We have lost our middleclass over the last 40 years as they allowed our jobs to go overseas. It used to be a guy could get out of high school, learn a trade, raise a family, own a home and a car - join the middleclass.
Tough today given current salaries and cost of living, raising a family on a salary from service jobs working at WAL-MART ( in 1999 Median income food service manager US$ 30,375/year http://www.census.gov/hhes/www/income/data/earnings/call2usboth.html) or MacDonalds (in 1999 the median full time salary for a typical Combined Food Preparation and Serving Workers, Including Fast Food in the United States is $16,250/year. http://www.census.gov/hhes/www/income/data/earnings/call2usboth.html) is not very easy.
The median household income in the United States in 2009 was $49,777 http://www.census.gov/newsroom/releases/archives/income_wealth/cb10-144.html
Even university grads are having trouble finding jobs.
51% of Americans pay no Federal income tax in 2009 http://taxprof.typepad.com/taxprof_blog/2011/05/senate-51-of-households.html, biggest gap in the world between the rich and poor with a disappearing middleclass. No middleclass, no tax base, no consumers or investors except for a small elite.
No tax base combined with a continually growing government means unsustainable budgets, debt and we risk ending up like a Thrid World Country - being happy to pay off the debt interest as opposed to the debt. Up until now with no gold standard, we keep printing fiat dollars - how long is this sustainable.
Another shocking item - is that they apparently have been messing with the income tax rate.
A married couple with 2 children & 2 persons tax exemption making US$ 35,000 pays no Federal income tax. If they make US$ 55,000 they pay US$ 2,550. If you are single with 1 exemption making 35,000 you pay US$ 3,400 in Federal taxes - more like it.
See for yourself at http://www.calcxml.com/calculators/inc02?skn=#top My brother told me about this and guys working in the warehouse that he is linked to selling industrial rubber products. I was really surprised. So not only are we losing our middleclass, but many people traditionally considered middleclass pay little or no income tax.
Regards
XYZ
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