Economists and statisticians may argue over whether the American middle class is, in fact, shrinking, but if it is, there’s little doubt as to why: more middle income people become more comfortable and prosperous, not impoverished. In fact, the official poverty rate has  declined dramatically since the 1950’s (remembered as a the “golden age” of Middle America) with the percentage dwelling in poverty declining from 22.4% to well below 13% in recent years.

Meanwhile, two other news items provided important perspective on the status and future of middle income Americans---

-In 2007, a total of 9.57 million Americans took cruise vacations. In a 2008 national survey for the Cruise Lines International Association, 34 million of our fellow citizens say they plan a cruise vacation within the next three years.

-With the foreclosure crisis sweeping the country, numerous news reports noted second homes were disproportionately hard hit—that’s the bad news. But the good news from the Federal Reserve is that a stunning 12.5% of all households still own a second home. Among families between ages 55-75, that figure rises to 20%.

These numbers provide re-enforcement for the idea that when Americans no longer qualify as middle class, they usually leave that designation for the world of vacation homes and luxury cruises, not hunger and homelessness.

“WHAT HE DID TO GET THAT MONEY”

Andrew Carnegie (1835-1919) earned universal praise with his prodigious philanthropy – building more than 3,000 public libraries in 47 states (and nations around the world), founding Carnegie-Mellon University and the Carnegie Institute of Technology (C.I.T.), establishing Carnegie Hall in New York, the Carnegie Endowment for International Peace, and much more. Anti-business bias, however, leads many observers to speculate that he turned to charity in order to assuage his guilt over his success as a Captain of Industry. For a 1999 PBS “American Experience” program about the impoverished Scottish immigrant who became “The Richest Man in the World,” his biographer, Joseph Frazier Wall suggested: “Maybe with the giving away of his money, he would justify what he had done to get that money.”

And what had he done, exactly?

When Carnegie retired at age 66 (and sold his business to J.P. Morgan and associates to create the vast new company “U.S. Steel”) he employed 31,162 full-time workers at three major mills. His organizational genius helped create the steel business that played a crucial role in American industrialization and prosperity. However laudable his charitable endeavors (he managed to give away nearly all his money before he died at 83), the creation of jobs and wealth in his business career benefited his countrymen even more.  

You have to give credit where credit is due, and the FBI and the Department of Justice deserve to be recognized for their effort to crack down on mortgage fraud schemes. From March 1 to June 18, 2008, more than 400 defendants were charged for roles in mortgage fraud schemes as part of operation "Malicious Mortgage." The FBI estimates that approximately $1 billion in losses were inflicted by the mortgage fraud schemes employed in these cases.

Most recently, two senior managers of failed Bear Stearns Hedge Funds were indicted yesterday in separate mortgage-related security fraud cases.

Since July 2002, the DOJ has made almost 1,300 corporate fraud convictions, including the convictions of more than 200 chief executive offices and corporate presidents, more than 12 corporate vice presidents, and more than 50 chief financial officers.

These efforts are crucial for the benefit of American homeowners and taxpayers and the housing market. All the agencies involved deserve a great deal of respect for their efforts.

On Wednesday, I appeared on the O'Reilly Factor to discuss the Countrywide Mortgage Scandal involving “VIPs” Senator Chris Dodd (D-CT) and Senator Kent Conrad (D-ND). Take a look.

Inflation was up in 2007, but this stands out because the 16 previous years were close to inflation-free; living standards are the highest they have ever been, including living standards for the middle class and for the poor.

All forms of pollution other than greenhouse gases are in decline; cancer, heart disease and stroke incidence are declining; crime is in a long-term cycle of significant decline; education levels are at all-time highs.

Apparently, John McCain can't say that not everything is terrible, lest he be nailed again by the DNC -- and seem terminally out of step with the hysterical zeitgeist being promoted by the press.  But facts are facts, and they are worth knowing.