Posted by: Middleclass Search | September 21, 2012

Middle-class Capitalism

 American dream is centered on opportunity and the idea of the American middle-class. The transition from a national economy to a global economy has been occurring for the last 40 years with much fanfare but very little serious economic analysis on the impact to the American middle class. Meanwhile the two American political parties, labor unions, Chambers of Commerce and corporations of all sizes have continued to act as if the global economy would have little impact on the financial well-being of individual citizens. We are now seeing that this thinking was shortsighted.

In every economic and political area, the middle-class has been neglected. What are needed are laws and regulations that favor middle-class capitalism not corporate capitalism. During the past 40 years businesses have argued that to stay competitive they need to stop paying healthcare and have to cut back on retirement benefits. This transfers the burden of paying retirement and health care to the employees who must pay directly from their wages thus lowering their standard of living.

Middle-class capitalism is capitalism that pays a wage high enough to support a middle-class lifestyle. To do this the price of a product or service must include the complete cost of material and the complete cost of labor. The complete cost of labor should include the cost of a good retirement plan and a good health plan. Laws and regulations must be restructured to favor businesses and corporations that practice middle-class capitalism. Local, state, and federal government also need to adopt the practice of paying a middle-class wage.

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