I Am the Middle Class

Do you know how I know this? I’m broke.

Do you know how I know this? I’m broke.

Stuck in the Middle

I realize it’s become almost trite to be prattling on about income disparity, but the subject remains relevant. And it’s increasingly more important. No matter how exhausted we may become of the discussion, it’s one that shouldn’t disappear.

I’m a capitalist and there will always be certain class divisions when we’re functioning in a free market society. Unfortunately, right now we’re not.

Alarming growth for wealth.

Thanks to the deified Ronald Reagan and the ridiculous belief that “trickle-down economics” or “a rising tide lifts all boats” theory works, this is where we’re at.

As the chart to the left indicates, the disparity of income growth since the birth of this “rising tide” economic theory simply proves that it is 100% nonsense.

BUT WAIT, THERE’S MORE

In 1965, the CEO to work pay ratio was 20:1. From the ‘70s until 2014, “inflation-adjusted CEO compensation has increased 997%” . . . let that sink in 997% . . . to the point where the CEO to worker to pay ratio can be 300:1!

Virtually every President since Reagan, regardless of party affiliation, has had a hand in the manipulation and erosion of the middle class. Presidents Clinton and Obama were far more corporate-friendly than I care to dive into here but to call them “liberal elites” is ignorant. One of the only ways Clinton got a second term was bending over the barrel for corporate interests.

Make no mistake, being a shill for the corporations while seated in the oval office is a bipartisan prerequisite.

And with Trump, it’s just a corporate free for all.

When Donald Trump overhauled the tax code, this “rising tide” crap was once again the battle cry. Unfortunately, despite all the evidence at the time signaling that this new tax code scheme was simply a handout to the rich, there was still an outcry this tax season. I’m not sure how anyone was surprised that it was once again the middle class being financially squeezed.

In the spirit of full disclosure, I have no issue with CEO’s or people in leadership roles being compensated for their performance. It’s just that their annual increase is almost always offensively more than the average worker.

By way of comparison, the average CEO salary increase in 2017 (most recent data) was 13.3%. My most recent “merit” or salary increase was 3%. The Social Security Cost of Living Adjustment for 2019 is 2.8%. Based on these numbers, my “merit” increase amounts to .2% versus the average CEO’s 10.5% (based on the 2017 number). In the chart to the left, the two classes growing are the two that shouldn’t be, the upper class and the lower class and the middle class is shrinking.

When my living expenses are increasing at an aggregate of +/-15% year over year and my cost of living increase (cleverly disguised as a merit increase) is a fraction of that, how am I to reconcile this sort of disparity?

Quick story: One year I got a 2% “merit” increase. However, that same year our contribution to our medical benefits went up by 5%. So before factoring in any other day to day annual increases, I lost 3% of my income. My boss framed it as though I was one of the “lucky ones” by even getting a 2% increase, with the “great recession” and all.

It was honestly one of the strangest interactions of my professional career.

So, am I, we, just supposed to take it on the chin and say “That’s just the way it is buckaroo”? Just supposed to numb ourselves with television, social media, or chemicals? No. Those are awful ideas. TV, Facebook, and wine, and all of those escapes are privileges.

Being able to earn a livable wage to sustain a decent life is a right. I should be able to pay my bills, save some money, and go home to have a spirited and lively discussion about my day. Instead of going home constantly worrying about moving money around to pay bills.

Shouldn’t I just be thankful I have a job? Yes. On most days I am. Of course, that begs the question, have careers been replaced by jobs? That is a much larger discussion.

And believe me, when I say, I’m hyper-aware that I am one of the lucky ones. But this luck comes with a hefty price tag.

Some people may read this and say “Yea, you’re right but what can we do? It’s the way it is, ya know?” I do know. I also know that whether it’s in the next five, fifty, or one hundred years, it’s gonna change and it’s not gonna be pretty. History tells us this.

I am firmly lodged in the middle class, complete with a Master’s degree, and yet I get by. Quite literally. It’s frustrating. Some of that is on me. I didn’t need a Master’s. But to be competitive in today’s white-collar labor market, I’m sorry to say that:

1. Unless you went to an Ivy League or top tier school OR

2. You have a highly specialized or in-demand skillset

ya kind of do need an advanced degree to be competitive.

2019

I suspect we can all agree that education is a right. I hope we can. Education is the driver that can elevate people out of poverty.

Well, in President Trump’s 2019 One Trillion Dollar Budget 5% was earmarked for education, down from 6% in 2015. Health (or Healthcare, another right, not privilege) is at 5% in Trump’s budget, also down from 6% in 2015. Housing and Community (another right) also down to 5% in 2019 from 6% in 2015. Yet, military spending is up 7% since 2015.

While the middle class continues to be squeezed and hacked away at, the chasm between rich and … well, everyone else grows and basic rights like education and healthcare are eroding.

These are made to be complicated and often polarizing issues when they shouldn’t be. We need smart and healthy people to work and create jobs in a free market. Education, healthcare, and jobs are rights, not privileges, and they will go a long way to help rebuild and secure the middle class.

I’d like to think we could all agree that having the wealthiest 1% of the world owning and controlling half of the world’s wealth is not a good thing. These aren’t people interesting in fostering a middle class. That is of NO benefit to them.

“A Nation should not be judged by how it treats its highest citizens, but it’s lowest ones.” — Nelson Mandela

If we continue this trajectory of hacking away at these rights, like education and healthcare, that every society needs, and we continue squeezing the middle class, there may be no middle class by the end of this century.

Could it get worse? Yes. And the way it’s trending, it will.

History tells us as much.