You are an idiot; no other economic system has done more to create a middle class than capitalism. The single most important aspect of capitalism is private property rights. Ownership of real property and assets has been the single driving force in creating the middle class (around the word). Without property ownership where would the world's population be?
Originally Posted by Whirlaway
You are incorrect sir, it was UNIONS that created a strong middle class. And you are forgetting the most important thing about the middle class, it is not a stationary target. It is a moving target. The people who were middle class 30-40 years ago have moved up the ladder to upper class. The people who were poor moved up to be the new middle class. With the war on unions the buying power of the middle class just evaporated.
At the start of the last century when American industrial power boomed and companies such as Standard Oil and US Steel created wealth, it created it for the owners, the Morgans, the Rockerfellers and the like. The middle class was nowhere to be found. Their business model was to pay people as little as possible and to make as much as possible. It was not until UNIONS were formed that middle class earning power took over.
I know, I know, you don't believe me and want links. Sorry if you were really interested in the truth you do a little research on your own.
Here are some numbers to chew on:
In 1965 CEOs earned 20 times as much as the average worker, and in 2013 CEOs earned 296 times as much as the average worker.
Downwardly Mobile- Most of the workers in the new economy are downwardly mobile as manufacturing and union jobs are replaced by service jobs. Harold Myerson says, “The United States now has the highest percentage of low-wage workers – that is workers who make less than two-thirds of the median wage- of any developed nation. Fully 25 % of all American workers make no more than $17, 576 a year.”
Decreasing Demand -The uncomfortable fact is that when unions are stronger the economy as a whole does better. Unions restore demand to an economy by raising wages for their members and putting more purchasing power to work. On the flip side, when labor is weak and capital is unconstrained, corporations hoard, hiring slows, demand goes down, and inequality deepens. This is where we are now and we have both record highs in corporate profits and record lows in wages.
Collective bargaining. – The decline of unions reflects the lack of leverage of the middle class and all working people. If they don’t find some way of bargaining with the corporations then the slide in income will continue. There is no reason to think that the corporations will suddenly become more sympathetic to working people’s problems and reduce their goal of continuing to reduce labor costs unless they are somehow pressured. (See Wal-Mart) So the current day problem of unions and the weaknesses of labor are everyone’s problems.
The sad truth is that if workers have no way to bargain for wages, the only answer will be government assistance like expansion of minimum wage and food stamps. If you don’t like this idea then I ask how are we going to increase demand and purchasing power of the middle class?