The Middle Class Delenda Est, Part II, by Bill Bonner

Historically, stable and prosperous polities were marked by a strong middle class. From Bill Bonner at bonnerprivateresearch.com:

Part I

News flash from Reuters:

“Shares of Target Corp. tumbled 13.1% after the big-box retailer forecast a surprise drop in holiday quarter sales.”

While sales figures looked fairly good for October, shoppers are having a hard time keeping up the pace. Seeking Alpha:

Credit card balances rose by $38B during the quarter and 15% Y/Y, the largest boost in more than 20 years.

Wages have been trailing inflation for 19 straight months. Diesel fuel – the stuff that powers our economy – is becoming scarce, with the average price at the pump up to $5.35/gallon. Producer prices – as opposed to consumer prices – show a lot more inflation coming down the pike.

Retailers are wondering if Santa will come this year…

Slumlords Elites

Our subject is the destruction of America’s middle class. How? Why? Let’s look:

An incident from long ago…

Our first office in Baltimore was in a very down-at-the-heels neighborhood. The building was a dump. But the city had offered to sell it to us for $100.

As it turned out, we paid too much.

Not far away was the area known as “Lil’ Italy,” which was known for its good restaurants. It was also the safest part of the city; the Italians had baseball bats, and during the riots of 1968, for example, they stood guard. Nobody got hurt. No windows were broken in Lil’ Italy.

Between our office and Lil’ Italy were ‘housing projects’ – high rise horrors where ‘poor’ people lived. The area was so dangerous that even the cops locked their car doors when driving through.

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2 responses to “The Middle Class Delenda Est, Part II, by Bill Bonner

  1. “The NSS [National Security State] represents and serves the interests of a tiny elite. Its economic policies of “trickling up” , enforced by the machine gun, are rationalized on the ground that growth in the long run will trickle down to the lower orders. This is a self-serving ideology designed mainly to allow the western public to think well of themselves and their own country.”

    Edward S. Herman, economist, author, and US media and foreign policy critic

    Like

  2. I lived in Baltimore from 1967 to 1973 it was a horrible place then.
    I can’t begin to imagine how bad it is now.

    Like

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