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Corporate American's Grand Design for the Middle Class

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First some notes:

  • World Population: 6,930,700,000

  • US Population: 311,745,000

  • China Population: 1,339,724,852

  • India Population: 1,210,193,422

  • US Corporations now earn over 2/3 of their income in other nations.

    The graph below is based on latest population estimates for 2011. Most of the economic growth and new jobs are being created in China, India, Brazil and in the Asian nations in general.

    The population represents potential consumers for goods and services produced by both US Companies and companies local to each nation. Our "slice of the pie" based on potential numbers of consumers is tiny compared to the world population and to the populations of China and India. Of course this chart shows total population but the ratio between "us and them" shows the potential size of each market today and into the future.

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    Currently the US still leads the world with regard to the size of our economy but not with regard to the rate of growth of our economy. Our workers still command higher wages than in most other nations which has historically led to a higher standard of living and more spending to fuel our economy. As our wages decline in purchasing power so does our economy decline. Spending is what keeps an economy strong. No spending means no demand means reduced production and closed businesses. This leads to more unemployed who cannot spend, leading to the spiral downward.

    Graph potential chinese consumers v us.

    Graph created by P. Kruger. Permission granted for free distribution

    As the economies in nations like China and India grow so will wages and demand for products and services. A middle class with disposable income is taking shape in other parts of the world even as our own middle class struggles to make ends meet.

    Corporations do not respect national boundaries or patriotism. Their only "religion" is profit. Few have a moral code to regulate what they do to increase revenue at the expense of workers.

    Here in the US, since the year 2000, over 40,000 factories of all sizes have shuttered their doors. Most of those jobs left the US for China and other nations because the labor is cheap and they are not collecting income taxes or providing health care or other benefits. Safety of workers is often not a consideration either. Moving our jobs off-shore saves them a bundle of cash which is more important to their CEO's than is the future of the economy in the country they like to call home.

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    Here at home where certain outsourcing is not practical or possible, many of these same corporations have laid off workers, cut wages and pushed the added workload onto those that remain. Longer hours at the same or lower wages is the "reward" offered to long time loyal employees that contributed years of their lives to those companies growth. These employees have often been required (illegally) to work over-time to take up the slack of laid off workers. They are told if they complain that there are plenty of unemployed who will take their place at an even lower salary. Now mom needs to work as well, leaving children unattended.

    Let's look at the trend to eliminate many if not all benefits from the American middle class worker. Starting with union's collective bargaining rights, some right-wing states are doing all they can to steal worker's rights to negotiate in their own behalf or to safeguard working conditions. These politicians have been openly backed by some very wealthy and powerful business interests. Some of these stand to benefit by way of private contracts that will displace public workers. These contracts do not necessarily save taxpayers anything, but they do take control by the taxpayers over their own destiny by moving it into private corporate hands. Private prisons are one example.

    In Wisconsin, some workers were laid off and their jobs given to "slave" labor from prisons. Will the huge incarceration rate in the US coupled with private for-profit prisons lead us to a nation of slaves, further increasing our rate of jobless honest citizens?

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Everyone loves a good conspiracy theory .  I ... by Paul Kruger on Thursday, Jul 14, 2011 at 9:26:12 AM
The US has been doing that with its Austro-Prussia... by Rob Kall on Thursday, Jul 14, 2011 at 9:29:23 AM
Some time around the 08 election someone was posti... by Paul Kruger on Thursday, Jul 14, 2011 at 12:02:53 PM
Thanks to Paul Kruger for the visual proof of his ... by Joan Mootry on Thursday, Jul 14, 2011 at 4:21:15 PM
I've been dreaming of fulfilling Arlo Guthrie's dr... by Michael Dewey on Friday, Jul 15, 2011 at 5:45:01 AM