The transformation of the economy appears to be transforming the middle class, redefining downward what "middle class" is. While true throughout the country, the change is especially apparent in Michigan. This "new era" middle class with "new era" jobs is in certain terms poorer than the middle class of the previous thirty or forty years. It is true that members of today's middle class enjoy more comforts, more technological goodies, and more choices of entertainment than their brethren did in 1970. But they are also working more hours, they are also more likely to have both partners in the workforce, and they undoubtedly have more debt. In addition, along with more choices and comforts, they struggle with more perceived needs (e.g. the "need" for at home internet service, cable or satellite tv, cell phones, etc.) that generate expenses their predecessors would never have dreamed of.
Today's American middle class also functions in a more complex financial world, in that they have more opportunity for leverage (i.e. to get into debt). This occurs through (often predatory) lending, whether it be via credit cards, installment purchases, or creative mortgages. This additional complexity bleeds over into retirement planning as well, as the middle class worker of today will more often than not be depending on a 401k or TSA for his retirement rather than the defined benefits plan of his predecessor. While beneficiary control sounds enticing, and choice is in and of itself good, the actual results have not been what we might have hoped. More often than not, the middle class worker has made a mess of his finances. Between declining wages, evolving (or disappearing) benefits, and a financial sector firmly committed to the reinstitution of indentured servitude on the continent, the question becomes whether the heirs of middle class will survive in any form recognizable to its forefathers. If the mark of the old middle class was ownership (of a home and new car), the new middle class is recognizable by debt. They still have the goodies, but the goodies own the people.
The result is a lingering anxiety. The unspoken understanding is that without a vibrant and confident middle, the economy and culture as a whole will become a less friendly place in which to live. In Michigan, this anxiety is exacerbated by the upheaval in the manufacturing sector, especially the auto industry. On the policy level, this can lead to an obsession with keeping and/or attracting jobs to the state. One extremely shortsighted approach communities can feel obliged to take is to offer exaggerated tax benefits to corporations to move operations on site. This has always seemed to me like an excruciatingly slow form of suicide. By literally giving away its tax base, but still providing essential services, the community invariably has slit open its veins. While it is undeniably true that businesses seek to reduce their tax burden, it is also true that they require a sound infrastructure, safe environment, and effective (i.e. skilled and healthy) workforce to thrive fully. (Yes, yes, Third World sweatshops can "thrive" but at what cost, and for how long? Moreover, would they not be still more efficient with the abovementioned conditions in place?)
How then to attract corporations, and get them to pay their fair share of the tax burden? In addition, what types of corporations should be pursued? There is forever the search for "the next big thing" as politicians and talking heads rail about the need to embrace the jobs of the new economy. Michigan has sought desperately to be a center for biotech, for example.
One clear pitfall for the state and the nation is depending on military spending to lead the economy into prosperity. In fact, all evidence points to the exact opposite result. The libertarian website LewRockwell.com has excellent articles on the destructive effect of military spending (no pun intended), with the most recent by Bill Sardi which is available
here. Instead of being a jobs and prosperity engine, the war economy is shown as mediocre at best in creating internal wealth. Consider the following: "[t]he
Defense Monitor states, 'As far as providing jobs, military spending is a much worse investment than other federally funded programs. For example, $1 billion spent by the Pentagon on weapons, supplies and services generates 25,000 jobs. However, the same $1 billion would create 30,000 mass transit jobs, 36,000 housing jobs, 41,000 education jobs, and 47,000 health care jobs.' [
Defense Monitor, Center for Defense Information, 1998, quoted by Sardi ]" I suppose we should not be surprised that the gist of these figures aligns nicely with what Eisenhower said back in 1961.
Instead of searching for "the next big thing," or taking the path of least resistance (i.e. sell tax breaks), we need to have a moral vision of what we want the state to be. It is useless to holler at the wind, to demand GM "give back" all the jobs it cut in Flint as Michael Moore did in
Roger and Me. It is also suicidal to simply accept the effects of globalization. If the crisis/opportunity of our changing economy is not addressed on a moral level, if we merely grasp at that which we hope will bring prosperity--or at least a semblance of our former lifestyles--our actions will be addressed by our baser selves. Would we not expect a base result? As election season comes upon us full throttle, I hear no programs, no proposals, no
words that are in any way visionary. The change will have to come from the bottom up, in the voters demand for
effective mass transportation,
effective environmental protections, and
effective healthcare. The two major parties have neither the interest nor the stomach for effective anything.