3 ms·

Folks who worked in manufacturing plants like automobile factories were considered part of the middle class, before neoliberal globalism reduced their earning p

Folks who worked in manufacturing plants like automobile factories were considered part of the middle class, before neoliberal globalism reduced their earning potential and employment opportunities.

dragonwriter 10y ago
For a while, people who worked in manufacturing jobs, saved and invested surplus income over a career, etc., could often reach the classic capitalist-economy definition of middle class (neither predominantly dependent on wage labor nor having enough capital to meet support needs plus accumulate more capital purely by renting others labor to apply to the capital) by late in their career. That is no longer as attainable as it once was. (Neoliberal globalism is part of the problem, but in the US specifically domestic tax reform to shift the burden from upper income earners to lower-to-middle-income workers over time, particularly the enormous shift under Reagan, is more specifically the problem, and not really connected to neoliberal globalization except that there is some overlap in political support.)
- opo 10y ago
  >...but in the US specifically domestic tax reform to shift the burden from upper income earners to lower-to-middle-income workers over time, particularly the enormous shift under Reagan, is more specifically the problem Simply not true. The number of people who pay zero income taxes has never been higher due to EITC etc. The top 1% paid about 19% of federal taxes in 1980 and about 39% in 2014. http://www.ntu.org/foundation/page/who-pays-income-taxes http://www.ntu.org/foundation/page/who-pays-income-taxes
- knieveltech 10y ago
  I think you're overstating the importance of tax rates here. They certainly play a role but interest rates are a much more critical driver. For a period of time it was possible to make 7-15 percent interest on certificates of deposit.

3 ms·

Folks who worked in manufacturing plants like automobile factories were considered part of the middle class, before neoliberal globalism reduced their earning p

by wavefunction 10y ago

Folks who worked in manufacturing plants like automobile factories were considered part of the middle class, before neoliberal globalism reduced their earning potential and employment opportunities.

dragonwriter 10y ago
For a while, people who worked in manufacturing jobs, saved and invested surplus income over a career, etc., could often reach the classic capitalist-economy definition of middle class (neither predominantly dependent on wage labor nor having enough capital to meet support needs plus accumulate more capital purely by renting others labor to apply to the capital) by late in their career. That is no longer as attainable as it once was. (Neoliberal globalism is part of the problem, but in the US specifically domestic tax reform to shift the burden from upper income earners to lower-to-middle-income workers over time, particularly the enormous shift under Reagan, is more specifically the problem, and not really connected to neoliberal globalization except that there is some overlap in political support.)
- opo 10y ago
  >...but in the US specifically domestic tax reform to shift the burden from upper income earners to lower-to-middle-income workers over time, particularly the enormous shift under Reagan, is more specifically the problem Simply not true. The number of people who pay zero income taxes has never been higher due to EITC etc. The top 1% paid about 19% of federal taxes in 1980 and about 39% in 2014. http://www.ntu.org/foundation/page/who-pays-income-taxes http://www.ntu.org/foundation/page/who-pays-income-taxes
- knieveltech 10y ago
  I think you're overstating the importance of tax rates here. They certainly play a role but interest rates are a much more critical driver. For a period of time it was possible to make 7-15 percent interest on certificates of deposit.