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The Middle Class and Its Entitlements
To what are Americans entitled? Government-guaranteed health coverage in old age? Government-guaranteed health coverage at any age? Subsidized housing if they’re low income? Subsidized food? Subsidies for growing wheat but not making shoes? Subsidies for homeowning?
Answer these questions, and we may end the budget deficit crisis. The reluctance to properly label entitlements as such has created the widespread illusion that what government spends on others is “welfare” and what’s spent on us is our due. Time to decide what we really want — and pay for it.
The great entitlement-spending hole is Medicare, the government health plan for the elderly and disabled. Contrary to popular belief, most middle-class beneficiaries haven’t “paid for it” through their payroll taxes and other contributions. A typical couple retiring in 2020 will have paid $100,000 in lifetime Medicare taxes but will receive about $500,000 in scheduled benefits over the premiums they pay into the program, according to tax-policy expert C. Eugene Steele.
Put another way, nearly 40 percent of Medicare’s funding comes from general revenues, which means income taxes. That makes Medicare a government program that — to be blunt in the conservative style — transfers wealth from the productive class to retirees. If Medicare served only the poor, many politicians would refer to it as welfare without hesitation.
Sure, Medicare’s soaring costs must be contained. But tremendous sums can be saved within the program by addressing the way doctors are paid. The new health care reform law starts that ball rolling.
But even though the reforms would reduce projected cost of Medicare, we will still need more tax revenues to preserve the program as we know it for growing numbers of older people. If Americans want a voucher system that spends a lot less on Medicare and basically brushes the elderly off onto private insurers, they can have it. In fact, the Republican-run House has already voted for one.
There are other middle-class entitlements. Take out a home mortgage, and you can subtract your interest payments from taxable income. (By the way, Canada doesn’t allow for such deductions, and its level of home ownership is close to ours.) The higher your income, the more valuable the tax break. Meanwhile, the taxes you save must be made up by others — people who rent their homes, don’t have mortgages or don’t itemize on their tax returns.
The biggest farm subsidies go to wealthy investors. Call that a form of welfare, and its defenders will find a salt-of-the-earth farmer to insist that he’s not on welfare — he’s producing something. But American toy companies make things, too, and they’re not getting government checks because global toy prices have dropped (or even when they have risen).
That’s not to say that we don’t want some of these entitlements. The deduction for mortgage interest should be kept for struggling middle-class homeowners, at least for now. But we could start phasing it out on mega-mortgages approaching $1 million.
Some programs for the poor are essential to maintaining a humane society, but others may be inefficient or socially counterproductive. Look at them, too, but bear in mind that they are not the big kahuna of entitlement spending.
Medicare is, and if Americans want it to retain something resembling the first-class coverage now offered, they will have to pay more in taxes.
Let the games begin on who will do the paying, but be mindful that the reckless tax-cutting of the George W. Bush years has helped send federal tax revenues to historic lows relative to the economy. And the recent dramatics over asking anyone to pay $1 more in taxes are about little more than this: forcing America to dismantle the king of middle-class entitlements.
Washington Post Column: President Obama shouldn’t be afraid of a little class warfare
On Monday, defending his plan to raise taxes on the rich to pay for job creation, President Obama said: “This is not class warfare, it’s math.”
No, Mr. President, this is class warfare — and it’s a war you’d better win. Corporate interests and the rich started it. Right now, they’re winning. Progressives and the middle class must fight back, and the president should be clear whose side he’s on.
The class war began in 1971. That year, soon-to-be Supreme Court justice Lewis F. Powell Jr. wrote a confidential memorandum to a friend at the U.S. Chamber of Commerce about the “Attack of the American Free Enterprise System.” In the mid-20th century — from the New Deal to Social Security to environmental and civil rights laws — the government had cut into corporate profits while creating middle-class prosperity. Falsely believing that capitalism was under attack, Powell wrote: “It must be recognized that businessmen have not been trained or equipped to conduct guerrilla warfare with those who propagandize against the system.” His proposal, from which the modern conservative movement grew, was to equip business elites for that battle with aggressive policies to make Americans believe that what’s good for wealthy chief executives is good for them, too.
Between 1979 and 2007, the income gap between the richest 1 percent of Americans and the poorest 40 percent more than tripled. Today, the richest 10 percent of Americans control two-thirds of the nation’s wealth, while, according to recently released census data, average Americans saw their real incomes decline by 2.3 percent in 2010. Though our economy grew in 2009 and 2010, 88 percent of the increase in real national income went to corporate profits, one study found. Only 1 percent went to wages and salaries for working people.
(Excerpt) Read more at washingtonpost.com …
via Washington Post Column: President Obama shouldn’t be afraid of a little class warfare.
Big Sis’ Latest Terrorist; Another White, Middle Class American
A Department of Homeland Security PSA now airing on cable news networks depicts yet another white, middle class American as the most likely terrorist, continuing a clear trend of Big Sis characterizing her primary political opposition as domestic extremists and coinciding with a dubious terror alert.
The video shows a well-dressed white man leaving a bag on a train before exiting onto the platform. The PSA is part of the “See Something, Say Something” campaign which encourages people to report “suspicious activity,” and yet the only people seen engaging in suspicious activity in the vast majority of scenarios put to film by the DHS have been well-dressed, white American citizens.
Although produced back in April, the PSA is now airing on cable news networks and other platforms to coincide with the tenth anniversary of 9/11……………………………..
MORE…..
via Prison Planet.com » Big Sis’ Latest Terrorist; Another White, Middle Class American.
War On Terror’s New Targets: Veterans, Tea Partiers, Anti-Fed Activists
Big Sis uses methods designed to catch Al-Qaeda terrorists as tools to silence dissent against big government
Paul Joseph Watson
Infowars.com
Thursday, August 18, 2011
Two new videos recently released by the Department of Homeland Security add to the mountain of evidence that proves Big Sis has now dispensed with all pretense of the war on terror being focused on Al-Qaeda Muslims, as tools that were designed to catch foreign terrorists are now being targeted against Americans who are opposed to big government.
The two recent PSAs (watch them below), part of Homeland Security’s “See Something Say Something snitch campaign, portray white middle class Americans as terrorists in almost all of the scenarios shown in the clips.
Far from representing some superficial nod to political correctness, this is in fact a deliberate effort by the feds to characterize predominantly white, middle class, politically engaged Americans as domestic extremists. It’s all part of the agenda to frame dissent against big government as dangerous radicalism……………………..
MORE………….
via Prison Planet.com » War On Terror’s New Targets: Veterans, Tea Partiers, Anti-Fed Activists.
The collapse of America’s middle class
People seem to act irrationally when they have nothing to lose. Often we observe in wars that the losing side expends more blood and treasure after its position becomes hopeless.
The American South sustained most of its casualties in the Civil War after July 1863, when the dual defeats at Gettysburg and Vicksburg made its position untenable. Athens suffered its worst casualties in the Sicilian gamble at the end of the Peloponnesian War.
The Spanish ruined their empire and depopulated their core provinces during the second half of the Thirty Years War of 1618-1648 rather than cede dominance to France. Germany took most of its casualties after Stalingrad. Japan was prepared to absorb an arbitrarily large number of casualties after Okinawa, and its resistance was terminated only by nuclear attack.
Some aspects of the apparently suicidal behavior observed in great wars may be at work in the present budget stalemate in Washington, where the Republican right and the Democratic left yet may undo a compromise. I do not think this will happen – yet. But the extremes of polarization in the American body politic are different from anything I have seen in my lifetime.
If the Tea Party wanted most of all to govern, it would declare that a split government cannot accomplish the agenda on which its members were sent to congress, and that the 2012 presidential election would become a national referendum on America’s future. It would then agree to an interim compromise on the debt ceiling.
(Excerpt) Read more at atimes.com …
Prison Planet.com » DHS Denies “Racial Overtones” In ‘White Middle Class Terrorists’ Video
Big Sis claims no profiling, despite the fact that white terrorists outnumber minorities by four to one in “See Something, Say Something” clip
Paul Joseph Watson
Friday, July 22, 2011
DHS Denies Racial Overtones In White Middle Class Terrorists Video 220711top
Following widespread outrage yesterday, the Department of Homeland Security has ludicrously denied that a video it released encouraging Americans to report suspicious activity contains “racial overtones,” despite the fact that the overwhelming majority of people depicted as terrorists in the clip are white middle class Americans.
The story, first featured on Infowars.com, went viral yesterday, appearing on the Drudge Report, Fox News, Breitbart.tv, the Daily Mail as well as featuring highly amongst the most read articles on the entire Internet during that 24 hour period. The Fox Nation version of the story received well over 2000 comments.
The Department of Homeland Security was forced to issue a terse response to the controversy. The DHS confirm “the video is theirs but adamantly deny there are any racial or politically correct overtones to it.”
Really? Then why out o
via Prison Planet.com » DHS Denies “Racial Overtones” In ‘White Middle Class Terrorists’ Video.
Homeland Security training video portrays all “terrorists” as white, middle class males
If you see something silly, say something: Homeland Security training video portrays all “terrorists” as white, middle class males
Don’t they know stereotyping causes alienation, and alienation and poor self-esteem lead to radicalization? Now these poor men are going to have to deal with those additional radicalized Misunderstanders of Middle America and worry about backlash because of their portrayal in this video! And this is going to damage our standing with middle-class white guys abroad in nations that are our Friends and Allies, and create even more terrorists.
Of course, the intention seems obvious. But by bending over so far backward to show they aren’t singling out any other group, they appear to have created a study in absurdity. As James Thurber once cautioned, “You might as well fall flat on your face as lean over too far backward.”
“Who does Homeland Security thinks poses the greatest risk? Video portrays white middle-class as the most likely terrorists,” from the Daily Mail, July 22:
A video released by the Department of Homeland Security urging people to report anything suspicious has caused outrage by characterising white middle class Americans as the most likely terrorists. The promotional video is part of Homeland Security’s $10million ‘See Something, Say Something’ programme as they believe it will help curb random acts of terrorism by individuals.
But the controversial video has angered some Americans due to the fact all the actors who play the would-be terrorists in the video are white, and the people who report them are either black, Asian or Arab. What would happen – it is asked – if it was the other way about?
Lawsuits. Oodles and oodles of lawsuits.
The ten-minute clip shows a number of scenarios in which different behaviours which could be characterised as terrorism are played out.
These include – wearing a hooded top, driving vans, opposing surveillance footage, using a video camera, talking to police officers and recording something on your smartphone, among others.
The voice over urges viewers not to consider a person’s race when making a decision on whether or not they are a terrorist. [...]
DHS has confirmed the video is theirs but adamantly deny there are any racial or politically correct overtones to it.
via Homeland Security training video portrays all “terrorists” as white, middle class males.
Outcasts:Tonight Tens Of Thousands Of Formerly Middle Class Americans Will Be Sleeping In Their Cars
Outcasts: Tonight Tens Of Thousands Of Formerly Middle Class Americans Will Be Sleeping In Their Cars, In Tent Cities Or On The Streets… Economic despair is beginning to spread rapidly in America. As you read this, there are millions of American families that are just barely hanging on by their fingernails. For a growing number of Americans, it has become an all-out battle just to be able to afford to sleep under a roof and put a little bit of food on the table. Sadly, there are more people than ever that are losing that battle. Tonight, tens of thousands of formerly middle class Americans will be sleeping in their cars, even though that is illegal in many U.S. cities. Tens of thousands of others will be sleeping in tent cities or on the streets. Meanwhile, communities all over America are passing measures that are meant to push tent cities and homeless people out of their areas. It turns out that once you lose your job and your home in this country you become something of an outcast. Sadly, the number of “outcasts” is going to continue to grow as the U.S. economy continues to collapse.
(Excerpt) Read more at hawaiinewsdaily.com …
via Outcasts:Tonight Tens Of Thousands Of Formerly Middle Class Americans Will Be Sleeping In Their Cars.
64% Say Middle Class Americans Pay the Largest Share of Their Income in Taxes
Most Americans continue to believe…
via 64% Say Middle Class Americans Pay the Largest Share of Their Income in Taxes.
You Call This An Economic Recovery? 44 Million Americans On Food Stamps and 10 Other Reasons Why The Economy Is Simply Not Getting Better
If you went out today and started spending one dollar every single second, it would take you over 31,000 years to spend one trillion dollars. Long ago the U.S. government should have been getting these deficits under control, but instead they are just getting even larger.
So in light of the statistics above, can anyone really claim that we are in the middle of an economic recovery?The truth is that there is no sign that any of the long-term trends that are destroying the U.S. economy are even slowing down.Millions of jobs continue to be shipped overseas.
The U.S. dollar continues to be devalued.The federal government continues to go into more debt.State and local governments continue to go into more debt.Our trade deficit continues to grow.Our cities continue to be transformed into wastelands as they are being systematically deindustrialized.The number of Americans that are dependent on the government continues to soar.The U.S. middle class continues to shrink.
I know that I harp on these themes over and over, but it is vitally important that everyone understands that the mainstream media is lying to us.The U.S. economy is dying a very painful death and there is no hope on the horizon.Things are not going to be getting better. Well, they may get a bit better for the boys down on Wall Street, but for the rest of us our standards of living are going to continue to decline.The best days for the U.S. economy are already behind us. What lies ahead is a whole lot of pain.We are going to pay the price for decades of corruption and incompetence.An economic collapse is coming and you had better get ready…..
Agents Provocateurs Turn Tuition Protest Into Violent Melee
Once again, dispatched agents provocateurs have turned a peaceful protest into a property-destroying circus sideshow.
“It was supposed to be a day of peaceful protest, with students exercising their democratic right to demonstrate against soaring university fees,” reports the Daily Mail. “But anarchists hijacked the event, setting off the most violent scenes of student unrest seen in Britain for decades.
Militants from far-Left groups whipped up a mix of middle-class students and younger college and school pupils into a frenzy.”Back in the day anarchists would have criticized the very idea of state-run universities and would have denounced the act of stealing money from one segment of society to pay the tuition of another. Now balaclava-clad anarchists are the vanguard of those resentful of the fact the free lunch is over and the state cannot afford to continue this educational boondoggle.
So called anarchists apparently no longer support the philosophy that the authority of the state has no place in conduct of human relations, including education. Anarchism today translates into mindless property destruction by dim-witted hooligans.
It is used as justification by the state to attack “democratic” protesters and minimize their minor disagreements with the government and its institutions.
VIDEO
The Poor and Middle-Class are Being Destroyed | The Post & Email
WHAT HAS DESTROYED AMERICA’S WEALTH?
by Don Hank,
blogging at
http://fedupusa.org/2010/10/07/the-poor-and-middle-class-are-being-destroyed
/Oct. 7, 2010 —
The poor and middle class are being FORCED to spend more on NON-discretionary items. This is a direct result of monetary policy. Here’s the proof.:Proof Of My Thesis On Those Who Are Not RichThis is why Bernanke’s attempts are doomed to fail in dramatic fashion, and ultimately, if he is not stopped, will destroy the nation:Notice what’s going on here.The lowest quintile – the poorest Americans – are spending 23% more on food, 8% more on housing, and 9% more on health insurance.
What’s worse, they’re not spending less on food away from home.This is the key. They’re not shifting spending as you can see in the above table; they are being forced to spend more even as their income decreases.That’s the lowest 20% of incomes in America, folks, and it is going to destroy the people who are not wealthy.There is nothing that redistribution can do to fix this.
It is happening as a direct result of the following:
Government Prepares To Seize Paychecks As Statist Cancer Explodes
Fresh round of economic fascism is about forcing us to beg big government for handouts in return for our own enslavementundefinedPaul Joseph Watson & Alex JonesPrison Planet.comMonday, September 20, 2010Forget big government – the same elite whose policies caused the financial collapse are now ready to launch the next phase of their fascist takeover of the economy – by forcing businesses to send employee paychecks straight to the government, who would then deduct the “appropriate tax” before the employee receives their wage, as the statist cancer of collectivism grows.
The proposal represents another hammer blow to financial privacy, as the establishment moves towards a total cashless society where every transaction is tracked, traced and controlled by the authorities.“The UK’s tax collection agency is putting forth a proposal that all employers send employee paychecks to the government, after which the government would deduct what it deems as the appropriate tax and the pay the employee’s by bank transfer,” reports CNBC.
The system would be run by the same organization, Her Majesty’s Revenue and Customs HMRC, that has become notorious for its botched handling of data and incorrect tax calculations which have forced people to spend months and even years trying to claim back unfairly claimed money seized by the taxman.But this story is about far more than the threat of mere bureaucracy or bumbling incompetence – this is about the system exploiting the economic crisis it caused as a pretext to completely dominate and control our lives.This is about the state handing itself the power to arbitrarily raise taxes to any level it desires and then automatically seizing the money with no chance of redress or petition on behalf of the taxpayer.
Allied to the proposal will be a new program that will force middle-class families to take government “lie detector tests,” which are notoriously unreliable and inadmissible in court, as part of intrusive tax investigations into their financial affairs.
ARTICLE CONTINUES BELOW
What have we come to when middle-class girls like this see whoring as a career choice?
When it comes to human failings, I always try to be understanding. In fact, readers of my Saturday advice column in the Mail will know that it’s my stock-in-trade. But there are times, I’m afraid, when sympathy fails me and I am left nursing a deep anger which needs putting into words.Sometimes, even those words fail me.
How else to respond to this week’s story of well-educated girls — brought up in decent homes with every privilege — choosing to sell their bodies for a fast buck, not caring how many footballers use them in one week?
Excerpt
UN Blueprint: Dismantle Middle Class, Build World Government
Globalists set out agenda to re-brand global warming as overpopulation in bid to impose carbon taxesUN Blueprint: Dismantle Middle Class, Build World Government
090910topPhoto:
Phil WhitehousePaul Joseph WatsonPrison Planet.comThursday, September 9, 2010
A UN blueprint for putting the organization back at the forefront of global governance alarmingly reveals the agenda to re-brand global warming as “overpopulation” as a means of dismantling the middle classes while using “global redistribution of wealth” and increased immigration to reinvigorate the pursuit of a one world government.United Nations Secretary General Ban ki-Moon and 60 of his top lieutenants met this past Labor Day at a secluded Austrian Alpine retreat in a bid to get the global warming agenda back on track after the dismal failure of Copenhagen.The planning paper that was handed out to delegates at the conference was subsequently leaked to Fox News, and outlines a strategy of exalting “global redistribution of wealth” as the basis of the climate change agenda.
As was uncovered during the Copenhagen summit, the program of “global redistribution of wealth” largely centers around looting the wealth of the middle classes in richer countries through carbon taxes and then using that money to bankroll the construction of world government.
As the leaked “Danish text” revealed, the money generated from consumption taxes will go directly to the World Bank, not to developing countries.Under the terms of this proposal, poorer countries will not simply be handed the money pillaged from richer nations, instead they will be forced to accept “green loans” in the name of combating climate change, a policy that would land the already financially devastated third world with even more debt, payable to globalist institutions such as the IMF.
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