US Economy: Tax bill approved by Republican Senate majority: US Students, Middle Class Citizens getting the shaft in this new Tax Plan, which adds trillions to the National Debt

The U.S. Senate narrowly approved a tax overhaul, moving Republicans and President Donald Trump a big step closer to their goal of slashing taxes for businesses and the rich while offering everyday Americans a mixed bag of changes and addiding trillions to the National Debt.

Trump who is getting closer and closer to being linked to the Russian  probe now that his former security advisor Flint is starting to spill the beans  tweeted early in the morning: “We are one step closer to delivering MASSIVE tax cuts for working families across America,”

The Senate approved their bill in a 51-49 vote with Democrats complaining that last-minute amendments to win over skeptical Republicans were poorly drafted and vulnerable to being gamed later by lawyers and accountants in the tax avoidance industry. 

“The Republicans have managed to take a bad bill and make it worse,” said Senate Democratic leader Chuck Schumer. “Under the cover of darkness and with the aid of haste, a flurry of last-minute changes will stuff even more money into the pockets of the wealthy and the biggest corporations.” 

The framework for both the Senate and House bills was developed in secret over a few months by a half-dozen Republican congressional leaders and Trump advisers, with little input from the party’s rank-and-file and none from Democrats. 

EU-Digest

Latin America: Where from here? The Latin American middle classes facing stagnation - by L.Paramio, C.Güemes, and F..Badia

 What will be the effect of the economic slowdown in trust in institutions and political behaviour of Latin American emerging middle classes, after 10 years of “leftist” governments?

According to CEPAL (Comisión Económica para América Latina y el Caribe, Economic Commission for Latin America and the Caribbean) calculations, between 1990 and 2010 the middle classes in the region increased by nearly 70 million households. In recent years social policies have been characterised by a targeting of lower income groups and public policy priority has been the expansion of primary education, with the goal of achieving universal reach.

Given that the middle classes are characterised by their efforts to consolidate their social status and not only their income level, it can be assumed that access to education is central to their family plans. However, access to primary education, which has been a key factor in many cases to escape from poverty and to lead therefore to the so-called emerging middle classes, may be insufficient if the access to quality secondary education and higher education for the youth of these new middle classes is not guaranteed.

The hypothesis is that the numerical growth of the new (emerging) middle classes will pose new demands for public policies both to expand access to quality secondary and higher education, and to introduce social policies that benefit not only the poorest groups, but also these emerging groups.

The aim of this is to prevent the new middle class losing purchasing power. By moving from the lower-income bracket to the middle class, they no longer to receive the cash transfers attendant in the prior targeted policies, and as a result, it is important to develop universal welfare policies or design strategies that include support for these groups; otherwise, they will be unable to maintain and consolidate their new status and their becoming middle class, beyond a symbolic conquest, will entail instead a waste of money and increased costs for families.

Through a comparative study of several national cases, we have sought to determine (1) the problems that the emerging middle classes face in consolidating their status, (2) the limits in this regard of current public policies, and (3) conflicts which may give rise to claims of these social groups.


To dead more click here: Where from here? The Latin American middle classes facing stagnation | openDemocracy

America’s rotting empire: Billionaires galore and a crumbling infrastructure - by CJ Werleman

“The game is rigged,” writes Senator Elizabeth Warren in her new book A Fighting Chance. It’s rigged because the rich and their lobbyists have rigged the rules of the game to their favor. The rules are reflected in a tax code and bankruptcy laws that have seen the greatest transfer of wealth from the middle class to the rich in U.S. history.

The result?

America has the most billionaires in the world, but not a single U.S. city ranks among the world’s most livable cities. Not a single U.S. airport is among the top 100 airports in the world. Our bridges, road and rail are falling apart, and our middle class is being guttered out thanks to three decades of stagnant wages, while the top 1 percent enjoys 95 percent of all economic gains.

A rigged tax code and a bloated military budget are starving the federal and state governments of the revenue it needs to invest in infrastructure, which means today America looks increasingly like a second rate nation, and now new data shows America’s intellectual resources are also in decline.

For the past three decades, the Republican Party has waged a dangerous assault on the very idea of public education. Tax cuts for the rich have been balanced with spending cuts to education. During the New Deal era of the 1940s to 1970s, public schools were the great leveler of America. 

They were our great achievement. It was universal education for all, but today it’s education for those fortunate enough to be born into wealthy families or live in wealthy school districts. The right’s strategy of defunding public education leaves parents with the option of sending their kids to a for-profit school or a theological school that teaches kids our ancestors kept dinosaurs as pets.

“What kind of future society the defectors from the public school rolls envision I cannot say. However, having spent some time in the Democratic Republic of Congo—a war-torn hellhole with one of those much coveted limited central governments, and, not coincidentally, a country in which fewer than half the school-age population goes to public school—I can say with certainty that I don’t want to live there,” writes Chuck Thompson in Better off Without Em.

Read more: America’s rotting empire: Billionaires galore and a crumbling infrastructure - Salon.com

US Economy: Middle class still left behind in U.S. economic recovery, data show - by Jim Tankersley

The economic recovery of summer 2013 is playing out in an all-too-familiar way for poor and middle-class Americans: Gas prices are up, growth is slowing, and there still aren’t nearly enough new jobs to employ the almost 12 million people seeking work.

An improving housing market and rising stock prices appear to have done little to increase the take-home pay of the typical U.S. worker. And while the economy continues to heal faster than that of almost any other Western nation, evidence remains strong that the recovery has done little to boost the fortunes of people in the vast economic middle.

Economic indicators released Thursday continue to show a mixed picture of the recovery — and certainly not one pointing to a surge in working-class incomes any time soon.

On the plus side, new claims for jobless benefits fell last week from the week before; economists stressed that seasonal factors could be driving the decline but said the overall trend suggests the economy could be on pace to add about 200,000 jobs this month. On the down side, the index of leading indicators — a broad measure of economic health — was unchanged in June, falling short of economists’ predictions.

The Labor Department reported this month that average earnings have barely grown faster than inflation over the past year.

Read more: Middle class still left behind in U.S. economic recovery, data show - The Washington Post

Africa's middle class prospers, but at a price

In Ghana, the middle class is growing fast. It's a trend typical across the whole continent. But, there are rising concerns about the impact of the development and whether certain parts of society are being left behind. 

There’s no doubt that “Citizen Kofi” is the place to be seen in Accra. The colorful five-storey building, located in the heart of the Ghanaian capital, can be seen from afar. It's packed with expensive restaurants, a wine bar, night clubs and a "Hollywood Lounge" - everything one might need to host parties and celebrations as well as seminars and conferences.

Anneselma Bentil works here as an event manager. The 32-year-old Ghanaian is responsible for organizing events and marketing. "When Barclays Bank needs a good location for a meeting with 30 to 50 representatives from around the world, they call me to organize it," Bentil told DW, explaining how she makes the necessary arrangements, estimates the costs and meets all the customer's requirements.

Read more: Africa's middle class prospers, but at a price | Globalization | DW.DE | 02.01.2013

US Economy: The U.S. Government Is Bankrupt - by Doug Casey

Doug Casey, of Casey Research writes: Everyone knows that the US government is bankrupt and has been for many years. But I thought it might be instructive to see what its current cash-flow situation actually is. At least insofar as it's possible to get a clear picture.

As you know, the so-called Super Committee recently tried to come up with a plan to cut the deficit by $1.5 trillion and failed completely. To anyone who understands the nature of the political process, the failure was, of course, as predictable as it was shameful. What's even more shameful, though, is that the sought-after $1.5 trillion cut wasn't meant to apply to the annual budget but to the total budget of the next 10 years – a fact that is rarely mentioned.

Now whenever the chattering classes talk about cuts, it's always about cuts over the course of 10 years. Which is a dodge, partly because most of the supposed cuts will be scheduled for the end of the period, but also because new programs, new emergencies and hidden contingencies will creep in to offset any announced cuts. So the numbers below aren't a worst case; they're the rosiest possible scenario. People have thought I was joking when, asked how bad the Greater Depression was going to be, I answered that it would be worse than even I thought it would be. But I haven't been joking.

Let's divide people into three classes – rich, poor and middle class. Rich people are going to be okay. They can bribe the politicians to change the laws, hire the lawyers to interpret the laws, the accountants to limit their liabilities, advisors to help them profit from distortions and travel agents to get them out of Dodge. They may get eaten later, but for the moment, don't worry about them. The poor don't have much to lose, and the government is going to keep throwing benefits at them to keep them happy. That's a shame because it cements them to the bottom as poor people – but that's a topic for another day. The real danger is to the middle class, and it's a serious matter because the US is a middle-class society. These are people who try to produce more than they consume and save the difference in order to grow wealthier. That formula has worked well up to now – but almost everybody saves dollars. What happens, however, if the dollars are destroyed? It means that most of what they saved disappears, and most of the middle class will disappear with it, at least for that generation. They'll obviously will be be very unhappy, and they'll be up for some serious changes.

It seems highly likely that the US will get a savior, someone full of bravado, who assures the booboisie that he can straighten things out – if he is given sufficient power. Perhaps it will be an arrogant windbag like Gingrich, perhaps some general. The government won't wither away; it will reassert itself. I don't see any way around it, actually. We are already moving into a police state (evidenced most recently by the Senate's Nov. 2 vote allowing the military to indefinitely incarcerate anyone they accuse of terrorism). But at least it's a police state with a fairly high standard of living, one with Walmarts, McDonalds, and SUVs – at least for the time being.

But rest assured that if the situation evolves the way I expect, the standard of living will drop steeply, financial markets are going to become chaotic and the US will become a quite repressive place for some time – at least as long as the War on Terror lasts. I will bet you money on this. In fact, I am betting money on it.

So what can you do about it? Well, actually, there is nothing you can do about it. At least as far as changing the course of history is concerned. The best you can do is to speculate intelligently on further, new distortions that will be cranked into the system, as well as others that are inevitably going to be liquidated.

It seems to me that this is a trend that can no longer be turned around. The US government's budget is, in fact, the biggest thing in the world; it won't be turned around, because it is like a gigantic snowball rolling down a hill. It will only stop when it smashes into the village at the bottom of the valley. The best thing you can do is capitalize on it as well as you can and get out of its way while you do.

For more: The U.S. Government Is Bankrupt :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

Alternet,: America Without a Middle Class -- It's Not Far Away As You Might Think by Elizabeth Warren

For the complete report from AlterNet clickon this link

Today, one in five Americans is unemployed, underemployed or just plain out of work. One in nine families can't make the minimum payment on their credit cards. One in eight mortgages is in default or foreclosure. One in eight Americans is on food stamps. More than 120,000 families are filing for bankruptcy every month. The economic crisis has wiped more than $5 trillion from pensions and savings, has left family balance sheets upside down, and threatens to put ten million homeowners out on the street.

Families have survived the ups and downs of economic booms and busts for a long time, but the fall-behind during the busts has gotten worse while the surge-ahead during the booms has stalled out. In the boom of the 1960s, for example, median family income jumped by 33% (adjusted for inflation). But the boom of the 2000s resulted in an almost-imperceptible 1.6% increase for the typical family. While Wall Street executives and others who owned lots of stock celebrated how good the recovery was for them, middle class families were left empty-handed.

CEPR - USA - Over 40 Million Jobs - 1 in 3 - Pay Low Wages - by Lynn Erskine

For the complete report from CEPR click on this link

USA-Over 40 Million Jobs - 1 in 3 - Pay Low Wages - by Lynn Erskine

Washington, DC: A new report from The Mobility Agenda in the US finds that over 40 million jobs in the United States — about 1 in 3 — pay low wages ($11.11 per hour or less) and often do not offer employment benefits like health insurance, retirement savings accounts, paid sick days, or family leave. Moreover, these jobs tend to have inflexible or unpredictable scheduling requirements and provide little opportunity for career advancement.

The Mobility Agenda is a special initiative of Inclusion, a virtual think tank affiliated with the Center for Economic and Policy Research. "All too often these low-wage jobs are replacing jobs in America that have supported a broad middle class," said Margy Waller, director of The Mobility Agenda and one of the paper's co-authors. "The economy and our democratic society are strongest when no one is falling too far behind the rest. Unfortunately, we find that, in 2006, 44 million workers were employed in low-wage jobs paying much less than the rest of us in the US get paid."