posted on Oct, 3 2011 @ 09:40 PM
reply to post by nh_ee
During the early 1980s Reagan recession and late 1980s Savings and Loan bailout, there was still a middle class with incomes/wealth to absorb the
downward turn in the economy and infuse the consumer driven economy with their dollars. Granted, during this time an underground drug economy grew to
absorb the downturn also, but the groundwork to transfer wealth upward was being laid.
Slowly, wages were being forced downward, full time 40-hr/week jobs with health benefits were turning into less-than-fulltime jobs to avoid paying
benefits, and the poor and middle class would be forced to turn to debt to keep up. Jobs by the millions increasingly went elsewhere, even if not out
of country but just to other states with lower wages, and labor was increasingly given to illegal workers.
Poor and middle class debt rose to purchase increasingly cheaper and cheaply built goods, clothes, and houses. Debt rose to cover medical expenses and
education. "Savings" became investments in Wall Street, with its inherent risks.
As long as multinational corporations grew their incomes in emerging middle class markets elsewhere, that part of the business community could care
less about the average American supporting the economy here. Americans and their economy were also dependent on 19th century energy means at the dawn
of the 21st cen. Wars added to the national debt, without a way to pay for them. So when the national economy collapsed, there was no more strong
middle class left to help out a national economy that was far from the vibrant economy decades ago.
It took decades to get this way, and IMO it will take another decade or more to be "better off". Unemployment will not go down significantly for
years, and as long as Americans have to work 3 lower wage jobs without health benefits just to pay for rent (forget buying a house), food, and other
necessities for a 21st cen life, there cannot be any wealth built up to maintain a middle class. It will be a long, slow climb out of the deep hole
that was dug.