The middle class, in the great scheme of things, is a relatively new development, as is democracy itself. And the two new ideas grew in tandem. The very idea that an individual or family could better itself is new.
The existence of both democracy and a strong middle class has made the world a better place, and nowhere is that more true than in the United States. What we know as the great American middle class did not fully come into existence until the FDR era. It grew stronger after the war, and its strength ushered in an era of unmatched prosperity in this country.
Strong unions protected workers and the GI bill allowed a whole generation of young white men a chance at college and home ownership. Real purchasing power went up. And the nascent middle class pulled the poor up with them. There were very few homeless and the ones that existed were mostly alcoholic men. Not families. Medical care was available and affordable. Taxes were fair and most paid them without grumbling.
What did the middle class have?
A decent job with good pay and working conditions.
A chance at home ownership
The ability to give their children a better life than what they had. Including a good education
The freedom to enjoy their own private pursuits
Reliable transportation
A working infrastructure
Hope for the future
But not everyone was happy. The historically disenfranchised were unhappy because the new distribution of opportunity and relative wealth did not fall to them equally. This was being addressed, albeit slowly, by including more and more into the middle class fold, by use of civil rights legislation and regulation of housing and employment laws. It was working.
The other unhappy group were the uber-wealthy capitalists who had despised the both the “new deal” and the “great society”. This parasitic group has never wanted to share anything. Not wealth and not power. So, they lay in wait.
In 1980 they got their chance, in the first suspect election in my lifetime. The far right had spent years filling up all the lower elected positions with their people. They had slowly corrupted the public discourse to the point where their ideas were considered “common wisdom”. And, in the actor Ronald Reagan they found their man.
What followed was an all out war on middle class America, though it was not publicly framed that way. You will never hear a politician admit to betraying the middle class. The members of that class are THE biggest voting block. Or used to be.
The quiet attack on the middle class was multi-pronged. First were extreme deregulation and tax cuts for the wealthy. This set up the hegemony of the medical insurance companies and predatory lenders for the carnage to come.
Then they came for the free press, overturning the fairness doctrine, opening the way for a powerful propaganda machine. And more tax cuts every Republican administration since. Which in turn allows other Republicans to cut the safety net and education, over and over.
The end game is to privatize earned benefits such as social security, and public functions that benefit all of society, such as the Postal Service. The desired end result is a gangster society with the very rich as oligarchs.
The next attack under Reagan was on unions, leaving most American workers without representation. The capitalists were free to exploit workers and run the prices up to create more profit for themselves. The rest of us were told it would “trickle down”. This had been tried before. There is only one thing that ever “trickles down” from the elite class, and it ain’t wealth.
Here is a breakdown of the ratio between wages and cost of the two iconic markers of the middle class—home ownership and a new car:
Average cost of a home in 1970– $17,000
In 2022 it is $325,000 a 19 times difference
Average cost of a new car in 1970–$3500. In 2022 it is $47,000 a 14 times difference
Average salary in 1970–$10,000. In 2022 it is $49,000. Increased by 5 times.
Minimum wage in 1970–$1.45. In 2022 it is $7.25, an increase by 5 times.
To be fair we need to take the 1970 minimum of $1.45 and make it 20 times higher. The spread for the average house plus one. This is $29 an hour.
The next move was an attack on education. Higher education in particular. Here are some figures from Jan Padgett, who crunched the numbers for her own university. She writes:
“In 1960 a credit hour cost $7.00. The minimum wage was $1 per hour so a student would need to work 7 hours to pay for a single credit. Most students complete 15 hours a semester so a student would work 105 hours or 2.6 weeks to pay their tuition. No wonder you all in your 70’s could afford to pay for college.
In 1980 a credit hour cost $33.50. Minimum wage was $3.10 so the student would work 11 hours for each credit, or 165 hours = 4.125 weeks to pay tuition. This is doable.
In 2000 a credit hour cost $125. Minimum wage had gone up to a whopping $5.15. Hypothetical student would have to work 24 hours per credit hour, or 360 hours = 9 full time weeks worked just to pay tuition. For classes that last 12 weeks. Remember, that’s working 40 hours a week, going to school full time doing 15 credit hours and DOES NOT include food, books, housing or clothing and transportation. Of course these people are buried in debt, unable to buy homes or start family’s.
In 2022 a credit hour has risen to $270 a credit hour. Minimum wage is now $7.25 (how generous we are, how ungrateful the little snots are). Today’s student would work 37 hours to pay for a single credit hour, or 555 hours = almost 14 weeks. Again, for a 12 week course plus have a ton of additional expenses.”
This would be unfair enough. But consider this. By the beginning of the 21st century, most employers demand a BA even where it is not necessary for the position. Education has become a commodity.
And the lenders are both predatory and without restraint. The loans are sold over and over and the interest rates go up against the terms of the original contract to the point of usury. Many borrowers have paid for their entire adult lives and owe twice as much as they did in the beginning.
There are two types of loan, federal and private. Equal in their unconscionable terms. The difference is that a borrower may not bankrupt out of federal student loans but may out of private ones. This is small consolation. If every private borrower now drowning in student debt were to avail themselves of that option it would be a national disaster.
Several days ago, President Biden signed an executive order forgiving up to $10,000, or $20,000 for those with Pell Grants. It only applies to federal loans. But it is a start. They capitalist class (and the right wing that swallows all that they say without question) went predictably into melt down mode.
They yammered about contracts even though they break and renegotiate contracts all the time. They hollered SOCIALISM even though this is hardly that. It is no secret that they want socialism for themselves and the most brutal form of capitalism for the rest of us.
But why should we care about wages or student debt, or indeed about the middle class itself?
A strong middle class benefits individuals, families, communities, and the country as a whole. It is necessary to a free and open society. It is in the national interest.
The American dream has deferred for two generations as the very rich have beggared our children.
It is about equality and fair dealing.
Whatever else was wrong with the 1950s they got the economy right. If you have followed me for a while you know my opinion of capitalism. I would like a completely new system. But there are things we could restore from the past that made things better even with capitalism. Here are a few:
Restore unions to every workplace over midsized. And give them teeth. Sharp teeth.
Roll the tax code back to a progressive tax with a 90% top rate. In the manner of the 1950s code.
Roll the price of higher education back to its 1972 level. Pay for it with the new tax revenue.
And a few that have not ever been done, but should be:
Fund education out of the general fund, not property taxes, which makes school funding inherently unfair.
Tax the churches.
Take away the cap on Social Security payments so all the income is taxed.
Forgive ALL student debt.
Universal health care for all.
These things combined with serious regulation, which is the subject for another post, would transform American society and restore the promise of this country to millions of people who have been kicked out of the middle class by neoliberal malfeasance.
The elite class has seized control of the mechanisms of government and betrayed the middle class. Let’s defeat them while we can and restore the American dream to all of us, but especially the ones left out the first time.
I agree with you on every point. May I share this on Facebook? I don't do a lot on FB anymore, but this is a really well written piece and I would like to give it a broader audience. But only with your permission. LMK
Thank you for an excellent analysis. My heart aches when I think of the income disparity in the USA. As a Canadian it would not be fair to comment further.