General Discussion
In reply to the discussion: Bill Maher Drops A Reality Bomb On Republicans: American middle-class was created though socialism [View all]RationalMan
(96 posts)The modern middle class came out of the ravages of WWII.
The way I see it there were 4 major reasons we saw the emergence of a vibrant middle class in post-war America.
1. GI benefits - The GI Bill gave veterans government loans and payments for college, the purchase of a home, etc. Young men returning from war could get an advanced education partially or totally paid for by the U.S. taxpayer and get assistance in buying a home. They also got medical and other VA benefits.
2. Unions - for those returning soldiers that did not go into professions such as medicine, dentistry, law, accounting, etc., they went to work in America's factories. In those factories labor organized and fought for better working conditions, better pay and benefits like the 5 day / 40 hour work week, paid sick leave and vacation and company pensions.
3. Tax system that favored the middle class - marginal rates on the wealthiest Americans were well above 70%. That revenue helped pay for roads (Eisenhower's modern interstate highway system), bridges, ports, etc. It paid for investments in research, etc.
4. America as super power - some of the rise of the American middle class after the war can be attributed to the fact that American business - products and services, were pre-eminent. The rest of the world was in tatters. Europe and much of Asia was devastated by the war. American businesses were able to establish strong positions in many parts of the world which in turn provided markets for American goods made by American union workers.