April 20, 2001

Editorial

Federal Reserve Tax Cut Boon For Wealthy Meaningless to 75% of the People

Alan Greenspan, the Chairman of the Federal Reserve Board, made a surprising announcement Wednesday: The interest-tax rate would be reduced by 1/2 of a percentage point!

Furthermore, the Federal Reserve Board would cut the rate by another half a percentage point on May 15! The multi-millionaire stock- market investors were ecstatic, as were the mega-corporations, bankers, and international conglomerates that own and control the majority of the wealth in this country.

The billions of dollars they lost gambling on the stock market will be recouped, thanks to the welfare-bail out of the Federal Reserve.

At the same time that this scenario is unfolding, people who work for a living are shocked to learn that in San Diego County the median income is supposedly $56,000 per year (as reported by the local media)! This must have come as a surprise to the working class of the City and County of San Diego. The Census, the Feds, most economists and analysts have made no secret of the fact that the median wage in our area hovers around $24,000-$30,000 per year. At that level, after Federal tax deductions, Social Security deductions, State taxes, etc., most of the working class does not earn enough to survive and can qualify for Federal and State assistance programs. They are considered to be living in poverty!

The dirty secret in San Diego City and County is that 75% of the working people are nowhere near making $56,000 per year! The much-touted hi-tech industry employs very few of the working class people. Our hotel-tourist industry, which has the gall to charge upwards of $200-$250 per night to our visiting tourists, hires most of its staff from Tijuana and pays them the lowest wage possible. Ditto for the shopping malls, department stores, bars, restaurants, etc!

The common, everyday working person in this country receives absolutely no benefits from the Federal Reserve Board and its Chairman Greenspan. This is but one more example of how the obscenely wealthy-class in this country receives "welfare" from the national treasury and the government.

Some will say that the action by the Feds will make it easier to buy homes. In our City and County the median price of a small home is now $260,000! Dropping the mortgage interest rates to 5. 6 or 7 percent is irrelevant when you can't afford the down payment or qualify for a loan. Few working class people can afford monthly payments of $1,800-$3,000. We have no housing stock! The regulatory laws in place in our cities make it impossible to build affordable housing. The raw cost of land on which to place house trailers or manufactured housing (prefabs) and the legal infrastructure prevents this form of low-cost housing for the working class in our cities and county.

The majority of the working class is fast approaching the stage where they will find it impossible to live and work in San Diego City or County. This may lead to a situation where Americans will have to live in Tijuana or Ensenada, where they can afford it, and come to work in San Diego. We will have no other choice.

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