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Obama, in State of the Union, makes case that middle class is job one - The Washington Post
Keywords:
Tags: United States,
U.S. President Obama's 2013 State of the Union address focussed on the problems facing the U.S. middle class, calling it "our generation's task" to tackle this problem. Economic changes have changed the patterns of economic growth and jobs, growth, income growth, that prevailed from the end of the Second World War to about 1989. But he offered few solutions beyond increasing the minimum wage to $9.00 from $7.25 to reduce poverty.
U.S. President Obama's State of the Union Address 2013-2016
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Poverty among white Americans in 2010-2015
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A previous generation could count on good jobs in manufacturing with only a high school education. The last two decades of globalization have hit manufacturing jobs and wages in the U.S. hard and the impact is greatest on people without a college education. Other problems aggravating income and causing poverty is the increase of dropout rates from the labor force of young white American men, the effects of drug use and the lack of stable marraiges. This creates an underclass of whites in America, similiar to the underclass among minorities.
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As part of this effort Brown makes half of the aid to universities contingent on a tution freeze, pushes for lower executive pay, more online courses, and faculty teaching more undergraduate classes. Under his father Governor Edmund Brown, the state's higher education system functioned in the 1960's and subsequent decades as a gateway to the U.S. middle class, and a beacon for other American states.
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If only 1.9 million hourly workers earned more than $20 per hour in April 2008, when the deep downturn that hit in October 2008 had not ocurred and the shift to part time employment and lower auto related wages was just underway, what would the numbers look like by 2010? And what does that mean for consumption? Does it prolong the downturn with demand slow to pick up? What does it mean for exports from China?
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Orlik cites a study by a Chinese university which shows 10% of the households has over 80% of the wealth, and over 50% of the households have little or no savings. This suggests that there is not much room to increase consumer spending on education, healthcare, and consumer goods for these households as incomes are too low. This may account for the insecurity felt by a large majority of households about the future. It also shows that rebalancing the global economy would require rebalancing within China, reducing inequality and improving incomes for the middle class to increase consumer spending.
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Mexico's middle class is growing. Yet many Mexicans not employed in the formal economy lack worker protections, health insurance, social security and have small savings. This means the loss of a job or some other economic mishap can quicky change things.
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The Fed documents the impact of the financial crisis of 2008-2009 on American families. Half the middle class is dislocated financially by the crisis and minorites fare badly. Median incomes drop 8% and housing asset values drop an average of 42%. Median net worth down 39% taking it back to where it was in 1992. American families work down their debt, reducing credit card balances.
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Obama, in State of the Union, makes case that middle class is job one - The Washington Post
Washington Post 02/13/2013
President Obama's call for "our generation's task" to address a shrinking middle class and most of the questions remaining unanswered
02/13/2013
The economic patterns that are causing the middle class to shrink over two decades remain stubbornly in place, and the factors that have compounded this in recent years also remain unaddressed.
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Obama, in State of the Union, makes case that middle class is job one - The Washington Post
Washington Post 02/13/2013
Growth isn’t enough to help the middle class - The Washington Post
Washington Post 02/14/2013
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