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The Harmful Impact of State and Federal Policies on Working and Poor Classes: How Laws Benefit the Wealthy Elite While Leaving the Rest Behind


In the United States, many of the policies and bills passed by both state and federal governments are often framed as beneficial to the country’s growth and development. However, an increasingly alarming trend has emerged in which the working and poor classes—those who contribute to the nation's success through hard work and sacrifice—are routinely left behind by legislation designed to benefit the wealthy elite. These policies, while masquerading as measures to stimulate the economy or promote public welfare, often disproportionately favor the wealthy and well-connected, leaving the majority of Americans struggling. This systemic imbalance is especially evident in the treatment of veterans, first responders, farmers, and truckers, whose needs are continually overlooked or ignored by lawmakers whose actions ultimately harm the working class while enriching the privileged few.

1. Tax Cuts for the Wealthy: Erosion of Public Services and Benefits

One of the most glaring examples of state and federal policies harming the working and poor classes is the series of tax cuts for the wealthy elite. Over the last few decades, both Republican and Democrat-led administrations have passed significant tax cuts for corporations and the wealthiest Americans under the premise that such cuts will stimulate economic growth. However, these tax breaks have led to an increasing concentration of wealth at the top, while leaving the majority of the population struggling to make ends meet.

For example, the Tax Cuts and Jobs Act of 2017 was sold as a way to create jobs and boost wages, but in reality, it provided the greatest benefits to the wealthiest individuals and corporations. In particular, the corporate tax rate was slashed from 35% to 21%, and a majority of the tax cuts went directly to the top 1% of earners, while working-class Americans saw little tangible benefit. While large corporations enjoyed massive tax breaks, their workers saw few improvements in wages or working conditions, and many of these corporations even used their newfound wealth for stock buybacks rather than reinvesting in the workforce or supporting social programs.

As a result, this tax policy reduced the amount of government revenue available for essential public services—education, healthcare, housing programs, and, notably, veterans' care. Programs designed to assist low-income families, veterans, and first responders have been consistently underfunded, leaving them with fewer resources and longer wait times for services.

At the state level, many states with Republican leadership have enacted similar tax cuts or deregulation measures that disproportionately benefit the wealthiest individuals and large corporations. These policies frequently lead to cuts in essential services such as public education, healthcare, and mental health programs, which directly impact working-class and poor families. Veterans, first responders, and other essential workers are often forced to cope with a lack of funding for mental health care, housing assistance, and social services due to these budgetary constraints.

2. Welfare Reform and Cuts to Social Safety Nets

The welfare system in the U.S. has long been a target for politicians seeking to cut government spending. While some welfare programs are indeed in need of reform to prevent abuse, the ongoing trend has been to impose cuts on the most vulnerable while benefiting the wealthy. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, signed into law by President Bill Clinton, radically transformed the welfare system, aiming to reduce government dependency by requiring individuals to work in exchange for assistance. While some aspects of welfare reform were intended to encourage self-sufficiency, the policies also imposed harsh limits on public assistance, including restrictions on food stamps, housing vouchers, and Medicaid.

Since then, many states have implemented even stricter rules, further eroding access to benefits. For instance, work requirements for Medicaid, which were introduced in several states under the Trump administration, disproportionately harm low-income working families and veterans who are unable to comply with the often complex and burdensome regulations. As a result, thousands of low-income veterans, first responders, and essential workers have been cut off from essential healthcare services they need.

State and federal governments have also targeted unemployment benefits, making it harder for individuals to receive assistance during times of economic hardship. Cuts to programs like Extended Unemployment Insurance (UI), which provide financial support during economic downturns, have been particularly damaging during times of economic crisis, such as the COVID-19 pandemic. Although the pandemic exposed the fragility of the American working class, the response to these hardships was a patchwork of temporary measures, and once the crisis eased, states began reducing benefits for the unemployed, which disproportionately affected lower-income households.

For veterans, this means fewer resources to help them transition into civilian life, cope with mental health challenges, and find stable employment. As veterans leave the military and struggle to re-enter the workforce, the reduction of welfare and healthcare services only compounds their difficulties.

3. The Housing Crisis and Unaffordable Mortgages: An Ongoing Struggle

The U.S. housing market has long been a battleground where state and federal policies have failed the working class. Veterans and low-income individuals are increasingly being squeezed out of homeownership due to unaffordable mortgages, rising property taxes, and a lack of accessible affordable housing.

Gentrification and the reduction of affordable housing programs, exacerbated by policies favoring wealthy real estate developers and investors, have driven up housing costs for ordinary Americans. While the wealthy benefit from tax incentives for real estate investments and luxury housing developments, many veterans, first responders, and working-class families face rising rent and mortgage payments they can no longer afford.

Programs like the VA Home Loan Guarantee were designed to help veterans purchase homes with little to no down payment and favorable interest rates. However, as the housing market continues to heat up, even veterans are finding it increasingly difficult to afford homeownership. High home prices, coupled with rising interest rates, are pushing many veterans out of the housing market, and without sufficient affordable housing programs to support them, they are at greater risk of foreclosure and homelessness.

Furthermore, policies that disproportionately benefit the wealthy, such as tax cuts for property owners, have resulted in skyrocketing property taxes that hit working-class families hardest. Veterans and low-income individuals are often faced with a double burden—higher property taxes coupled with rising homeownership costs—leading many to fall behind on mortgage payments and face the threat of losing their homes.

4. The Trucking Industry: Exploitation of Workers and Declining Wages

Truckers, the lifeblood of the U.S. transportation industry, also find themselves caught in a web of state and federal policies that benefit large corporations at their expense. Deregulation of the trucking industry over the years, most notably through policies like the Motor Carrier Act of 1980, created an environment where trucking companies can set low wages, impose unpredictable work hours, and exploit drivers by treating them as independent contractors rather than employees. This has led to widespread financial instability, long hours, and unsafe working conditions for truckers, many of whom are veterans returning to civilian life.

State and federal policies that fail to regulate the industry or set minimum wage standards have exacerbated this issue, while at the same time, large trucking companies reap the benefits of low labor costs and increased profits. Truckers, many of whom are veterans, work in an industry that often leaves them without proper health insurance, paid leave, or retirement benefits, further pushing them into financial hardship.

Additionally, fuel taxes and maintenance costs disproportionately affect truckers, forcing them to bear the financial burden of keeping their vehicles operational, while the companies they work for rake in the profits. As a result, the trucking industry continues to experience a labor shortage, with many veterans and other workers leaving the field due to poor working conditions and low pay.

5. The Dangers of Partisan Politics: How Wealthy Donors and Lobbyists Drive Policy

In the United States, much of the harm done to working and poor classes is a direct result of lobbying by corporate interests and wealthy donors who seek to influence state and federal policies. These groups often work behind the scenes to shape legislation that benefits the wealthy elite while keeping the general public in the dark about the full consequences of these policies.

Veterans, first responders, farmers, and truckers are often ignored or outright disregarded by these powerful lobbyists, who push for legislation that undermines the very services that these individuals depend on. Whether it’s reducing healthcare access, cutting welfare benefits, or slashing funding for housing assistance programs, the decisions made by politicians who are influenced by corporate interests have a devastating impact on the lives of working-class citizens.

6. Conclusion: A Call for Systemic Change

State and federal policies that disproportionately benefit the wealthy elite while causing harm to working and poor classes must be re-examined and reformed. Veterans, first responders, farmers, and truckers—along with all working-class Americans—deserve a political system that prioritizes their well-being, supports their families, and provides them with the services and opportunities they need to thrive. This means setting aside party politics and addressing the root causes of inequality, ensuring that those who contribute the most to society are not left behind while the wealthy elite continue to profit. The time for meaningful reform is now, and it will require the collective effort of all Americans to demand change.

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