The Decline of America’s Middle Class
It should come as no surprise, to the Union Brothers and Sisters that the working class or middle class economic security no longer exists. Fifty years of gains by the middle class and by the unions has been erased within the last few short years. Some of the best indicators of the recession and how it affects the middle class are: how many families have the financial resources for a spell of unemployment, how many families can economically face a medical emergency, or for an unspecified economic emergency equal to three months of their income?
The cost of medical coverage and/or emergencies is one of the sharpest deterioration in middle-class financial security. It is estimated that in 2007 only 33.9% of families had enough wealth to cover a medical emergency. In 2010 it is estimated to have declined to 30.1%. This deterioration stems from loss of wealth and higher costs of medical coverage.
The housing market’s fall has added to the increase of debt as families’ homes lose value yet mortgages still remain high. In 2007 families that could handle this emergency for up to three months was 29.4% and it is now estimated that only 25.3% of families can hold on for at least three months.
Those families that were able to hold on in the face of short term unemployment fell from 44.0% in 2007 to an estimated 39.0% in 2010. This is a result of incomes falling in the weakest job growth since the Great Depression, flat wages and declining benefits. While the American middle-class is losing ground the prices for necessary items such as food, energy, housing and transportation continue to rise dramatically.
To stem the tide of destruction to our middle-class will not be easy and will require serious efforts, progressive policy alternatives and more efficient alternative fuels.
These are the issues facing you and the Union; you must do your part. Join the Executive Board and your shop stewards at the next General Membership Meeting, Aug. 19th at 5:30 pm.