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The Middle Class Squeeze Is A Result Of LOW Taxes

This post originally appeared at Speak Out California

It is a popular misconception that taxes add to the squeeze on the middle class. But it isn't tax increases that have squeezed the middle class, it's tax cuts. It may be hard to believe (after so many years of constant anti-tax rhetoric) but here is why.

The middle class IS squeezed these days. There are pressures and long hours at work, long commutes, health insurance costs, housing costs, food and gas prices rising, and wages are not keeping up -- they haven't been for a long time. But it is not a coincidence that the middle-class squeeze began at the same time as the corporate-funded anti-government, tax-cutting fervor. In fact a good case can be made that many of the reasons the middle class feels squeezed are the result of pressures brought about almost entirely FROM the effects of tax CUTS and cutbacks in government services, regulations and enforcement that went along with the tax cuts.

There are direct and indirect relationships. One example of a direct relationship is the dramatic rise in the cost of a college education. Sending kids to college has become extremely expensive. And this places a very hard squeeze on parents who want their children to get a degree. But here in California tuition was very, very low before Proposition 13. Tax cuts directly led to this squeeze on the middle class. (And remember, most of the property taxes that were cut were on business property.)

Indirect results include rising energy prices from cutbacks in government R&D and subsidies for oil alternatives as well as longer commutes as the government cuts back on transit solutions like buses, trains and roadbuilding or improvements. Health care costs continue to rise because of government inaction and deregulation -- the result of the anti-government sentiment encouraged as part of the the anti-tax campaign. And insurance costs rise while coverage is reduced or even denied as the government cuts back on regulation and enforcement. (My wife is the one who brings in the health insurance for our family. Every year she gets a raise, but every year the amount taken out of her check to cover her portion of the health insurance payment goes up by more than her raise, and her take-home pay is lower. So more squeeze.)

Other areas where the anti-government, anti-tax campaign has increased pressure on the average person is at work. Anyone that works for a corporation is feeling the extra pressures there. As government of, by and for the people declines corporate power fills the vacuum.

And there are so many more areas where we are squeezed by this increasing dominance of corporations in our lives. As government -- the power of We, the People -- diminishes, the corporations swoop in to pick us clean. How many examples of corporate power coming to dominate over people power can you think of?

Click through to Speak Out California

Mail I Get - Subprime Crisis Hits Japan

This came in the mail just now:

Sub-Prime Rate Problems hit Japan

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK, uncertainty has now hit Japan.

In the last 7 days

* Origami Bank has folded,

* Sumo Bank has gone belly up and

* Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song while today shares in Kamikaze Bank were suspended after they nose-dived.

Samurai Bank is soldiering on following sharp cutbacks, and Ninja Bank are reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Ouch.

Pentagon Propaganda Story

Did Anyone see John Stauber of the Center for Media and Democracy on the Newhour yesterday? PBS was the first outlet to even mention the New York Times story about the government waging a huge propaganda campaign to sell the war to the public. All the networks, the Pentagon and everyone else involved refused to take part in the segment.

Here is an article by John Stauber and Sheldon Rampton, Pentagon Propaganda: So Much Worse Than We Thought,

Thanks to the two-year investigation by the New York Times, we today know that Victoria Clarke, then the Assistant Secretary of Defense for Public Affairs, launched the Pentagon military analyst program in early 2002. These supposedly independent military analysts were in fact a coordinated team of pro-war propagandists, personally recruited by Secretary of Defense Donald Rumsfeld, and acting under Clarke's tutelage and development.

[. . .] Since the 1920s there have been laws passed to stop the government from doing what Barstow has exposed. It is actually illegal in the United States for the government to propagandize its own citizens. As Barstow's report demonstrates, these laws have been repeatedly violated, are not enforced and are clearly inadequate. The U.S. Congress therefore needs to investigate this and the rest of the Bush propaganda campaign that sold the war in Iraq. (Emphasis added)

Ari Melber: PBS Breaks Media Blackout of Pentagon Propaganda Bombshell - Media on The Huffington Post,J

ohn Stauber, coauthor of "Weapons of Mass Deception: The Uses of Propaganda in Bush's War on Iraq," contended that the Pentagon's "surrogate" program violated federal law against domestic propaganda and called for a congressional investigation. "This war could have never been sold if it were not for this sophisticated propaganda campaign," he said.

Other news outlets are ignoring this huge story.

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