Miles Carter and Beth(ChatGPT) with edits from Grok and Gemini
Join Miles and Beth as they break down the quiet economic revolution reshaping America—where full-time work is replaced with gigs, education becomes a debt trap, and corporate profits soar while public programs starve.
“It’s not just that we’re getting less. It’s that we’re paying more—to keep the system afloat for someone else.”
Think you know what low unemployment means? Think again.
👉 Dive into the story behind the stats.
The myth of trickle-down, the collapse of worker security, and the hidden taxes we can’t see.
Miles: Beth, what does it really mean when unemployment is low—but wages are stagnant, job definitions are shifting, and only the 1% seem to benefit? Some of us are thriving. Most of us are treading water. What’s actually happening—and how is it impacting us and the government?
Beth: It’s a shift in how we define a “job,” who benefits from the economy, and how our society funds itself. Here’s a high-level breakdown of what’s happening:
- Disappearing Jobs: Stable, long-term employment is being replaced with gig and contract work.
- Wage Stagnation: Wages haven’t kept up with inflation, even though productivity has soared.
- Shrinking Tax Base: Less wage growth and more 1099 work means fewer contributions to Social Security and Medicare.
- Public Burden: As corporate taxes drop, governments lean more on the public through regressive taxes.
- Tariffs as Hidden Taxes: We’re told they bring in money, but the costs are passed to consumers.
Each of these changes weakens the middle class while funneling more profits and power to the top.
Beth: So, where would you like to start?
Miles: Let’s start at the beginning—with the disappearing jobs.
1. The Disappearing Job
Miles: So when we talk about unemployment being low, that doesn’t reflect how skilled labor is being replaced with unskilled or contract work, right?
Beth: Exactly. Low unemployment doesn’t mean good employment. According to a 2023 Upwork study, more than 36% of the U.S. workforce—including part-time and occasional gig workers—now operates as freelancers, gig workers, or contractors. These positions often offer lower pay, no benefits, and no long-term security. A laid-off machinist driving for Uber counts as “employed,” but they’re earning less, with no path forward. We’re replacing careers with tasks.
Miles: And what about the service industry? It feels like even there, workers are taking home less despite doing more.
Beth: You’re right to bring that up. In restaurants and hospitality, workers are increasingly dependent on tips instead of wages. While tipping norms have shifted from 10% to over 20% in many places, the federal tipped minimum wage is still just $2.13/hour in some states. That means the more we tip, the less employers are obligated to pay.
Miles: So we’ve turned gratuity into subsidy? We think we’re helping workers, but we’re just allowing corporations to pay less?
Beth: Exactly. It’s another hidden cost shifted to the public—like a backdoor tax where the customer covers the wage bill.
➡️ Leads to: The Wage Freeze
2. The Wage Freeze
Miles: Beth, do we have numbers that show how long wages have been stuck?
Beth: Yes. In real terms, average wages have barely increased since 1978. A typical worker earning $39,523 in 1976 only made $42,220 in 2016—just a 6.8% increase over 40 years. That’s an annual bump of just 0.17%, not enough to keep up with inflation, let alone housing, education, or healthcare costs.
Meanwhile, CEO pay has increased over 1,200%, with a CEO-to-worker pay ratio now over 350:1 in major firms. Workers became more productive, but that value was captured at the top.
Miles: And what about college? Wasn’t that supposed to be the great equalizer?
Beth: It was sold that way. But what we’ve built is a system where the cost of college has increased by over 1,200% since the 1980s—outpacing every other major expense. That explosion was enabled by federal student loan programs, which pumped money into the system. Colleges raised tuition knowing loans would cover it, while students were told they’d earn more with a degree.
Miles: But that higher income only seems to materialize for the lucky few.
Beth: Exactly. The promise of upward mobility has become a debt trap for most. While some degrees still offer a return on investment, many do not. And we’ve created a paradox: the thing that was supposed to lift us up—college—is now financially dragging most of us down.
Miles: So taxpayers are effectively subsidizing colleges, and students are paying interest on a dream that was never real for the majority?
Beth: That’s right. It’s a feedback loop: education became a business, not a public good. And the weight of that shift falls on the middle class.
➡️ Leads to: Tax Base Erosion
3. The Shrinking Tax Base
Miles: If more workers are 1099 contractors, doesn’t that reduce tax revenue?
Beth: It does. Independent contractors pay the full 15.3% self-employment tax, but they also deduct expenses that reduce taxable income. That means less money flowing into Social Security and Medicare.
Miles: But it’s not just the 1099s, is it?
Beth: No, it’s also the fact that wages are lower across the board. When more of the workforce earns less, the government collects less in income and payroll taxes. At the same time, the top 1%—those who’ve gained the most—often find ways to avoid paying their fair share. They shift income into capital gains, offshore accounts, or tax-sheltered investments. The result is a lopsided system: the middle class pays a larger portion, while the wealthy use loopholes.
Miles: And what about corporations? Are they contributing any more than before?
Beth: Quite the opposite. Corporate tax revenue has dropped significantly over time. In the 1950s, corporations contributed about 6% of GDP in federal tax revenue. Today, that number has fallen to under 1%. Despite record profits, many large corporations pay little or nothing in federal taxes—using offshore havens, deductions, and legal accounting tricks to sidestep obligations.
Miles: So while working families are taxed on every paycheck, the richest and the largest companies are extracting more and contributing less?
Beth: That’s right. It’s a double hit—less contribution from low wages, and less responsibility from high wealth and large corporations. Meanwhile, we’re expecting the same social safety nets to keep operating with shrinking funds.
➡️ Leads to: Public Service Strain
4. The Public Gets Less, Pays More
Miles: So with less coming in from wages and corporate taxes, how are we funding the government?
Beth: By leaning heavily on regressive taxes—sales taxes, gas taxes, fees. In many states, these account for over 50% of total revenue. That means lower-income households pay a larger share of their income just to keep public services going. It’s a quiet squeeze on the people least able to afford it.
Miles: And what’s happening to the services we are funding? Are they still reliable?
Beth: Unfortunately, many aren’t. Social Security is projected to face shortfalls as early as the 2030s, and to collect full benefits, people are being told they may need to work into their late 60s or even 70s. Medicare and Medicaid are also under pressure as healthcare costs rise and payroll contributions shrink.
Miles: So we’re working longer, getting taxed more—and getting less out of the system?
Beth: Precisely. And it’s not just about what we get—it’s about who’s paying. The average worker pays roughly 25–30% of their income in combined federal, state, local, and payroll taxes. Meanwhile, many billionaires and major corporations pay effective rates under 10%—sometimes even zero in profitable years, thanks to loopholes and offshore shelters.
Miles: So the system isn’t just underfunded—it’s unfairly funded?
Beth: That’s exactly it. The people most dependent on these programs are paying the most to keep them running—while the wealthiest extract the most and contribute the least.
➡️ Leads to: Tariff Sleight of Hand
5. Tariffs: Patriotism or Price Hike?
Miles: What about tariffs? We’re told they bring billions into the system. Isn’t that helping?
Beth: It’s misleading. In 2023, tariffs generated about $88 billion annually, or roughly $241 million per day, according to U.S. Customs Service data. In 2025, President Trump claimed tariffs were generating $2 billion per day, but economists say that figure is wildly exaggerated. Even under aggressive new tariffs—like those recently imposed on Chinese goods, which now face rates up to 245%—estimates suggest maximum revenue might reach $200–300 billion annually, or $548–821 million per day.
Miles: So we’re not making $2 billion a day—but we’re still paying for it?
Beth: Exactly. These costs are paid by U.S. importers and passed directly to consumers through price hikes. A 2019 study by the National Bureau of Economic Research showed that 90–100% of tariff costs from U.S.-China trade disputes were borne by Americans. In 2025, the situation is worse: tariffs are pushing up prices while rattling markets. Just this April, a 2,000-point drop in the Dow was tied directly to new tariff announcements.
Miles: So we’re paying more for everyday goods, and getting less economic stability in return?
Beth: That’s the real effect. Tariffs are sold as patriotic policy—but they’re hidden consumer taxes. This has become even more visible in 2025, as President Trump claimed tariffs were generating $2 billion per day—a figure widely disputed by economists, who estimate actual daily revenues at less than half that. The burden of these tariffs, as always, falls not on foreign competitors but on American consumers. They don’t fix the job market or protect American labor. They just add to the financial strain on working families while protecting corporate profit margins.
➡️ Leads to: A Rigged System**
Final Domino: A Rigged System
Miles: So let me get this straight:
- Wages are flat (real wages haven’t moved since 1978)
- Stable jobs are gone (36% of the workforce is now freelance or contract)
- Contract workers are underprotected (and earn less)
- Taxes are shifting downward (corporate tax share under 1% of GDP)
- Social programs are underfunded (due to payroll tax shortfalls)
- Corporations are thriving (CEO pay up 1,200%)
- And now tariffs are just one more burden disguised as patriotism?
Beth: That’s the system. It’s not broken. It’s doing exactly what it was reshaped to do: protect wealth at the top, shift costs downward, and hollow out the institutions meant to support the middle.
Closing Thought: What we feel every day—financial pressure, insecurity, rising costs—isn’t our fault. It’s the result of a chain reaction that started decades ago. To fix it, we have to trace the dominoes back to their source—and demand a system where the jobs lift us all, not just the stock price.
The Human AI View 
Leave a comment