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    Sunday, May 12, 2024

    More damage ahead for U.S. middle class

    After recovering from the Depression and World II the middle class from 1945 to 1970 fared magnificently. In 1970, the top 10 percent claimed 34 percent of total income. Wages were 50 percent of GDP (Gross Domestic Product). Workers' wages increased with inflation and productivity. Labor unions were 25 percent of the employed workers. In 1952 corporations paid more than 32 percent of federal taxes.

    Today, the top 10 percent earns 50 percent of the income. Wages are now 43 percent of GDP. Corporation taxes are less than 10 percent of federal taxes. Labor unions are now 12 percent. From 2009 to 2012, 95 percent of income increases went to the top 1 percent.

    Wages no longer increase proportionally with productivity increases.

    Lowering corporate taxes resulted in middle class tax increases.

    The recession, caused by financial manipulation by the elite, caused high unemployment and loss of wealth to the middle class.

    Labor is outsourced to lower income countries.

    Education budgets reduced and college costs increased, causing problems of people keeping up with technology changes.

    The financial control laws (e.g. Glass-Steagall) were gutted, while the elite fostered and implemented Republican principles. With Republicans in charge of the Senate, things can only get worse.