Friday, November 18, 2011
Budget cuts from Supercommittee could actually help middle class
In the meantime, speculation on the "turkey breast" to be carved by the Supercommittee suggests a minimal 1.2 trillion of targeted federal budget cuts.
Nevertheless, Wall Street is poised to boom back if the cuts could be much larger. This would actually be good for many middle class families, especially with retirees having any pension or savings investments, whose value would rise, making eldercare easier to manage.
The key is to have any savings at all the the capacity to be in the markets at all. It seems to me that the "class struggle" isn't between the top 1% and the rest, its within the middle class itself, and between old (who are more likely to have accumulated some savings) and young, who are likely to be in debt. But this sort of animosity was around even during the early 70s when I dabbled around with the People's Party.