Middle Class Is the New Poor

middleclasssave2Uncertainty and struggle are what we most often associate with poverty. Not knowing if you can still afford to pay next month’s bills and worrying over how much more you can cut back when you’re already barely getting by. This way of life has become more associated with the middle class than with those at the very bottom.

The statistic that shows that average black household worth is at $4,955 while average white household worth is at $110,729 is often quoted, but these numbers are not comparing similar things.

The $110,729 and $4,955 don’t reflect different standards of living; but different ways of living.

The $110,729 and $4,955 families both have large flat screen televisions, smartphones and the usual consumer toys. They could both eat equally well, except that the $4,955 family doesn’t bother watching its food budget. It just takes whatever it wants off the shelf and worries about prices later.

In terms of personal satisfaction, the $4,955 family is happier than the $110,729 family.

To understand this, think of the “Cloud.” You can buy a laptop powerful enough to store all your programs and data. Or you can get by with a mobile device whose apps connect online to a “Cloud” of someone else’s servers which store your data. The laptop is heavier to carry than the mobile device, but makes you more independent. Or you can just live in the “Cloud” confident that no matter how you mess up your device; your data will be backed up.

America is being divided between the workers and the dwellers in the government cloud.

The $110,729 families are independent while the $4,955 families are living in the cloud. Their cloud is “Social Capital.” Instead of using real capital, they use the collective Social Capital of family resources and government aid.

The $110,729 family pays for everything. The $4,955 family pays for very little. The $110,729 family earns and saves money because that is its medium of exchange which it uses to obtain food, shelter and clothing. The $4,955 family uses money for luxury goods like televisions or sneakers. It doesn’t need to save money because cash is just bonus points. Its necessities like food, medicine and shelter are covered by the social capital of the government.

The $110,729 family is isolated while the $4,955 family is part of a social network that extends to the entire government. It’s no wonder that the $4,955 family also has much less worries than the $110,729 family living in the house they don’t own and worrying what will happen to their standard of living if they lose their jobs tomorrow.

The $4,955 family is single parent, but is built around a large extended family, mostly female, and mostly on various government benefits. That family is capable of providing valuable aid, not just in government money, but also by babysitting and helping out at home.

That extended family is one reason why Clan $4,955 has 5 to 8 kids, while the mother of the two-parent $110,729 household is tearing her hair out trying to figure out how to manage two kids and a full-time job.

Since the $110,729 family is actually funding the lifestyle of the $4,955 family, that’s a problem, but it’s a problem that no one talks about. And when social capital gets tight, Medicare for the $110,729 family’s grandpa is more likely to be cut than the endless community grants that help keep the $4,955 family and all their kids comfortable and voting Democrat early and often.

The $110,729 family is responsible. It understands that money is finite and that the government can only do so much. The $4,955 family doesn’t understand that and won’t accept it and has a lot more free time and energy to do something about it. The $110,729 family looks at a variety of factors before voting. The $4,955 family is practical; it looks only at its own bottom line.

No money, no vote.

On paper, the $4,955 family is poor. But in a society where hundreds of billions of dollars go into funding social capital, the old dollar-and-cent household values no longer apply.

On paper, the $110,729 family has an impressive household worth, but much of that worth comes from a mortgaged home that it is struggling to keep up the payments on. The $4,955 family lives in a housing project that they can’t lose no matter how many payments they miss on their high interest credit cards.

There are still plenty of working poor in America, but the broken families that pad out the bottom of that $4,955 statistic rarely work for a living. They work for extras. Social capital has freed them of the need to work for anything except luxuries.

The middle class is trapped by its own aspirations. Though the middle class still has the majority of the vote, it has the least political influence because it has the least disposable time and wealth, and lacks a dedicated political class to represent its interests.

The United States is no longer a middle class country. Politicians have a vested interest in catering to very rich donors or welfare voters because they have the time, money and organizations to get their way. And what they want is more wealth redistribution upward and downward from the middle class.

The middle class is being looted by crony capitalists and welfare clans. The liberal Robin Hoods who direct billions in stolen money to Green Energy companies and ghetto voters do their best to convince the middle class that it should vote for them because it’s actually poor.

The middle class is poor, but it has all the disadvantages of poverty and none of the advantages.

The Obama vision is a “Cloud” America where all the money is in the government cloud and each family is given support according to its needs and is taken for whatever its abilities earn. That vision is already true on the $4,955 scale and is coming true on the $110,729 level as well.

The government money “Cloud” works about as well as Healthcare.gov. Its brand of central planning has failed everywhere it’s been tried. But the experiment won’t completely crash until the middle class does.

Margaret Thatcher famously said that Socialism works until it runs out of other people’s money. The “other people” are the middle class who have the most money and the least ability to protect it from the cloud dwellers.

There are two Americas; the America of the working class and the Obamerica of the government class. Measuring poverty in net worth is relevant in only one of these Americas. To measure poverty across both nations, we must speak of the poverty of freedom, the poverty of marriage, the poverty of economic security and the poverty of leisure time.

These are the true measures of modern poverty in an America where some people are living in a postmodern government cloud that uses social capital instead of personal income and others are scratching out an uncertain living to support the “Cloud Dwellers” who manage the government bureaucracy, work at non-profits and squat in the $4,955 space.

Our postmodern economy punishes personal aspiration and rewards the surrender of economic independence to the government. More Americans are vanishing into the government cloud and dropping out of the system until the cloud becomes too heavy to float in the sky and sinks down to earth or until the New Poor get tired of living fearful lives to subsidize the $4,955.

An American workers’ revolution will not be a Socialist revolution, it will be an Anti-Socialist revolution of the new poor of the middle class.

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  • UCSPanther

    Bread and Circuses comes to mind.

    It is going to fun when the whole thing falls, because when the worsening economy warrants cuts to the welfare system, they could face severe unrest, especially if what happened in Louisiana at those two Wal-Marts is any indication.

    The only good part: No more vote-buying for the Democrats.

  • Naresh Krishnamoorti

    You are absolutely right. I notice that people who are almost certainly illegal immigrants and people who look and behave like Rachel Jeantel (the Zimmerman trial witness who couldn’t read cursive) have no care in the world spending hundreds of dollars taking their families out to amusement parks, expensive restaurants, and buying expensive clothes; whereas the rest of us have to watch what we spend.
    There are only three classes of people in America who enjoy any security and peace of mind: crony capitalists, the government class, and the entitlement class. Everyone else is in desperate straits.
    The so-called wealth of the middle-class is entirely tied up in the home, whose purchase price is wildly inflated by the Fed’s monetary policy. After paying mortgage, they have very little disposable income for luxuries.
    Ghetto dwellers may have little to no wealth, but all their necessities are paid for by us; and they seem to have a lot more disposable income for luxuries than the middle class.

    • A Z

      “Ghetto dwellers may have little to no wealth, but all their necessities are paid for by us; and they seem to have a lot more disposable income for luxuries than the middle class.”

      EXACTLY!

      Disposable Income = income minus taxes plus transfer payments

      You might have a higher income than a poor person.

      But after taxes taken from you and transfer payments to them, do you have more disposable income?

    • Secret Person

      Yup, notice that parasites are able to splurge for $2500 handbags at Barney’s.

      • laura

        how do you know that person was on welfare? there are many working blacks who buy nice things.

        • Blue

          Laura,
          No where was any race mentioned until you brought it up. My advice to you is “If the shoe fits put it on”

          • dennis x

            Learn to read. The $4,955.00 is stated as the average Black House hold worth. Here again is an attempt to gin up the racist teabagger base. That is all Blacks are living off of whites. Get rip of welfare, food stamps , public housing etc. it will impact more whites than Blacks and not effect me, my family or the VAST majority of people of color I know. The destruction of the middle class has been a long time goal of the GOP. No pensions , no health care no social security . Work until your 80 and then just died. Enjoy!

          • unionville

            “The destruction of the middle class has been a long time goal of the GOP. No pensions , no health care no social security . Work until your 80 and then just died.”

            Than why is it the left in this country that is actually destroying the middle class? Not the largely middle class Tea Party.

            Why is it this administration that has had discussions about nationalizing our private pensions? Why does this administration want to take the hard earned retirement money away from the control of the middle class? It is this administration that is in in the process of destroying the private insurance market. This administration that has caused many in the middle class to lose their insurance or be forced to pay sky high premiums because of the micromanaging mandates that the ACA is forcing on them. This administration that is ignoring the need to reform Social Security thereby ensuring that the middle class WILL be working until we’re 80.

        • trapper

          More non-blacks are on welfare than blacks.

          • Idl

            There are more non-blacks in the country as a whole, sparky.

  • johnlac

    If anybody thinks the people who leech off the rest of tax-paying Americans are going to get off their parasitic lifestyle anytime soon, I have a bridge in Brooklyn to sell you. Furthermore, the last thing Dems want is for these people to be self-sufficient. In fact, they want more and more people on welfare. If there are not multi-millions of Americans on part or full government aid, then there is no reason for the Dem (Thief) Party to exist.

    • NAHALKIDES

      It may reach a point where those us who are the parasites’ victims simply say “stop” and are forced into nullification or secession to protect ourselves.

  • A Z

    Disposable Income = income minus taxes plus transfer payments

  • CowboyUp

    GOP policies tend to move people up the economic ladder, and democrat policies tend to move them down the economic ladder. In the msm we hear about the “disappearing middle class,” when they are ‘disappearing’ into the upper class, though the msm doesn’t mention where they are going. Like “the homeless,” we don’t hear little or nothing about them when they are dropping into the lower class because of democrat policies, as they have been since ’08. Thomas Sowell points that out the trends every so often, but I first noticed the msm selective topic coverage back in the 80s.

  • A Z

    Disposable Income = income minus taxes plus transfer payments

    You might have a higher income than a poor person.

    But after taxes taken from you and transfer payments to them, do you have more disposable income?

    In the Roman Republic politicians used mobs to beat their opponents. In one case the supporters of a Roman politician were locked up in the Senate building before trial. Later, at night some of their opponents climbed the senate building,took apart the roof and started throwing tiles at the people in the senate building killing many of them.

    There were 2 political parties in Rime, the Populares and the Optimates. Politicians would switch between factions.

    Sound familiar?

  • A Z

    If we get Diocletian reforms where a person must have the same occupation of their father, then we know we are toast.

    History will have been repeated as farce or otherwise.

    Instead of being forced to follow the career of one’s parents, affirmative action will be like Quantitative Easing Eternity. It will be affirmative action eternity even when whites make up less than 50% of the population.

  • john spielman

    Our entire govt financial house of cards will come tumbling down when the Chinese realize financial default, just Greece did last year, is inevitable. The results will be the same; with riots and mass unemployment over 50 % and then the entitlement society will come to an end. Work at any job at any wage or not eat will be the norm.

  • trapper

    Yes, but remember that the Left’s enemy is the middle class. As long as the middle class with its religion, values, integrity and dignity survives the Left cannot revolutionize the society. The Left hates the middle class, mocks them with foul language (have your ever heard Democrats when they get together with a “comedian”), impugns religion, family values, the family itself (homosexual marriage is an attack on the family), and on and on.
    Remember that the Left is the enemy of all that is good, clean, and decent!

  • piperlord

    AMEN, Daniel. Now, go forth and read it word for word nationally for all to hear! I’m serious. You are spot on. Thank you.

  • mtnhikerdude

    Bravo , Daniel !

  • tagalog

    Jesus told us that at some point, “the last will be first and the first will be last.” Maybe we’re on a short road to finding out what the consequences will be of His statement.

  • American1969

    Spot on, Daniel. Spot on! Unfortunately, there are too many stupid people out there that just don’t get it.

  • Texas Patriot

    In the early seventies, Richard Nixon described the white middle class as “The Silent Majority”, who did not protest, did not complain, and in fact remained silent as Nixon squandered American blood and treasure on a war that could not possibly be won and, indeed, was never intended to be won. Many of the sons of such Silent Majority never came home. Others came home wounded and permanently impaired. And the war was eventually abandoned on the same terms that were available before Richard Nixon was elected in 1968. But the Silent Majority saw no evil, heard no evil, and spoke no evil.

    Meanwhile American politicians were taking fat political contributions from special interests who found a way to profit on the unnecessary wars, to profit on providing an inferior education to Americans, and to profit on an increasingly sedentary and obese population who needed ever-increasing amounts of increasingly expensive health care. Research and development grants were sharply curtailed, and corporate tax rates were raised. Millions of jobs and even entire industries were lost to foreign competition in formerly third world nations. Still the Silent Majority saw no evil, heard no evil, and spoke no evil.

    As Daniel Greenfield has pointed out, most of so-called Silent Majority has now disappeared or become the Silent and Impoverished Majority. What is the moral of this story? When politicians are lying to your face and robbing you blind, remain blind, deaf, and silent at your own peril.

    • fistdeyuma

      As I remember it there was someone named Johnson president when I was drafted. Funny hot it became Nixon’s war after the Liberals got done with writing the history.

      From that point on I ignored your post. When you are that wrong on a major issue there is little likelihood you will be correct on anything else.

      • Texas Patriot

        You’re profoundly mistaken about that. Of course Johnson was to blame for getting us involved in a jungle quagmire that we had no chance of winning in any meaningful sense, and he had the good sense and good grace to resign rather than seek further public office. However, there is mounting evidence that Richard Nixon illegally scuttled peace talks with the North Vietnamese during the presidential election of 1968, because he was afraid that peace in Vietnam would kill his chances of being elected president.

        http://www.bbc.co.uk/news/magazine-21768668

        “It begins in the summer of 1968. Nixon feared a breakthrough at the Paris Peace talks designed to find a negotiated settlement to the Vietnam war, and he knew this would derail his campaign. He therefore set up a clandestine back-channel involving Anna Chennault, a senior campaign adviser. At a July meeting in Nixon’s New York apartment, the South Vietnamese ambassador was told Chennault represented Nixon and spoke for the campaign. If any message needed to be passed to the South Vietnamese president, Nguyen Van Thieu, it would come via Chennault. In late October 1968 there were major concessions from Hanoi which promised to allow meaningful talks to get underway in Paris – concessions that would justify Johnson calling for a complete bombing halt of North Vietnam. This was exactly what Nixon feared. The Paris peace talks may have ended years earlier, if it had not been for Nixon’s subterfuge. Chennault was despatched to the South Vietnamese embassy with a clear message: the South Vietnamese government should withdraw from the talks, refuse to deal with Johnson, and if Nixon was elected, they would get a much better deal. So on the eve of his planned announcement of a halt to the bombing, Johnson learned the South Vietnamese were pulling out. He was also told why. The FBI had bugged the ambassador’s phone and a transcripts of Anna Chennault’s calls were sent to the White House. In one conversation she tells the ambassador to “just hang on through election”. Johnson was told by Defence Secretary Clifford that the interference was illegal and threatened the chance for peace. Nixon went on to become president and eventually signed a Vietnam peace deal in 1973″

        As a result, the war was continued for 6 more unnecessary years only to settle on more or less the terms that were available in 1968. Almost half of the men whose names are on The Wall in Washington, D.C. died after Nixon took office. You can believe whatever you like. But the truth is that the Vietnam war was a massive fraud on the American people, and the cost was a massive unnecessary expenditure of American blood and treasure.

        • fistdeyuma

          I head the same thing. The same report had a number of flaws and some out right omissions that made it very suspect to me.
          Think about it. You have a man running for President able to stop peace talks when up against the President and vice President? The reports names a single women that convinced the South to brush aside the talks, to help Nixon be elected. While not impossible it is improvable and is in no way proof.
          Unlike you I served there and know a bit about what happened. You are someone who so wants to believe something that any twisted story is proof enough.
          Like the 9/11 nuts you are trying to rewrite history to fit your own hateful views.

          • Texas Patriot

            I know what happened in Vietnam. I was in Hawaii in 1969, and I talked with lots of vets who served there. They were on R&R in Honolulu, and we would meet on the beach everyday, and I was there for about six weeks. I talked with hundreds of them, and they all said the same thing. They told me that the war was hopeless and could not possibly be won. That you couldn’t tell your friends from your enemies, and that U.S. soldiers would go into villages giving candy and cigarettes to the villagers only to get shot in the back by Viet Cong on their way out. Nixon campaigned on the idea of ending the “tragic mistake” of Vietnam. Instead of ending it, he kept it going for six more years, and it was a nightmare for the American soldiers who were trapped there. Those aren’t “hateful views”. Those are the facts, based on the first hand reports of soldiers who were there.

          • fistdeyuma

            You talked to a few people who told you what you want to hear. That is a great way to get information. It would be nice if you picked up a book on the subject. I was there and understand that my view was limited. It takes a lot more than a few war stories to get a feel of events.
            A lot of people have written books on the subject, what we really did, what people were thinking and where we went wrong. I understand that Liberals never want to read anything that is not in support of their own limited views on the issues but if you don’t, you are just someone with a big mouth backed by an empty brain.

          • Texas Patriot

            Which books on Vietnam would you recommend?

  • L.A. Steel

    I disagree completely. The selfrighteousness of the this author is overwhelming. He has obviously never experienced poverty. Anyone making 100,000 dollars a year is not a poor member of the struggling middle class. The average working class American household makes less than $50,000 per year with a combined spousal income. Most Americans make far less than 100,000 a year. If anyone has ever been forced to live on $5000 a year due to illness, unemployment, disability or all they can get in this ecomomy is a part time job, believe me they are not living on a cloud. They are living on the street or in an abandoned building, or in their parents’ or relatives’ basements.
    This article is a typical racist profile of low income black and minority Americans, and excludes the millions of homeless veterans and the 50 million Americans who desparately need foodstamps because they can’t afford to feed themselves or their families, or afford heatlhcare. Millions of white, or minority, once middle class Americans, have been reduced to part time Walmart and retail and service workers without healthcare and making miniumum wages, they have been foreclosed on, filed bankrupcy, divorced, and
    living in despair. No one living on 5000 dollars a year is living on a cloud.
    The only people living on clouds are CEOs , Banksters, Politicians and anyone lucky enough to have a full time job with full benefits, that pays $100,000 or more a year.

    • Daniel Greenfield

      That’s household worth, not salary per year. Much of the worth comes from the house.

  • Man with two chins

    “… the endless community grants that help keep the $4,955 family and all their kids comfortable and voting Democrat early and often.”

    Bingo. The Left’s plan, led by Obama, to provide an amnesty for 11 to 20 million illegal aliens will guarantee a Democratic political majority for the foreseeable future. The Republican Party is finished.

  • Man with two chins

    We are fast approaching a time when we can no longer afford this. After the amnesty passes and millions more are added to the welfare ranks, civil chaos will likely follow the inevitable economic collapse. There are not enough middle class people to pay for all this.

  • herb benty

    Been saying for years that when leftists call for “strengthening” the middle class, they really mean government employees. The “middle class” is code for a big government, but convinces the real middle class to actually vote for them. Works like a charm!