I’m a middle-aged mutt in this wasteland between the two coasts commonly known as Middle America. Most of the United States lives here, but we rarely — ok never — get asked about important things like politics and the economy. We are the gun-toting, Bible-banging, slack-jawed, under-educated, corn-fed, polyester-wearing yahoos that the liberal media like to make fun of and Wall Street dismisses.
That is a little harsh. Ok, fair enough. I’ve seen my neighbors in their natural habitat (Kroger during wine and cheese hour) so I get where you’re all coming from. But just because we are out here in your idea of Wastelands doesn’t mean we are any less important and informed as you are.
Try to keep up.
What I know by getting to middle-age
There never was a Middle Class in America. We only ever had two classes; the Rich and Those Who Expected to be Rich (ETBR). It is the American Carrot, that thing that gets dangled in front of us to keep all of us reaching for more. The Middle Class was always a nebulous scale of the lower Rich and the upper ETBR which ebbed and flowed depending on the economy at the time. The indicator of where you were was how much wealth you had relative to what others had.
Equity (or wealth if you want) is a very cold, harsh ledger. There are only two ways you can grow it; invest Liquidity or Time.
For example, if you buy a house, you can add equity only one of two ways: put more cash into the place to quickly reduce the amount of mortgage debt OR accept more mortgage debt and increase equity over time, holding your breath the entire time, hoping the equity will eventually exceed the amount of money you have put in. When the equity teeter-tots over to the asset column, you now have wealth. (Unless others around you get foreclosed on, but we’ll get to that.)
The same thing with those who financed a college degree. They expected that even though the degree cost more than most peoples’ houses, they would get a job and over time, not only pay off the loans but make more than the average salary. (They should have bought a calculator first)
It’s just not that complicated. Most people in the ETBR class have a whole lot more time than liquidity. They trade their time all day long for liquidity with wages, mortgages, three easy monthly payments, etc. The Rich class can choose liquidity or time, depending on the rate of return. A slow rate of return means they can use time. A fast rate of return, they use liquidity. The ETBR class does not really have that choice (or more accurately, the degree of choice is scaled depending on the ratio of liquidity to time one has.)
The lack of choice is mostly what pisses the ETBR off most. This generation thought they had time. They were wrong.
This “law of economics” is about as rock solid as the law of gravity. You can ignore it or deny it, but it is still going to affect you.
People without liquidity tried to accelerate time. People with some liquidity but — not enough — tried to expand the value of each liquid unit too fast. Eventually, the ETBR ran out out time before they had a firm grasp on equity and lost it all. When you are clinging to a rock face on a mountain by your fingertips, when you fall, you don’t just slip; you fall all the way down. It does not matter if you are ten feet up the mountain or ten feet from the summit. (Did you catch that? I equated laws of economics to gravity. Genius. I should be ruling the world by now. Roll your eyes if you got ’em.)
How this all ties into #OccupyWallStreet
I do not support Anonymous or Adbusters. I am not a big fan of the fist-pumping, kill Wall Street bankers rhetoric and other hippy crap like stuffing dollar bills in your mouth and marching like zombies. Sanctimonious hipsters with no life experience annoy me, too. It is unsettling to us out here that the OccupyWallStreet “non-leadership” has connections with these groups if only that they decide unilaterallty who is good and who is bad. I like steak, but the fifth “fact” in their Declaration gives me pause that reads, “PeTA is invited to join us.” All of a sudden, now my support for OccupyWallStreet means I support PeTA? Hell no!
Just because I lean to what this country defines as “left” does not mean I hang with the crazy-left. For the record, people claiming the right of human dignity is not a left-leaning principle. Groups that use terror tactics for good scare the hell out of me just as much as those who use them for evil. In the end game, “there is no good or evil; there is only power.”
And she is very, very seductive.
To the middle-class middle America, if a group like Anonymous can target a big bad corporation, what is stopping them from concluding — unilaterally — a mom-and-pop business is supporting a big bad corporation (like Visa) for taking credit cards as payment? I understand how the affiliation is feeding Visa, but the rain nourishes the grass and weeds alike. It is incumbent upon groups like Anonymous to make sure the rain falls on the grass and not the weeds if they choose to pee all over my garden without my consent.
I believe the 1% are and have been exploiting their advantage of liquidity to enhance their fortunes. I also believe the 99% have been exploiting their victimization caused by their unwillingness to learn and adapt to the law of economics stated above.
Money finds the path of least resistance. It is what keeps corporations from innovating, what keeps individuals from having to make changes and politicians from reforming their cheating ways. As we used to say when I worked for The Man; cash hides a lot of sins. The only people entirely unaffected are those who are so rich they could not run out of money if they tried and those so poor they don’t have a hope of becoming a member of the ETBR ever in their lives. The rest are gaming the system in almost every way they know how.
I didn’t buy more house than I could afford nor did I refinance on the house equity I had to finance a non-asset like a college education or vacation. I did not take out or encourage my kids to take out huge student loans so they could attend a swanky out-of-state university. The social contract I had with you, the 99%, was that you would not purchase more than you could afford so that your house would not be foreclosed on or your kids would not be recklessly in debt. We were supposed to be in this together. Without your participation, colleges would not have been able to raise the tuition rates. Banks would not be offering 0% loans if nobody took them.
You broke that social contract by always needing more. I kept my end of the bargain.
I expect the 1% will work tirelessly to extract wealth from me until my last breath. But this much I know also about the 99%: They will not be there to help me guard the gate from the Barbarians. They will be busy guarding their own gates.
What I want
What I want most is my own space that is warm and free from the prying grasp of government tax departments, the whims of landlords, the perils of curable illness and disease or the selfish and short-sighted lust of those in power. Owning my own home is none of these things. Even if I were to get to pay the last payment of my mortgage to the bank, I could still lose my home if I could no longer pay the property tax the county continues to demand. Or lose my freedom due to the ever-increasing criminalization of poverty. Or suffer health problems that deplete the wealth I used a life-time of time to build.
The Barbarians will always be at the gate. This season’s Barbarians are the Wall Street bankers and politicians on the take. Next season, it could be drought and famine. The next could be the City of Englewood deciding that my house sits on a patch of land they want to turn into a park. Or Anthem Blue Cross/Blue Shield increasing my premiums 38% or denying a treatment they pre-approved. The list of Barbarians are endless.
As I move through middle-age and into old-age, I know that my ability and desire to fend off the Barbarians will become less and less while my desire and need for security and warmth will become more and more. I can already feel the fear and rage creep into my bones when some punk-kid behind me in traffic does that dodge-and-weave thing, trying to pass me as I am not speeding fast enough for him. I feel it in the deep sighs of a younger generation who mistake patience for inaction. I know it in my heart when young women no longer look at me with anything less than pity.
What fears me the most, though, is knowing I will not have enough time to build the wealth needed to construct a gate strong enough to keep the Barbarians at bay. I fear they will destroy me before it is my time to go.
*I don’t think the percentages are split 1%-99% but that is a heck of an effective way to market the movement. My use of the numbers are just a short-hand convenience; no more, no less.
You may find this interesting.
And this from @Karoli who started me thinking down this path, culminating in this here blog post. Blame her