February 18, 2017, We need a strong middle class
Lately, in the media, there has been a lot of concern about the dwindling middle class and how it will destroy our economy if it continues to shrink. We have a small group of very rich people and a lot of financially challenged people. But it is the middle class people that keeps this country's economy moving
Rich people are a very small percentage of the population, only one tenth of one percent and they have forty percent of the money which they stash in banks not in the USA. Sure they buy cars, many cars, expensive cars, but not enough to support the car industry, especially if they buy imports. They also buy clothes, shoes, televisions, but only a tiny amount compared to what the middle class buy.Rich people spend a lot of money but not on a lot of things. When our first lady wears a $4,500 dress it does not employ the number of people that one hundred women wearing $45 dresses would employ. There is just not enough rich consumers to have much effect on our economy.
The lower income class is struggling to make house payments, insurance payments, gas, electricity, food, clothing, medical bills, etc. They are not spending much on new products, especially if they shop at Goodwill and The Dollar Store. This group may do most of the work but spend the lest amount of money per person.
Today, the average income of the middle class, because of inflation, has the same buying power as that of the middle class in the 1970's (yes, that is half a century ago). Yes, their income is higher, but inflation is eating it up. Bragging about wages going up does not mean a damn thing when buying power is going down faster.
Once the middle class is gone, there will be no one to buy the products the wealthy produce. Our country will be bankrupted. But there will still be billionaires living in mansions. Our banks will have failed but that won't bother the rich.
The wealthy do not put their money in American banks where they have to pay taxes. Rich Americans put their money in banks in China and other countries. Actually, China is the richest county in the world. You would be shocked to learn how much we, the US government, are indebted to China and other countries. We are deep, deep in debt ant it is rapidly growing. We were the country other countries were in debt to.. Now we the country that is the deepest in debt.We need to be more knowledgeable about our governments finances and get more involved.