Streams

Political Strategy and the Middle Class

Monday, September 03, 2012

Political strategist James Carville and pollster Stan Greenberg argue that Washington and Wall Street have made life difficult for the average American. In It’s the Middle Class, Stupid! Carville and Greenberg make the case that our political parties must admit their failures and that voters must reclaim their voice.

Guests:

James Carville and Stan Greenberg

Comments [5]

David

As far as these two authors are concerned:

"“It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a ‘dismal science.’ But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.”

Did it ever occur to Carville that the U.S. economy grew in the 1990s despite the fact that Clinton raised taxes rather than because he raised taxes? Bill Clinton did NOT create 22 million jobs. 22 million jobs were created by all of the high tech firms such as Microsoft, Intel, internet companies, Cisco, Applied Materials, Oracle, the telecommunications companies, et al. that were producing personal computers, servers for the booming internet, software, and cellphones—and needed to hire workers to do the producing.

If Clinton raised taxes, all that tells one is that that was that much more money that was removed from the private sector to invest in more high tech companies to produce goods (and higher people to produce those goods), rather than giving it to the government to waste on one of government's usual bureaucratic, inefficient, useless programs.

And the reason wages have stagnated for the past 40 years when industry has created so many more products is because once Nixon completely de-coupled the U.S. dollar from gold, it gave the Fed carte blanche to continually flood the economy with more dollars which, in turn, lowered the value of the dollars in the savings of the middle class. Had Nixon not done this, living standards would have risen because we would have had more goods chasing fewer dollars, i.e., the price of goods would have gone down exponentially. Instead, the gain in productive was lost by the Fed eating away at the purchasing power of the dollar.

http://library.mises.org/books/Murray%20N%20Rothbard/The%20Case%20Against%20the%20Fed.pdf

Sep. 04 2012 12:35 AM
Amy from Manhattan

Not focusing on the middle class? Almost all I ever hear from politicians is about the middle class! What they barely talk about is poor people.

Sep. 03 2012 12:39 PM
Louis from Brooklyn

Unless the culture war ends, the U.S. is going nowhere. The liberals and conservatives have been bashing one another over the past 40 years caring more about ideology than the future of this country.

Sep. 03 2012 12:32 PM

The authors were much too dismissive of Leonard's point about $250K being middle class. (And I do not make that much.)

Sep. 03 2012 12:31 PM
J

Look at the median income today. I was shocked to learn that it's $26k! In a city like NY, that's not enough to get by.

Sep. 03 2012 12:29 PM

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