We now know that this middle class has been losing ground – family income below $75,000 has dropped more than 20 percent in six years, leading to less purchasing power to buy goods and services.
This socialist-leaning administration has tried to pump up this loss with government-borrowed money it never intends to repay. Federal Reserve Chairman Ben Bernanke has kept interest rates near zero percent to keep government borrowing cheap and interest payments low. Americans who have saved all their lives for retirement now get nothing in return.
The American history of growing in a free and competitive economy has been undermined by increasing regulations. A 45 percent entitlement society is unsustainable. Many Western industrialized countries have a negative birth rate, meaning more people die than babies born. Fewer than three working and taxpaying people are sustaining eight to 10 retired recipients now.
All government-controlled societies in history have failed and become bankrupt. A recent example is the Soviet Union, whose economy collapsed after 73 years. So have the economies of 17 other Eastern countries. Our politicians – in both parties!– don’t seem to have the answers to our obvious problems.
S.G. von Schweinitz