Middle Class Economic Might

Amazon Prime

One of the best things about having a job is that all of those little things that I have been putting off purchasing are now things I can more easily justify buying.

This year I bought in to the Amazon Prime thing in order to get free two day shipping on virtually everything that is available on amazon.com, which is virtually everything that is available for purchase on the planet.  Plus, I get access to the Prime media library, which has been nice since I have cut ties with my cable company as I posted about here (it's funny, you should read it).

A lot of writers have worn the letters off their keyboards describing how awful it is that online retailers are using tracking tools to better understand their consumers.  I say that this process isn't going far enough and that I would like to have more of a say in what goods and services are shown to me when I log in to my account with amazon.com.  Recently, my employer asked me to look up some information on

Money Woes

Class Warfare is not an evil term.  Class Warfare is, to my way of thinking, an apt term to describe the actions of the wealthy and those they have bought in high government office who are right this minute actively waging war on the middle, working and lower classes.  

Sales tax is added to everything you buy in the United States.  State and city governments set the amount of these taxes so they vary from city to city.  When I was recently in Seattle, I was shocked to find that the sales tax rate was 10%.  Being from San Diego, I'm more accustomed to paying 7.75%, which to my way of thinking is already too much.  

When I recently read that George Osborne, Chancellor of the Exchequer in Great Britain, increased the tax rate on the sale of hot take away food to 20% I became outraged from all the way across the pond.  At the same time this 20% sales tax on hot take away food goes into effect, top earners in Great Britain will actually enjoy a 5% income tax break!

David Cameron, the Prime Minister of Great Britain, has already expressed public approval for the new tax rates put forth by George Osborne.

Those Big Government Bullies

The New York Times has more details about the new tax rates in an article that can be found here.


I Didn't Win

Sadly, I didn't win the Mega Millions lottery which was up to $640 million before the winning numbers were announced on Friday.

Sad Making

I'm not sad because I didn't win so much as I am sad for everyone else who will now miss out on what would have been one of, if not the, greatest press conferences of all time.  Had I won, I would have used all $640 million to finance the purchase of 640 million lottery tickets for the next drawing.  Answering a reporter's question about what I will do with my winnings with a hearty "I'm gonna let it ride!" would have been awesome.

Losing Your Retirement in 2012

The latest new thing for major American corporations to do is declare bankruptcy.  All the cool companies are doing it!  Here's how:

• Company X is the brand that everyone in America and a large number of people around the world know and do business with

 

We Worship You With Our Money

• Company X is actually owned by Company Y.

Your Teachers Told You This Math Stuff Would Be Testable

• Virtually no one has heard of Company Y yet their holdings include the internationally known Company X.
• Company X employes a lot of people and has employed many more over the years to whom it either owes pensions to in the future or is currently paying pensions to right now.  
• Company Y doesn't like paying pensions so it declares bankruptcy.
• Bankruptcy proceedings allow Company Y to restructure (read reduce) pension payments to their current and former employees.
• Company X continues to do business during the restructing of Company Y as if nothing is happening.

 Financial Worship Continues Uninterrupted

• Company Y negotiates lower payments for their all their creditors, which they justify by saying that actually having to meet their obligations makes them unable to compete in the marketplace, the business model isn't sustainable (despite the fact that Company X continues to operate), etc.

Who is Company X?

• In late 2011, American Airlines was Company X
• In January of 2012, Hostess became Company X.  You can read more details here.
• I'm probably missing several other major companies that are doing the same thing.

If you're a member of the middle class in America, this should enrage you.  I say that companies shouldn't be allowed to avoid paying what they have promised to pay.

TL;DR: Large corporations have found a new way to screw the little guy.

Update, February 1, 2012: According to this article published today in the New York Times, "American Airlines said Wednesday [today] that it wanted to cut 13,000 jobs and terminate its workers’ pension plans as it seeks to cut its employee costs by 20 percent while operating in bankruptcy court. " 


On April 23, 2012 the New York Times published an update noting that the parent company of American Airlines went to court in an attempt to void its contracts with three labor unions.  Here is the article.