What Has Obama Done for the Middle Class?

Before I begin this discussion, let me just make reference to a book I once read that was called "Rich Dad's Guide to Financial Freedom," that was personally recommended to me by one of my college professors. After reading it, I told her it left a putrid taste in my mouth, and she told me that "the truth wasn't necessarily palatable, but once I understood the system, I should think about what quadrant I wanted to be in."

From there, I must introduce you to one of the book's premises, which is called the "Cash flow quadrant," whereby it classifies all people into categories labeled, E - Employee, S -Self Employed, B - Business owner, and I - Investor.

The book explains that people can be in multiple quadrants, or just one of the quadrants, and that everyone is different based upon their values, personality and skill set. In terms of relative income generation, the person that has their hand in multiple quadrants stands to make more money than someone who is just an employee for example. The investing quadrant has tax advantageous, as does the small business and business owner quadrants. (Cash Flow Quadrant)

Exactly who are the middle class?

They are the ones that rely on banks to give them credit for things like their cars, homes and travel. They are the ones that rely on employers to provide them with insurance and steady wages. They are the ones who want to be able to afford to send their kids to college through grants and student loans. They might live week to week, and when they lose their jobs, it's a very big deal.

They are people just like you and me, maybe some freelancing or working part time to help make ends meet. They are about 80% of the neighbors in our town. They are people in unions, those renting buildings on Main Street, working in Wall Street, serving other middle class people in banks, and at the local dollar store, maybe the grocery store, definitely the restaurant, and perhaps even working in insurance. Only a few fortunate ones, perhaps in the B or I quadrants, or even in the S quadrant are the millionaires of our world.

Didn't middle class America benefit the most from the bail out?

While 1 out of 10 people are unemployed, 9 remain a part of the workforce. Approximately 7% of the American population is working for privatized unions, and another 37% for the public sector. These jobs include teachers, policemen, aircraft workers, Hollywood writers, health care representatives and other government workers, to name a few.

The American Federation of Labor-Congress of Industrial Organizations (AFL-CIO) reprsents about 11.5 million people. Many of these folks are also investors of Wall Street companies, and are socking their lifetime savings into 401Ks and mutual funds that they hope will eventually give them returns on which to retire. What happens when those companies go belly up, and move their head quarters to another country and start over?

The fact is, Main Street and Wall Street are tied economically through an umbilical cord, that if cut, could wreak havoc and cause chaos in the value of the dollar and the way of life for all Americans. I would not want to be in Mr. Obama's shoes, but I commend and support the fight.

G.D.P and Middle Class

On Friday January 29^th, Fox News, and the Associated Press reported that President Obama said "The 5.7 percent annual growth rate in the fourth quarter was the fastest pace since 2003." Are American's ready to open their pockets, or have they found a simpler, gentler, less costly way to live? Should Bernanke say to the America Middle Class, "It's time to say we beat this recession, and begin to raise interest rates?"

Don't think Obama should have backed the bailout plan - what are you thinking?

Look to places like Ohio, and the auto industry to imagine what the impact might have been without the bail outs.
If you have ever lost your job due to another's decision, you know what it is like to be afraid for financial security. If you have tried to venture out on your own, and become self employed, then you are aware of the taxes, and the penalties, the licenses, and employee costs that just about keep any hope for profits at bay.

Phillip Elliott reports on Newsvine "Obama said "If the financial system had gone down, it would have taken the entire economy and millions more families and businesses with it. Hundreds of thousands of Americans would have been hurt, not just at those companies, but at auto suppliers and other companies and dealers here in Michigan - here in Ohio - up in Michigan and all across this country." There is a trickle affect that can felt in neighborhoods, communities and regions, when a business goes out.

So what has President Obama done for the working middle class?

Well for one, he supported efforts to stabilize the economy so that we can move forward, and begin working again, on our infrastructure, our education and growing the small business sector.

Maybe that doesn't seem like a big deal to you now, but can you imagine what would have happened if he didn't deal with that first? I know my stocks are up again, and I still have my house, my neighborhood is intact and although there are a lot more cars in the driveway during the day in my neighborhood, people are finding ways to make it and scaling back.

Sources:

Kiyosaki, Robert T. "Rich Dadss Guide to Financial Freedom", Warner Books Printing C1998

http://www.newsvine.com/_news/2010/01/22/3794896-obama-takes-latest-jobs-message-to-hard-hit-ohio

http://www.foxnews.com/politics/2010/01/29/economy-grows-percent-th-quarter/

http://www.aflcio.org/aboutus/faq/