Are the above the only reasons why Canada’s middle class is growing and the US middle class is shriveling? Of course not. Here’s another reason, and the likely biggest factor.
The top 1 percent of Canadians steal slightly more than 10 percent of the total Canadian national income, while the top 1 percent in the US are stealing 37 percent of all income, and this is growing massively since the top 1 percent have stolen 95 percent of all US income growth every year since 2009, thanks to legislation generously supported by US Senators Mitch McConnell and Ron Wyden, such as international income redistribution agreements, commonly and falsely marketed as free trade agreements.
International income redistribution agreements redistribute income from the 99 to the 1 percent by legally paving the way for US corporations to ship jobs overseas, as well as create jobs overseas, rather than investing in the USA. The difference between the old higher US wages and the new lower overseas wages goes straight to the already fat bank accounts of the 1 percent while the job losers get unemployment insurance if they’re lucky, and lower wages when and if they find a new job.
This legislatively induced US income inequality is the reason why the demand for goods and services is so weak in the USA, and why the current business expansion is the weakest on record, which, not so coincidentally, is also following the previous weakest business expansion in US history. The 99 percent only get 63 percent of income in the USA, and now they have less money to spend, resulting less demand for goods and services, in slower and slower job growth, decreasing wages, less tax dollars for schools, roads, fire, the social security trust fund, and police.
According to the Federal Reserve, 28 million jobs were exported from the US from 1990 to 2010, and millions more have been exported since. That means those jobs don’t pay social security taxes any more, as that income has been redistributed to the super rich. And the rich don’t pay social security taxes on their incomes above $118,500 a year. That means hundreds of billions of dollars of US income are no longer paying social security taxes, resulting in the social security shortfall anticipated in twenty years.
In other words, part of your future retirement income has been redistributed by Wyden and McConnell to the 1 percent via their income redistribution scams. And now the pair are pushing through congress the largest international income redistribution scam of all time, the Trans Pacific Partnership, falsely marketed as a trade agreement.