Neoliberalism Doesn’t Care About a Middle Class Until it Needs One to Defend its Interests Abroad
The value of your money is dependent on the power of your military. No middle class? No military power. Russia knows this. China is not far behind.
Just the other day, I read a very interesting article by Thom Hartmann. You might know him from the liberal publication, Capital and Main. His article, What Happens When Corporations are Taxed at 50% — Like Before the Reagan Revolution?, provides some great history about the way the American economy used to work. The gist of that story?
Reagan’s tax cuts made it profitable for American CEOs to pay themselves far more than they’re worth. They made it profitable to move our manufacturing base to China. They made it profitable to engage in military adventures abroad. They made it profitable to pay workers less, cut their benefits and bust their unions. The Reagan tax cuts were, by far, the dumbest thing that Americans have ever done to themselves.
Russia and China both know this.
Hartmann’s article was about the travails of neoliberalism. I liked it. I think it was spot on. But I think we have to take it one step further. If the goal is to get people to work for…
