Americans across the political spectrum agree that our democracy is in crisis, with some viewing political opponents with disdain and increasing numbers willing to consider authoritarian alternatives, as economic instability is making life harder for most working families.
In a visit to Washington Township, U.S. Senate candidate Lisa McCormick offered a candid assessment of America’s economic plight that shed light on the hidden narrative beneath the veneer of prosperity and optimism of President Ronald Reagan’s legacy, which she blames for the current situation.
“For many Americans, the Reagan era conjures images of prosperity and optimism. Morning in America commercials painted a rosy picture of economic growth and renewed national spirit,” said McCormick, speaking to supporters gathered in a Black Horse Pike eatery. “Yet, beneath the glitz, a hidden narrative unfolded – one of a hollowing out of the American middle class, a story often veiled in triumphalist rhetoric.”
The country needs big changes, not minor adjustments because the last 40 years have been a class war against working families in which, McCormick said, “nobody is fighting back.”
McCormick said the beneficiaries of inequality are among the rising aristocracy that seeks a corrupt merger of corporate wealth and government power, and the political establishment in both major political parties has come to serve these American oligarchs.
“While economic indicators like the Dow Jones may have soared, the lived reality for many differed starkly,” said McCormick. “Examining the factors that contributed to this decline, and its potential consequences, necessitates a sober look beyond celebratory narratives and a return to the spirit of policies like the New Deal, the New Frontier, and the Great Society.”
McCormick identified these factors as fueling this erosion:
- Reaganomics and its Tax Trickle-Down Fallacy: “The cornerstone of Reaganomics was tax cuts for the wealthy, coupled with deregulation and reductions in social programs,” said McCormick. “The central tenet – that tax cuts for the rich would ‘trickle down’ to the middle class – proved demonstrably false. Instead, income inequality skyrocketed.”
- Union Busting and the Decline of Organized Labor: “Reagan’s administration actively weakened unions, undermining the collective bargaining power that once ensured fair wages and benefits for working-class Americans,” said McCormick. “This decline significantly contributed to stagnant wages, particularly for blue-collar workers, further eroding the middle-class base.”
- Globalization and Job Offshoring: “The pursuit of free trade agreements and deregulation incentivized corporations to offshore jobs to countries with lower labor costs,” said McCormick. “This devastated manufacturing communities, leaving middle-class families reeling from unemployment and economic hardship.”
- The Rise of Non-Standard Work: “The shift towards service-based economies and the gig economy led to an increase in non-standard work, characterized by low wages, no benefits, and erratic schedules,” said McCormick. “This precarious form of employment offered little stability or hope for upward mobility, further chipping away at the middle-class dream.”
“The erosion of the middle class poses a grave threat to the American social fabric and economic health. It breeds inequality, hinders social mobility, and weakens consumer spending, potentially stalling economic growth,” said McCormick. “It fosters social unrest and political polarization, as resentment and frustration simmer among those left behind. Additionally, a weakened middle class erodes the tax base needed to fund vital public services like education and healthcare, creating a vicious cycle of decline.”
The top 1% saw their share of national income jump from 8% in 1970 to 21% by 2014, while the bottom 50% saw their share shrink from 21% to 13%. This widening gap hollowed out the middle class, eroding its buying power and economic security.
The top 1% of earners own more than 30% of all wealth in the United States, and they are increasingly using their fortunes to cultivate political changes that create greater advantages for themselves at the expense of everyone else. In 1989, the richest one percent owned 23% of all the nation’s wealth.
Americans have long believed that major political donors and special interests have too much influence on politics and that ordinary people have too little influence, but average Americans have not responded by voting to impact the direction of the country.
“To reverse this erosion and restore the American dream, a return to the spirit of programs like the New Deal, the New Frontier, and the Great Society is necessary,” said McCormick. “These programs, while not without flaws, focused on strengthening labor rights, expanding access to education and healthcare, and investing in infrastructure – all crucial pillars of a robust middle class.”
Policy options that McCormick advocated include:
- Progressive taxation: A fairer tax system that shifts the burden from the middle class to the wealthy, generating revenue for vital social programs.
- Strengthening unions: Encouraging unionization and collective bargaining rights to ensure fair wages and benefits for working-class Americans.
- Investing in education & health: Expanding access to affordable, quality education and healthcare, equipping citizens with the tools to thrive in a modern economy.
- Regulating globalization: Implementing policies that incentivize domestic job creation and ensure businesses do not exploit cheap labor abroad.
- Promoting secure employment: Supporting family-friendly policies, access to childcare, and regulations that limit precarious work arrangements.
“The ‘Morning in America’ image loses its shine when viewed through the lens of reality that the middle class has suffered over the past four decades,” said McCormick. “We must be honest about the economic policies that have fueled their decline and the potential consequences of inaction.”
McCormick is the only progressive Democrat competing for the Democratic nomination for the U.S. Senate who has shunned big money. In 2018, she earned nearly four of ten votes cast in the primary even though her campaign raised less than $5,000.
McCormick lost Gloucester County to Menendez by just 27 votes, out of more than 16,000 ballots cast in the 2018 Democratic primary for the U.S. Senate.
”Tammy, Andy, and Bob are not proposing major changes. Each wants to restore federal tax deductions that would benefit the state’s richest homeowners and they all support continued spending on weapons that have been used to kill 10,000 children in Gaza since October 7,” said McCormick. “Tammy, Andy, and Bob all oppose Medicare for All, while my name has become synonymous with the universal healthcare system.”
“Embracing a new social contract, inspired by the past yet tailored to the present, is crucial to reviving the American dream and ensuring that prosperity reaches all, not just the privileged few,” said McCormick. “Only then can we truly usher in a brighter day for all Americans.”