| HappySqurriel said:
As you can see by this graph, the poor income growth of the bottom 60% of Americans can largely be associated with these American's having never recovered from the recession of the 1990s and then stagnation and decline over the Bush administration; and, while I'm sure many Democrats will disagree with me, by the time the influence of the Obama administration is over they will (likely) be in a worse position that they were before Regan was elected.
The reason for this is simple, we no longer live in the economy of the 1940s, 1950s and 1960s and a high-school education with no skills beyond that will not get you a career that pays well; and being a high-school drop-out pretty much ensures that you will be unemployeed or work in a menial career. Those individuals who have gone onto trade-school or university and gained skills in in-demand fields (the top 20% of wage earners) are doing great; those that got skills in the liberal arts or other fields with limited demand (the second 20% of wage earners) are holding their own; but the bottom 60% are being failed by an educational system which is obsolete. |
The economy we have today is one, where if you can own assets, these asset will appreciate in value, also earn additional income, compounding what has been there previously. And with lower tax rates, this compounding effect grows larger and larger. The owning of assets that generate income has little to do with anyone's own competency or skills. In addition to this though is a scale effect that happens in regards to the area of intellectual properties and being networked, and globalization. Jobs shift to all over the globe, keeping wages down, unless you are a top player, who is at the core of some intellectual property in demand, that has superior branding behind it. If you are there, then the end result is you see large scale returns. In short, be in the top 20% and you make a killing. If you are anywhere else (bottom 60%) and you end up falling further behind.
Even then, it isn't about the skills or going to college. It is about being in a place where you don't get buried via globalization and can have your job outsourced. A system where the "bottom 60%" ends up falling way behind means an end to the middle class, and is primed for there to be uprisings happening.
