The "Middle Class" is Disappearing?

According to the liberal left the middle class is shrinking and will eventually disappear.  News reporters say this is the reason the Ayatolla Barry Obama wants to tax the so-called wealthy heavier and eliminate taxes on the ever growing "poor". 

After some review of the reasons the "middle class" is shrinking, I believe I have some answers.  It will take a little review of the way things used to be.

I remember when it was possible that an ambitious young person could decide on a profession and go do it.  There was little fuss.  If he did well, he got more business.  If he did poorly, he got little business.  It was a cause and effect.  Today if a young person wants to enter a profession, he must go for some government required education for that profession and spend megabucks to get it done.  Then he must tender a hefty bribe to the appropriate governmental agency in order to obtain a "license" to practice whatever service he wants to perform.  And if he wants to construct a building to contain his business he must pay and pay and pay before he ever even purchases the materials and labor to effect its construction.

The expense of beginning a business is extreme because of regulations, fees and taxes that few individuals are interested or able to enjoy what imagination and drive they may have.  Additionally if the business selected is not on the "approved" list and the governmental agency has not classified it for licensure, then the business may not be permitted to open in some areas.  State and local governments have learned that they can extract more and more money from business by increasing "impact fees", License fees, property improvement rules, employment taxes, required employment benefits, higher energy costs, and  other fees and taxes.  And because of oppressive environmental rules, often an expensive "environmental impact study" must be completed.   No wonder few people want to risk valuable and scarce resources to enter into a high risk proposition.  And don't get in the way of environmentalists who do not approve?  They file lawsuits just to make it untenable for an unapproved business to open.

So these light entrepeneurs don't take the risk and instead plod along in their mundane jobs that they may or may not even like.  The reason?  Lower risk and lower pay, but steady income.  They expend their innovative spirit on behalf of employers who aren't able to reward their imagination and energy. 

The bottom line is this:   The middle class will disappear because of excessive taxation, regulation, and intimidation.  In order for the middle class to survive government will have to get out of the way and let it happen by relaxing regulation, reducing energy costs, stopping the intimidation, lowering taxation on self-employed and small business, and enjoying the benefits.  By so doing welfare rolls will diminish, unemployement will reduce, GDP will rise, crime will reduce, and the economy will expand.

My expectation is that it will never happen.  National, State, County and local politicians are addicted to the power they perceive themselves to have.  Neither Democrats or Republicans have the courage to affect the changes necessary.