Will You Fight to Restore the American Dream
United States income inequality, our stagnant wages, our perception the American Dream is disappearing for the majority of citizens is fueling a "grass roots" movement to address the issues causing this situation. The following represents Voices of United States Series on this subject to date. We hope you will consider joining us in trying to uplift the economic prosperity of all in our great nation.
To the 150 Million Households – 99% - who are not reporting earning a combined taxable income above $500,000, American Income Inequality is a fact. But to contend there is a growing division among the 99% if viewed historically is statistical fiction. So let us ignore the Headlines and examine, “How America can reduce Income Inequality.”
By Richard A. Mathews 5-16-2015 (Part I)
In the big picture of Economics, the work of Emmanuel Saez, a University of California Economist will unlikely warrant a historical foot note. None not even Saez denies, the onset of the Great Recession plummeted the income of the 1% as the value of their Equity holdings and other assets reached decade low levels. Since the Stock Market bottomed out, those individuals did in fact experience substantial asset appreciation. Their income has increased by 31% between the bottom of the markets' decline through its recovery.
Yet because of the upcoming 2016 Presidential Election, Saez’s 2009-2012 study claiming the Top 1% of American income earners saw their income rise 31% while every else combined received a .4% increase made “Headline News.”
From Hilary Clinton to Bernie Sanders to Jeb Bush to Rand Paul and Mike Huckabee, campaign speech writers are working to develop special interest featured solutions hoping to generate Breaking News Headline coverage netting populist support for their Presidential campaigns.
There is of course one problem, “Few candidates are willing to address the primary or even secondary causes of particularly the lowest levels of American Household Income.”
Mrs. Clinton is going to need a very, very skilled analyst to explain why it is necessary to reform America’s Trade Pacts one of which her husband signed called NAFTA. From the former textile workers of New England to the former Auto Workers of the Rust Belt to the former Steel workers in Alabama or Texas to the former Computer makers in California, Mrs. Clinton knows our nation’s Trade Policies changed America forever fostering an increasing class of working poor.
Mr. Sanders faces a major impasse from his self proclaimed socialist platform addressing the fact, depending on the study examined, “a majority to super majority of American Households living in poverty have been found to be functionally illiterate,” a liability only additional educational spending can realistically correct.
Mr. Bush, might face the biggest challenge of all reconciling both his father’s and brother’s efforts to enhance primary education. Today the challenges the nation’s poorest face particularly in urban areas, low graduation rates and poor core skills achievement are as great as ever even after Billions in Federal Spending.
Mr. Paul’s soaring rhetoric on American Income Inequality is not going to play well even in his home state of Kentucky where several of the nation’s poorest counties are found. The European styled reforms allowing those receiving public assistance to actually work without losing dollar for dollar subsidies is not a platform position widely favored by the right wing conservative voters of the GOP.
Mr. Huckabee is of course correct noting the obvious trend line that no Presidential Candidate wishes to admit, “If you do not want to end up in poverty, find your soul mate and stay married.” Arkansas’ former Governor hit a brick wall and had those bricks thrown back at him by Feminist when he stated the truth, “Being a single mother remains the largest common factor of ending up living at or below the poverty line during his 2008 Presidential campaign.”
Returning to the causes of American Income Inequality leaving the challenges various Presidential hopefuls will contend with, let us recap what is rarely refuted as primary reasons households end up below the poverty level.
Being a single adult particularly with dependent children is today the largest factor relating to those at the bottom of our economic ladder.
A close second remains, level of education although today’s Millennial generation are changing that former historic fact.
Millennials are landing in Poverty even after having graduated from accredited colleges and universities as well as other post-primary school programs. Hundreds of thousands of Millennials today hold degrees which offer limited opportunity to pursue a career in the field and or warrant compensation which will allow them to escape America’s lower incomes classes.
Now to be fair, Millennials in the STEMS fields - Science, Technology, Engineering, Mathematics -have and continue to find themselves particularly when uniting to form a new household jumping at earlier ages than ever before directly into the upper tiers of income earners in American.
But that sub-set of Millennials is the exception not the rule. For far too many of America’s newest members of our workforce, their life is beginning deeply in debt and underemployed at best.
While many wish to blame America’s Student Grant and Loan policy for this problem, history holds a 20/20 viewpoint which none can change. There will be Presidential candidates calling for both the protection of future students from borrowing money to pursue career’s which cannot economically justify that investment as well as expanding programs to help lower income students obtain the skills needed to rise from poverty.
There is one major piece of the “bad,” news concerning the skewing of America’s Income that is actually good news yet rarely examined.
The last absolute truth about American Income Inequality is purely a function of our demographics. A growing number of the households reporting taxable income fall under the Middle Income line and even the poverty line due to the fact, “They are our Seniors and have limited Taxable Income to report.”
As America’s population continues to age due to both the longevity of the Great Generation and an ever decreasing birth rate, a growing number of households are transitioning from a time of largely taxable income to largely non-taxable income. Personally, this is the one fact of American Income Inequality that remains encouraging as the Great Generation is retiring more affluent than any in our nation’s history.
There is little doubt, the 2016 Presidential and Congressional elections will continue to raise calls for a new American Agenda to address Income Inequality.
In Part 2 of our conversation on this topic, we will begin discussing the causes and solutions to solving America’s inequality situation.
We all recognize there is Income Inequality in America. While none can change the past, today we continue examining both the causes of Income Inequality and plausible solutions available to uplift 99% of Americans.
By Richard A. Mathews 5-19-2015 (Part II)
Now before any of my traditional Activist opponents start tweeting remember,
I was the head of a household while earning below the Federal Poverty level for a family of five.
I know how difficult it is to both qualify and justify receiving federal, state and local aid.
I know what I sacrificed to eventually rise up America’s economic ladder.
Those three facts noted, let us turn to what I hope to hear our 2016 Presidential Candidates discussing.
As a quick reminder of why after the Great Recession began, America’s elite 1% saw their incomes increase 31%, simply remember how far the Stock Market crashed through 2009 and how greatly it rose. The Rich lost a fortune when the markets crashed yet bought low when most were selling. They have made significant gains to date from that purchasing decision.
For the 99% which make up the balance of U.S. Household filing federal taxes – the IRS remains the most noted source for income information – we simply got left to work, work and work some more with little or no actual increase in our compensation rates.
With the facts not the fiction now put behind us concerning recent income growth by the 1%, let us get back to the identifying why and what caused Americans to end up in which income classifications.
Contrary to the divisive contentions of our far too prevalent special interest advocates, there are several plausible policies to pursue in uplifting the 99% particularly those living at or below the poverty line.
Trade Reform – Fair Trade Benefits the World, Unfair Trade Cost America Jobs.
Millions of Auto, textile, furniture, and household appliance manufacturing jobs were lost to NAFTA and other Trade Deals signed in the 1990’s.
Education Reform particularly earlier pre-k, reading programs.
Education emphasis on problem solving and communications not Testing Results.
Welfare Reform and to a lesser Degree SSDI Reform
America should be enabling those on Assistance to enhance their income not discouraging it.
Promoting Stable Family and Extended Family Units
Student Grants and Loan Reform
American shouldn’t be paying for a degree to keep someone in poverty.
Homesteading – Don’t Laugh
Housing is a disproportionate percentage of America’s lowest income earners.
Turning over abandoned property to low income earners and providing them with subsidized loans to upgrade that property eventually getting it back on the tax rolls obviously has multiple benefits.
Justice System Sentencing Reform
1.0 million Nonviolent imprisoned individuals makes little economic sense.
Do I anticipate any Presidential Candidate to discuss all of the above, of course not!
In point of fact, due to the Income Inequality Presidential Challenge – requesting all candidates develop a two and half minute Position Video – it is likely those who accept this charge will champion the least controversial platforms that most readily appeal to their base of support.
While an, “all of the above,” approach would be most beneficial, simply bringing into focus the benefit of to steal an old Ronal Reagan phrase, “lifting the boat of all Americans,” is a solid first step.
Next, in part 3 or ours series, we will explore both the most likely platform positions which could yield bi-partisan support for passage and the expense factors too often ignored which prevent upward income mobility.
There is Income Inequality in America a fact which has not changed since the humble beginnings of this great nation. In Part III of this series, we will continue to explore, “How to Empower Americans Uplifting their Income Mobility.”
By Richard A. Mathews 5-22-2015 (Part III)
There are always at least two ways to examine any perceived problem. Today as we continue to examine American Income Inequality, we are going to discuss conventional wisdom and explore out of the box solutions.
No man or women not even one who becomes President of the United States is going to in two four year terms end, “Income Inequality in America.”
Improving America’s upward income mobility will require a commitment to this objective which remains firmly supported indefinitely.
It will even more importantly require something deeply lacking in these United States, the admission “When you fail to plan, you have planned to fail.”
America’s Federal Government due to unintended consequences of legislation and regulations remains a major reason why wage stagnation has occurred in our great nation depending on whose study you wish to believe the late 1990’s to as far back in history as the 1960’s!
There is though one equally responsible party for our household income distribution problem, individuals and their choices. Being few Presidential Candidates are likely to examine this component of American Income Inequality, I will do so briefly attempting to be as respectful as possible.
America since the 1960’s has witnessed essentially an otherwise unprecedented increase in the birth of children to unmarried women. This increase has amazingly occurred while at the same time the birth rate for teenage women has dropped significantly. Further this increase has occurred across the majority of racial subsections.
Part of this increase has NOT led to additional households ending up at the lowest level of our income scale. A growing number of professional woman have chosen to give birth and raise a child or children in a single parent household.
Unfortunately, not all women can bring children into the world and raise them in affluent circumstances as a single parent. The poorest of the poor in America are single parent households. Since the 1960’s an alarming increase in single parent household led by mothers has added 20 million such household to this nation populous.
While America does have a significant portion of its least affluent households residing in areas defined as rural, the highest concentration of our citizens living in poverty remain in urban areas. Our urban poor frequently have four common factors working against them.
Their ability to pay for housing effectively imprisons them.
They have limited access to public transportation.
The area they live in lacks affordable child care.
Their public education is marginal.
To these challenged households, the costs of housing and transportation represent the highest percentage of their expenses. Expenses which often surpass 70% of total net income. It is this fact shared by the poor in many European nation’s that led to the out-of-the-box solution of Homesteading abandoned urban properties.
Homesteading is not a one size fits all solution for America’s urban poor. Even in those European nations who have attempted it, the success stories do not universally out way the failures. Homesteading only works if the area being redeveloped begins to provide the essentials of transportation, safety and education households require to break the cycle of poverty. Yet for all its known downsides, Homesteading might be a viable alternative to urban areas with thousands of structurally viable abandoned homes off the tax rolls and in need of affordable repair.
But improved housing without a way to get to and from a better job is pointless. For the poorest in society, transportation is and has been for many years a lynch pin unlocking upward mobility. Even if the poor develop the skill set necessary to obtain employment at a higher income level, if they cannot get to that new place of employment, nothing changes.
Yet for single household parents, the additional need of providing particularly early childcare is equally important to transportation. Asking single household parents to work overtime only to net a lower net income due to the cost of childcare makes little sense for anyone.
To the poorest in America, a lack of affordable child care has been and remains a major concern. The greatest irony of this, “Chicken or Egg comes first situation,” is our nation has qualified childcare adults searching for jobs and structurally sound abandoned buildings in urban areas which could be inexpensively converted.
Now if we could just find a private/public sector plan for implementing an expansion of affordable day care we could remove a long standing implement preventing upward mobility for our poorest working mothers.
What cannot be forgotten is should all of the prior barriers be addressed allowing Households to uplift their income, without improved public education for the children of America’s poorest individuals, the cycle of poverty is unlikely to be broken.
Empowering an upward movement of income to American’s in our least affluent brackets cannot be represented in a CNN Breaking News solution proposal by any candidate for the White House.
For over half a century, America has attempted to address the causes which continue to leave segments of our populous struggling to rise above the economic status of prior generations.
In part 4 of this series, we will explore, an integrated series of reforms to Federal policies that could begin what will be a truly generational transition providing a means to empower our citizens with the tools necessary in obtaining the American Dream.
I begin this installment of our series admitting what in my opinion is the truth, even in America, our nation will always have a divergent income distribution. That opinion noted, let us examine how we as a united people can begin to address uplifting our citizens in their journey to economic empowerment.
By Richard A. Mathews 5-25-2015 (Part IV)
I am not possessed with the brilliance of Elon Musk, whose talent has uplifted him to become one of America’s wealthiest individuals.
I do not have the physical abilities of Magic Johnson the former NBA MVP who today has become a Billionaire business man.
I cannot carry a tune in a bucket let alone bring sufficient joy to millions earning fame and fortune as a singer.
I could never have had earned the minimum $500,000 salary of a MLB player even being a left handed pitcher.
In today’s world, those who possess unique talents be they academic or physical are likely to continue reaping the monetary benefits which follow their skill sets.
So let us put aside being envious of the 1% and continue to examine how we the people can agree on a path which will allow the rest of U.S. to pursue and obtain what was once defined as,
The difference between knowledge and wisdom it often parsed as,
“Knowledge is based in learning factual matters. Wisdom is defined by the decision making of those who most effectively incorporate knowledge of the situation under review.”
So let us for a moment agree to consider, what resources America can allocate which will elicit the support of our populous in beginning a generational plan to uplift our fellow citizens economically.
From a purely “meta-data standpoint,” the starting point to uplifting American households at the lower end of our economic divide entails, reform to our Federal Tax Code and our Entitlement programs.
Few dispute, expansion of the Earned Income Tax credit and reform of eligibility for Entitlement Assistance Programs, would jump-start the process to upward mobility in our lowest income brackets significantly.
Contrary to simply raising the minimum wage, which for low income household will in many instances take away dollar for dollar assistance levels actually causing a net reduction in disposable income, expanding the earned income credit restores value to actually working!
Coupling entitlement reform to earned income tax expansion, holds an even more viable advantage, it could reduce the number of single wage earner households!
Believe it or not, both federal and state programs reduce aid dollar for dollar to actually eliminating it even when two household earners remain below our defined poverty threshold.
While a limited number of progressive states have deemed this situation to be sufficiently alarming to enact reform, the majority of states have not made similar changes nor has the Federal Government.
But this situation has been an ongoing problem for decades and one I learned of first hand during the recession of the early 1980’s.
My full-time coworker employed by the Commonwealth of Pennsylvania in 1983 was coached through applying for and receiving federal and state assistance as his household income even though his wife worked left them below the poverty level as parents of a young child.
Contrary to the representations of many, your fellow Americans can and do work full time jobs and even in two income earning households find themselves below the poverty line eligible for assistance programs.
Further compounding this situation is the fact, additional income brought into the household by working can and does reduce assistance on a pre-tax level dollar for dollar actually producing a disincentive to earning income.
Or at least it does when that income is earned outside of the “Underground Economy.”
The work for cash, “Underground Economy,” continues to take advantage of America’s working poor. Our poorest citizens for decades have worked for less than even minimum wage to net unreported household income frequently needed when any unexpected expense arises.
America needs to look in the mirror and make a commitment to reform our personal income tax code and entitlement assistance programs to promote the value to earning income not discourage it.
Of course we also need to find a way to fund such a change.
One such solution revolves around reforming minimum sentencing practices.
Whether you knew it or not, America has the largest prison population on Earth.
Larger than even China who has roughly 1 Billion more citizens.
America also spends more money than the next five nation’s on Earth combined to imprison our citizens.
Annually, America is estimate to be spending roughly $70 Billion keeping our prisons open and 2.1 Million of our citizens locked up.
Now we must look in the mirror again and consider, “Is anyone benefiting by having over 1 million of these non-violent individuals behind bars?”
While minimum sentencing reform considerations is worthy of its own series of articles, it has a direct effect on poverty in America. Many of the imprisoned have left behind spouses and dependent children developing single Head of Household situations.
Further what cannot be denied is 82% of all imprisoned Americans are functionally illiterate. Over 60% are High School Dropouts. The lure of drug money as an income stream is frequently a common thread in their decision to commit a criminal act.
Whether you favor decriminalizing marijuana or not, selling this illegal drug has a much bigger cost to society than many realize.
It has been contended by analyst, American could more than pay for both expanding the income tax credit and reforming entitlement assistance programs by decreasing the cost of our prison systems through reformed minimum sentencing standards and expanding house arrest options for non-violent offenders.
There are of course as many ways to pay for reforming our Federal Tax Code and Entitlement eligibility standards as any wish to explore.
The left will point to reducing Military Spending and raise taxes on the elite.
The right will point to reforming the Entitlement benefits of our great nation.
The middle will correctly point out, we could do some of both and get the same net total.
In part 5 of our series, we will continue to explore solutions to empower American upward economic mobility.
Previously we have examined America’s Income Inequality challenge relating to our poorest citizens. Today we examine, the Unpopular Truths regarding empowering the Middle Class to begin their path toward the American Dream.
By Richard A. Mathews 5-28-2015 (Part V)
If you are looking for a Magic Potion to restore the American Dream of upward mobility please stop reading now.
Contrary to popular Political contentions, “Investing in Infra-structure,” alone is not going to empower future generations to upward economic mobility.
Contrary to popular Political contentions a, “Made in America,” agenda is not a practical or even plausible answer for upward economic mobility.
Contrary to popular Political contentions, “Higher Education,” in and of itself cannot guarantee upward economic mobility.
Contrary to popular Political contentions, “Expanded Free Trade,” will not increase upward economic mobility.
What can and will empower America to uplift their economic mobility is,
“Understanding the future of employment opportunities in our great nation.”
Simply examining where our clothes were made, our household goods were produced or our electronic devices were manufactured should be example enough, America has transitioned from what her workforce did a generation ago.
What we further need to understand is because housing, food, transportation and medical expenses account for 70% of all U.S. Household spending the majority of our income is not being sent abroad no matter how much the Special Interests wish to contend it is.
While consumers spending 70% of their disposable income on housing, food, transportation and medical expenses is of course significant it is only part of the big picture in examining current and future American employment.
Far too often, America ignores the employment which is generated from our gross income that goes to all forms of taxation. This is a key fact America must take to heart in planning to empower our citizens to uplift their economic earning power.
Our total cumulative tax burden accounts for basically $4.8 Trillion of our nation’s annual GDP supporting directly and indirectly nearly 50 million jobs for our fellow citizens!
While employment by the Local, State or Federal Government will not place even a dual earning household into the elite categories of our income distribution, it can establish a solid bases for a lifetime of upward economic growth.
Public Sector employment is far too often demonized by those who have Special Interest Agenda’s which are not supported by facts. It should come as a surprise to none, the Private Sector continues to attempt to transition current public sector roles for the purpose of developing potential new avenues to generate profits.
To their credit, the majority of most likely voters continue to support most public sector roles.
Most likely voters support a strong U.S. military and continue even at the progressive extremes to approve defense spending to provide our veteran’s benefits and their combat needs.
Most likely voters support public primary education and public Community / State Colleges.
Most likely voters support public safety spending and public works projects.
Most likely voters’ support continued local, state and federal services.
We the People continue to value our Entitlement Programs, Veterans, Highways and Teachers.
America may take to task the size of our Bureaucracy but our devotion to ensuring those who deserve their benefits and provide for the common good has not been shaken.
The greying of America’s Public Sector workforce presents a current as well as a future opportunity for our workforce to ascend upward on the economic income ladder.
Now we must educated our populous to the opportunities at hand. Before we turn to the private sector’s career opportunities, we should all click into the Department of Education or as the Business Community often opines, “The Department of Misinformation.”
www.ed.gov is the United States Official Department of Education web site. I think in one click and five minutes you will understand why the Federal Government needs to be updated on the actual realities of today’s economic climate related to education and the challenges of the future.
If America is to empower her citizen toward upward economic mobility, we need to be honest in addressing the Globalization of employment, the role American employment is likely to continue to evolve into globally and the unique characteristic of our own populous’ demand for consumption.
During the height of America’s 10% unemployment related to the Great Recession, up to 3 Million jobs at times remain available yet unfilled due to a lack of viable candidates. Business for decades has blamed the U.S. Department of Education for promoting education which does not result in employment. The Department of Education has defended itself that its mandate to promote enhanced education of Americans not develop skill sets the United States economy actually needs.
America’s Department of Education truly believes it duty does not have a practical component of consideration namely putting our citizens in a position to become productively employed.
Thus, America needs to develop a “long-term” plan to empower her citizens to consider which career options can be expected to fulfill their desires in updating viable paths to upward mobility.
America needs more skilled craftsmen and women to begin addressing fifty years of largely ignored highway, bridge, water/sewer and energy infra-structure upgrades.
America needs long and short haul truckers as well as railroad engineers.
America needs health care providers for our aging population.
It is estimated, America needs 3 – 5 million individuals processing skill set that are not traditionally earned in colleges or universities for full time, benefit paying, middle income distribution level jobs right now and that number is going to continue to grow.
There are and always have been opportunities to rise up the economic income ladder with public sector, blue collar and medical service positions being three such options too often overlooked.
Now you and I need to spread the Good News. Perhaps if enough of the U.S. works to address this issue, we can overcome those who benefit from dividing our nation against itself.
I hope you will join us as we continue or series on America’s Income Inequality Challenge: Solutions Part 6.
America’s Income Inequality challenge extends across the majority of our income brackets. We have examined how reforms and targeted educational training can uplift many. Now we turn to restoring the American Dream of Small Business Creation.
By Richard A. Mathews 5-30-2015 (Part VI)
The American Dream is not dead. It is though on life support in the opinion of many.
There are several legislative and regulatory initiatives which could change America’s perception on the viability of pursuing the American Dream.
America needs the next generation of “small business,” to embrace the lowest startup costs for borrowing in history.
America need to break down the barriers of global trade agreements preventing our small business from entering new markets.
America needs to reform our business tax code allowing our great nation to benefit from our business activity which occurs abroad.
If we can begin to do all of the above, we can empower American ingenuity to continue developing new technology thus fostering new industries which will generate future employment growth.
Yet the key to America’s upward mobility is our Millennial generation.
Millennials are the most educated generation in American history. We all have heard of the subset of Millennials who are becoming literal overnight Millionaires from App development.
But did you know Millennials have taken the lead in many instances bringing to the market new technology such as 3-d printing. These new small business start-ups have taken 3-d printing from the labs of our Universities and Colleges into the realm of the production stage from up-scale housewares to electronic circuit boards.
Millennials disdain for traditional commerce have led them to become the proprietors of organic based coffee shop / restaurants catering to their peers Wi-Fi friendly needs providing community gathering places and artist friendly galleries often with live musical performances and occasionally topical speaker.
Millennials are developing their own unique brand of news and entertainment based interactive media such as www.mic.com
Millennials are going Global marketing limited lines of wearing apparel and accessories often manufactured in America.
Millennials DO NOT NEED A HANDOUT from Government.
Millennials DO NEED A FAIR SHAKE from Government.
There is one advantage to being young and poor, it is easier to make a commitment to fulfilling your dreams when you have little to lose and much to gain. Millennials are in growing numbers deciding they would rather follow their dreams than pursue traditional avenues for employment.
From venturing into addressing the needs of our growing aged population to reaching to fulfilling needs of our pre-k population to championing global efforts to address everything from Sustainability concerns to the Social Injustice initiatives Millennials are marching to their own drummer.
Millennials are additionally in growing numbers deciding, “You fooled me once shame on you. You will not fool me twice.” A generation which voted for, “Hope and Change,” has decided, we will take care of the changes we need ourselves.
That evolving mindset has funneled Millennials from multiple academic disciplines into becoming grass roots political activists.
Further the aging of the Millennial generation has at the local, state and to a lesser degree federal office fueled their entrance into politics.
Whether Baby Boomers, or Generation X decide to join Millennials in their pursuit of change, our nation’s older generations are going to need to contend with the youngest and largest potential voting segment in America.
Millennials are America’s best hope to create the 25 million new jobs this nation needs to have occur over the coming decade.
Millennials can of course succeed in this critical task with limited assistance from Government.
Millennials have the vision older generations lack due to our blinders of preconception.
I hope you will join us for the conclusion of this series in Part 7.
It has been said, "A Picture is Worth a Thousand Words." You asked for the pictures, charts and graphs, to validate my contentions in the first six parts of this series. They are presented as follows proving, education and marital standards remain the major causes for poverty in America.
By Richard A. Mathews 5-30-2015 (American Income Inequality if 5 Graphs.)
We begin with the baseline for discussion of America's Income Distribution Challenge.
66% of all Americans earn less than $64,000 per year.
It is that majority of American's this series is addressing.
That majority of our great nations citizens who largely feel the American Dream is dead.
We have examined the effect education has on allowing American's to avoid living in poverty.
We have further examined why it is critical to address the needs of our poorest households.
During the 2010 U.S. Census, and as confirmed by IRS data, 28% of all American families are living in poverty. More importantly, we have identified that poverty IS NOT a condition only effecting any single subset of race or ethnicity.
Further we have looked at a growing trend which is developing an expanding sector of American's living in poverty, single parent households.
We have brought to light the fact, Education can lead to excellent income potential and actually leave individuals struggling to remain above the poverty line in America.
In five graphs, we have summarized why 50 years of Federal, State and Local programs intended to lift America's income level have left the U.S. where we are today with 2/3's of our great nation largely left adrift pursuing the America Dream.
To lift the income of America's poor to middle class incomes, we need to stop listening to those who wish to divide this nation and begin learning the facts of why the U.S. Income Inequality Distribution actually exists.
We are competing in a global economy. We are as a nation continuing to evolve away from our industrial, manufacturing roots of three generation ago.
Contrary to progressive platforms, simply raising the minimum wage is not a realistic solution. America already has too many individuals chasing after too many jobs which pay too little.
America like every other advanced, mature economy is additionally, automating manufacturing increasing production with a declining labor force. More importantly, does anyone wish to return to the 1930's when factory auto workers spent 8 hours a day doing the same repetitive task for an entire work career?
In the real world, you WILL NOT create 20 million direct and indirect jobs even spending $100 Billion per year on Infra-structure development and repair. Water and sewer projects which once required substantial manpower in excavation today can be accomplished with robots working inside existing lines. Road projects that once were largely labor intensive focused on concrete removal and installation today recycle asphalt composition and repave highways five to ten times more quickly than a generation ago.
There is a reason our 2016 Presidential Candidates will not honestly address solutions to uplift the majority of Americans, they do not want to offend the majority of voters.
My friends, for most of my adult life, I was the cause of my income inequality.
I chose a college degree which I did not realize would not provide an avenue to pursue my American Dream.
My wife and my children paid for that mistake as I began the long road to fixing my errors.
I was 50 years old went I went back to pursue my professional certifications. Again, my family paid for my choice.
I DO NOT WANT YOU OR YOUR FAMILY TO HAVE TO DO THE SAME.
Please consider joining me as my series on the American Income Inequality Challenge continues.
America’s Income Inequality challenge extends across the majority of our income brackets as we have reviewed. Today after 5,350 words, we conclude our initial examination of this topic with a summary of plausible solutions. Solutions which will require generational support. Solution which will enhance the income of the majority of our citizens restoring the American Dream.
By Richard A. Mathews 6-2-2015 (Part VII)
It should come as no surprise, preserving the American Dream of upward Income Mobility is a bi-partisan area of long standing agreement in principle.
JFK’s charged America to, “Ask not what this country can do for you. Ask what you can do for this country.”
Ronald Reagan’s contended, “There are no constraints on the human mind, no walls around the human spirit, no barriers to our progress except those we ourselves erect.”
We could literally spend the next 6,000 words examining our nation’s historic contention,
“We the people of these United States of America truly hold in our own hands the key to our future destiny.”
Yet to reach our next golden age, we must again become united as a people in a multi-generation quest to uplift the economic mobility of all Americans.
What we must also unite behind is an ongoing process of recognition that as our global society continues to evolve, we cannot hope to preserve the blessing of life, liberty and the pursuit of happiness without evolving as a nation.
America cannot achieve our goals by attempting to return to the days of two generations ago when direct and indirect employment in our manufacturing, industrial complex generated the employment needed to support the most affluent middle class in the world.
America cannot achieve our goals by simply regulating higher national minimum wages any more than we can today ignore global competition for any good or service we produce.
America cannot achieve our goals by the advancing the pursuit of higher education which does not fulfill a societal need.
America must return to her creative, competitive roots, evolving to meet the challenges of today’s global economy.
“Our American Income Inequality Challenge is going to take as long to correct as it has to develop requiring review and adaptation by both all citizens as well as our governmental agencies.”
Unfortunately, addressing the truth requires closure, planning, sacrifice, commitment and time.
For our 2016 Presidential Candidates, closure on this truth is perhaps the most important first step they should be attempting.
When 150 million households have come to believe, “The American Dream is largely out of reach,” establishing a platform agenda to reverse that perception can yield significant benefits to any candidate with Presidential aspirations.
What we cannot allow any Presidential candidate to do is to divide this great nation against itself.
Empowering all American’s economic mobility must become a bi-partisan long term objective.
We have identified the conventional wisdom on uplifting the least affluent members of our society, Earned Income Tax and Entitlement Eligibility reform. Reforms our most affluent citizens such as Warren Buffett continue to champion yet have yet to be championed by Presidential candidates.
We have further noted, that those two agenda items of federal and state legislation will not in and of themselves empower our fellow citizens who additionally continue to have housing, transportation, day care and public education challenges continuing what is often a general cycle of poverty.
We have identified keys to empowering our middle class to end income stagnation. Keys such as training to fulfill the growing needs of our aging society and evolving employment demographic. Keys such as exploring the long-term benefits of public sector careers.
Over the coming decades, millions of current and new jobs in America are going to need to be filled by those with secondary education skills traditionally considered as relating to the skilled trades and the health care fields. As importantly, the greying of our public sector employment demographic reveals significant growth opportunities for millions of our citizens.
We have identified that our youngest workforce members, Millennials, are the key to our future prosperity. Millennials, the world’s most education generation to date, are already changing our economy. They will likely continue to accelerate the evolution of our economic development breaking down barriers further integrating the global community.
What we have not discussed is developing a Grand Bargain which puts in place the foundation to raise the income of American’s for the next fifty years.
What we have not discussed is a truly generational challenge such as JFK’s quest to get to the moon.
Presenting a truly “Sustainabie American Income Inequality Platform,” would require an entire additional series of essays.
What I will close with is our immediate need to concentrate on empowering America’s Societal Financial Knowledge base. One of America’s greatest liabilities in achieving upward economic mobility continues to be our lack of Financial Literacy.
Millions of American households today remain only a commitment away from reducing their mortgage payments both through federally subsidized and privately available programs replacing higher interest loans with today’s largely historic low available rates.
The Nation’s trillion dollar student loan debt continues to hinder the economic potential of our citizens even though multiple avenues for monthly payment reduction are available yet are far too often not attempted.
Far too many seniors have not considered federally guaranteed “reverse mortgages,” that would enhance their monthly disposable income and allow them to remain in their homes until such time they decide that option is no long viable.
While there is no “Magic Potion or Silver Bullet,” to immediately improve America’s income stagnation, without any new Federal or State legislation or assistance initiative, tens of millions of our citizens could enhance their economic condition through programs which already exist.
Refinancing a mortgage which carries even a 5.75% interest rate to today’s historic lows can add hundreds of dollars per month to house holds’ disposable income position.
Refinancing student loans issued in the 2000’s can produce annually $1,000 to $1,500 or more in new disposable income.
Reverse mortgages can often cover annual real estate taxes and add disposable income for Seniors.
Knowledge and applying that knowledge wisely to lower house hold expenses can enhance earning power even earning power which remains largely stagnant.
Over the coming months, I hope this series will have provided you a background from which you can decide which Presidential candidate are presenting the most viable solutions to address American’s Income Inequality distribution.
The American Dream does not need be delegated to our great nation’s past. With a long-term commitment by all, it can again become an objective which unites us.
Due to your interest we continue with our American Income Inequality Challenge series. Today we actually look at the facts and fiction related to long term investment in America's infrastructure. Sen. Sanders apparently didn't get the memo, or read this essay from our archives.
"A 10-Year Transportation Bill Would Create Millions of Jobs"
By Richard A. Mathews originally published 2-13-2014 (Part VIII of our American Income Inequality Challenge Series.)
At the height of the Great Recession during early 2009, one of the most unique coalitions of American lobbying organization in history supported a 5-year, $500 Billion Transportation Bill. Congress instead passed a $780 Billion Stimulus package, a bandage for our deeply hemorrhaging economy which left the nation limping forward since its removal. It is time to actually stimulate the economy creating millions of long-term jobs by passing a 10-year Transportation Bill!
Whether or not you personally support or disagree with the proposition of Congress passing a long-term Transportation Bill please consider examining the 10 Myths which continue to prevent America from creating millions of long-term good paying jobs by passing this nation’s first 10-year Transportation Bill.
Myth 1) Infra-structure Investment Has Never Created Economic Growth.
Few on either side of America’s deeply divided political perspective deny, President Eisenhower’s initiative to develop our Interstate Highway system was and remains one of the greatest economic stimulus pieces of legislation ever enacted by Congress.
Myth 2) Conservative Republicans Cannot Support Raising Taxes to Pay for Infra-structure.
The Truth about the effect of increasing infrastructure spending while raising taxes to pay for same cannot be disputed. Republicans who served under Presidents from Eisenhower to Nixon to Reagan to George H. Bush all voted for tax increases to pay for measured sustainable economic growth created by Infra-Structure investment.
Moving on in dispelling the nonsense often uttered by our economically challenged members of Congress who oppose Infra-Structure Investment, no Economist or Political Think Tank has attempted to refute the 2011 study by the Urban Land Institute.
A Study which notes, “The United States is falling dramatically behind much of the world in rebuilding and expanding an overloaded and deteriorating transportation network it needs to remain competitive in the global marketplace.”
Myth 3) America Does Not Need to Invest in Her Infra-Structure.
Following the study by the Urban Land Institute, the trade group ASCE rated America's infrastructure a D+, in its study conducted in 2012. A “D+” is the highest the country has scored in the 15 years ASCE has issued its report. It ties the grade America got in 2001.
Still, the report said the country needs to do more. The nation will spend $2 trillion on infrastructure by 2020, but should be spending $3.6 trillion, the group estimates. "A, D+ is simply unacceptable for anyone serious about strengthening our nation's economy," ASCE President Gregory DiLoreto said in a written statement.
Rail infrastructure showed the largest improvement, jumping from a C- to a C+, largely thanks to investments from private freight rail companies. The report said freight haulers pumped $20 billion a year over the last four years into improving rail lines and port facilities -- an amount equivalent to the entire federal stimulus spending on infrastructure. (That fact is critical to remember when anyone tries to convince anyone, improving infra-structure would have a negative effect on the economy. The private sector does not invest tens of billions without anticipating a profit.)
The country's bridges, closely watched since a 2007 collapse in Minneapolis killed 13, improved to a grade of C+. Still, the report said one out of every nine bridges remains "structurally deficient."
Areas receiving a near-failing grade included the country's levees and inland water way system, which handles much of the nation's transport of bulk goods like grains, coal and metals.
Myth 4) Voters would not support higher Infrastructure Spending.
The effect of America’s failing infrastructure is known to all individuals who experience traffic gridlock, or increasing maintenance costs from highway defects or delays in travel due to take-off and landing liabilities at our Airports.
Interestingly, the ASCE was commissioned to estimate the cost per family of our failing intra-structure. In their economic study, Failure to Act – The Economic Impact of Current Investment Trends in Surface Transportation Infrastructure, it projected that in 2010, deficiencies in America’s roads, bridges, and transit systems cost American households and businesses roughly $130 billion. The study additionally found that by 2020, the nation’s poor surface transportation infrastructure would cost each American family $1,060 per year.
From Main Street to Wall Street, and everywhere in between, few dispute America’s Transportation Infra-Structure is long overdue for Federal Attention. It is amazing considering the power of the coalition of Washington’s Lobbying Organizations ranging literally from the Sierra Club to the AFL-CIO to the Chamber of Congress that America has been unable to pass a long-term Transportation Bill consistently for decades.
Passing a new multi-year Transportation Bill will be a key issue in 2014. The Highway Trust Fund will be insolvent by 2015 and MAP-21 is set to expire in September. In some states, transportation projects are already being put on hold because of the uncertainty of future federal funding. There simply is not enough revenue being raised to fund our Infra-structure needs.
Myth 5) States Do Not Support the Federal Government Raising Spending on Infra-Structure.
Of all the “LIES” told about Infra-structure spending, this is unquestionably one of the greatest falsehoods.
In January of 2014, 17 Governors signed a letter urging congressional members to act to find a long-term revenue solution for the Highway Trust Fund and avoid a potential nationwide transportation funding crisis. The Highway Trust Fund, the funding mechanism that drives our nation’s investment in transportation infrastructure, is facing its fifth revenue shortfall since 2008. Motor fuel and truck excises supporting the Highway Trust Fund have not been adjusted in 20 years. As a result, the trust fund will be insolvent by the end of the year.
“If Congress does not act to address this shortfall, we expect Federal support of highway and transit projects led by state transportation departments will cease in October,” said North Carolina Governor Pat McCrory. “Without renewed federal funding, states are left in a very serious financial crisis that impacts public safety and local economies,” McCrory added.
Added Oregon Governor John Kitzhaber, “Investment in our transportation system is part of the backbone of a strong national economy. The Federal Government should do all it can to avoid the insolvency of the Federal Highway Trust fund. These dollars directly fund construction and maintenance projects, and provide needed construction jobs in states across the country.”
On January 14, Oklahoma Governor Mary Fallin (R-OK), testified before Congress in her capacity as Chairman of the National Governor’s Association and urged Congress to take action. “States need federal funding stability and certainty to pursue long-term planning and project delivery,” said Governor Fallin. “All funding options must be on the table for evaluation because existing resources are no longer adequate,” she added.
The following 17 governors signed the letter urging congress to act: Governor Mike Beebe (D-AR), Governor John Hickenlooper (D-CO), Governor Neil Abercrombie (D-HI), Governor Pat Quinn (D-IL), Governor Martin O’Malley (D-MD), Governor Mark Dayton (DFL-MN), Governor Steve Bullock (D-MT), Governor Pat McCrory (R-NC), Governor Maggie Hassan (D-NH), Governor Jack Dalrymple (R-ND), Governor John Kitzhaber (D-OR), Governor Tom Corbett (R-PA), Governor Lincoln Chafee (D-RI), Governor Dennis Daugaard (R-SD), Governor Peter Shumlin (D-VT), Governor Jay Inslee (D-WA) and Governor Scott Walker (R-WI).
For those who are not, “dialed,” into potential 2016 President hopeful candidates, the prior list includes both Republican and Democrat Governors with aspirations on someday occupying the White House.
Myth 6) American Voters Will Not Support Higher Taxes to Fund Infra-Structure.
Multiple polls have proven this contention to be false noting support for Infra-Structure spending dedicated exclusively to bridges, roads, locks & dams and airports having most likely to vote support ranging from 53%-57% depending on whose study you wish to review.
As focus groups on voters found, they are not as naïve as Congress itself. Research has proven when the facts are discussed Voter support for higher taxes to support Infra-structure increase significantly.
(The following was presented to Study Groups as background information.)
At present, the federal motor fuels tax generates revenues that are reserved for investment in highway and public transportation improvements through the Highway Trust Fund. However, the 18.4 cents per gallon federal gas tax has not been adjusted since 1993 and has lost one-third of its purchasing power over the last 17 years.
According to the Consumer Price Index, the costs of many household items have nearly doubled over the last 20 years. Some examples include:
A loaf of bread: 1993: $0.75, 2013: $1.41
A pound of coffee: 1993: $2.50, 2013: $5.21
A new car: 1993: $12,750, 2013: $31,252
To have the same buying power today as it did in 1993, the gasoline tax would have to be 30 cents per gallon and the diesel tax 39 cents per gallon.
(Further study group participants were additionally informed.)
The proposed 15 cents per gallon increase in the UPDATE ACT would cost the average driver less than $3 per week.
The proposed 15 cents per gallon increase in the UPDATE ACT is the exact same increase recommended by the Bi-Partisan Simpson-Bowles Commission.
The proposed 15 cents per gallon increase is supported by diverse groups including our nation’s largest private sector labor union the AFL-CIO and business organizations such as the U.S. Chamber of Congress.
Voters support for higher taxes to support Infra-Structure increased spending increased across Democrats, Republicans and Independents a cumulative 12% from their initial support level before information update. Independents showed the greatest increase in their support of higher taxes to support increased Infra-Structure spending with Democrats registering the least net change.
Myth 7) Washington will waste the tax revenues intended for Infra-Structure spending as they always do.
In point of fact, President Clinton signed into law in 1998 a bill presented to him of bi-partisan initiative to prevent this type of action from occurring relating to Transportation Spending.
Since the passage of Transportation Equity Act (ISTEA) in 1998, the Highway Trust Fund has been fire-walled for use on only surface transportation projects—eliminating concerns of bureaucratic misuse. This is simply a question of will—the will to invest in our communities, our cities, and our states. When it comes to infrastructure, we can either pay now or pay more in the future.
Myth 8) Infra-Structure Investment is a Democrat Smoke Screen to Raise our Taxes.
Recognizing a growing problem with infrastructure investment, the last federal transportation authorization bill in 2005 enacted by the U.S. Congress established two independent commissions to address transportation policy and funding: the National Transportation Policy and Revenue Study Commission and the National Transportation Infrastructure Finance Commission.
(The two noted commissions were enacted when George W. Bush resided in White House and Congress was controlled in both Houses by the Republican Party).
Both commissions identified huge shortfalls in transportation funding at virtually every level of government. Assuming no improvement from current conditions over the next 25 years, the finance commission forecasted average federal needs for capital transportation investments at $78 billion per year and total investment at all government levels at $172 billion per year. Assuming reasonable improvements in the system, including capacity expansion, the finance commission estimates rose to $100 billion per year in federal dollars and $215 billion per year at all levels of government. The policy commission estimated even higher amounts will be needed.
Forecasts of revenue from current federal sources are expected to meet just 41 percent of needs without improvements to the system, and only 33 percent of the amount needed to improve the system. Similar shortfalls are shown at all levels of government. In short, the two commissions indicated that transportation funding needs to be increased between 175 and 240 percent over the next 25 years to maintain and improve transportation infrastructure.
Myth 9) Simply Raising Federal Taxes per Gallon by 15 cents/gallon will solve our Infra-Structure Liability.
Once again, the “static scoring,” used by naïve Federal and Academic modeling assumptions is wrong as usual vastly underestimating the cost necessary to restore America’s land, water and air transportation systems to their necessary standards to support a growing, efficient economy.
If you and I were still only netting the miles per gallon from our vehicles we did in 1994, the static scoring used in nearly all analysis of the cost to upgrade and maintain our national transportation highway system would have validity simply incorporating the effects of inflation.
But of course that is not the case. American’s today can drive basically 70% more on a gallon of gas in 2014 as a cumulative average than we could in 1994. For those using electric or natural gas vehicles or hybrids, that ratio is of course higher. Some American are actually paying ZERO in Federal GAS Tax toward maintenance of our land transportation system.
The bad news is, America should be paying to off-set higher mpg basically 43 cents per gallon or a 25 cent per gallon higher federal gas tax.
The good news is, long term projections on the cost of oil have never been better largely due to America’s growth in producing both oil and natural gas.
The better news is, for the America who drives 15,000 miles per year the gas tax increase totals $225 per year or a little more than $4.00/week.
As was noted previously, our insufficient surface transportation system will cost the average American family $1,060 per year by 2020. One does not need to use a calculator to see that this increase would save American families in their pocketbook, boost American business, and help grow our economy.
Myth 10) AMERICA CANNOT AFFORD TO RAISE TAXES TO FUND INFRASTRUTURE TRANSPORTATION INVESMENT
Only the truly economically challenged deny,
“America needs to invest between the public – federal, state, local – and private sector basically $200 Billion more per year infinitely to renovate, maintain and upgrade our Transportation Infra-Structure.”
Supporting Infra-Structure investment today, not only saves the American consumer expenses today but begins building a modern economy for a modern world while creating millions of long-term, good paying jobs for generations to come.
Bonus Myth) There Are Shovel Ready Infra-Structure Projects to Create Jobs Now.
This is actually a critical falsehood every American needs to understand. Simply passing a 10-year Federal Transportation Infrastructure Bill will not immediately create the 2 Million plus direct and indirect jobs this action is projected to result in over time.
Even projects already designed and approved only awaiting federal funding will take time to be transitioned from the planning to operational stage of execution.
America need not FEAR an immediate 25 cent per gallon increase in gasoline taxes. Those increases can literally be phased in over several years. The staggered implementation will not add to our National Deficit due to the timing delay between funding approval and need to actually pay for the projects as the work is completed.
Those are the facts. Now it is your choice. Raise you Voice to Support Addressing our Crisis of Infrastructure Transportation Deficiencies or continue to suffer the consequences of inaction.
As we continue to explore how to resolve America's Income Inequality Challenge, today we examine the power of developing Energy Independence as a means to uplift all citizens directly and indirectly. Creating a "sustainable" national energy supply can allow our great nation to both end our dependence on foreign crude and begin the process to making renewable energy a viable long term reality.
American Energy Independence Part VI originally published – Voices of United States 11-28-2011
During the past month, Voices of US has explored the history of America’s quest to once again become strategically Energy Independent.
We have examined how the country through price controls combined with conservation efforts became strategically independent by 1986 following the economic hardship which occurred when the price of oil spiked in the early 1970’s.
We have looked at the effects global supply and demand impact on the price of crude a prime reason the country needs to develop alternative solutions to importing foreign crude.
We examined how upgrading our nation’s power grid and underground pipe line system as well our transit systems could dramatically reduce total U.S. energy consumption.
In a perfect world, America would have already begun addressing American Energy Independence through the enactment of common sense proposals such as:
1) Increasing Corporate Average Fuel Economy mandates to a fleet level of 35 mpg by 2020
2) Establishing a minimum highway fuel economy domestic standard of 27 mpg
3) Developing a ten year plan to increase bio-fuel production ten-fold
4) Stipulating all renewable fuel refineries reduce green-house case emission by 20%
5) Requiring an increase in efficiency for all standard household appliance energy use
6) Enact a federal subsidy for veterans and the long-term unemployed to be trained in job relating to and created by this type of legislation.
Before you stop reading and prepare to start lobbying for this type of legislation, it was passed 264 to 163 presented as H.R. 6 Energy Independence and Security Act of 2007, 65 to 27 in the Senate and signed by President George W. Bush on 12-19-2007.
In a perfect world, Congress would have followed up on this legislation to:
1) Enhance federal revenue through increased domestic energy production enhancing tax collections from both increased output as well as job growth within the sector.
2) Allocate a portion of those revenues to environmental technology to reduce carbon footprints.
3) Fund additional training for green jobs
4) Restructure our electric power grid to facilitate alternative energy production
5) Begin the long-term reduction of American dependence on oil.
The fact bill H.R. 2227 of 2009 died as the Agenda promised of a new President supporting the European concept of “Cap & Trade” altered the American Energy Independence initiative.
The prior two bills success and failure in becoming federal legislation are not presented to expose the liabilities of either party or either noted President.
They are noted only due to the fact; American Energy Independence rarely has followed a clear long-term path through the federal legislative process.
American Energy Independence as a legislative initiative traditionally follows American outrage at the price of oil or more specifically the price of gasoline at the pump.
By the time H.R. 2227 worked its way to the floor of the House, a gallon of gas had dropped in price from $4.15 to $2.08 all but eliminating any national ground swell to consider alternative energy initiatives such as fueling our nation’s truck fleet with natural gas.
The fact America could and should commit to developing millions of new jobs domestically upgrading our transportation and energy infrastructure is not in dispute.
The fact America could and should commit to developing alternative fuel usage for cars and trucks is not in dispute.
The very good news about America’s need to commit to a long-term Energy Independence initiative remains we have the abundant coal and natural gas resources which can supply our nation with over a century of truly independent energy to produce electricity.
That fact combined with advancement’s in the safety and efficiency which can result from the use of; Nuclear, Wind, Solar, and other alternative fuels offers America not only a plausible path toward Energy Independence but a practical one.
The most basic fundamental problem relating to developing and maintaining a long-term American Energy Independence Initiative has been and continues to be,
“Will America voters agree to the cost?”
77% of all Americans in polling have no idea the actual federal tax on a gallon of gasoline remains at the same 18 cents it has been since 1993.
83% of all Americans in polling could not correctly indentify within five years how long it takes to receive federal approval to build and begin producing power from Nuclear facility.
92% of all Americans in polling rejected the concept of giving up their right to drive to lower consumption of oil using mass transit if their personal expense was equal.
You are the key to America’s Energy Independence.
Your elected officials have read the polls and will not make the difficult decisions necessary without your support.
The choice is yours America.
You can remain held hostage to the Global forces which control the price of foreign and domestic energy consumption or you can Vote for American Energy Independence.
As America begins to address our Income Inequality challenge, today in Part X of our series, I am reprinting an essay from our archives. Once America's Unions were respected. Once America's Unions were noted as a major reason why our workers' benefits and wages increased. Today everyone knows, Unions are Evil, Right?"
"Unions are Evil, Right?" originally published Voices of United States March 25, 2011
Why should workers be allowed to have days off?
Why should workers be allowed to receive overtime pay?
Why should workers be granted safe working conditions which are regulated?
Why should workers have rights to benefits such as; worker’s compensation, health care benefits or a pension?
Unions are the cause of this country’s income inequality challenge, right?
For everyone who answered all of the above, yes, please continue union bashing.
I can't believe as you do because I know what you believe is not true.
My grandfather was a coal miner.
He was twelve when he left grade school to work for the mining company.
He fought for the worker's rights I opened this essay with.
He gave up his wages to stage strikes and risk his job and his health on picket lines.
He fought for the benefits the majority of American’s take for granted as basic rights.
He was a great American who believed in free speech and the other rights upon which this country was founded..
He would have fought for your right to freedom of speech even though he would have debated your opinion with you until one of you fell asleep.
He would have even agreed that Unions make mistakes because they are run by human beings.
The next time you hear someone bashing Unions as the source of all evil, I only ask you to consider one historic fact,
“Remember the millions of Union members who fought to develop the basic rights hundreds of millions of American workers have enjoyed for several generations.”
The basic "seniority" annual step wage increase - traditionally 2% - continues to be noted as having allowed America's Union work force to avoid much of the wage stagnation this nation has faced during the past several decades. Union contracts guaranteeing members an annual COLA increase and annual seniority increase were benefits prior generations fought for to ensure a portion of their efforts would be returned to them as the fruits of their labor.
Today as we continue to explore America's Income Inequality Challenge in Part XI, we again look into our archives at a member of the 1%. It is a path which was once the American Dream and could once again be.
"Being Rich Isn't UnAmerican" – 2-2-2011 - Voices of United States
Fifty years ago, I started digging ditches.
The first army surplus back hoe and camouflage green dump truck I bought at auction cost the last $1,700 of my savings.
I probably should have gone bankrupt at least twice if not three times during recessions which felt like depressions. My crews always were paid even if I was not. While taxes were sometimes late no matter what the left believes they too were paid in full including penalty and interest.
My big break might have put somebody else out of business for good. Thirty years ago, my drainage pipe supplier couldn’t meet my order. With no other option, I had to come up with an alternate to the standard piping system of the 1970’s.
My answer was to perforate fiber glass piping. Eventually I patented in conjunction with a major plastic manufacture multiple compositions of pipe to withstand the extreme cold of the Great Northwest to the extreme heat and annual flooding of the Southeast.
My business wasn’t high tech. It was based on working harder and taking jobs nobody else wanted putting in 60-70 hour weeks. I built a multi-state company from humble beginnings of $10,000 in first year sales.
At the height of the 2000’s housing boom, my company employed over 450 men and women working in 9 states. We paid in combined wages, FICA, federal corporate income tax and state tax over $20 million dollars in 2004.
Hate the fact my fortune came from hard work.
Hate the fact my hard work created jobs for thousands.
Hate the fact my employees spending helped creat jobs for their neighbors.
Or if you decide to change your mind, respect the fact,
Being Rich isn't UnAmerican
We saw with the emergence of the Tea Party Movement how a relatively small percentage of the electorate can vocalize their displeasure of the government. Even though some of their ideas lack factual merit and they showed many intolerant attitudes, they should be congratulated for their tenacity. Grass Roots movements can change our future as we examine in Part XII of America's Income Inequality Challenge.
By John Cashon 3-11-2011 originally published Voices of United States 12-02-2012
Imagine what a large majority could do. This example can be used to show everyone else that we do not have to sit and watch idly from the sidelines while intolerance spreads through the political discourse.
You only have to watch a couple of political ads from the midterm elections to see that the rhetoric is just getting worse with no end in sight for reason to return. As long as the reasonable and rational people remain quiet, the money being thrown into the elections will continue to grow adding to the lack of civility being shown in politics today.
Is this what we want to teach our children about how our government works? Is this the legacy that we want to leave them?
In the political spectrum today, there are groups that are radically to the left and to the right but there is an even larger group of the electorate that longs for the return of common sense and sanity to the government.
We are the Rational Majority. Ranging from moderate republicans, independents and moderate democrats, this majority can become a real political force if only they would unite and vote together to bring back the belief to more people that working together is more beneficial to the country than division and hatred.
We all see how a lack of bipartisanship in government is failing to meet the demands of the 21st century and the moderates have the ability today to show that by working together as Americans first, we can accomplish great things.
If the rational majority can unite, our vote can tell the politicians to get their act together and quit arguing like children. We all want to see our country succeed and only by working together can we achieve that.
Our government has been a beacon of light to many countries in the world striving to create their own democracy. Can we really be proud of what the world sees now? How can we degrade each other for political gains and how can we allow a small minority to hijack the political agenda from the majority? Honor is a value long lost in politics.
The Rational Majority can restore that honor by standing together and using their vote to counter the big money being injected in politics with common sense.
The United States is more important than just the war between blue states versus red states. By looking at the similarities that we all share opposed to what makes us different, can we ever escape this adversarial culture that has taken over the politics in our country.
Let's show the world that we are not a divided nation but one that is built on consensus and common sense.
Editorial note: Our series exploring how to implement the reforms needed to address America's Income Inequality Challenge continues per your requests. We hope you will join us while sharing this series with all you know you wish to uplift our fellow citizens restoring the American Dream.
Many have asked, “Why Voices of United States,” has taken the lead in examining and promoting plausible actions to reverse the effects of America’s Income Inequality Distribution. Today we answer that question examining the work of PHD MIT Economist Laura D’Andrea Tyson the 1st women to ever Chair the President’s Council of Economic Advisors
By Richard A. Mathews (Part XIII)
Dr. Tysons credentials are beyond reproach. Her work in economics has gained such respect she has been published by business periodicals from the Financial Times to the WSJ to Bloomberg Business to the New York Times to the Washington Post as a limited list of her articles written over the past several decades.
Dr. Tyson served on President Clinton’s Council of Economic Advisors, served the U.K. is a similar capacity and returned to lead President Obama’s Economic Advisory Board.
Depending on which Global Internet Search Engine you employ, her 2-16-2015 Huffington Post essay is frequently noted as the most read, most recent piece on Income Inequality in America.
Her entire article can be linked into at follows:
http://www.huffingtonpost.com/laura-tyson/us-income-inequality-costs_b_6249904.html
The article’s first two paragraphs both prove her historic knowledge of American Economics and verifies why only you, the U.S. can address our income inequality challenge.
“BERKELEY, Calif. - During the last several decades, income inequality in the United States has increased significantly -- and the trend shows no sign of reversing. The last time inequality was as high as it is now was just before the Great Depression. Such a high level of inequality is not only incompatible with widely held norms of social justice and equality of opportunity; it poses a serious threat to America's economy and democracy.
Underlying the country's soaring inequality is income stagnation for the majority of Americans. With an expanding share of the gains from economic growth flowing to a tiny fraction of high-income U.S. households, average family income for the bottom 90 percent has been flat since 1980.”
While what Dr. Tyson writes is true, it is far from accurate and places in a vacuum the state of American wage stagnation instead of examining it reflective of global and national changes in economic conditions which effected the ability of commerce to reward productivity.
Or to be far less diplomatic, Dr. Tyson begins, continues and concludes her essay, alternating blaming Global competition but then ignoring the effects on American Income Inequality caused by America’s Trade Deals which she supported.
Worse, she completely glosses over the growing cost of business taxes and benefits such as Health Care as well as the cost of Federal and State regulations.
She ends her essay on a growing academic partisan theme, “American Income Inequality is the fault of the rich and the rich have the resources to continue oppressing the other 99%.”
But to be fair, please read her closing in her own words,
“…The rich have both the incentives and the ability to promote policies that maintain or enhance their position.
Given the U.S. Supreme Court's evisceration of campaign finance restrictions, it has become easier than ever for concentrated economic power to exercise concentrated political power. Though campaign contributions do not guarantee victory, they give the economic elite greater access to legislators, regulators, and other public officials, enabling them to shape the political debate in favor of their interests.
As a result, the U.S. political system is increasingly dominated by money. This is a clear sign that income inequality in the U.S. has risen to levels that threaten not only the economy's growth, but also the health of its democracy.”
Voices of United States has taken up the cause of empowering America to end her Income Inequality Challenge because even the most respected of our Academic Economic Advisors have clearly given up on you and me.
I did not link you to the “Red Meat,” essays of publications that must write parsed articles on this topic to continue to be able to sell Advertising. I didn't begin this post linking you to the Plain Vanilla essays which present no plausible solutions to our Income Inequality Challenge.
But if you wish to read a few, here is a small sample for your review.
Adam Geller Associated Press article for USA Today
http://www.usatoday.com/story/money/business/2014/02/02/americans-grapple-income-inequality/5163773/
Jordan Weissman, The Atlantic’s article “U.S. Income Inequality Worse than it was in 1774.”
http://www.theatlantic.com/business/archive/2012/09/us-income-inequality-its-worse-today-than-it-was-in-1774/262537/
Dave Gilson and Carolyn Perot for Mother Jones, “It’s the Inequality, Stupid”
http://www.motherjones.com/politics/2011/02/income-inequality-in-america-chart-graph
http://inequality.org/income-inequality/
In the real world, PHD’s from Dr. Tyson to the Noble Prize winning Dr. Paul Krugman, rarely fail to do an outstanding analysis of what has occurred in the past. What they do an equally poor job of is presenting anything resembling a plausible course of action to resolve current conditions for our future.
Main Street realizes the same “Trade Policies,” our PHD’s supported cost America jobs and fueled income stagnation.
The Poor for a generation have understood, Welfare Reform, discouraged advancing ones income beyond assistance limits.
Millennials today realize, “Hope for Change,” without a plan only leads to failure.
Seniors remember, little worth striving to achieve does not come at a cost of sacrificed commitment.
When the most intelligent Economists on Earth such as Dr. Tyson have no advice for President Obama or our 2016 Presidential Candidates, it is up to you and me to lead our nation in restoring the American Dream.
If we the people of these United States are going to address our great nation’s Income Inequality Challenge the time has truly come to, "Ask what you can do for your country
