America's greatest asset, the middle class, is under attack.
America is blessed with organizations and individuals involved in “causes” that appeal to donors who have the option of supporting
those causes, or not. Philanthropy is a
major industry. Donors are exceedingly generous to thousands of “causes” both
domestically and internationally. In-kind
and cash donations are voluntary. Donors and philanthropists decide where to direct their gifts.
In contrast, City, County, State and Federal governments
impose substantial non-voluntary financial burdens on taxpayers: Fees, sales
and income taxes, gas taxes, taxes to pay off special purpose bonds whose
interest and principal payments are spread over many years. Also, the Federal
government has supported social programs (whose advocates
are effective in gaining government support) for years, sometimes for decades, by increasing Federal borrowing.
Which means current taxes also cover the costs of past
government-funded social programs, not just current ones.
The middle class included 52 percent of adult Americans in
2016, down from 61 percent in 1971, according to the Pew Research Center. It
shoulders a large share of the burden of past and current government spending on
social programs. At all levels of government politicians allocate large sums to
private sector causes. Yet the majority of middle class consumers/taxpayers have no say whatsoever in
where funds are allocated.
Take any social issue—homelessness, affordable housing,
hospitals for children, abused animals or any of a thousand other groups society
supports voluntarily with time, treasure and talent. Each is a “cause” funded
voluntarily through philanthropy and involuntarily through government-imposed taxes
and other extractions from taxpayers. Their attributes appeal to supporters
both inside and outside government. In particular, four attributes contribute
greatly to success in funding private sector “causes”:
…..Stories that evoke empathy, stir emotions, are warm and
fuzzy
…..Homogeneity among target groups being aided, such that
they can be labeled/identified as a group
…..Positive media coverage, which reinforces the message of
the group seeking support
…..Strong advocates/champions, inside/outside government,
volunteers/paid executives/politicians\
Do these attributes exist to protect, support and/or promote the middle class as a "cause" unto itself? Not that I can see. Occasionally a candidate
for public office includes support for the middle class in his or her
platform. Once in office, however, all
mention of the middle class as a group evaporates in favor of
constituents—individuals, firms and other organizations— especially those who
have provided financial support during the candidate’s campaign for office.
Moreover, today’s political environment is polarized, with the extremes in both
parties demanding attention to their “causes”. The middle class as a “cause” is
not on their radar screens, other than as the taxpaying group to be hit up yet
again for the newest “cause du jour” while paying for yesterday’s needs too.
In this country the Federal government passes major
legislation only in response to a crisis, which also means only after the
crisis has occurred. How widespread and deep a crisis does the middle class
have to suffer before the Congress and the Administration truly understand the limits
of its ability to fund ever-expanding government programs?
The middle class is America’s greatest asset, and it is under attack. But
it has no story, elicits no empathy, has no label, garners virtually no
positive media coverage and does not have an advocate or champion. It is scary
to think of the middle class as defender-less, but isn't it?
Great observation. Keep building on the concept.
ReplyDelete