The United States needs to be reimagined. A recent study from the Pew Research Center tells us that in economic terms the middle class "has suffered its worst decade in modern history." It's shrinking.
With jobs scarce, wages declining and the nation's wealth concentrating ever more intensely at the top, the middle class has shrunk in size for the first time since World War II.
More than two years after the recession officially ended, 25 million Americans – 16 percent of the labor force – are still out of work or underemployed.1 There are more than four jobseekers for every job opening. 6.2 million people have been out of work for more than six months. While the economic consensus is that federal stimulus measures prevented an even greater loss of jobs and a more severe downturn,2 these actions were clearly inadequate.
Americans believe that hard work should be rewarded – people who go to work every day should not then be forced to raise their families in poverty. Yet today nearly a quarter of working adults in the U.S. are laboring at jobs that do not pay enough to support a family at a minimally acceptable level. Because their wages are so low, working people are forced to rely on public benefits, from Medicaid to food stamps to rental assistance, in order to make ends meet. Raising work standards would enable them to become more self-reliant and would raise the floor for all working people.
In 1935, with the passage of the Social Security Act, our national leaders made a promise to all citizens: after a lifetime of hard work, no older American would suffer from poverty in their old age. The passage of this landmark legislation was the embodiment of a deeply shared value: a dignified, economically secure retirement. Seventy-five years later, however, our nation has greatly changed and our ability to uphold this value is severely threatened.
Personal debt can stand as an insurmountable obstacle to Americans wishing to build assets and secure a place in the middle class. In addition to the critical last resort of bankruptcy relief, Americans need fair rules to ensure that lenders – from credit card companies to mortgage lenders to vendors of payday loans – don’t impose excessive interest rates, fees, and penalties that make it easier for American to get into serious debt and harder for them to get out.
Sustaining a strong middle class – and a strong and competitive American economy – over the long term requires a foundation of robust public investment.
The manufacturing sector once offered a large supply of stable, middle-class jobs to American workers. Yet middle-income manufacturing jobs have been disappearing from the United States for the past 30 years. While technological innovation has played a much-recognized role in the erosion of the nation’s manufacturing base, policy failures also contributed to the disappearance of industrial jobs. Leveling the playing field for domestic manufacturing will ensure that the U.S.
Investing in a skilled workforce is vital to America’s long-term economic growth and global competitiveness. Even as the Zero-16 Contract for Education proposed earlier would enable young people graduating from high school to pursue college or career training, the Career Opportunity Plan would increase opportunities for those who have already begun their working lives, particularly low-wage workers and the unemployed, to qualify for jobs that can support a middle-class standard of living.
Household debt is burdening millions of families and stifling economic growth in the nation as a whole. In the first half of 2011, 11 million American households – more than one in five homeowners – owed more on their mortgages than their homes were worth.1 Millions of families have already lost their homes to foreclosure.
Unions were instrumental in creating the American middle class, and today they continue to empower millions of Americans to bargain for wages and benefits that are capable of sustaining a middle-class standard of living.
Provide 12 weeks of paid benefits to employees who need time off work to care for a new child, a sick family member, or their own illness. The self-financing trust is funded by premiums paid equally by employers and employees.
Give states additional Child Care and Development Block Grant funding to double the number of children served by child care assistance, make the federal Child and Dependent Care Tax Credit refundable, and expand Head Start and Early Head Start.
Home ownership is commonly understood as the quintessential marker of having arrived in the middle class: a family’s home is often the single largest asset that they own and has traditionally served as an important vehicle for wealth accumulation and economic security.
Now that the Democratic Party has released their policy platform, we can compare what the two parties envision for the future. One huge point of difference is that the Democratic platform acknowledges climate change and the scientific backing for this claim. In contrast, the GOP openly mocked the idea of climate change even though their convention was delayed by a hurricane.
The good jobs deficit is larger now than it was in 2000. The deficit grew dramatically during the recession and, despite two years of growth, has continued to grow during the recovery.
Ronald Reagan's hologram may not have shown up to the Republican convention last night to extoll the virtues of draconian government cuts, but the anti-tax movement that launched his political career continues to strangle California's government. That's because the movement has continued to define the state's finances with a decades-old proposition leading to yearly budget crises.
The last few weeks have not brought good news for those of us wanting a future powered by clean energy. Thesouthern portion of the TransCanada pipeline is under construction. On top of that, New York State will lift its moratorium and allow fracking to occur in the state.
