JP Morgan Tells Investors Why Middle Class Americans Are Screwed

[Donnachaidh]

http://www.politicususa.com/en/jp-morgan-middle-class

How many working class Republicans do you know? How many blindly vote against their own economic interest? It is not their fault, they have just been duped into believing the conservative mantra that the government is stealing their money, when in actuality it is the wealthy who are stealing their money.

Let’s take welfare for example, according to a report by USA Today, in 2010 4.4 million people were on welfare. In a country of 330 million people that equals to a little over 1% of the population. Many people do not know this statistic because the corporate media wants to sensationalize news and this statistic will not get the blood boiling. Now there are also 50 million people on Medicaid, this is also welfare, just not the “check” poor people use to buy clothing, gas and pay for their electric bills. The reason why there are so many people on Medicaid is simply because businesses are not providing health insurance to their employees or if they are, the cost to the employee is too much because their checks are so small.

So your Republican friends are not happy and they have been told that if we reduce taxes on the “job creators” those tax savings will trickle down to them in the form of better wages or benefits. Your republican friends are getting squeezed, financially all the while the wealthiest in America are having their taxes cut and earning more.

Each and every time the federal government reduces taxes on the wealthiest in this country, that translates to lower state aid from the federal government. The states increase sales tax then push the burden onto the local towns and cities by cutting local aid from the state capitols that help fund schools, build roads etc. This then translates to reduced police, firemen, teachers, parks and senior centers, and/or higher property taxes on the small business owners and middle class homeowners.

More at the link --

[WCGreen]

1. We subsidize low wage workers with public money....

[MichiganVote]

4. And then Congress subsidizes high earners with tax cuts.

And then they seek to strip the middle of the "entitlements" they have to pay for.

So much for liberals or conservatives having a voice in our lobbyist government.

[indepat]

6. Low income Wal-mart employees receive beau-coup assistance via taxpayer

dollars to somewhat assuage the poverty their wages keep them deeply mired in. Yeah, Wal-mart! :patriot:

[NNN0LHI]

2. We have people here who refuse to support private sector union workers

>>>What middle class workers need more than anything is an increased share of the economic growth.

The best way to rectify our middle class situation is to increase unions in the private sector.

Unions in the past forced working class wages up for everyone, even for the non union workers. The reason is competition. Non union employers would increase their own wages to compete with union shops in order to keep their employees happy and ultimately keep the union out.

Today, there is no longer a reason to increase non union wages, simply because organized labor has lost its market share and there is no longer that threat of unions organizing around you, forcing wages to increase.<<<

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Then when their own wages and benefits start being cut they begin screaming Solidarity. That is the problem with stupid people. They think everyone else is as stupid as they are.

[leveymg]

3. Here's the JP Morgan assessment:

http://www.investorvillage.com/uploads/44821/files/07-11-11_-_EOTM_-_Twilight_of_the_Gods__PWM_.pdf
In a recent report in a JP Morgan memo to their investors from Michael Cembalest, the chief investment officer he says, “US labor compensation is now at a 50-year low relative to both company sales and US GDP.” Cembalest continues to explain why corporate profits are so strong while the rest of the working class are feeling the pinch, “reductions in wages and benefits explain the majority of the net improvement in margins.” 75% of the increase in profit margins directly correlate with the reduction in workers’ wages.

Why are your Republican friends aggravated? They aren’t getting paid their fair share of the national GDP and economic growth and they are paying an increased burden of the taxation in this country. Think about this, as you work harder for a company and productivity increases, you’re not seeing your share of the profits you helped the company earn.

[sarcasmo]

5. Glad I don't have any of our money with those evil cretins at JP Morgan.