About That “Rising, Thriving” Middle Class
This website categorically rejects any effort by government to benefit one class of Americans at the expense of another … or any effort to rhetorically sow division amongst citizens on the basis of their socio-economic status (a.k.a. “class warfare”).
Sadly, such wealth redistribution and division-sowing are bread and butter for Democratic politicians … and increasingly many of their “Republican” colleagues.
Of course the undisputed “King of Class Warfare” remains U.S. President Barack Obama, who continues to portray himself as a middle class champion even though his latest budget includes yet another round of revenue enhancements targeting these already overburdened income earners.
“Our top priority as a nation and my top priority as president must be doing everything we can to reignite the engine of America’s growth – a rising, thriving middle class,” Obama said in a recent radio address. “That’s our North Star. That must drive every decision we make.”
Wait … aside from the hypocrisy of that statement … are we seriously still “reigniting?” Five years after the so-called “stimulus?”
Anyway, more than $5 trillion in deficit spending later things aren’t getting better for the middle class. In fact they’re losing wealth at a time when upper income earners are getting fatter and happier.
According to the Pew report, the mean net worth of the wealthiest 7 percent of American households grew by 28 percent from 2009 to 2011 – from $2.47 million to $3.17 million. Meanwhile the mean net worth of lower 93 percent of American households declined from $139,896 to $133,817. In real dollars, $5.6 trillion worth of new wealth was created for the upper 7 percent (8 million households) – while the lower 93 percent (111 million households) saw $0.6 trillion of their wealth disappear.
This data should come as no surprise to anyone. Last September the U.S. Census Bureau’s annual report on income, poverty and health insurance calculated a $777 drop in median household income from the previous year. Driving this decline was a 1.5 percent drop in income among households earning between $20,000 and $101,000 annually.
Again, we don’t raise these numbers because we believe wealth creation among upper income earners is a bad thing (far from it) … we raise these numbers to remind people that the tab for unprecedented welfare spending and the tab for unprecedented crony capitalism are both being picked up by the middle class.
And that center (clearly) isn’t going to hold forever …