The shrinking middle class in the U.S.
http://www.newamerica.net/index.cfm?...cle&DocID=2271
http://www.washingtonpost.com/wp-dyn...062101735.html
And in the "California" section of yesterday's Los Angeles Times, there was a similar article by Nancy Cleeland, one of their staff writers. I'll quote three sentences from her article:
"In metropolitan regions that are continuing to grow, such as Los Angeles, they advocated a requirement that developers build a mix of housing, including affordable units for low-income residents.
Known as 'inclusionary' housing, that tool has been adopted by dozens of Califonia cities."
After noting such housing has been successfully opposed by business interests, she writes the following, "As an alternative, Los Angeles City Council members this month endorsed a proposal to ask voters to approve a $1-billion housing bond, to be financed through future property taxes."
When I read about the Council's endorsement of the $1-billion dollar housing bond, financed via "future property taxes," I don't know whether to laugh or cry...I guess the only appropriate response is to do both at the same time.
Re: The shrinking middle class in the U.S.
Laugh. Laugh your ass off at the unrealistic greed that rules California.
Re: The shrinking middle class in the U.S.
^^^ the rich get richer, the poor get poorer, and the middle class who want to hold onto what they already have get out of state ! The articles don't specifically mention that low income housing subsidies, like other low income gov't social welfare subsidies, are paid for in bulk by increasing the tax burden on the middle class.
The game that some politicians have been playing is finally starting to attract some focus. Low income registered voters are still registered voters, and handing them gov't benefits has a good probability of 'buying' votes - gov't benefits which must eventually paid for by increasing tax rates on people with higher incomes. 'Rich' supporters who on the surface would be hit hardest by these tax increases in reality have the wherewithal to shield much of their incomes from the worst tax bites (capital gains, multiple residences, $50k buy-in tax free Muni bonds etc.). Therefore the group who does in reality bear the brunt of the cost of tax increases to pay for these gov't benefits is the middle class i.e. those earning between $75k and $250k per year.
In states like California and New York, if one adds up the total percentage of registered voters who either fall into the 'rich' group or 'poor' group, they now outnumber the 'middle class' group. Thus the odds favor that future elections will result in wins for candidates who promise to extract more money from the middle class and give it to the 'poor'. In other words, with the 'rich and powerful' as complicit allies (and who also have the means of exempting themselves from much of the financial consequences), demographic changes have now made it possible for a majority of 'poor' voters to vote themselves money out of middle class wallets.
Also, it would appear that this sort of 'Robin Hood' politics isn't confined to direct gov't benefit programs. In reading up on the California power situation re the Tesla electric car, I was surprised to discover that the Cal Public Service Commission has established electric rates which are subsidized below actual cost up to a certain amount of electric usage (i.e. usage levels of a typical apartment with appliances). Once a customer goes over that level of usage (i.e. a middle class home with AC and a pool filter) not only does the subsidy disappear but the higher usage levels are subject to a surcharge so the power company can recoup the losses of providing subsidized power to low income apartment dwellers by overcharging suburban homeowners.
New York actually has the same sort of electric subsidies for low income residents, but at least NY has the balls to call this program a social welfare gov't subsidy and run it through the state's taxation and budget process rather than hiding it within electric rate fine print and making the power company do the dirtywork of transferring money from the middle class to the poor.
PS as you can probably tell, the 'assault on the middle class' in states such as NY and California is a subject of vast personal interest. I suppose being forced to pay a combined tax rate of over 50% between federal, state, local and sales taxes probably has a lot to do with that ! Many times I have run through the calculations of how much money I could save in taxes by relocating to a different state ... but my mother lives right down the street, my family lives within a few miles, my own house was built by my grandfather personally etc. I guess that I'm going to hang on where I am until I get so frustrated that I'll relocate out of the COUNTRY (she says while eyeing condos in Malta and Belize !!!)
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Re: The shrinking middle class in the U.S.
Quote:
Originally Posted by Melonie
...and the middle class who want to hold onto what they already have get out of state !...
In California, as far as my family, besides me, there are only two cousins, one divorced and the other never married. Then one other cousin and her husband. My married cousin and her husband have already bought a house in Oregon, and will be moving next year.
I'm still getting rid of a number of possessions I don't really need anymore...and while I've been having trouble deciding whether I want to move to the Reno or LV area of Nevada, it is going to be Nevada eventually.
My roommate cousin might eventually move to Texas, and the other single cousin hasn't decided where she wants to move yet. Possibly Oregon, the same as my one cousin who is married. So while the number of people from my family in SoCal is small, it's interesting that all of us have now decided to "throw in the towel" and search for greener pastures in other states. Trying to change things in Cali would just be too much work and frustration!