Here's a link to a great article by Thomm Hartmann on "The True Conservative Agenda" Hartnamm's such a great thinker & writer, knows his history and has a wide perspective on what's going on. This article is about the shrinking of the middle class.
Scrooge & Marley, Inc. -- The True Conservative Agenda
by Thom Hartmann
There is nothing "normal" about a nation having a middle class, even though it is vital to the survival of democracy.
As twenty-three years of conservative economic policies have now shown millions of un- and underemployed Americans, what's "normal" in a "free and unfettered" economy is the rapid evolution of a small but fabulously wealthy ownership class, and a large but poor working class. In the entire history of civilization, outside of a small mercantilist class and the very few skilled tradesmen who'd managed to organize in guilds (the earliest unions) like the ancient Masons, the middle class was an aberration.
If a nation wants a middle class, it must define it, desire it, and work to both create and keep it.
This is because a middle class is the creation of government participation (conservatives call it "interference") in the marketplace, by determining the rules of the game of business and of taxation, and by providing free public education to all. And it wasn't until 1776, when Thomas Jefferson replaced John Locke's right to "life, liberty and property" with "life liberty, and the pursuit of happiness" that the idea of a large class of working people having the ability to "pursue happiness" - the middle class - was even seriously considered as a cornerstone obligation of government.
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This demonstrates the true liberal/conservative divide. Conservatives believe what business does is business's business, and government should keep its nose out of it, even when it leads to centuries of Tiny Tims and terrified-of-job-loss employees. As the Wall Street Journal noted in 1997, Alan Greenspan sees one of his main jobs as being to maintain a high enough level of "worker insecurity" that employees won't demand pay raises and benefits increases, thus provoking "wage inflation." ("CEO inflation" is fine with the cons.)
Liberals, on the other hand, subscribe to the notions of the founder of today's Democratic Party -- Thomas Jefferson -- that if the government doesn't actively participate in regulating how the game of business is played, the middle class (what in Jefferson's day were the "yeomanry") would vanish.
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http://www.commondreams.org/views04/0618-03.htm