“Disappearing: Middle Class, Or So They Say

http://hillbuzz.org/10-facts-about-the-disappearing-middle-class-62378

An interesting little piece from HillBuzz about the lefty talking points behind “disappearing” middle class members. They aren’t  actually disappearing, after all.

I would like to focus on points  #7 and #10.

#7

I agree that entitlements don’t move people into the middle class, but there is more to be said than is in this piece. The Democrats seem to think that taking money from the productive and pouring it into entitlement ratholes – two year unemployment benefits for example – is “good” and “progressive.” In fact it is a waste of the money because it is taken from productive people and, in the example cited, given to people who suddenly have far less incentive to seek work. Ditto for Social Security and all other entitlements. Social Security discourages saving. Farm subsidies discourage intelligent farming. Human nature is simple. If you give me something for nothing I will come to depend on it. If the money is left around, I will find a way to game it. Government regulations create unintended negative consequences. For example, an unemployed man may not be able to seek employment because he will be kicked off the unemployment rolls the instant he gets a job. But he may not be paid for nearly a month at his new job and thus may lose his housing if he gets a job. Particularaly a lower wage job or one with no hiring bonus. If the money was given in a one-time lump sum that would not be the problem it is. But it isn’t.

#10

The long-term trend for Americans has been upward mobility. We live better than we did in the 1930’s – even the poor. Unfortunately, government tinkering is upsetting that balance. Illegals are getting almost the same benefits natives get, and the government’s policies toward business are at best indifferent, at worst hostile. The current administration has created a perfect storm of policies that are driving unemployment up, increasing inflation, and reducing the ability of business to perfrom. On top of that they are taxing more and spending more. If we don’t evict the current occupants of the White Hose and clean the Augean Stables that Congress has become, we are doomed to a hideous future of slow growth, bloated and unsustainable entitlements, class warfare and economic malaise.

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