The Middle Class is Dangerous

By Victor Meier

The Phrase “Middle Class” is a misguided term and by using it President Barack Obama is turning Americans against the “Michael Jordans” of our economy, the wealthy, according to Senator Jon Kyl (R) from Arizona.

So, no longer are the wealthy considered just “Job Creators” anymore, they are Superstars now. Kyl elaborated on the subject in a Huffington Post article, saying that President Obama should stop talking about the middle class altogether. Kyl contends that the use of the term middle class is dangerous. During his speech on the senate floor Kyl argued that the President’s statements about the middle class are dangerous because it creates resentment that leads to the weakening of “American values”.

Kyl claims that by sympathizing with the middle class, Americans are ignoring the “uniquely meritocratic basis of our society.” His sentiment flies directly in the face of historical fact and expert economic analysis. Ben Stein, former Republican Presidential Speech Writer and conservative economist told Fox and Friends, “We are going to have to raise taxes on very rich people.” Stein continued to say that he thinks America has a “too low taxes problem.” Kyl ignores the fact that statistically speaking, virtually no one becomes wealthy or even rich because of hard work and saving alone. However, the middle class was built by hard working Americans who were able to save their way to minor prosperity which in turn enriched our economy. Once upon a time this was enough for most Americans.

Meritocracy is a system where advancement is based upon individual ability and accomplishment. This is a theory that has been refuted by business experts like author of the Purple Cow, Seth Godin and authors of Rich Dad, Poor Dad, Robert Kiyosaki and Sharon Lechter. Kyl’s assertion is that even though corporations have had a contentious relationship (at best) with the American worker from the onset of our country, representing workers rights is not good for the economy. Kyl’s correct in one sense. Though the American workers’ pay has flat lined over the last 25 years and union representation has decreased by more than half while corporate and Wall Street profits are at all time highs. The rich have gotten richer.

Below: Senator Jon Kyl (R) from Arizona

Perhaps Kyl views standing up for American workers and protecting their rights as an attack upon corporations and the rights of big business. Maybe Kyl does not see the exoneration of the American working class for what it is, an opportunity to contribute to capitalism. Whatever Kyl’s reasoning is, his message is clear about spreading what the senator calls “economic resentment” by acknowledging the importance of the middle class. Senator Kyl believes that by doing so we are weakening America values.

The fact of the matter is that Kyl either has no idea what it’s like to be poor or even middle class or he is willing to simply throw that entire segment of the American population under the bus. Senator Kyl do you know that a person’s brain and cognitive functions can be weakened by as much as 14% (Poverty Impedes Cognitive Function) due to the effects of poverty? Do you realize that the majority of Americans are going to have to work until the day they die just to be able to afford to live? Are you really expecting to preach these values seriously even though statistical evidence and historical facts have proven that trickledown economics do not work?  The middle class are the engine that runs our economy.

In America the average working person (meaning 40 hours a week 50 weeks a year) still work at least 400 hours more in one year than the average German. That’s over ten weeks more. Germany’s unemployment rate is 5.5% and the economy remains strong. Why is it that Americans are only given fourteen days off a year and yet on average only take twelve of those days off? Why is it that America is the only developed country in the world without so much as even one legally mandated paid holiday?

Perhaps it is the fact that Americans don’t get enough time off and when we get time off from work we still have very little money to travel and see the world with. This contributes to American’s misunderstanding of how the rest of the civilized world operates. Though there are plenty of examples of European countries struggling economically, keep in mind their citizens often have national debt that is lower per capita than American’s individual debt. These nations may be in debt and so is America. At the very least European citizens get something for their trouble.

Kyl is obviously reporting from “the information bubble” as he has no idea what truly transpired in Chicago when Michael Jordan rose to prominence as a player for the Chicago Bulls. "Michael Jordan was given an enormous, almost unheard of salary.” Did the other players say, 'That's not fair?' No, actually all the other players got big salary increases, too," Kyl told the Huffington Post. Not entirely true though. Yes, Jordan’s teammates were paid well. That was only because Jordan agreed to a reasonable salary so the team could afford to pay for good players to surround him with. “If I wanted to be greedy, I could make a lot more money.” -Michael Jordan. 

The Senate has been recently debating over whether or not to extend the Bush-era tax cuts that are largely attributed with the current disparity of wealth in America and the subsequent economic depression. The Bush-era tax cuts were extended to all Americans including the not so fortunate and yet it is the wealthy that have benefited most. Senate Democrats argue that the cuts should be extended for just people earning under $250,000 per year. That includes around 90% of the American population.

The sentiments expressed by Kyl are representative of a larger disdain openly expressed by economic conservatives that claim to be business friendly. In states where these views are prevalent in policy we have the so-called “Right to Work” laws. These laws are known to drive down wages for all workers and yet can be made into a convincing argument for commerce somehow. Right to work laws are discriminatory towards non-union members, women, and people of color. According to the Bureau of Labor Statistics, Americans who live and work in right to work states make an average of $1,500 less yearly than in states where these laws don’t exist and are less likely to have health insurance too.

It’s all the rage to draw analogies with slavery no matter what the cause or issue is. This correlation has been highly overstated. The economic situation American’s are increasingly finding themselves in more resembles indentured servitude than slavery. Americans work, we work hard and we do good work. We just don’t get any reprieve from the work and stress related to a down economy and lack of job security. Americans don’t get any time off and when we do we don’t take it, we use it for overtime. The level of intellect and insight exhibited by senator Kyl is shameful, dismissive and counterproductive to the American economy. It is impossible to sustain a capitalist, consumer based economy when the consumer cannot afford to participate.

References

Scarcity: Why Having Too Little Means So Much, http://www.amazon.com/Scarcity-Having-Little-Means-Much/dp/0805092641

Focus: The Hidden Driver of Success, Goldman, D., http://www.amazon.com/Focus-The-Hidden-Driver-Excellence/dp/0062114867

How Poverty Taxes the Brain, Badger, E. The Atlantic Cities Website. Theatlanticcities.com, (August 29, 2013). http://www.theatlanticcities.com/jobs-and-economy/2013/08/how-poverty-taxes-brain/6716/

Poverty Impedes Cognitive Function, Mani, A., Mullainathan, S., Shafir, E., Zhao, J., Science Magazine, sciencemag.org website, (August 30, 2013). http://www.sciencemag.org/content/341/6149/976, http://www2.warwick.ac.uk/fac/soc/economics/staff/academic/mani/mani_science_976.full.pdf

Jon Kyl Berates Obama For Focus On Middle Class. McAuliff, M. Huffington Post, http://www.huffingtonpost.com/2012/07/23/jon-kyl-middle-class-obama_n_1696826.html