This is the result of tax cuts to the wealthy and corporates (70% to less than 28%) starting back in Reagan and beyond. Republicans have a simple strategy: starve gov programs by cutting taxes on the wealthy and corporations, claim that the programs are then "broken", and suckering the public to think only privatization is the way to salvation. An the suckers buy it every time.
From Thomas Hartmans book "Screwed":
"Beginning with the Reagan administration, the U.S. government has steadily instituted policies and legislation that favor corporations over citizens, argues Air America host Hartmann (The Ultimate Sacrifice). Analyzing the rhetoric and policies of the current administration's "compassionate conservatism," Hartmann goes on to detail the ways in which safety nets for working people (from progressive taxation to antitrust legislation to Social Security) have been steadily weakened, and argues that an empowered, educated middle class is crucial to a functioning democracy. Chapters detail the ways in which what gets called "the free market" is not really free (for good reason, he notes), how "We the People create the middle class," how the policies of the Founding Fathers and figures like FDR still have a lot to teach us, and ways for "Leveling the Playing Field." Though far from comprehensive, and despite its sensationalist title, Hartmann's latest is an intelligent critique of the contemporary plight of the middle class.
Copyright © Reed Business Information, a division of Reed Elsevier Inc.
The American middle class is on its deathbed. People who put in a solid day's work can no longer afford to buy a house, send their kids to college, or even get sick. If you’re not a CEO, you’re probably screwed.
As Air America Radio Host Thom Hartmann shows, this death is no accident. Like the Founding Fathers, patriots such as Roosevelt, Truman, and Eisenhower knew that economic opportunity and democracy go hand-in-hand. They believed in maximizing the public good and they worked tirelessly to build the strongest middle class the world has ever seen. But now, under the guise of “freeing the market,” conservative and corporate forces are waging a covert war against the middle class, dismantling policies like Social Security, Medicare, the minimum wage, and fair labor laws — the very safeguards that foster economic opportunity and citizen engagement. The result is an economic system designed to line the pockets of the super-rich, the impending extinction of the middle class, and a very real, very dangerous threat to democracy itself."
http://ec1.images-amazon.com/images/I/41PDa5K1HCL._BO2,204,203,200_PIsitb-dp-500-arrow,TopRight,45,-64_OU01_AA240_SH20_.jpgEverything is short term - there is a house of cards due to fall because of the greed and stupidity running rampant in this country.
http://www.economyincrisis.org/