Aw! I hope teabaggers won’t worry too much about The Wealthy. They’ll find some way to ‘get by.’
For instance, a Survey of Affluence and Wealth in America (this is real) polled 1,458 families with a discretionary income of more than $100,000 — representing the wealthiest 10 percent in the United States who account for about 50 percent of all consumer spending.This year they are gonna spend, spend, spend!
Spending by rich Americans on luxury goods is set to grow by $26.6 billion in 2011, with the number of affluent families planning to spend more almost doubling in the past three years, a poll found on Friday.
As the United States gradually emerges from its worst economic crisis in decades, the American Express Publishing and Harrison Group survey forecast spending on luxury goods to increase nearly 8 percent to $359 billion this year compared to 2010. [source]
The wealthy will be buying SO many luxury items manufactured in other countries — because, of course, the wealthy don’t create manufacturing opportunities in America anymore. American labor is just so expensive and there’s really no tax incentives to do so, is there? This is all so exciting. I look forward to an America with only two classes of people. It will be so much simpler.
Dell Inc., one of America’s largest manufacturers of computers, has announced plans to dramatically expand its operations in China with an investment of over $100 billion over the next decade.
Dell has announced that it will be closing its last large U.S. manufacturing facility in Winston-Salem, North Carolina in November. Approximately 900 jobs will be lost.
In 2008, 1.2 billion cellphones were sold worldwide. So how many of them were manufactured inside the United States? Zero.
According to a new study conducted by the Economic Policy Institute, if the U.S. trade deficit with China continues to increase at its current rate, the U.S. economy will lose over half a million jobs this year alone.
As of the end of July, the U.S. trade deficit with China had risen 18 percent compared to the same time period a year ago.
According to Tax Notes, between 1999 and 2008 employment at the foreign affiliates of U.S. parent companies increased an astounding 30 percent to 10.1 million. During that exact same time period, U.S. employment at American multinational corporations declined 8 percent to 21.1 million.
In 1959, manufacturing represented 28 percent of U.S. economic output. In 2008, it represented 11.5 percent.
Ford Motor Company recently announced the closure of a factory that produces the Ford Ranger in St. Paul, Minnesota. Approximately 750 good paying middle class jobs are going to be lost because making Ford Rangers in Minnesota does not fit in with Ford’s new “global” manufacturing strategy.
As of the end of 2009, less than 12 million Americans worked in manufacturing. The last time less than 12 million Americans were employed in manufacturing was in 1941.
The Republican strategy is to split the vast middle and working class – pitting unionized workers against non-unionized, public-sector workers against non-public, older workers within sight of Medicare and Social Security against younger workers who don’t believe these programs will be there for them, and the poor against the working middle class.
By splitting working America along these lines, Republicans hope to deflect attention from the big story. That’s the increasing share of total income and wealth going to the richest 1 percent while the jobs and wages of everyone else languish.