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Arianna On 'Morning Joe': 'Squeezing Of The Middle Class' Is Country's Biggest Crisis

Posted: 12/16/11 05:21 PM ET

On Friday, Arianna Huffington joined New York Times columnist Thomas Friedman and economist Jeffrey Sachs to discuss America's shrinking middle class on 'Morning Joe.'

Cohost Willie Geist prompted the panelists with numbers from a recent Census report, which showed that nearly half of Americans have fallen into poverty.

"We now have 1.6 million children that are homeless, and 5.6 million children living in poverty," Arianna said about the survey, remarking that the increase had occurred during a Democratic administration, a sign that no president is able to confront the country's starkest challenges.

"It's not about right and left, it's not about Democrats and Republicans, because whoever is in power right now, we still cannot deal with the biggest crisis we're having, which is the squeezing of the middle class and downward mobility -- 100 million people today are worse off than their parents were."

Friedman said that America's priorities are out of wack with prevailing economic trends around the globe.

"If you look at the biggest trends in the world right now," he said, "the fact that we're in the third high-tech revolution, the hyperconnectivity going on, the fact that we've got companies thriving at that, but so many people left behind by it -- that to me should be at the centerpiece of our discussion, and it's simply not."

As for solutions to the country's crisis, the panelists proposed a new stimulus package (Friedman), more taxes for the wealthy (Sachs) and a re-emphasis on the need for growth to solve the deficit crisis (Arianna).

Watch the whole segment below:

Visit msnbc.com for breaking news, world news, and news about the economy

 
On Friday, Arianna Huffington joined New York Times columnist Thomas Friedman and economist Jeffrey Sachs to discuss America's shrinking middle class on 'Morning Joe.' Cohost Willie Geist prompted t...
On Friday, Arianna Huffington joined New York Times columnist Thomas Friedman and economist Jeffrey Sachs to discuss America's shrinking middle class on 'Morning Joe.' Cohost Willie Geist prompted t...
 
 
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11:44 AM on 12/19/2011
Ms. Huffington,

Thank you again for shedding desperately needed light on this devastating trend. How can we possibly turn away from a darkness that is eating at the very soul of our nation?

Heartrending Report on America’s homeless children from CBS’ 60 Minutes:
“Hard Times Generation”
http://www.cbsnews.com/video/watch/?id=7389750n

“Sharp Rise in Homeless Children, Study Says”
http://www.npr.org/2011/12/15/143781048/sharp-rise-in-homeless-children-study-says
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HUFFPOST SUPER USER
John Cotton
02:56 PM on 12/18/2011
The sea levels rising is the WORLD'S biggest crisis.
08:20 AM on 12/18/2011
Stop using property tax for schools. It is not fair if I do not have children that I have to pay for them to go to school. Parents should pay for their children to go to school. You want kids, good: pay for them. Make it on a sliding scale according to income. Then property taxes are lowered dramatically and we can finally pay our mortgages, keep our houses, and stop this disaster. Can you imagine if the parents had to pay and their kid can't read? All heck would break loose. Teachers striking for more money would be finally facing their employers on a daily basis instead of some joke politician that has no skin in the game.
02:01 PM on 12/18/2011
yes. and stop billing me for fire protection. its not fair, my house never burned down! and i don't want to pay for libraries; i don't borrow books. forget about my paying for parks; i don't use them. and bridges, don't get me started on those things; won't drive over them. (sound stupid? get the hint?)
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Rich Paul Freeman
Lover of Liberty
02:10 PM on 12/18/2011
Why should you pay for a bridge over which you will never drive, in a location you will never see, crossed by people you will never know on errands of no consequence to you? It seems stupid, eh? Maybe we should pay a toll when we cross a bridge, and the builders of bridges could make money by selling their product. Bridges to nowhere may be built, but the developers of such bridges should find themselves bankrupt so they can do no more harm!
09:33 AM on 12/19/2011
OK I see what you did there. I understand how ridiculous it gets when you start bring firemen, libraries, and roads into the the argument.

But what is your clever comeback for someone who loses their effing house because they can't pay the property taxes on it? I guess that's just their fault huh?
07:16 PM on 12/18/2011
How do you intend to pay back society for the education you received? Even if you were only educated in private schools, if you had been born to a poor family, are you saying you should not have been given a chance to learn how to read? This is your idea on how to make this country and the world a better place? There is no need to write back. You may not be illiterate, but I agree, in your particular case, any attempt to teach you was wasted.
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12:38 AM on 12/18/2011
Does anyone else find it interesting that the panels who supposedly support the middleclass are always made up of 1 percenters?
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enkephalos
Were all alone until we accept our need for others
02:17 AM on 12/18/2011
Right, because they have the money and power to provide a voice for us. Its not rocket science.
12:36 AM on 12/18/2011
This growing income split is the biggest threat to our country. Most of the 1%ers are not interested in their country’s future. They are only interested in taking more of the world’s wealth. Their companies and interests are now bigger than any country.
Currently the revolt has been a very peaceful middle class Occupy Wall Street. But if these pleasant middle class protesters are not heard and action taken, the revolt will move to the lower class. The lower class people are the one who have nothing left to lose. They have lost their jobs and their savings and homes have been ripped off by wall street. There people need basic essentials: food, clothing and shelter. They now make up 20+% of our population. Many of them are vets, who are living in our streets and parks. When this group revolts, it will not be pleasant.
We need elected officials that have the morality and backbone to stand up and make the changes needed to save our country. Spending $600 billion on a military budget will not save us. We need to move 50% of this to restoring our middle class.
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Debbie Niemeyer
12:24 AM on 12/18/2011
what is distrubing is there being no discussion over the federal minimum wage. people are not aware that much of the wages in this country are strongly correlated to the current low federal min wage. WAKE UP AMERICAN MEDIA~!~
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Rich Paul Freeman
Lover of Liberty
02:12 PM on 12/18/2011
If you raise the minimum wage, many will lose their jobs. If I can only produce $5/hour in value, I cannot be paid $7/hour. So my job disappears if the minimum wage goes from $5/hour to $7/hour.
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Debbie Niemeyer
12:21 AM on 12/18/2011
substantially raising the federal minimum wage is an investment.
11:42 PM on 12/17/2011
The squeezing of the middle class has been going on 35 years now. There isn't much pulp left. Its utterly transformed from the landed middle class to apartment and condo dwellers with two or three incomes just to make expenses. And some have completely been ousted as they loose their jobs or can't find one. It isnt just happening, its been happening for most people's lifetimes.
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MSROADKILL612
love auto biographys. any appS to write mine?
05:54 AM on 12/18/2011
Also seems to have been a modern obsession with new. Here in oz i often see people pay as much for a cruddy little villa as they would for an older, bigger bungalow
HUFFPOST SUPER USER
Roxee
"Feeling" you're right, doesn't "prove" you are.
10:13 PM on 12/17/2011
Not optimised for iPad? That's clever of you.
HUFFPOST SUPER USER
rtx47
09:24 PM on 12/17/2011
We should stop Crony Capitalism. Obama whom I strongly support (and still support) and his henchmen (Geithner, Summers, et al) could have rescued banks and finanical institutions without bailing out their management and workers; as they did with GM.

Correct economic inequity by admitting to and ending policies that got us here - however painful that change may be. In education, end social promotions and give parents choice. It took us a couple of decades to get here and it will take us a couple of decades to get out; but we have to start.

Some inequities are created by govt taking money from working Americans (aka taxes- 50%). That money is used to provide programs to the poor; but in reality money goes directly to corporations. Follow the money in education (school and college), food stamps (including Ag subsidies), Medicaid and Medicare, Military, foreign aid, transportation, etc. Some of this money gets back to politicians as campaign contributions.

Regards housing, most people bought homes as part-investment. People loose on their investment all the time; especially now in the stock market. Does the govt have a bail-out plan for them? Is the govt helping the poor home-owner; or are they rescuing bankers and corporate interests?

The home-owner in financial difficulty can find ways to rent part of their home. Most NY city residents do so! Or ask one's parents or siblings to move-in in an help-help and win-win relation.
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mcartri
09:21 PM on 12/17/2011
It's called a dysfunctional democracy, Joe. The 1% is represented by the corporate/uber-rich oligarchy that owns BOTH political parties. What the 99% needs and wants is simply irrelevant to the 1% and their Washington puppets. When six-members of the Walton family has amassed a combined wealth equal to almost 100-million American's total wealth, we know this a disaster in the making. The only hope I can see is that moderate Republican President Obama is re-elected and both Houses are in moderate Democratic control, the Senate filibuster rule is terminated and in 2016 we elect the first actual Democrat to the presidency since LBJ in 1964. This would be Massachusetts Senator, Elizabeth Warren.
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Priestess of Ryleh
panem et circenses!
07:31 AM on 12/18/2011
only if in the meantime she doesnt become bought XD
Artu Di-tu
El valiente vive hasta que el cobarde quiere
09:18 PM on 12/17/2011
It isn't hard to figure out...the GOP are obstructing our country's progress so that President Obama will get no credit for succeeding.

Arianna and the others know exactly what's happening in our country today.
08:05 PM on 12/17/2011
Just using Newt as a example it really goes to all those in power now days. Newt said that he makes speeches for 60 thousand a pop. That is how he meets people so he really has no clue what is going on past his rich friends . Riches and greed is all these people know and nothing will change until people start speaking out loud enough for them to hear. People every day are raising cane putting out the kool-aid that they hear knowing it is hurting their selves. How low have we got that we can now help others to hurt our family's. Ones not effected yet just wait your time may come that you hit bottom too
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killarneytim
Just common sense;not L or R
10:55 PM on 12/17/2011
Just Newt? What about most of congress?
12:37 AM on 12/18/2011
Read my statement, I said I was just using Newt as an example and it really goes to all in power. That includes all the rich boys in congress that every time they have a meeting with the people it is all the rich and bussines owners that are invited and get to ask questions. They never go out and see the rest of the people to see how they live. If you were rich and I just go to your house and street I could never know how the rest live
07:30 PM on 12/17/2011
People are going to start getting desparate. I wonder if our "leaders" have a clue on how politically destablizing this economic situation is? I am very concerned that things could really get out of hand.
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charleyvldm9
He thinks outside the box.
06:56 PM on 12/17/2011
What about the Banks giving us back our normal Interest Rates ,as a start on our savings,like we had under Pres.Bush.(3plus%)
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oneeasyrider
E=mc2: From light you exist
08:01 PM on 12/17/2011
You have to understand basic economics to answer your question. When Bush and GOP squandered the budget surplus and presided over the financial meltdown, they let the economy slide into near Depression -- deflation follows -- when economic demand dries up.

This required the Fed to react and increase money supply to save the economy from total collapse. As a result, interest rates fell. It's cause/effect.

If you understand economic reality, then you know Bush caused the rates you're looking for to fall as an unintended consequence of his actions.