The Coming Collapse of the Middle Class

[Jamt]

Interesting lecture by Elizabeth Warren (loose the first 5 minutes).
As goes America so goes the world.

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[Jamt]

WILLIAM K. BLACK on bankers and regulations:

http://www.pbs.org/moyers/journal/04032009/watch.html

[Skandi]

Interesting but damn depressing. However I suppose most of our history has not had the pleasure of a large middle class, maybe the present situation is just not sustainable or stable.

[Ulex]

A VERY interesting lecture indeed. Most of us probably allready had the feeling that an economic collapse of the middle class was at hand, but it was surprising to learn how bad things really have come in less than a generation. And much more, it was surprising to learn that the traditional Three Class Society may collapse into a society of only two classes in a relatively short period of time.

Now, what I would like to know is: What is going to happen politically in the societies that are about to abondon their middle classes, on which they have always rest their power? In a Two class society, will they rest their power on a very small upper class, or will they rest it on the huge masses of poor people? Will they try to create a new kind of socialism, where the two classes will work together?

[SwordoftheVistula]

Interesting but damn depressing. However I suppose most of our history has not had the pleasure of a large middle class, maybe the present situation is just not sustainable or stable.

It probably would have been, had not a large number of low-class immigrants been imported, along with multiculturalism.


Now, what I would like to know is: What is going to happen politically in the societies that are about to abondon their middle classes, on which they have always rest their power? In a Two class society, will they rest their power on a very small upper class, or will they rest it on the huge masses of poor people? Will they try to create a new kind of socialism, where the two classes will work together?

That's generally the path the US is heading in, and probably the rest of the west as well. The US Democrat Party has been following this path for the past half-century or so, providing benefits to the very top of society as well as the bottom. The way society is heading is towards a small elite at the top consisting of politicians and politically connected and controlled institutions, such as banks, insurance companies, and auto&defense manufacturing conglomerates (possibly health care to be added soon), who then create as large an underclass as possible which is given (and kept dependent on) government benefits for food, housing, spending money, health care, and so on.

[Skandi]

who then create as large an underclass as possible which is given (and kept dependent on) government benefits for food, housing, spending money, health care, and so on.


I'm not sure if that is economicaly possible, having a large middle class is essential to the welfare state, they are the ones who pay for the social security benifits of the lowerclasses, the super rich sure don't and as there are far fewer of them, the individual burden would be excessive.

[SwordoftheVistula]

I'm not sure if that is economicaly possible, having a large middle class is essential to the welfare state, they are the ones who pay for the social security benifits of the lowerclasses, the super rich sure don't and as there are far fewer of them, the individual burden would be excessive.

They've got a number of ways around that. One is to socialize as much as possible the 'essential needs' industries such as food, heating and other utilities, housing, and medical care. By making these industries either state-run or heavily regulated, they can provide a supply of 'bread and circuses'. Also, they can simply borrow the money needed to pay the welfare classes, though it is questionable how long this can continue.

[Rudy]

Putin tried to warn the US about too much economic intervention.

“In the long run, this made the Soviet economy totally uncompetitive. This lesson cost us dearly. I am sure nobody wants to see it repeated.” Putin
http://www.therightperspective.org/putin-warns-us-about-socialsm/