Posted by: Middleclass Search | June 6, 2013

Why Universal Healthcare is Important to Maintaining the American Middle-class

The declining number of the American middle-class has been talked about for the last 20 years no economists, political scientist, or politician has presented a solution to stem the decline. (The refusal to look at what constitutes a middle-class wage is exasperating the decline.)  What makes up the middle-class wage needs to be examined by its components.   Between the mid-1950s and the mid-1970s – America’s Middle-class Golden age the middle-class was thought of as a family of four, with one wage earner, that could own a modest home, send two children to college, have healthcare and be able to retire at 65 at 80% of their salary. Over the years since the 1970s retirement and healthcare have been moved out of many wage equation requiring the individual to take it out of their portion of the wage.

It is important to understand that the wage of an employee is used in setting the price of a product or service so it must include all the components required to support an employee.

Removing healthcare cost from businesses will lower the number of American middle-class. Lowering the number of Americans paid a middle class wage is bad for the individuals and for businesses. To have a strong middle-class is important to businesses because it creates greater demand. (This is a concept that the Chamber of Commerce has missed in the last hundred years in the effort to fight a minimum wage.)

Capitalism can work for the middle-class we need leaders, economist, political scientist who understand that in a global economy it is important to maintain a strong middle-class not the Neanderthal thinking of many of our current politicians, economists and accountants that think the lowest cost is the objective of a business.

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