ABC's 20/20 "Whatever happened to the middle class"?

[TexasHusker]

I'm not sure if any of you had a chance to watch this on Friday night with Diane Sawyer. I rarely watch network TV any more in terms of news, because the liberal undertones have become overtones and I simply cannot trust it. We watched this episode out of boredom.

The idea of the show was to profile various families that "should" be middle class but are getting squeezed out.

The first family profiled was a family of four who claim to be broke. The mother works as a school aid, and the show detailed how her salary barely covers their food, house payment of $800, $200 car payment, and utilities. How sad. Except they never told us what dad makes as an HVAC repairman. Next...


The next profile was of a firefighter in Wilkes Barre, PA who has a family of three but has to work three jobs to make ends meet. Just barely getting by. I call b.s. The firefighter is working 3 part time jobs, one as a firefighter, two as a paramedic. Paramedics don't make jack and never have. And the wife isn't working at all.

The next profile was a couple who literally live in Archie Bunker's house. However, home values in that neighborhood have reached into the stratosphere and so no one can afford to live on that block any more that is middle class. Only bankers and CEOs. This couple is outraged that folks who are middle class can't live on this block any more, and so was Diane Sawyer. She said "it's just not fair!" The only problem here is that this phenomenon has nothing to do with the middle class getting squeezed out - it's just that a particular inner city neighborhood has increased substantially in value.

The next profile was of a part time college professor who is on food stamps and simply can't afford to make ends meet. Diane Sawyer was practically in tears. Newsflash: Colleges don't pay jack, especially if you're part time. Go get a full time job somewhere.

The next profile was of a single mom working at a Taco Bell who couldn't afford to live in a middle class neighborhood. Newsflash: Working at Taco Bell is not a middle class job and never was.

The next profile was of a single mom who has been cleaning office buildings for 25 years. Same situation. Cleaning office buildings has never produced middle class income.

This next one was really good: It was in Burlingame, California, where the fast food workers have actually had to move out of the town because it is now so incredibly expensive to live. Everything just costs too much these days. And 20/20 interviewed 4 couples who have had to move from this town for the same reason. Cost of living is just too high. 20/20 failed to report that in this town, the council declared a city-wide minimum wage of $12.25 an hour several years ago, causing prices of everything from cereal to gas to coffee to skyrocket. That minimum wage is going to $16 an hour by 2018!

So after all these sob stories, a round table of bureaucrats were asked what to do? One said more tax credits. One said "higher wages." 20/20 scathed McDonald's for making $ billions on dollars and not paying folks more.

Question: Has it occurred to 20/20 who actually owns McDonald's? Hint, it's not Ronald. It is individual shareholders and mutual funds all over the world - most of whom are middle class folks. How do you think McDonald's share prices would act if they had a 50 percent increase in wages for a $12 per hour minimum wage? Is that fair to those millions of owners, who are working class people like you and me?

Another problem is that houses are just too expensive! And whose fault is that? It's the builders' fault! They aren't building affordable housing! No one wants these nice houses they are building. Reality check: Builders aren't building houses for social justice; they are building for profit, and almost always building a house because they know it will be in demand.



The dumbing down of America....

[rennigade]

I saw this program too. They did have 2 points that stood out to me.

The main one is that our parents parents...that generation specifically...the husband worked and the wife would stay at home. They could live off his salary, afford a home, take a vacation...and could still save for retirement and pad their savings. My parents generation...my mom was stay at home until the kids were in school then she joined the workforce. My generation...I dont know any of my friends who have kids where one is a stay at home parent. Not a single one...both adults work. Both working parents really arent any farther ahead than their grandfather was back in the day.

How is that possible? Soaring prices? Salaries not rising with cost of living? Thats a problem...

The other topic that stood out was the whole fast food thing and workers wanting a higher minimum wage. When I was a teenager 20 years ago almost all fast food was run by "kids." There was the manager who was typically an older adults...but most of it was done by teens. They looked at it as a temp job...easily replaced, cheap labor, etc etc. Now it appears that so many older adults are out of work...fast food is now operated by older adults. Just look around the next time you stop by...theres not that many young kids anymore.

Sure...fast food was never viewed as a permanent job...we can all agree with that. But what the hell do people do when they cant find work? They're taking these low pay jobs just to survive. Anyone can sit back and argue they should have educated themselves with college earlier in life. We heard it all before. Pull yourselves up by your bootstraps, blah blah. That didnt happen with these millions of people. Now what?

Im sure we all heard about sears and macys stores closing. Where my parents live a sears is closing. Not sure how many people work there that are going to be out of work...lets say 300. Where do those people go now? Not many retail in that area anymore. They could move to a larger city and find a job at a department store...but they would be worse off. Higher cost of living, still low wage. Those people with very little talent are in trouble.

There is a widening gap between those that have and those that do not have. Not everyone can be a scientist, doctor, hvac tech, welder, teacher, etc etc. There is a huge void to fill with low paying jobs, janitors, retail, fast food, factory work. Without that gear the engine would stop.

Not sure what the solution is or what can be done...its not good though no matter how you spin it.

[disneysteve]

I saw this program too. They did have 2 points that stood out to me.

The main one is that our parents parents...that generation specifically...the husband worked and the wife would stay at home. They could live off his salary, afford a home, take a vacation...and could still save for retirement and pad their savings. My parents generation...my mom was stay at home until the kids were in school then she joined the workforce. My generation...I dont know any of my friends who have kids where one is a stay at home parent. Not a single one...both adults work. Both working parents really arent any farther ahead than their grandfather was back in the day.

How is that possible? Soaring prices? Salaries not rising with cost of living? Thats a problem...

There are a few issues at play here. Yes, salaries have been rising slower than costs. That's a big problem.

However, another big problem is lifestyle inflation. Your parents' parents' generation led a far simpler lifestyle. They lived in a smaller home. They cooked their meals from scratch. They had little if any hired help - they cleaned the house themselves, they mowed their own lawn, etc. Their kids played in the yard or in the street. And the family vacation meant piling into the station wagon and going to the beach. Today, homes are way bigger, people eat most of their meals outside of the home and the ones eaten in the home are frequently convenience foods. The kids are in a zillion activities that cost hundreds or thousands of dollars per year. And the family vacation involves passports, planes, cruise ships, and private tours.

The other topic that stood out was the whole fast food thing and workers wanting a higher minimum wage. When I was a teenager 20 years ago almost all fast food was run by "kids." ... Now it appears that so many older adults are out of work...fast food is now operated by older adults.

You're absolutely right, and it isn't just out of work adults. It is also a lot of seniors and retirees who are working to have something to do and earn a few bucks. A generation or two ago, you rarely saw a 65+ woman working anywhere and an older guy working wasn't all that common either. Today, it is quite common to walk into a store or restaurant and be served by someone in their 70s. Some of that is economic but a lot of it is that people are simply living longer healthier lives and want to continue contributing and feeling like they are an active part of the community.

[TexasHusker]

I think that both spouses are working these days because they desire granite counters, a daily latte or two from Starbucks, a late model Infiniti, a health club membership, and so on.

In other words, folks these days demand one hell of a lot more out of life than our parents did.

I grew up middle class, in a no frills home of 2000 square feet. Our family car was a chevy chevette. Our vacations were trips to the grandparents. We had no country club membership. Very little eating out.

20/20 decided to redefine middle class and what you have to do to be there. Middle class has always required at least some education and/or a trade skill. It still does.

And you can still be middle class with one working spouse, but you might have to skip on the 6 inch crown molding.

[StormRichards]

Now it appears that so many older adults are out of work...fast food is now operated by older adults. Just look around the next time you stop by...theres not that many young kids anymore.

No doubt that there are lot more older adults working fast food these days, but in my area there is still a good bit of teens as well. Which presents a very awkward dynamic in my opinion, and one that I personally would not be comfortable working in. It is not uncommon for me to witness teens carrying on (and sometimes using profanity) while working at their fast food job. Then I see the adults working with them (but actually working), and the first thing that enters my mind is how disheartened I would feel.

[rennigade]

In other words, folks these days demand one hell of a lot more out of life than our parents did.

There are a few issues at play here. Yes, salaries have been rising slower than costs. That's a big problem.

However, another big problem is lifestyle inflation. Your parents' parents' generation led a far simpler lifestyle.

I do agree with you both of lifestyle creep and living beyond means...and this certainly affects some people. Im not convinced that if everyone lived with the bare essentials that this issue would be that dramatically fixed. I used to think this and I would always say to just live below your means and people wouldnt have to worry but im not so sure anymore.

[TexasHusker]

No doubt that there are lot more older adults working fast food these days, but in my area there is still a good bit of teens as well. Which presents a very awkward dynamic in my opinion, and one that I personally would not be comfortable working in. It is not uncommon for me to witness teens carrying on (and sometimes using profanity) while working at their fast food job. Then I see the adults working with them (but actually working), and the first thing that enters my mind is how disheartened I would feel.

Before long we won't have this problem as much: The fast food joints are quickly moving to robots/kiosks/automation that is eliminating a bunch of labor.

Kiosks generally don't call in sick, use profanity, or demand $16 an hour for $7 an hour's worth of work.

[rennigade]

My wife and I were driving this weekend and I was giving her the cliff notes of the 20/20 episode. I basically ended up saying sometimes we have to step back and really think about how lucky/fortunate we are. She then made the point that yes we are very fortunate...but we also both max our 401s and roth ira...we save a lot...we never spend more than we can afford, we're financially aware. Her point was that how lucky we were wasnt so much luck as it was preparation and lifestyle.

[Singuy]

Perhaps the "middle class" was redefined by the increase use of debt. I don't believe debt carrying was as popular 50 years ago (considering the birth of the credit card was 1950). People made X amount of money, and bought X amount of things.

Today people makes X amount of money but buys Y amount of stuff thanks to the ease of credit use. It's appropriate to spend money you don't have to which is now redefining the new "middle class".

People now see owning a new BMW is the "middle class"..heck a lot of my techs who makes 16/hr are driving Cadillacs and Beamers...since it's so easy for any Joe Smith to obtain items that seem "middle class" today.

This is what happens when you are allowed to buy houses you can't afford, cars you can't afford, vacations you can't afford, and cloths you can't afford. The new middle class...with a median income of 53k and an expense of a household that makes 120k.

[TexasHusker]

My wife and I were driving this weekend and I was giving her the cliff notes of the 20/20 episode. I basically ended up saying sometimes we have to step back and really think about how lucky/fortunate we are. She then made the point that yes we are very fortunate...but we also both max our 401s and roth ira...we save a lot...we never spend more than we can afford, we're financially aware. Her point was that how lucky we were wasnt so much luck as it was preparation and lifestyle.

...and education?

[Singuy]

https://www.youtube.com/watch?v=GUcgI1cp718

This is the 20/20 special for those who didn't see it.

[rennigade]

...and education?

Yeah and education...more for her...she has her phd. I have an associates. Her parents also covered her $150k undergrad bill which left her with zero student loan debt, her grad school was free. Mine covered all but $11k which I paid off pretty quick. How fortunate were we to get $180k head start in life. I consider that luck. We couldnt pick our parents, we didnt know their financial situation...thats part of the hand we were dealt.

[TexasHusker]

https://www.youtube.com/watch?v=GUcgI1cp718

This is the 20/20 special for those who didn't see it.

As far as I am concerned, ABC joins CNN in the fake news club. This segment cemented it for me.

Elitist Liberalism is the undoing of this country. Our problems are the result of greedy rich people and it's the government"s job to fix it. Can't buy a home? Let's pass legislation that allows you to for nothing down, and sponsor it with Freddie and Fannie. Then when housing inflation runs wild and the bubble pops, we can blame it on greedy rich people.

Can't go to college? let the government fund it through grants or guaranteed student loans. Then when inflation is runaway and it's $25K per year to attend a state school, blame it on inflation and give it even more gas.

Can't afford health insurance? Let the government underwrite it. We see where that is headed.

Don't make enough? By all means jack up minimum wage. The greedy businesses can afford it. They can live on less. And when everything doubles in cost as a result, that means we probably didn't raise it quite enough. Let's raise it some more.

Can't afford a car? Give the government your car in trade for a brand new one with $2000 of taxpayer dollars, at a cost to taxpayers of $3 billion (yes, billion). Oh and rather than donating all those clunkers to poor people, we will just destroy all of them.

[Singuy]

As far as I am concerned, ABC joins CNN in the fake news club. This segment cemented it for me.

Elitist Liberalism is the undoing this country.

Whoa Whoa....none of this is fake news. People...including Trump, need to stop calling this and that fake news.

None of these stories are made up...and we know millions of people are in the same boat as the families portrayed in the show. I mean the slogan "Make America Great Again" derive from Families who think we all should go back in time to live the middle class lifestyle without a college education (manufacturing jobs that pays super well).

[TexasHusker]

Whoa Whoa....none of this is fake news. People...including Trump, need to stop calling this and that fake news.

None of these stories are made up...and we know millions of people are in the same boat as the families portrayed in the show. I mean the slogan "Make America Great Again" derive from Families who think we all should go back in time to live the middle class lifestyle without a college education (manufacturing jobs that pays super well).

This isn't about politicians. It is about gross distortion of truth and the withholding of relevant facts by a supposed news organization. It was one hour of unadulterated elitist, liberal propaganda under the auspices of journalism. What's new?