There is a consensus that the middle class is disappearing as the rich become ultra rich and everyone else in the world becomes poor. As baby boomers age and die off it is becoming blatantly obvious the general population is mortgaged up to their eyeballs in debt and the end looks bleak.
While there are a number of reasons, the basic general consensus among economists are;
- 1.Lack of jobs
- 2.Too Low Of Interest Rates For Too Long
- 3.Too Soft of Immigration Laws and Too Many Illegal Immigrants
Lack Of Jobs
For years America, Canada and the UK have outsourced its work and economy to China, Mexico and various parts of the world. That has come back to haunt them as they have made countries like China both wealthy and a military force to be reckoned with. It has also created a job, factory and knowledge shortage in the United States, Canada and the UK while. China has forged forward increasing its’ manufacturing technology, knowledge and innovation. In doing so the wealthy of America, Canada and the UK have grown richer at the expense of the middle class who have lost jobs and opportunities.
Too Low of Interest Rates For Too Long
The banks are also directly to blame for the decline of the Middle Class. In Canada for example the Bank Of Canada would use interest rates to control the economy. When the economy was slow they would lower interest rates and when the economy was too hot they would raise interest rates. Unfortunately they stopped doing that and instead kept interest rates too low for too long which in turn allowed housing and vehicle prices to skyrocket so that on average housing prices are 2-4 times higher in Canada than the America. Now the average middle class Canadian is so far in debt that the Statistics Canada recently reported that Canadians owe $1.68 for every $1 of disposable income they earn making them the most indebt nation of all the G8 Countries. That means for every dollar of household disposable income there was $1.68 in credit market debt. Total household credit market debt, which includes consumer credit, mortgage and non-mortgage loans, totalled nearly $2.08 trillion in the second quarter.
Too Soft Of Immigration Laws and Too Many Illegal Immigrants
While America and Canada were built on immigrants, many feel the biggest reason the middle class is disappearing is because of too soft of immigration laws and illegal immigrants are flooding America and Canada which both increases the competition and decreases wages.
Salma Sidiqui, a Pakistani Muslim who immigrated to Canada with her parents in the 1960’s and served as the President of the Coalition of Progressive Canadian Muslim Organizations summed up the changes in immigration this way; “Immigration is turning Canada into ghettos. Immigration has changed drastically over the past 30 years. In pre-1970’s, immigrants came to countries like Canada with a respect and desire to contribute to making the countries better, where-as today’s immigrants are coming here just for passports and associate only with their own ethnic groups. Their loyalties are to whatever country they are coming from. They put more burden on our countries because our health dollars are going to them and their educations are subsidized by us while they give us nothing back. So it is a win win for them and a lose lose for us.”
A white European immigrant said; “While I worked my ass off to come to this country, new immigrants come to our country deliberately abusing the status of refugees and then live with upwards of 20 people in a house. They will do work for 1/2 the price I can and all under the table for cash so do not pay taxes either. They bring in other immigrants who cannot even speak the language on a visitor visa and pay them peanuts to do their work. I then lose all of my work to them as they put the white population out of business and no one does anything to stop it for fear of being called racist.” He goes onto say; “On top of that many will secretly have to 4 wives. All of their wives then have as many children as they can and get child tax credits from the government of several hundred dollars per child which costs the government billions a year in taxes. No wonder our country is going broke. I was never racist before but I am becoming so racist now. Even though I am an immigrant, I am starting to hate other immigrants.”
An East Indian immigrant said; “Our business goal is to create our own group of East Indian trades, bankers, suppliers and trucking that we can work with so we do not have to deal with outside sources.” While white truckers who were born and raised in Canada are fuming in return saying; “How do you compete or make an honest living when East Indians come to Canada in droves and take trucking contracts for 1/2 the price and then drive 6 to a transport truck with only 1 person holding a valid drivers license, while cutting holes out of the bottoms of their trucks so they can piss and shit without having to stop?” Many in America feel very similar about the illegal Mexican immigrants.
The situation is becoming so bad in Canada that there is a general consensus the Canadian Charter of Freedoms and Rights is now interpreted as you have the freedoms and rights to be anything else but white and christian in Canada as the government pushes what seems to be an open reverse racist policy of hiring any kind of immigrant over white Christian Canadians.
A Canada Revenue Agency worker is suing the government over this very thing alleging his employer discriminated against him because he had the misfortune of being born a white man. 40 year old Joe Bates is representing himself in Federal Court stating that the Employment Equity Act passed in 1986 ensured inclusion in the workplace of four groups — women, visible minorities, aboriginals and persons with disabilities. But, he said, it excludes “one specific group.” Bate pointed out when Canada allowed women to vote in 1918, it didn’t stop men from voting, nor was heterosexual marriage banned when gay marriage was legalized a decade ago. “I feel as an able-bodied white male, I’m the only person excluded by a law meant to benefit all Canadian citizens,” he told the Toronto Sun outside court. “And I feel my employer has gone beyond the requirements of the law to represent members of the four categories and not me.” Bate said a management position opened up at his Whitby office in 2013 but his bosses made it clear to him the promotion would go to someone from one of the four designated groups, even though about 95% of the staff in the office at the time were women and visible minorities.
Whatever the case, a Pew study found that the size of the middle class fell in virtually all parts of America between 2000 and 2014. Nine out of ten metropolitan areas showed a decline in middle-class households. Pew also found that the median income for middle-class households fell by nearly 5 percent between 2000 and 2014. Their median wealth (assets minus debt) declined by 28 percent after the housing market crisis and subsequent Great Recession.
What do we need a middle class for anyway?
Why do we care about protecting the middle class? Middle-class Americans and Canadians are the economy’s largest group of consumers, which makes them engines of economic growth. The middle class keeps the economy balanced and creates the most jobs and pays the most taxes. The middle class also helps out the poorest class the most. Without a healthy middle class income continues to accumulate at the very top, creating a kind of black hole that sucks up ever-increasing percentages of national wealth. That leads to an ever-growing drop in consumption, increased use of social services, and an unstable economy. Over time it also leads to an unstable society where the risk of social unrest, extremism, and political violence begins to grow exponentially like happened in Nazi Germany.
Winston Churchill said: “Those who refuse to learn from history are doomed to repeat it’s mistakes. Unfortunately as the middle class goes into poverty many feel a new Holocaust will become a reality throughout the democratic nations. How so?
An Economic Lesson From The Holocaust
Years ago a German woman talked about how a Holocaust can happen in Democratic countries because of the disappearance of the middle class. She went onto say; “My grandfather drove around Hitler before he had a car and he used to come to our house for dinner and my father ended up working for him. While the Holocaust was a very horrible thing, the media which is still primarily owned by Jewish people does not talk about some of the honest root causes of the Holocaust and some of the responsibility the Jews had in it which is why it can happen again here in Canada, America and throughout the Democratic countries of the world.”
She went onto say;” Germany was on its knees after WW1 and we were basically starving as a people. Germany had been subjugated and cut up by the Treaty of Versailles and the Jews owned most everything including all the banks and stores and were not always the nicest people to us. My father could not buy a loaf of bread to feed us properly without paying a fortune, or get a bank loan without basically selling his soul. Hitler came along and did a lot of good for our country by giving us our jobs and lives back. We did not know the Jews were being shipped to the concentration camps. We thought they were being shipped out of the country on trains and we were happy to see them go. We just wanted our country and our jobs and lives back. In many ways it was similar to what happened in the French Revolution. The majority of the poor class were starving and the clergy and rich nobility pushed them over the edge by putting a tax on the production of food. Then they were shocked that suddenly the entire country showed up on their doorsteps to kill them. The simple fact is that while no one is born a racist or a monster, the actions of others can make a person become a racist or monster. So when I see the take over attitude of immigrants coming into countries like America, Canada or Europe, I know the consequences it can and will have by way of a new Holocaust because history always repeats itself.”
How WW2, Hitler and the Holocaust were created
George Orwell said “People can foresee the future only when it coincides with their own wishes, and the most grossly obvious facts can be ignored when they are unwelcome.” An honest look into history confirms some of the things that German woman alluded to concerning the root causes of the Holocaust.
Many historians feel the Treaty of Versailles was in part responsible for; the rise of Hitler, the creation of WW2 and the further hatred of Jews and resulting Holocaust. How so? Because the treaty carved up Germany into pieces and forced it to take the blame and pay for WW1. It destroyed the German economy, placing the German people under extreme hardship, thus setting them up for a catalyst leader.
The Treaty of Versailles also gave the German people a further reason to hate the Jews, because at the heart of the treaty were the international bankers who were primarily Jewish. British Prime Minister Lloyd George wrote: “The international bankers swept statesmen, politicians, journalists and jurists all to one side and issued their orders with the imperiousness of absolute monarchs.”
WW1 was horrible, and all countries involved including the Allied forces made huge political mistakes including unacceptable sacrifices and sellouts, but the Treaty of Versailles only served to make things worse, and through it the International Bankers were in part responsible for setting up their own Jewish people up for future annihilation; because little did they know that laying in a hospital bed following WW1, a young Adolf Hitler would become the catalyst saying “the idea came to me that I would liberate Germany, that I would make it great (again).”
No one is born a racist or a monster. As a young man Hitler both fought in WW1 with Jewish people and reportedly had Jewish friends and clients and even a crush on an older wealthy attractive Jewish woman. But as German animosity rose against the Treaty and the Jews, so did Hitler’s own racism. Hitler as a messenger runner in WW1 and an Army Intelligence Agent after the war, was in constant contact with military leaders and politicians and so was well aware of the Jewish influence in both the Bolshevik revolution and rise of the Communist party which further fuelled his hatred for the Jewish people.
In the years following WW1, Hitler gained huge popularity and rose to power on the mandate of making Germany great again by; breaking the yoke of the ‘treaty of Versailles’ and by taking away property and power from the Jews who he held responsible for both destroying Germany and creating communism so they could easily move in and take over what was left of Germany’s business and property.
Sarah Gordon in a book entitled “Hitler, Germans and the “Jewish Question” stated; “Though the Jews did not exceed 10% of the population during the years 1871-1933. They were overrepresented in business, commerce, and public and private service. They were especially visible in private banking in Berlin, which in 1923 had 150 private Jewish banks, as opposed to only 11 private non-Jewish banks.. They owned 41% of iron and scrap iron firms and 57% of other metal businesses. Jews were very active in the stock market, particularly in Berlin, where in 1928 they comprised 80% of the leading members of the stock exchange, and at least a quarter of full professors and instructors at German universities had Jewish origins. In 1905-6 Jewish students comprised 25% of the law and medical students. In 1931, 50% of the 234 theatre directors in Germany were Jewish, and in Berlin the number was 80%. In 1929 it was estimated that the per capita income of Jews in Berlin was twice that of other Berlin residents.’ Writer Edwin Black said “To cap it all, Jews were perceived as dangerous enemies of Germany after Samuel Untermeyer, the leader of the World Jewish Economic Federation, declared war on Germany on August 6 1933 with The London Daily Express carrying the headline “Judea Declares War on Germany. This was the culmination of a worldwide boycott of German goods led by international Jewish organizations.” Harvey Fierstein said “Nothing binds a people to their leader like a common enemy.” Hitler needed a common enemy to unite Germany and stir up the masses and found that in the animosity of the German people towards the Jews who he felt were responsible for the Treaty of Versailles, the economic hardships of Germany and also the rise of Communism.
The Future of The Middle Class?
Many economists feel that if we want to reverse this trend we need to attack the problem on a number of different fronts. These include: getting inflation and housing and vehicle prices under control by raising interest rates and tightening lending standards. Increasing the minimum wage, expanding social programs, rebuilding our infrastructure, promoting union growth; and demanding that corporations and wealthy individuals pay their fair share. Corporations also need to stop outsourcing of American and Canadian made products to countries like Mexico and China or be taxed so heavily they can no longer afford to do so. And finally the government needs to stop and in many cases reverse immigration to allow the middle class to catch back up and prevent the rise of racism and the possibility of a new Holocaust.