The Coffee Desk

Obama Is Killing The U.S. Middle Class

I aim for this to be a politically un-biased, FYI article regarding the effect most of Obama’s policies have had on the U.S. middle class, which any economist can tell you is the most important class in a healthy nation’s economy (charts below to demonstrate this). Everybody needs to know this, so we can hopefully move beyond this poor economic state.

The Middle Class: A Quick Recap

Just why is the middle class so important to us? Here’s a quick diagram to start:

Obama and the middle class

As the diagram graphically depicts, the element separating the U.S. economy from that of a third-world country is a healthy middle class, which Obama is harming with his policies.

The middle class comprises of: you and me, the majority of tax payers, small and medium business owners, medium-income employees, and more. Pay special attention to the “tax payers” and “small to medium business owners” aspect as we cover Obama’s destruction of this crucial part of the U.S. economy.

The middle class is what separates us from any third world country economy. In a poor country, you have the rich royalty that ultimately rules the land, and the poor loincloth-wearing workers and peasants that work to support the rich government as well as themselves to a “survivable” degree.

Our middle class balances this, however. These are the small- and medium-business owners, tax-payers, and ultimately the medium between the upper and lower class of citizens that every healthy economic nation thrives on. A communist government aims to make the entire nation one big middle class (on paper, at least), but we’ve seen how well that works in real life with natural human corruption and power-hungry dictators.

That said, Obama’s policies have been called “leaning towards more socialist beliefs” by people other than just Fox News, and it really shows in the “Change” he has instituted in the nation.

Now, enough of the history lesson, let’s move on to just what these “changes” are that he promised, and how they affect the already sick government economy.

The “Change” We Voted For

So far, Obama’s only “change” has been damage to the state of the middle class, the crux of the U.S. economy, making it slowly yield in size to the working class beneath it. The diagram above does a good job of showing how this evolution can quickly turn our economy into a similar model as a poor nation’s.

Obama’s health care reform has unseen side-effects for small and medium businesses. By causing them to pay out extra money (albeit for a good cause), it drains their ability to offer products at the traditional rates, causing further inflation.

And this “Cap & Trade” bill? Should be called the “starve and freeze” bill – all its going to do is further drain people and businesses or more money for the energy that we all need and use. And if you aren’t in the upper class without money worries or living off of welfare in the working class, that’s a bit of a problem for cutback-enduring middle class citizens.

I have another huge problem with the “Cap & Trade” bill – Nancy Pelosi has money invested in a company promoting lower energy consumption levels, and as speaker of the house she had a lot of influence on this bill’s passing. I wouldn’t go so far as to utter “corruption”, but there was definitely bias involved in the bill’s passing as it appears.

So with investors panicking and hurting stocks, inflation costing us more money out of our pockets, and the price of gas/oil slowly creeping up, the last thing Obama needs to do is to continue to harm the economy’s most crucial division (the middle class) via these voluntary bills.

So far, all efforts to even out the funds the upper class possesses have only caused collateral damage and indirectly harmed the middle class as well. If something is not done about this, the economy as we know is only going to get worse.

The slow collapse of the middle class inevitably hurts the overall U.S. economy as a whole, and since we have such as huge stake in the world economy it too suffers from our losses.

It seems now we need another wave of “change”, only this time for something helpful, not harmful.