Now I’ll be honest and say that I am not an economist. In fact, I hated my economics classes. Okay, macro wasn’t too bad, micro was the pits. That having been said even I can see some simple truths. What helps the economy more, one millionaire buying three refrigerators, one for each of his houses, or 300,000 refrigerators bought by 300,000 middle class house holds?
The math is so simple and obvious that even someone like me can see the answer. The truth is that the middle class is the main driving force behind the lifestyle we like to think of as being truly American. But that lifestyle is in danger. Republicans have long since been championing the idea of trickle down economics. I’ve written about this in another article. Trickle down economics only benefits the rich but the ironic thing is that if we did everything the rich wanted, put them in a position of paying absolutely no taxes, even gave them money from the rest of the population’s taxes to support their businesses the economics they love so much would collapse under their own weight.
When all the burden is on the middle class to cover the costs of everything it cuts into their disposable income. That means that they can’t buy luxury items like new cars. They have to keep trying to fix the old one. They can’t go out the movies or restaurants as much. They can’t buy new clothes as often. They can’t take big vacations. The more limited the middle class is in what it can do the fewer customers there are for businesses. Fewer customers means lower profits, which means fewer employees can be afforded or needed and so on until the business closes which will hurt the rich person.
We are on track for rich people to be given so many more rights than the rest of our population and the middle class being so heavily burdened that it knocks the majority of the middle class into poverty. That means we would have just two classes: rich and poor. And the reality is, if you look at other nations with just two classes, it’s more of a master and slave relationship.
If you don’t believe me listen to billionaire Nick Hanauer on the subject. The video is from a Ted Talk and is 20:26 minutes long but it is really worth the time.