The Death (and Rebirth) of the Middle Class

The Death (and Rebirth) of the Middle Class

american middle class

It’s been well covered, but in this first article of the year, let’s take a look at the collapse of this most important segment of society.

The American middle class is fast disappearing, not because there is anything particularly wrong with the people involved – they are every bit as talented as their parents and grandparents were – but because the ruling class of the United States has pushed them into this position.

This middle class was once composed of proud and productive people… the kind who now exist primarily in advertisements for trucks. These people and their abilities remain, but Washington has taken power over nearly every choice they have and thinks of them only for the purposes of voting, fighting in wars, and creating more debt (aka buying stuff they don’t need).

These people are at a crossroads, facing fundamental choices about who they are and what they will be. The big threat in front of them is that by not stopping, thinking, and choosing (and it’s always easier to do nothing), they’ll stay on the path that has been grinding them into the dirt.

The Fall of the Middle Class in 60 Seconds

The first wave that undercut the American middle class hit roughly one hundred years ago, stripping away their surplus with income taxes, sales taxes, and debt-based money. This continues, transferring wealth from working people to governments and central bankers.

Older members of the American middle class will remember that small, self-employed farmers were once the backbone of the culture. These family businesses are now all but gone. Large farms remain, of course, but they have become, effectively, partners of the government and giant corporations. Gaps and exceptions remain, but the classic American farming family exists mainly on the fringes.

Self-employed people – shop-owners, mechanics, and so on – were another old American staple, and they are vanishing too, as you can see in this graph:

american middle class
The modern refuge for productive Americans was in manufacturing. But even manufacturing is dying in America. In 1977, there were nearly 20 million manufacturing jobs. Today – and with a much higher population – there are less than 12 million manufacturing jobs. (See graph below.)

american middle class

Service jobs are fine, but there are not enough of them. And because of overwhelming demand, they pay poorly.

The Replacement Bubble

There has been one area in which young Americans could find both employment and lavish praise, and that has been as cogs in the military-industrial complex.

But regardless of the worship services that begin every sporting event, this cultural bubble is starting to deflate. The great surge of 9/11 has subsided and new wars have been difficult to sell. We have passed peak military-industrial complex, and the reflexive worship of intelligence agencies is passing as well. (Thank you again, Edward Snowden.)

In addition, traditional Americans are starting to wonder how their Christianity became a war religion. Red State Christianity is a kingdom divided against itself. War is simply not a Jesus thing, and state worship is definitely not a Jesus thing. So, when these churches encourage Bible reading, they sow the seeds of their own undoing. Young believers will soon be quoting scriptures against the “leaders” and walking away.

Thirdly, thousands of returning soldiers are discouraging their friends and neighbors from running off to “the glories of war.” People who have been in it know that war is horrifying and damaging. They are providing a lot of personal evidence of this, either by their words or by their (sadly common) debilitating injuries and suicides.

The number of jobs available in this replacement bubble are fading, and the glory of them is fading as well.

Go Corporate or Go Rogue

Consider the situation that faces the American middle class: The old ways are almost gone. The replacement that was sold to them kills or damages them and is vanishing anyway. The welfare life beckons, featuring free stuff and permanent dependence, but that’s not really their way – these people were raised on a healthy production ethic.

But what else stands in front of them? As the number of “good jobs” continues to decline, what realistic options do they have?

The approved choice is to go corporate: Take a menial job at Walmart, Starbucks, or McDonalds, take a side-job or two to survive, and slowly work your way up through management.

Or, if you have the appropriate university certificates (which come with crushing debt), you can be hired by a mega-corp – an oil company, or a tech company, or perhaps by government itself. We all know what happens in these places: Human character is warped, and the corporate script takes over all your life. You end up living of the corp, by the corp, and for the corp.

The one remaining choice is to go rogue. By that I mean to separate from the system, stop seeking its approval, and to live the life of an outsider.

Some Americans are already choosing the rogue life, of course. Every time they homeschool their children, grow their own food, trade via barter or Bitcoin, start 3D printing, or join an intentional community and accept people calling them weird, they are resigning from the mass culture and going rogue.

This is the oldest of American traditions, of course – the one chosen by every person who got on a boat between 1600 and 1900 and sailed off to a new continent. But this way of thinking hasn’t been popular in a long time. Conformity with the mass culture reigns, and separating from it requires considerable strength of character.

What Comes Next?

Over the next decade or so, traditional, middle class Americans will have to choose.

Many will go the corporate route and accept its slow self-punishment. Some will eventually drop out of this game and join the rogues, but others will live the corporation’s pre-scripted lives, then die.

Or, they can join the welfare class and explore new opportunities in degradation.

But if they can build their own courage and walk away from game, they will help to rebuild a confident civilization with a bright future.

My guess is that the once-productive American middle class is already starting to wake up. Each new disappointment drives more of them to go rogue and to start building a better future – their kind of future – not the one that is sold to them by Washington, New York, and Hollywood.

And that is the most encouraging thing of all.

Paul Rosenberg

[Editor’s Note: Paul Rosenberg is the outside-the-Matrix author of FreemansPerspective.com, a site dedicated to economic freedom, personal independence and privacy. He is also the author of The Great Calendar, a report that breaks down our complex world into an easy-to-understand model. Click here to get your free copy.]

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13 Comments
Stucky
Stucky
January 8, 2014 9:33 am

“The American middle class is fast disappearing, not because there is anything particularly wrong with the people involved – they are every bit as talented as their parents and grandparents were..”
—————- from the article

In a general sense — cuz there are many exceptions — but for the General Population At Large. I don’t agree with that. I can’t prove it. I just feel it.

.
I do not understand what the writers optimism is based on. He does a fine job showing those (depressing) graphs of jobs lost forever. He even says “The old ways are gone”. True enough. The middle class of old was built on good paying jobs and relatively low skill levels. LLPOH has done a brilliant job explaining why that will not make a comeback.

He is counting on Americans to “go rogue” to rebuild the middle class. Good luck with that. How many are motivated, knowledgeable, willing and able to take that route? On a good day I’d say ten percent. That’s a pretty small middle class.

card802
card802
January 8, 2014 10:17 am

Have to agree, Stucky, I believe moving forward there will be a greater divide between the class’s. The number of poor will grow as fast as the bank accounts of those that can adapt. Going rogue?
No way, not the majority anyway. I think this fourth turning will be a call for more government help.

treemagnet
treemagnet
January 8, 2014 10:49 am

I’m a fourth generation business. When you go into the family business, its not always for the love of the product or service – but rather the tradition and continuity. I took over in ’91 and righted a sinking ship. Made a couple of mistakes, nothing big or bad – but mostly nutted it consistently. This is the only place in my life I’ve ever just known, instinctively, what the right course of action is. I’ve read the ‘tea leaves’ and the ‘handwriting on the wall’, etc. better than most. We are a service business that as we have diversified over the years and it was going well until the last….since the mid 2000’s, we only maintain and we’ve been trending down, cash flowing along the way. The successes have been, in hindsight, merely plateaus. Brief pauses in the slide at best. The bottom started crumbling away in the mid/late 2000’s and has really accelerated in the last three years. We only diversify into areas we have a distinct competency in – unlike the broader economy with cheap money sloshing around and nowhere to go inevitably flipping over every rock looking for yield and incremental growth. Everyone is doing what everyone else is doing. Mostly I see a graying of the offerings – a sameness that lacks any real ability or even interest in claiming such….all breadth and no depth. Now we cannot justify any risk, since everything is priced for perfection and otherwise normal business risk is tantamount to russian roulette – no upside and a very real downside.

I got a call from a gov’t agency the other day wondering, whats going on with the industry? Apparently they aren’t pleased with the service and the answers they’re receiving for the growing number of failures. I tried to pleasantly but directly educate him. Useless. He didn’t understand the terminology I was using – he didn’t know basic underpinnings to the very thing he expressed interest in. He was like a child asking his Dad to fix his broken toy not wanting to know about low batteries and stripped gears. Sensing his inability, I just pounded on ‘theres no money in it – its all risk now’….over and over and over. We ended our ‘meeting’ pleasantly, it will go nowhere since he was goal seeking a ‘its just a rough patch’ answer.

Rough patch my ass. I’ll tell you something else, anything with receivables has become a curse word around here. Flat out counter party risk, pure and simple – plus, bullshit fees, charges, short-pays, and more. Mind you, this is with signed contracts – that shit doesn’t matter these days. My wife has forgotten more about the details of our family life than I know – and that ain’t much. But here, I’m the one that can recite details, clauses, relationships, terms – whatever. This really pisses her off by the way, it only proves I am capable of listening when I care. My point? I know where this is headed and I know it sucks. As the resident ‘rain-maker’, we’ve never not had ‘crop’. But I see a drought coming, and am powerless to do anything about it – feeling foolish as I essentially march into a drought.

treemagnet
treemagnet
January 8, 2014 10:55 am

And why the fuck are there cartoon girls dancing by a pool on my screen border all the time…..I only go there occasionally when I’m in ‘my happy place’.

KaD
KaD
January 8, 2014 11:02 am

It takes MONEY to ‘go rouge’. Where do you get the money if not from a corporate job?

Stucky
Stucky
January 8, 2014 11:08 am

treemagnet

Firefox — Peace Be Upon Them for eternity — and their Ad-Blocker add-on is a beautiful thing …. all I see is a blank box with “Advertise Here!”. Best idea since sliced bread.

However, I may disable it based on your post. Those “cartoon girls dancing by a pool ” … are titties and or nipples involved?

treemagnet
treemagnet
January 8, 2014 11:31 am

stucky – most definitely. Give ’em your credit card # and let me know what happens……hehehe. I’ve got firefox too, but I’m technologically challenged so I didn’t know you could do that, I’ll have to explore. If its not the cartoon brigade its asian brides or russian friendships or whatever. I think they may have penises.

Stucky
Stucky
January 8, 2014 11:47 am

“I’ve got firefox too, but I’m technologically challenged so I didn’t know you could do that”
——– treemagnet

Here ya go, my friend!! Click the link, press the “add to firefox”, and you’re done.

https://addons.mozilla.org/en-US/firefox/addon/adblock-plus/

treemagnet
treemagnet
January 8, 2014 12:32 pm

Thank you stucky. In the future I’ll repay you by withholding my next raging anti-boomer rant. You’re a gentleman and a scholar, I take back half of what I’ve said about you……….humor, I has it.

Anonymous
Anonymous
January 8, 2014 12:45 pm

Thank you for your above comment, treemagnet. Well said.

Llpoh
Llpoh
January 8, 2014 4:23 pm

Yes, there will be the death of the middle class. They will be reborn as poor. It just may be karma – they are being repaid en masse for bad decisions: debt, sloth, over-consumption, failure to keep politicians honest, etc.

Fact is, it was always going to happen. Bad decisions made it happen sooner.

Pirate Jo
Pirate Jo
January 8, 2014 4:51 pm

From Mark Bodnick, quoted at Forbes:

“One reason that many people with good college educations hate their jobs is that they picked a conservative / climb-the-ladder-oriented career when they were young (i.e., right after college), and then they never switched.

When they first picked their career at the age of 22:

•They had no idea what they wanted to do with their lives.
•They had a very narrow view of what career options were available to them.
•They felt the need to make money, because they were independent from their parents for the first time.
•They gravitated to jobs that involve credentials and pre-defined milestones, just like school.
Then, after doing that first profession for 7-10+ years, they feel locked in; they don’t know what to do next / how to change. They are doing pretty well financially in that first career, and they perceive tons of risk to switching careers. So, they do the same thing for the rest of their life.”

<<<<<<<<<<

David Graber in 'Strike' magazine says, "Huge swathes of people, in Europe and North America in particular, spend their entire working lives performing tasks they secretly believe do not really need to be performed. The moral and spiritual damage that comes from this situation is profound. It is a scar across our collective soul. Yet virtually no one talks about it."

<<<<<<<<<<

I know why no one talks about it. Because even if you spend half of your waking hours wishing you didn't have to endure them, wishing they would hurry up and get over with, even though these are hours (upon hours upon hours) of your life you are wishing out of existence, it sounds whiny to complain about your job in front of the 53% of working-age Americans who don't even have a full-time job. I'm with KaD. It takes money to "go rogue." If you want enough to eat and don't fancy living under a bridge, what are you supposed to do?