Considering that we are now roughly 10 months into the election campaign and the worst of it (i.e. the next 6 weeks) is yet to come, I think that it is about time to let the proverbial cat out of the bag. Due to the fact that the principal job of any politician is to pander to get re-elected, you'll never hear one of them say this; however, as an unbound rational individual, I will say it: I'm sick and tired of hearing about the “burdens” of the middle class. For any drone that whole-heartedly buys into the sound byte campaign rhetoric of tax burdens, the mortgage crisis, and the failure of banks and finance companies, it is easy to believe that the middle class is on the verge of collapse. Indeed, the middle class, like all classes, is facing trying times, but let's try to put the three aforementioned issues into perspective BEFORE talking about each other's burdens.
Most Americans seem to think that the middle class carries the majority of the tax burden. Most Americans think that the hard working middle class is footing the bill for tax cuts for the upper class. Most Americans are wrong. According to the Tax Foundation as well as the IRS's 2006 data, the upper 25% of American taxpayers earned approximately 68% of all income and paid 86% of all income taxes (a difference of -18%), while the “over-burdened” rest of America, the other 75% of American taxpayers, earned 32% of income and paid only 14% of income taxes (a difference of +18%). Who is really being burdened here and who deserves tax cuts? Is it fair to tax success and achievement?
Regardless of tax burden, it is safe to say that the mortgage crisis is effecting the middle class more than the upper class. Many of our politicians claim that this is the fault of predatory lending practices. It is true that these practices are partly to blame, and laws against these practices deserve to be strengthened; however, mortgage lenders cannot legally forge names on a contract. Who forced this burdened middle class to sign their names and get a mortgage for a home they cannot afford? Nobody. So why must we all be held financially liable for the mistakes of some?
Thanks to problems brought about by failed mortgages, banks and financial companies are failing, which is costing the insurance, retirement accounts, and investments of numerous people in the middle class. To counteract these middle class losses, the government is preparing a $700 billion safety net for these failing companies. So, if failure effects enough people, then the government will rescue you, correct? This idea completely contradicts the risk and reward principles of the market economy. Simple logic dictates that companies that are too risky will fail, while those who aren't risky enough will not succeed and grow. If an investor or a customer loses faith in a company, shouldn't the first move be to find another company, not look for a government bailout?
In closing, it is obvious that these issues show no sign of a middle class teetering on the brink of collapse; moreover, it shows a giant segment of the country that is underpaying and relying on an all-too-willing government to bear responsibility and buy votes by paying for peoples mistakes. I wonder if the upper class wishes it had such a burden?
