discuss our economy as it really is, let's start to see pictures of this war. See if the American public who has allowed itself to gourge on celebrity and has wasted its own resources by calling the government "they" instead of "us", wake up before it is too late for the decline to be irreversible. We've been fat and happy for too long and we have no one but ourselves to blame. WE are the government. Greed goes a long way to destroy a society and like all great societies, it has us by the ass.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: Bob ... on this. Posted by: Cybershaman
» RE: Well, Bob... Posted by: Quannah
» RE: Why is it then... Posted by: Sushi
A Sign O the times...
Posted by: wileect on Jul 23, 2008 5:07 AM   
Current rating: 5    [1 = poor; 5 = excellent]
I think we're seeing a gradual decimation of the Middle Class. I think it was an eventuality. We have the most tax burden, and few options or escape clauses.
Capitalism has ran to it's most extreme, with people seeking profit above all things. When it's not about the customer, the employees, it's just about the almighty dollar. Get Rich, stay rich, and make sure your money doesn't get taxed.
It's saddening that the country that came up with the New Deal, and other social programs, won't insure small children or insure that our schools don't have to fight like dogs for funding via testing.
WE are the richest country in the world, yet we give our citizens the least for the amount of taxes that we impose.
I wasn't really against the war until I saw the treatment of some of the veterans who came back.

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Zombie America taken to the cleaner... Thanks Mindfuck Inc. !
Posted by: TFYQA on Jul 23, 2008 5:26 AM   
Current rating: 4    [1 = poor; 5 = excellent]
In a country where liberalism = socialism = communism ; what da F do you expect when the concept of Class War rears it's ugly head ?

Who wants to be remembered that our happy few 1% owns 80 of the wealth or that 5% of our wealthiest owns 83% of Wall Street's shares.

Greg Palast nailed this topic in his : "Today's Pig is Tomorrow's Bacon" Google it for size !

Now does the time spent on the woes of those poor bastish every night on any business report sound disproportionate ? Not in a plutocracy buba ! So stop your whining, get a third job and prepare for the worst, cause … There's no way to delay that trouble coming everyday !

Meanwhile…

GOING UP !
Top 1% share of total income
Income gap between rich and poor
Foreign debt as a percent of GDP
Age at which one can receive Social Security
Hunger
Consumer credit debt
Housing foreclosures
Severe poverty rate

GOING DOWN !
Real income
Real manufacturing wages
Percent of single women and mothers in the workforce
The bottom 40%'s share of national wealth
Older families with pensions.
Workers covered by defined benefit pensions.
The savings rate
US manufacturing jobs

ALSO...
Protest restricted/ignored
Dissenter labeled terrorist/traitor
False-flags
Elections suspect
Leaders benefit from wars/disasters
Use of propaganda/lies & partisan mass-media
Claims that War is needed for everchanging false reasons
Secret/extrajudicial/torture camps
Curtailed/suspended civil rights/liberties
Wiretap/intercept/surveillance net
Stealthily expands int'nl influence/power
Judiciary/Opposition ineffective/ignored
Legislation to defy Constitution

BTW, have you noticed that the good guys always win execpt on the news ?

MINDFUCK INC.

Serving our interest, whatever !

"The tyrant, who in order to hold his power, suppresses every superiority, does away with good men, forbids education and light, controls every movement of the citizens and, keeping them under a perpetual servitude, wants them to grow accustomed to baseness and cowardice, has his spies everywhere to listen to what is said in the meetings, and spreads dissension and calumny among the citizens and impoverishes them, is obliged to make war in order to keep his subjects occupied and impose on them permanent need of a chief." - Aristotle

EXECUTIVE RESUME
http://whitenoise.webnode.com/

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Send this article to everyone you know
Posted by: eksommer on Jul 23, 2008 5:32 AM   
Current rating: 5    [1 = poor; 5 = excellent]
This is the best explanation and analysis of the current situation in the United States that I have read to date.

The fault of our current dilemma lies with ordinary citizens who have been lulled into zombie land by the availability of cheap entertainment and until recently inexpensive resources such as water, gasoline, and food. Our economy is fueled by meaningless consumption and vapid entertainment. It is our fault that the media can afford to pay Angelina and Brad $11 million for photos of their babies.

Who cares? Obviously enough of us to be able to sell millions of tabloids with the photos. Let's stop wasting money on entertainment opiates. Let's get out in our communities and do something. Find community based ways to get your jollies. Stop paying big media for getting your mind off your drudge job, mounting bills, and bleak economic outlook.

We're making them rich. Let's get out of Iraq and back into a sensible lifestyle where the media conglomerates and the banks and ersatz food companies and the corrupt insurance companies are no longer running our lives.

We have the power. It's in our hard-earned incomes--what is left of it.

But we may be in too deep. The conundrum is that our economy has become dependent on consumerism, and so just like the alcoholic or drug addict, we must go through a period of withdrawal. It will feel worse before it gets better.

It is worth the effort. Resist paying to look at the spawn of the stars. Look at your own kids instead, or the children of your neighbors or relatives--if you have wisely chosen not to have any children.

Look at them and envision their futures. Then decide if you want to support their demise by buying a tabloid today or by tuning into a mindless television show about overpaid celebrities.

[