Are We In the Process of Creating a New and Enduring American Underclass?

[marmar]

AlterNet / By Joshua Holland

Are We In the Process of Creating a New and Enduring American Underclass?
Will this bleak economy become “the new normal,” consigning millions to an emerging American underclass?

April 15, 2011 |


Corporate America appears to be prospering with far fewer workers than it employed before the crash. Wages are down, the stock market is up and firms are expanding their operations overseas. Meanwhile, Congress is suffering from the delusion that our greatest problem is the deficit, rather than the extreme economic insecurity so many Americans are suffering from today. And that focus will only exacerbate the crisis on “Main Street.”

The question is whether these trends will become “the new normal,” consigning millions to an emerging American underclass. Is our notably cruel brand of capitalism ultimately leading to something that looks more like feudalism – with low-paid serfs feeling fortunate just to have an opportunity to toil for their lords' enrichment?

Consider a bleak snapshot of our ailing economy: Real corporate profits are now near an all-time high, yet one out of six working people are either out of a job or have no choice but to work part-time.

.........(snip).........

The average length of joblessness among the unemployed is now 39 weeks, shattering the record set during the 1981-'81 recession by around 17 weeks. The long-term unemployed face unique barriers to reentering the labor force – many have bad credit and anecdotal evidence suggests that employers tend to discriminate against them for the crime of being unemployed for an extended period. There are about five jobless workers for every full-time opening, but when you include involuntary part-timers, that ratio rises to 8:1. ................(more)

The complete piece is at: http://www.alternet.org/economy/150633/are_we_in_the_process_of_creating_a_new_and_enduring_american_underclass/

[Demeter]

1. No, We Are Creating the Ground Troops for the 3rd American Revolution

After which we will either have a real democracy, fortified against corporate corruption and dedicated to the proposition that all people are created equal and entitled to equal treatment by the government, or we will have the most brutal feudalism ever known, worse than Pol Pot.

[Citizen Worker]

8. Given our legendary complacency I would expect the latter while preferring the former.

[Warren Stupidity]

2. we already have one.

urban america and its adjunct prison planet have been home to our permanent underclass for the last 60 years or so. Before that our permanent underclass was largely southern and rural, first chained literally to the land under the plantation slave system, and then de facto legally bound under Jim Crow and the share-cropping pseudo serfdom.

What is new is the addition of a suburban and largely white cohort. They are very angry about reaching the economic status of all those colored folks they have been hating for the same 60 years. This is creating an interesting political dynamic that has the potential for a quite violent rightwing reaction.

[notesdev]

3. we're near the end of that process

We're at the stage where, in economic desperation, people dump hard assets (e.g. real estate) for the big players to snap up at bargain/distressed prices. They will cycle through the major asset classes, herding the herd from one to the next in the promise that it will be "safe", crashing and re-buying cheap, each in turn, stripping more and more assets as they go.

Finally, when they have everything of note, they will detonate the currency, so that even allegedly high-skilled labor sells for a pittance of value. Having all actual assets, the big players will then institute a new currency backed by assets which they control completely.

Should an asset class prove to be enduring (e.g. gold), they will have it confiscated by their proxy, the government.

Finally, they will take the anger created by these developments, and, having directed inward what was not numbed by popular entertainment, and direct it outward; this sentiment rising in many different countries simultaneously, will initiate World War III and a global culling of the unprofitable.

[Progress_LocalGlobal]

4. Underclass

I believe what is happening is a combination of globalization and a very unequal distribution of wealth. The result is debatable if this is good or bad for the country as a whole but what is certain is that this process is creating short-term winners and losers, haves and have nots. If one can afford to go to college (and probably grad school or other higher level education), invest the time and money required, that person will be able to eventually find a job and make a good living. I believe there are jobs out there and plenty of success to be had. However, the difference between a career as a doctor or rocket scientist compared to a job in retail or food service is pretty staggering. Thus, this idea of the emerging "enduring underclass".

My suggestions for helping this situation are increased emphasis on education (this is a topic that needs attention in a globalizing world) and while it may be painfully obvious, higher taxes on the top 1% to redistribute wealth. In the post-industrial economy of the United States, higher education has become the standard for making it or not. Unfortunately, given the status quo, I do not foresee this suggest gap between haves/have nots getting any better in the near future. Until someone whether it be politicians, corporations, or regular people themselves can change the nature of what is going on here we could see this expansion of the "underclass". Buy hey, these people still have iphones, play stations, and televisions, so life can't be all that bad...yet.

[OHdem10]

5. Permanent Underclass of White Americans, Black Americans

and Hispanic Americans, absolutely.

This is what we had before FDR and his NEW DEAL An underclass
of White and Black Americans(who could not vote). No real
middle class. To top it off we were in the Great Depression.

FDR put policies governing Banking and Financial System in
place, those Government Works Jobs, WPA etc, then gave
us the NEW DEAL(SS which brought Seniors out of abject povery).

ALL OF THIS laid the groundwork for the greatest period
of prosperity from around 1947 to the 70s. DURING THIS
TIME, THE MIDDLE CLASS WAS BORN. The Republicans have
being hell bent on destroying the NEW DEAL ever since.
Right now it would appear they might just win.

Destroy the Middle Class and you destroy Democracy, Folks.
This is serious business.



Fro

[Confusious]

6. yes. been going on for 30 years

since reagan

[teachthemwell15]

7. Absolutely. nt

[Myrina]

10. 30? Try 120, with small reprieves for the middle class every now & then ...

... the corporatists have wanted us under their boots since the Industrial Revolution started.

[Confusious]

11. well if you want to say that, then it's been going on forever

The common person has been under the boot of someone for 5,000 years.

I'm talking recent history. WW2 on.

[Keith Bee]

9. I think that ship has already sailed

:(

[bertman]

12. Congress is NOT suffering from the delusion that our greatest problem is the deficit.

Congress knows damn well that it's more tax revenue and a deep cut in military spending that's the solution to the SMOKESCREEN DEFICIT 'PROBLEM'.

It's all a charade.