What Middle Class?

A strong middle class has what has made our democracy so successful in the past. In fact many political scientists say it is essential for emerging nations to have in order to make democracy work. The problem here in the United States is that the middle class is shrinking at an alarming rate. Yesterday, the Drum Major Institute held a conference here in New York City to address the issue about our own declining middle class. The fireworks came out when the potential mayoral candidates sparred over what to do about it.

From The Empire Zone:

Diane Cardwell reports today that Representative Anthony D. Weiner, who represents parts of Queens and Brooklyn, called for a tax increase on New Yorkers who make more than $1 million a year, an idea that Adolfo Carrión Jr., the Bronx borough president, derided as “a small, fractional, lunch-money income tax break.”

(snip)

Of course, worry about a shrinking middle class is nothing new. Indeed, a quick search of our archives reveals that anxiety about the economy has long been tied up with concerns about the fate of the middle class. In 1984, as the United States recovered from a recession, the economist Lester C. Thurow warned [TimesSelect] that the middle class was essential for social stability. He reasoned:

Marx’s predicted revolution did not occur because he did not foresee the rise of the middle class. The middle class had an interest in preserving capitalism and voted to alleviate the worst excesses of capitalism with social welfare programs. Their very presence gave the poor hope that they too could escape from poverty.

Do those concerns still hold true today?

You bet they do. Kudos to DMI for holding the conference and allowing the next potential mayor to say what they plan to do to help save NYC's middle class. If a winning idea can come to fruition here in the City, we might just find a plan that can work nation-wide.