GOP Trickle Down Has 70% of Americans Near Financial Calamity

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For well over thirty years since Republican man-god Ronald Reagan declared that government is the evil destroying the great middle class, Republicans have maintained their demigod’s position that the solution to help the middle class is giving the richest Americans all of the nation’s assets and wealth. Since then, the rich have gotten richer and what was once a vibrant middle class is now less than vapor and on the verge of vanishing altogether. Instead of changing course and helping the majority of the population, Republicans still propose heaping wealth on the rich and increasing taxes on the bottom 90% of the population to complete the utter destruction of middle income earners. According to yet another report they are succeeding beyond their wildest dreams.

In recent data from Pew Charitable Trust research, over 70% of American households are facing regular monthly “financial strains,” and that over half of the population (55%) cannot generate enough income to cover even one month’s living expenses from savings or other liquid assets (things to sell). What that means is that the preponderance of Americans are barely making it from paycheck to paycheck and that just one bout of illness, even a temporary layoff, or other calamity means complete and utter financial ruin and poverty. This is the condition Republicans began creating 30 years ago and persist in exacerbating by their obstructionism in service to the one-percent.

According to the director of Pew’s financial security and mobility project, Erin Currier, “Our analysis finds that many American families, even those with relatively high incomes, are walking a financial tightrope. Most have little if any cushion to absorb an unexpected financial setback. It’s a precarious state that threatens not just financial security, but upward mobility.” The sad fact is that despite regular household spending falling to levels unseen since the 1990s,  “half of all American families report being ‘income-constrained‘” which means their household spending is greater than or equal to their monthly income. It is the epitome of barely making it from paycheck to paycheck and it includes most families in the rapidly vanishing middle class.

Republicans continue lying that they want to help the middle class, but their adherence to trickle down robbery is increasing the income gap. Coupled with their blatant obstruction and opposition to any of President Obama’s pleas for congressional assistance such as raising the minimum wage, extending unemployment benefits, or passing legitimate jobs bills, their drive to wipe out well-paying union jobs, robbing retirees’ pensions, or help Veterans is exacerbating the rapid decline of the middle class.  In particular, Republicans have fiercely fought to obstruct equal pay for women who make up nearly half of the workforce further driving the population into financial despair while the rich continue increasing their fortunes.

A report from Pew last October reported that in order for American workers to have the same buying power they had before Reagan Republicans imposed their trickle down scam, they would have to earn at least $22.41 per hour to have the same purchasing power as when the average hourly wage was $4.03 in 1979. The abomination is that as of last month, worker productivity has steadily increased by over 80% since the late seventies but wages grew by only 11 percent.

According to a report from the New York Times that put the situation in real numbers; “To maintain their buying power, middle income workers who earned $20,000 in 1970 would have had to make $42,474 in 1980, $67,371 in 1990, $88,763 in 2000, $112,400 in 2010 and $122,388 today.” America’s median income has been steadily declining since the Republican recession and is about $48,500; what an upper-middle class American family would have earned in 1980 before the trickle down scam was fully in place. No “average American worker” is earning anywhere near $122, 388 today and if they were they would barely be keeping pace with late 1970’s buying power.

Republicans claim this horrid financial situation is due to the President’s economic policies and that corporate America is suffering higher taxes and “job-killing regulations” forcing corporations to pay wages comparable to those of 30 or 40 years ago. Republicans like Paul Ryan claim that the other reason corporations pay Americans insufferable wages is because of ‘entitlements,’ socialism, and Obama’s liberal tax and spending policies. Of course all of the Republican claims are lies according to a report from last year revealing that “corporate profits are at their highest levels in at least 85 years while employee compensation is at the lowest in 65 years.” It is upward redistribution of income that Republicans work tirelessly to perpetuate until the bottom 99% have nothing left to give.

Also, during the first five years of the Obama Administration, corporate profits averaged nearly 9.3 percent of GDP; two full points higher than either Clinton or George W. Bush and are the highest corporate profit rates of all time. That is not all. The stock market under President Obama recorded all-time highs with annual gains of 17.7 percent that is “the highest of ANY previous President.” The horrid financial situation for the great majority of Americans is NOT because the economy has failed to recover under the Obama Administration; it is because of Republican policies supporting corporate greed at the expense of the great majority of the American people who continue sliding into poverty.

According to a CBS News report six months ago, since the onset of the recession there are “2.3 million more lower-wage workers” and “1.2 million fewer mid and higher-wage jobs than before the Bush-Republican Great Recession.” The report also noted that in all occupations real wages have declined since 2009 and there is little chance they will increase anytime soon despite President Obama’s calls for Republicans to help the American people.

Now that the Koch brothers control Congress, there is no chance Republicans will do anything other than continue helping the rich “keep their boots on the throats of the American people.” Because with only 70% of the population in financial distress, there is still 28% of the population to send into poverty and at least a two-year window for the Koch Congress to complete their long-cherished goal of a nation of peasants serving the wealthy elite.

h/t reverbpress

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24 Replies to “GOP Trickle Down Has 70% of Americans Near Financial Calamity”

  1. I had an interesting conversation at “coffee hour” after church. This is Idaho and everyone at the table agreed that Corporations’ greed is killing this country. Everyone agreed that the Congress is bought and paid for. One person called it a Mafia Congress. In the whole conversation, no-one even mentioned Mr. Obama. I admit I was amazed; this is conservative Idaho.

  2. My sister in law is selling her home because she can no longer afford to pay her mortgage. Getting by on $12 an hour at age 56 no longer cuts it. She lives in a right to work state. Years ago she defended right to work now she realizes she is screwed over. She was impressed when the President came to her state and visited people in a poor community. She laughed at the right wingers criticizing that he didn’t go to the veterans center. Her 4 children are struggling who still fall for the right wing meme because her ex husband raised them on the university of Rush Limbaugh. People are waking up slowly and are disgusted with the rethug congress and state legislatures only representing the Koch billionaires.

  3. To understand the Republican/Tea Party, one need look at their ideology. This ideology is a composite of Social Darwinism and Libertarianism. Both are two faces of the same coin: the rich deserve more and the poor less. The perverse teachings of Milton Friedman and Any Rand have distorted America from a nation which was concerned with the poor to one which has a profound hatred of the less fortunate. The creed of Republicans is that the rich owe nobody nothing, ignoring the FACT that the rich exists only because of government coddling.

  4. Would it be too easy to say we changed when Reagan took office, or was there a gradual ‘creeping’ of change prior to that?

  5. As I remember, Reagan was a Trojan horse. Once he was elected, ex-CIA chief G.H.W. Bush became Reagan’s VP and handler.

    He continued his father’s corporate fascism, including the brutal colonization and de-stabilization of Central and South America using the drug ‘war’ as an excuse.

    The bush family has much to answer for. Like the Stewarts of Elizabethan England, they will do anything for power and control.

  6. I think that many blame Reagan, as if he had the smarts to put his own pants on. He was Donald Regan’s sock puppet from day one. Reaganomics was never Reaganomics, it was always Reganomics.

    We’ve been bowing and scraping to the golden calf Merrill Lynch for 33 years.

  7. I say it’s time the 70% start fighting back.

    Call out the Republicans for what they are: Thieves. They don’t care about you, and you shouldn’t give a damn about them.

  8. It seems a bit late for that. We gave away the store long ago. I don’t mean to infer that I’ll give up the fight, but really I don’t have a lot of hope.

  9. Thanks to the media’s grasp on the public, they not only forget nostalgic history, but thing that happened within the last month or less. If they could just stop lusting after the newest Iphone or whatever happens to be trendy, maybe they will wake up to what is really happening.

  10. Is my memory correct, didn’t Reagan take the social security fund and put it into the general fund and use it for whatever?

  11. Don’t give up hope, this is what they want you to do. This is why Republicans hire concern trolls to plant the idea that this is all hopeless.

    Google definition of “concern troll.”

  12. Ahem… I remind you of the late Jimmy Valvano and his most famous words:

    “Don’t give up. Don’t ever give up.”

    Right now, this ideal needs to be plastered in the minds of everyone who believes in the ideals of what our President wants, what our Democratic leaders want, what our fellow Liberals want.

    To give up on this fight is let them win. You don’t want them to win and turn our country into a bitch state, do you?

  13. You are so right sir.
    1 This veteran has spoken for all of us who are tired of lip service from the GOP where they promise us much and never vote on bills to support our programs and even cut our food stamps. We are nothing but photo ops for the GOP and objects for canon fodder any other time. So just how are you Kochroaches sell outs going to help us when your idealology prevents progressive programs or helping the middle class?

  14. “Paul Ryan claim that the other reason corporations pay Americans insufferable wages is because of ‘entitlements,’ socialism, and Obama’s liberal tax and spending policies.”
    Ummmm those things did not have this effect in 1979.

    Want to preview the GOP vision for the USA? Look at Mexico.

  15. Just beginning my tax return for 2014, the good people of NC that voted for the idiot McCrory, are going to get the same shock that I got, he has done away with the small credit on IRA distributions & also many pensions other than the Bailey Act.
    I wonder if any of them will be having second thoughts – perhaps they will not even notice.

  16. Both sides are bought and paid for. Chairman MAObama is on the same path as Congress but just at a much faster pace. Corporations are responsible to their shareholders and will take their business to where they bring home the most money. The EPA and our tax code is killing business.

  17. That may be the lamest post I’ve read in years since profits are sky high, and even small business FINALLY got a tax break for investing rather than going OUT of business. How’s your fact-free diet workin’ for ya?

  18. This should be an eye-opening article and WAKE UP call to the plubs (that’s most of the American population), who are continually subject to wage slavery and welfare slavery perpetrated by an unjust system that is rigged to concentrate wealth-creation, and thus income-generation among the 1 percent of the population.

    Why, because our monetary and finance system is based on past savings. This limits how much prosperity can be achieved that benefits EVERY citizen, and who can achieve it.

    In order to make the losers winners requires that the system be reformed so that the financing of new capital assets is based on the present value of that which can be produced in the future, rather than ONLY on which has been withheld from consumption in the past. Which makes more sense––a system of past savings based on reductions of consumption in the past or a system of future savings based on increases in production in the future?

  19. We need to understand that the rich are rich because they OWN wealth-creating, income-producing capital assets, which they continue to accumulate using their asset wealth as security and the income earnings from their investments in new capital asset formation to acquire more and more OWNERSHIP holdings, which then makes their even more wealthly.

    Why has OWNING the non-human factor of production, embodied in capital assets such as land, structures, tool, machines, robotics, super-automation, computerization, etc., become the reason the rich are rich? It has ALWAYS been so, but exponentially tectonic shifts in the technologies of production have and will continue to result in less and less human labor required to produce the products and services needed and wanted by society.

  20. Such shifts in production results in devaluing the worth of labor as more and more people vie for less and less jobs, resulting in a “laissez-faire” opportunity to produce globally at the lowest possible labor rates. Thus, both efficient physical capital utilization and reduced labor costs effectively enable companies to keep labor input and other costs at a minimum in order to maximize profits for the owners. The rich are always the OWNERS, while those employed are the wage slaves. Those unemployed or underemployed in society are the welfare slaves, dependent on the State and its coercive powers to provide the minimum level of subsistence.

    We cannot allow the central bank, the Federal Reserve, and the political government to continue rob the vast majority of the American citizenry from a future of inclusive prosperity, inclusive opportunity, and inclusive economic justice.

  21. There is a solution and a path to reforming the system to empower EVERY citizen to acquire personal ownership shares in future wealth-creating, income-producing capital assets simultaneously with the growth of the economy, while assuring the economy will grow to support general affluence for EVERY child, woman, and man. The proposed Capital Homestead Act is the pillar for this needed change. It provides financial mechanisms that provide equal opportunity for EVERY citizen to steadily acquire a diversified portfolio of income-producing, full-voting and full dividend payout stocks issued specifically for new capital asset formation using insured, interest-free pure capital credit loans, repayable out of the earnings of the investments in the corporations growing our economy. The result would be annual cycles of growth that are self-perpetuating and which would better balance production with consumption, rather than allow the non-human means of production to be narrowly OWNED.

  22. The justice-based argument for this approach to an inclusive society is the agenda of the Just Third Way. There is also a political platform that is offered to any political party or politician upon which to advocate for this new paradigm.

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