re: #58 petesh

Now, that’s a very fine rant. I’ve been banging on about the failure of ‘Mercans to notice the gradual lowering of their economic status relative to the rest of the world (from about half of global GDP in 1945 down to 16% (PPP) now. I think the general myth goes back much more than 70 years, and of course racism goes back to Columbus.

My key takeaway, which differs very little from yours, I think, is that the irreducible 27% and the 12–15% closest to them are squealing because of the unconscious fear that everything will be taken away from them. Take it from an immigrant from the UK, life after empire can be better than life during it.

If you take a look at the macro economic indicators for the past 50 years, they clearly show that middle class prosperity peaked right before the first OPEC oil embargo in October 1973 and they’ve been on the decline ever since. Lots of factors play in, the increase in petroleum prices, IW Abel surrendering the United Steelworkers Right to Strike, Nixon’s wage/price controls designed to interfere with collective bargaining, Chrysler’s near collapse in 1979, The rise of the New Right with California’s Prop 13 and Reagan’s election. Reagan breaking PATCO and going after unions, Millken’s junk bond spree which drained corporate pension funds away, The death of the Steel industry in the mid 80’s, the S&L collapse, 1987 market meltdown, free trade deals, spiraling health care costs, bankruptcy restrictions,Glass-Steagel repeal and continuing weakening of labor all contribute to the continual decay of the middle class.