Does a middle class still exist in the U.S.A.?

 After World War II the American middle class grew. The recession of 2008 struck America and the middle class started its decline. As the number of people in the middle class shrunk the number of people living in poverty grew. “Outsourcing” became the norm for corporate America.

I remember talking with a Southwestern Bell Telephone service man in my office one day. He was talking about the jobs that were being lost in the telephone company to outsourcing. He told me at one time there were information operators working in the Texas City area and now their jobs had been sent to India. I could not believe it. He picked up the phone and dial information and handed me the phone. He instructed me to ask for someone’s number and when they give it to you ask them where they are physically located.  At first the person did not want to tell me her location, but then she reluctantly said India. Out sourcing was a large factor that contributed to the decline of the middle class. Technology has made it cheaper and as fast to route a local call to India where labor is cheaper.

The nations economy grew, but the average Americans income shrank.  The rich stayed rich, the poor stayed poor and the middle class started to disappear. A man name Milton Friedman, an economist, was most responsible for this and he never held an elected office. Friedman believed corporations should have only one goal and that was make a profit for their shareholders. President Reagan bought in to his lower taxes and less regulation theory. Friedman was against the government controlling anything related to the economy.

Perhaps the problem originated by a man that had opposite views of Friedman and he was John Maynard Keynes. President Roosevelt bought into Keynes ideas and the “New Deal” was born. Keynes believed the government should borrow money and put people to work in public service building roads and bridges. His theory was put people to work earning money and they will be less cautious with their money and retail sales will increase and the economy as a whole will increase. Keynes supported the idea of lower interest rates so people who had money in savings accounts in banks would move them to more risky investment paying better dividends. Keynes ideas seem good following the depression, but the problem, which is common with government programs, the programs never end they just grow larger. Politicians seem to always take everything either not far enough or too far.

The “New Deal” in my opinion was a contributor to today's “Welfare State”.  Anytime a government program is not working politicians do not really seek solutions to the problems because it is easier for them to throw more tax payers money into the failed program. Other peoples money is always the politicians solution to problems.

I do not think their has ever been a government program where politicians looked at the long term effects before making it a policy or set dates to terminate programs once they no longer served a purpose. If they have it meant nothing because they will simply extent the program when it ends.  

I blame the government for the depression and the current recession.  Both involved the government limiting bank loans which reduced the supply of money, which reduced economic expansion. I have a problem with income inequality being what it is today, but the government made income inequality possible. Only the super rich had access to money.

I support government regulations to a point. But, as I said earlier politicians always carry everything too far or not far enough. They want to try and make everyone happy in order to win the next election. We need term limits.

Friedman opposed all government regulations when it came to the market place (I support some). He opposed the F.D.A. (their regulations have gone too far). He opposed farm subsidies (I do now). He opposed holding corporations responsible for any adverse effect they had on communities (they should be responsible for the damage they create). He opposed National Parks (I support National Parks, but concede the Federal Government owns too much land). He opposed the military draft (I support the draft). He opposed privatizing the postal service (I support privatizing the postal service). He opposed government monopoly on public education (I am not in favor of taxes paying for private education, but I do support parents choosing which public school to send their children to and I support the firing of unqualified teachers). He opposed Social Security and favored privatizing the retirement income system ( I am not in favor of that at this time). He opposed welfare (I oppose welfare which does not require people to do government work to earn it. I oppose free handouts, except for physical and mental problem which make working impossible). He opposed the ban on illegal recreation drugs (I support the ban). He opposed state-run companies (I agree with him). He opposed trade tariffs and quotas (I support trade tariffs and quotas).

I do not think the government is the solution to every problem. Unfortunately many Americans have come to believe the government is the solution to every problem. Unions and the government created inflation. What difference does it make how much your pay increases if the cost of living goes higher?  What have we gained? We have done nothing but price ourselves out of the International work force. Every time wages go up prices go up. Should the government fix prices on medicine and medial care – maybe! I do not really understand how I can buy the same medication in the Philippines for ½ or less of what it cost in America. I know inflation is why I pay $100 for a doctors visit in the U.S. and pay $6 in the Philippines. Do not tell me it has anything to do with the quality of care the doctor gives.  ALL my doctors got their degrees from the University of Texas Medical College or University of Alabama in Birmingham, Alabama. They all have licensed to practice medicine in Texas or Alabama and in Germany.

I am against corporation putting profit over everything else. If you investigate every corporate scandal it always leads back to executives putting profit above workers, communities or the country. Greed is celebrated in the corporate world today.

I am for limited government, but I am not for total unlimited government. Corporate greed comes when all restrictions are removed. Environmental destruction, income disparity all come when there are no restrictions. BALANCE is the key and politicians do not know when to stop or how far to go.