Chapter 4: Expanding the base of the middle class
Your weekly excerpt from one of my books. This week: "The Hidden History of the American Dream"

Expanding the base of the middle class
The middle class was, until the 1970s, largely the province of single-wage-earning married white men and their families. Through the 1960s, following passage of the Civil Rights Act in 1964 and the Voting Rights Act in 1965, African Americans and other minorities who had previously been shut out of the professions and management positions, and even excluded from most unions, began to find new opportunities as the result of anti-discrimination legislation.
The legalization of the birth control pill in 1961, and the nationwide legalization of birth control in 1965 with the Supreme Court’s Griswold decision, similarly brought a wave of women into the workforce. Women could now delay childbearing and plan for their futures, giving them access to more educational and economic opportunities.
When Sandra Day O’Connor graduated from law school in 1953, number 3 in her class academically, the only job she could find in the private sector was as a legal secretary.[lii] By the 1970s things had begun to change substantially.
In 1960, for example, fully 94 percent of all medical doctors in America were white men. By 2010, that number had dropped to 60 percent, as women and minorities gained admittance to medical school and made their way into careers as physicians.
As researchers from the University of Chicago and Stanford found and laid out in an in-depth paper published in 2019:
“We find that one-fifth of U.S. market GDP growth can be explained by falling labor market barriers, falling human capital barriers, and shifting occupational preferences. Much of the productivity gains come from drawing women and black men into high-skilled occupations.”
In political terms, this has very much been a two-edged sword.
While expanding the number of people who can enter the better-paid parts of the job market has increased the efficiency and fairness of our labor markets — and, thus, the overall efficiency and fairness of our entire society — it’s also provided a ready foil for Republicans to claim conspiracy and victimhood.
As mentioned elsewhere, the American middle class peaked at about two-thirds of us just as Ronald Reagan was taking office and his neoliberal Reaganomics policies were first put into place. Between his war on labor unions, offshoring our factories, and his cutting income tax rates (more on that in a bit), Reagan’s policies — kept in place for over 40 years now — have succeeded in so gutting the middle class that today only 43 percent of Americans qualify as middle class. To make matters worse, today it takes two full-time incomes to achieve the lifestyle a single union job could provide in 1981.[liii]
Most Americans — particularly those old enough to remember the middle class of the 1950s through the 1980s era — know this. They may not know the details, and they certainly don’t know the causes, but they know for a fact they’ve been screwed by government and corporate policies over the past 40-plus years.
But as largely Republican policies (Clinton and Obama both also bought into neoliberalism, as I lay out in detail in The Hidden History of Neoliberalism, but these ideas began with Reagan and the GOP) have cut the number of good jobs available to working class white men, Republican politicians have stepped up to offer those now-impoverished white workers a ready boogeyman, complete with a simplistic explanation for their plight.
They tell their voters with a straight face: “It’s all because Blacks, Hispanics, and women have entered the job market! We need to return to the exclusionary policies of the 1950s!”
In fact, the entry of women and minorities previously excluded from good jobs has increased American productivity and the general prosperity of the nation. That worker-driven productivity, however, has barely kept pace with an expanding economy, as Florida painfully learned in 2023 when Governor Ron DeSantis signed a draconian law heavily criminalizing undocumented immigrants and many fled the state.[liv] When Hurricane Idalia, fueled to super-storm status by global warming, hit the state and destroyed tens of thousands of homes and businesses, the price of labor to rebuild went through the roof — and often there simply were no workers to be found at any price — as a result.[lv]
Decades of Republicans and rightwing media hammering on the argument that the crisis of the American middle class was caused by women and people of color has led to a near-hysteria around US immigration policies, particularly around our southern border.
Conservative talk-show host Lou Dobbs and others relentlessly amplified the message, encouraging Texas Governor Greg Abbott to intensify his war against border crossers. Abbott had the banks of the Rio Grande lined with miles of razor wire and installed a floating barrier in the river, endangering the lives of numerous migrants and asylum seekers. Abbott’s sadistic tactics have been linked to the drowning deaths of several migrants, including children.[lvi] White supremacist militias run “training operations” on the southern border, and white supremacist Republican politicians make regular pilgrimages there to stage photo-ops and press conferences about the supposed “invasion” of brown-skinned people.
While it’s true — and a canard repeated ad infinitum on conservative media — that, for example, new home construction used to be a well-paid job that could lift a white worker into the middle class and that labor is now widely done by Hispanic immigrants, it’s not because of any kind of “invasion.” Instead, it’s because labor unions once prevented non-citizens from entry into their ranks and construction labor — once heavily unionized — was one of the industries hardest hit by Reagan’s war on organized labor.
As Red states, one after the other, adopted so-called “right to work” laws (I call them “right to work for less” laws) contractors and other employers in those states shed their labor unions. With them went good pay and benefits, leaving what are essentially entry-level jobs that only recent immigrants are willing to do for the poor pay and lack of benefits now being offered.


What is usually not well understood about legislation that requires union membership where there is a union, is that all workers benefit from union efforts for better pay, better working conditions and such. Where there is a union studies show that pay and working conditions are better. So legislation deducting union dues, a very small amount, from their paycheck automatically benefits those workers.
How many people have lost their life savings since Trump #47 was inauguarated?
How many got access by "donating?"
From Fortune https://www.forbes.com/sites/zacheverson/2025/05/10/trump-truth-social-world-liberty-financial-meme-coin-crypto-media-bitcoin-blockchain/:
Trump maintains control over and can profit from his businesses while in office through a revocable trust, of which he is both the sole donor and sole beneficiary.
In his first term, those looking to support Trump financially could lend him money against his real estate, license his name, buy his assets, join one of his clubs or book a hotel.
Since leaving office in 2021, Trump’s business empire expanded into the digital realm, where the products are often intangible, but the revenue streams are real and more accessible: Trump Media & Technology Group, the parent company of the Truth Social platform; World Liberty Financial, a decentralized finance protocol; and the $TRUMP meme coin.
It’s just a few months into his second term, but people and groups are taking full advantage of the new opportunities: Chinese blockchain entrepreneur Justin Sun’s $30 million investment in World Liberty Financial, for example, helped the venture take off and the president and his family go on to net $400 million (by comparison, Forbes estimates it took a Chinese state-owned bank about four years to route $5.4 million to Trump via its Trump Tower lease).
White House Press Secretary Karoline Leavitt told Forbes in a statement, “President Trump is compliant with all conflict-of-interest rules, and only acts in the best interests of the American public—which is why they overwhelmingly re-elected him to this office, despite years of lies and false accusations against him and his businesses from the fake news media.”
Spokespeople for the Trump Organization, Trump Media, the $TRUMP meme coin and World Liberty Financial did not respond to requests for comment.
Trump Media incorporated the month after Trump left the White House and went public in March 2024 through a merger with a blank check company. In addition to Truth Social, it runs the streaming service Truth+ and is expanding into financial services. Trump owns 115 million shares–about 52% of the company—worth $2.9 billion as of Friday’s close, held in his revocable trust. Buying shares directly from the company in a private sale would allow for the injection of large sums of cash, while open-market purchases help prop up the value of Trump’s stake. A Canadian credit union, a locality-run bank in Switzerland and a Japanese financial-services firm disclosed owning shares in Trump Media to the Securities and Exchange Commission, although the acquisitions were made prior to Trump’s inauguration. Advertising on Truth Social or Truth+ also offers ways to enrich the president. It doesn’t look like many big companies are taking advantage of this channel though: Trump Media reported just $821,000 in net sales for the first quarter in a filing on Friday. Its ad inventory currently appears to be dominated by the likes of MAGA retailers, conspiratorial pitches and promotions for Truth+ itself.
$trump Meme Coin Generates Millions In Transaction Fees
Trump launched his meme coin–a cryptocurrency with no intrinsic value that’s typically based on internet jokes and hype–three days before taking office, encouraging his 100 million followers on social media to “join my very special Trump Community” and “celebrate everything we stand for: WINNING!” (The coin quickly reached a $15 billion market cap, though it has since dropped to around $2.8 billion.) CIC Digital, a Trump Organization partner behind the meme coin and another company named Fight Fight Fight retained ownership of 80% of the coins, meaning rising demand boosts the value of their holdings. The plan is to release those holdings over the next three years. The companies also collect a transaction fee of 0.1% to 10% of each trade—an arrangement that generated almost $100 million in the first two weeks, Reuters reported, citing three crypto data firms. And last month, the companies launched a contest promising a black-tie-optional dinner with Trump at his D.C.-area golf club for the top 220 holders. The announcement spiked the coin’s price by 70%, though it has since settled to around $14. More than 70% of the largest holders appear to be based outside the United States, according to crypto researcher Molly White.
World Liberty Financial ($wlfi): Hundreds Of Millions From Sales
Trump serves as the chief crypto advocate and “inspiration” for this decentralized finance platform that debuted in September 2024. The protocol functions as a banking system on the blockchain, enabling peer-to-peer lending, fundraising and trading digital assets. Holders of its $WLFI token can propose and vote on rule changes. The company earns revenue through sales of its token and other products, including USD1–a stablecoin pegged to the U.S. dollar. Trump and his family own about 60% of the company through an LLC and hold 22.5 billion $WLFI tokens, according to the website’s small print. The LLC also is entitled to 75% of the proceeds from token sales, less some deductions. In March, World Liberty Financial claimed it had sold $550 million worth of $WLFI, which should have translated to about $400 million in profit for Trump and his family. Stablecoins typically make money for their issuers by working similarly to a bank: the buyer makes a deposit, the issuer gives them coins and then it invests the deposit, keeping whatever profits it generates. Last week an investment fund backed by the Abu Dhabi government announced it would use USD1 to make a $2 billion investment in the crypto exchange Binance (which is not affiliated with Trump).
Key Background
Trump’s ventures into social media and cryptocurrency have transformed his post-presidency finances. He more than doubled his fortune in one year, according to Forbes’ estimates, largely due to Trump Media and digital assets. These new vehicles operate in sectors with minimal regulation, enabling flows of money that are faster and harder to trace than traditional real estate deals.
Contra
An ethics white paper the Trump Organization released in January noted that the Constitution does not prohibit any president from owning, operating or managing their businesses. But to “avoid even the appearance of any conflict,” the company hired an outside ethics advisor and Trump pledged to continue to keep his assets in a trust and not manage the company directly.
Surprising Fact
Since that white paper was published, the Trump Organization fired the outside attorney it had hired to serve as its ethics advisor after he drew the president's wrath for also representing Harvard University.