The Middle-Class is losing ground for the same reason it did in the early Industrial age. There is a revolution in technology going on right now and that hasn't sorted itself out yet. We are into about a century of the Electronic Revolution right now. It's likely going to be another century before things really settle down again. Where that will go is anybody's guess at this point.
The Middle-Class factory worker of the Industrial age-- a person with a decent high school education and training in a specific job-- can't compete effectively in the Electronic age. They need broader skills and more education post high school to do that. With Industrial age jobs vanishing to AI and computers, those classic factory workers are done. They are going to end up the richest of the poor rather than middle class.
The new middle class at this point is someone who has training beyond high school in a trade or profession that requires such training. They can make a good living but have to be flexible and able to solve problems and do a variety of tasks unlike the classic factory worker that got good at one or a few repetitive tasks that a computer and machine can do now.
It's not that people are getting stupider or lazy, it's that a smaller portion of the bell curve of intelligence is capable of learning and doing this sort of job in the Electronics age. We most likely will have to completely revamp how we educate children again, just as happened in the Industrial age. Right now, our public school systems are geared to the Industrial age for the most part. That needs to change.
Well said...and some of it I agree with.
But this 'technology is killing jobs' argument has been going on since the Industrial Revolution.
And the unemployment rate proves that it - with respect - is somewhat overstated.
But many feel as you do - so you are not alone.
The unemployment rate in 2019 was 3.9%.
https://www.thebalance.com/unemployment-rate-by-year-3305506
That is lower than every year in the 1950's but 2.
Yes, the U-3 has changed.
But it's hard to argue that the middle class is losing out due to technology when employment is still pretty strong.
Yes, the factory jobs have largely gone to the Far East.
But that is little to do with technology...just - principally - cheaper labor.
The middle class, American male can no longer do all his factory pay used to do 60+ years ago for three, primary reasons.
1) America basically was GALACTICALLY more powerful (economically) after WW2 than anyone...by MILES. Every, other major country after the war was either destroyed and/or broke and/or communist/soon to be communist. So, for the 20-30 years it took the other countries to rebuild - America had the field to themselves.
So, naturally, every American whom had a decent job was going to be a relatively, powerful person (in comparison to almost all other citizens of the world).
But, by the late 1960's, that advantage was ending.
And now it is almost completely gone.
2) women entered the work force in 1960 and gaining equal rights.
https://www.dol.gov/agencies/wb/data/lfp/civilianlfbysex
As you must know, in 1950, hardly any women worked.
And those that did usually had nothing jobs.
Not today.
Today, women have careers (which I think is fab).
And when they have children?
They toss them in daycares (which I think is
HORRIBLE. They should raise them until school age.) and continue their careers.
And that should mean more money for middle class families.
And it did - for a while
Until...
3) the Federal Reserve (and all, major central banks)
It's a long story...but basically, after Japan's 1989 crash and subsequent Lost Decade?
Their central bank went nuts trying to prop up the economy (and largely failed, IMO).
Other central banks got the bright idea that they could intervene in
their countries economies.
And from 2000...they did.
And after 2008?
They now RUN the economies. In ALL medium/major economies.
What did that mean?
a) it meant historically low interest rates and TONS of cheap credit.
So now every schmuck with a pizza delivery job could get a credit card/line-of-credit.
Result?
Hidden inflation.
Shit loads of cheap money flooding the planet raised the cost of everything.
But since inflation is largely measured on relative buying power compared to other currencies? And since ALL the other countries were 'printing' shit loads of money as well as America? The US dollar stayed as strong
RELATIVE to other currencies.
The inflation was hidden.
b) and consumers went along with it.
Look at an iPhone?
Top of the line iPhone 3G w/16G memory cost $387.18 in 2021 dollars.
Top of the line iPhone 13 w/1TB memory costs $1,599 dollars.
Yes, it is a far, better phone.
But the new SE w/128G at $449 is all most people will ever, really
need.
(especially if Apple put a frigging, expanded memory port in their phones.)
Yet over 80 million people will probably buy the iPhone 13...in Q1 2022 alone!
https://telecomtalk.info/apple-iphone-13-sales-q1-2022-estimate/479794/
Look at the the base Ford Ranger pickup.
In 2000?
It started at $18,748.71 in 2021 dollars.
https://www.autobytel.com/ford/ranger/2000/
In 2022?
It
starts at $25,500.
https://www.ford.com/trucks/ranger/?gnav=header-trucks-vhp
Again, it is a much, nicer vehicle.
But for a work truck, all the digital dash with fancy head unit and extra toys means nothing to the guy who wants to buy a couple of work trucks for his business - for as cheaply as possible.
My point is that consumers are paying FAR more for the staples in their lives.
They have been subtly conned into paying shit loads more cash for the same, basic thing with more bells and whistles on them.
But since everyone just charges it?
The payments sound so low that few notice/care.
And what about real estate?
c) the Fed not only lowered rates to near nothing. But they also started QE (in many versions/names).
Basically, they have thrown over $7 TRILLION dollars at the economy since 2008.
https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm
And almost all of it went to propping up the equity markets.
And who owns stocks?
Not the middle classes.
And certainly not the poor.
The wealthy do.
The Dow has risen well over 500% since early 2009.
https://www.cnbc.com/quotes/.DJI
And the wealthy have taken that money and thrown it into real estate.
But only in wealthy areas.
That is why my brother's home outside San Francisco has risen by about the same as the DOW since 2009.
Whereas in Iowa?
It has not risen remotely as much.
The Fed is making the big banks/corporations and wealthy MEGA rich.
And the middle class is getting left COMPLETELY behind.
But the MSM talks about the low U-3 (unemployment rate) and the great, stock market numbers?
And how real estate in San Francisco and New York and other wealthy areas is skyrocketing.
And Trump and Biden talk about how 'great' the economy is.
And the ignorant masses just assume that everything is great.
When all the time, it is ONLY great for the wealthy.
The rest are getting left behind.
With respect, it is not technology that is killing the American dream for the middle class dude.
It is women entering the workforce/daycares, cheap overseas labor, America losing it's post-WW2 edge and the Fed causing massive inflation...but (until recently) doing a great job of hiding it.