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18 Sobering Facts Which Prove That The Middle Class Is Not Being Included In This “Economic Recovery”
This article by Michael is filled with despair and presents evidence that the recovery in the stock market is more like the price of bread in Zimbabwe than a real recovery. - Ilene
18 Sobering Facts Which Prove That The Middle Class Is Not Being Included In This “Economic Recovery”
Courtesy of Michael Snyder, Economic Collapse
Have you heard the news? The stock market is absolutely soaring and according to the U.S. government and the Federal Reserve we are in the beginning stages of a robust economic recovery. Yippee! The S&P 500 is up 6.8 percent so far in 2011, and the stock market recently hit a two and a half year high. So shouldn't we all be celebrating? Well, if stock market performance was an accurate measure of economic health, then Zimbabwe would have had one of the healthiest economies on the entire globe during the last decade.
But just like Zimbabwe's stock market was artificially pumped up with "funny money" that was rapidly being devalued, so is ours. All of the "quantitative easing" that the Federal Reserve has been doing is pumping plenty of money into the financial markets and is helping to inflate a false stock market bubble, but it is doing very little to alleviate the suffering of the U.S. middle class. In fact, when you take a closer look at the numbers you quickly find out that the suffering of the middle class is getting even worse.
According to Gallup, the unemployment rate is now over 10%. The number of Americans that have given up looking for work recently set a new all-time record. The number of mortgages in foreclosure tied a record high during the fourth quarter of 2010. Gas and food prices are rising rapidly. The number of Americans on food stamps continues to increase every single month.
Yes, right now the economic situation is not in free fall like it was a couple years ago. We should be thankful for that. Periods of relative stability such as we are enjoying now will be few and far between in the years ahead. This "bubble" of economic calm is a great opportunity that we should all be taking advantage of.
However, those that are hoping that this is an economic "turning point" and that things will soon be back to "normal" are going to be greatly disappointed. This is about as "normal" as things are going to be ever again.
Even during this time of relative economic stability, the U.S. middle class is still being ripped to shreds. If there are those among your family and friends that are somehow convinced that the U.S. economy is recovering nicely, you might want want to show them the following 18 very sobering facts....
#1 According to Gallup, the U.S. unemployment rate is currently 10.3 percent. When you add in part-time American workers that want full-time employment, that number rises to 20.2 percent.
#2 According to the U.S. Bureau of Labor Statistics, the number of job openings in the United States declined for a second straight month during December.
#3 There are currently more than 4 million Americans that have been unemployed for more than a year.
#4 The number of Americans that have become so discouraged that they have given up searching for work completely now stands at an all-time high.
#5 Gasoline prices in the United States recently hit a 28-month high.
#6 During the 4th quarter of 2010, 4.63 percent of all U.S. home loans were in foreclosure. That matched the all-time high, and it was up significantly from 4.39 percent in the 3rd quarter.
#7 It is estimated that there are about 5 million homeowners in the United States that are at least two months behind on their mortgages, and it is being projected that over a million American families will be booted out of their homes this year alone.
#8 Almost 14 percent of all credit card accounts in the United States are currently 90 days or more delinquent.
#9 The average credit card rate in the United States had increased to a whopping 13.44 percent at the end of 2010.
#10 Americans now owe more than $890 billion on student loans, which is even more than they owe on credit cards.
#11 Average household debt in the United States has now reached a level of 136% of average household income. In China, average household debt is only 17% of average household income.
#12 U.S. life expectancy at birth is now three years less than Canada and four years less than Japan.
#13 New home sales in the state of California were at the lowest level ever recorded in the month of January.
#14 43 percent of all mortgages in south Florida are currently underwater.
#15 Prior to the most recent economic downturn, there were usuallysomewhere around four to five million job openings in America. Today there are about 3 million.
#16 When you adjust wages for inflation, middle class workers in the United States make less money today than they did back in 1971.
#17 One out of every seven Americans is now on food stamps.
#18 One out of every six elderly Americans now lives below the federal poverty line.
You know things are bad when articles start popping up in the mainstream news instructing us how to interact socially with the hordes of unemployed Americans that are out there today. A recent USA Today article entitled "What not to say to someone who is unemployed" listed some of the things that you should not say to someone that does not have a job. The following are some of their suggestions on what NOT to say....
"Hey, have you found anything yet?"
"How's the search going?"
"You just have to pound the pavement."
"Something will turn up."
"It's tough out there."
"Other people are going through the same thing."
"Maybe you're asking for too much money."
"Maybe you should go back to school."
"There are plenty of jobs out there."
I am sure most of us have heard things like this at one time or another. It can be a soul-crushing thing to have others look at you in pity because you don't have a job and you can't pay the mortgage and feed your family.
Most unemployed Americans are not lazy. The vast majority of them desperately want jobs. But the U.S. economy is not producing nearly enough jobs today. As noted above, the U.S. economy currently has about 3 million job openings, but approximately 20 percent of the workforce wants to find a full-time job. The demand for jobs is far, far, far greater than the supply.
Unfortunately, this is the legacy of decades of bad economic decision-making. The U.S. economy should be able to provide work for every single person that wants it, but because of the choices that have been made that will never be the case again.
The middle class in America is being ripped to shreds right in front of our eyes and very little is being done to stop it. Desperation is rising across the nation. More Americans slip into poverty every single day. It is almost as if a cloud of gloom and despair has descended upon the U.S. economy and every single month the situation only seems to get darker.
So what about you? How has this economy affected you and your family? Please feel free to leave a comment with your thoughts below....
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"The middle class in America is being ripped to shreds right in front of our eyes and very little is being done to stop it."
I'd be happy if they simply stopped trying - or pretending - to do something about it. Virtually everything the government "does" is not helping.
There is money to be made, but jobs are virtually non-existent here. I couldn't afford to move, even if my significant other wasn't tied down here at a job. I'm struggling to aquire the tools and tooling to start my own productive venture, but it's a never-ending stream of new taxes, permits, fees, regulations, shitty energy policies, and the fallout from money printing.
Who the fuck decided it was a good idea to make it so fucking difficult to (legally) make something with your own two hands?
+++++++++++++++++++++++++++++++++++++++++++++
Lawyers and lawsuits mainly.
Everything is Fucked up and nobody goes to jail!
The title of this piece is totally misleading.
I read the author's "18 Facts". But they did not make me sober. Quite the reverse!
Fed delenda est.
Nice list ilene. I have a list of "35 Potential Bubbles , Frauds and Mischevious Behaviour" many of which overlap with your 18. Keep counting and crying
good article. Unfortunately, the rate of realization of reality by the masses is still much slower than the rate of recapitalization to the zombie banks who are hoarding rather than lending which probably means they expect worse times ahead and are preparing a quick exit from the U.S.S. Titanic when the country finally hits the unpayable iceberg of debt.
the good news here is that most of our problems are directly tied to employment. and there is a lot that needs to be done, lots of healthcare jobs, caregivers, housekeepers, drivers. so many of us are sick and elderly. lets' take care of them. then we need teachers, classrooms, 40 and 50. no reason for that, we have the most educated population in the world. we need transportation, we need drivers really, so that we can break the one car one passenger cycle. got some time on your hands, raise a few chickens, some vegetables. (remember the government doesn't want you do these things because doing things for yourself weans you from the need for corporate products, and while there is nothing wrong with buying corporate products, the ruling classs wants the money, which is power. the corporate political ruling class needs earnings, expansion, and they will pay you to sit on your ass, if you will continue to buy their products. As government grows bigger it needs a larger and more continuous supply of everything. and all governments want to grow larger. if you want smaller government force the government to lend to small business, and break the back of the banking, corporate finance monopoly. a sensible government would create these jobs, already many people do these things and they aren't paid, helping the sick and elderly, helping a kid with his math, sharing vegetables. the government won't recognize that because it goes outside corporate economics. but we all know, Obama has done shit for main street, and handed out trillions for wall street, and he's a democrat! imagine that
You seem like a nice person. However Christian Noyer views you and me as meaningless...
Nonviolence can of course be very forceful...Gene Sharp provides over 100 proven tactical actions with historic citations. It is ultimately lack of imagination and effort that leads to violence.
http://www.aeinstein.org/organizations103a.html
I informed my credit union that one reason I refinanced with them was to deny the use of resources to Wells Fargo, and that I planned to cease doing any business with the large banks because of the threat they now pose to society. Recently I noticed new signs on buses and bus stops from this same credit union: "Your bank is naughty. It's a bad, naughty bank." Right on.
The cancer can be stopped but you have to stop it. These catchy slogans apply:
'Your dollar is your vote'
'Replace the economy, ignore the government'
http://www.marketoracle.co.uk/Article26409.html
Morons are often the people who can tell the wood from the trees, reality from platitudes and certitudes, for creating real solutions against servitude. No reason to fall into the same pit-hole if you've succeeded in ejecting the despot through no compromise but no violence. 'Cos violence means you've become the problem, after having been the temporary solution. Serial killers are easily born, difficult to remove as they feel self proclaimed saviours, as they have the gun. Avoiding that temptation is the key that history teaches. Unless you're Billy the kid.
Here's a quick recommendation that mostly works.
Every non-profit in the USA needs an accurate database of their donors, volunteers, vendors, and staff. All the activity should be logged, shared, and reported upon. Most non-profits have no database or something lousy. Salesforce.com offers a free 10 user license to every 501(c)(3) non-profit. The application process is straightforward and soon enough you'll have the licenses and be entering data.
http://www.salesforcefoundation.org/product
Once you get it all going, you'll discover there are about a million other useful things you can do for the non-profit related to fund raising, attributing donations, data analysis, campaign planning, etc.
It's best to find a non-profit that already has money but is somewhat disorganized. You can offer to do the work for free and take the online Salesforce learning, attend local user group meetings, etc. You'll soon find yourself in the middle of a lot of activity, among a lot of intelligent and successful people and asking useful questions. With a few months of experience, you'll be ready to work for higher compensation somewhere else. And there's a lot of Salesforce.com implementation work out there that needs to be done.
Good luck.
Daivd Bowie and Nirvana, fitting prophets. A man who sees with two colors and a man who died from overdose.
Factual error.
on both men
In this day and age peaceful protest and unlimited social strike seems a better route to topple dictatorships. Isn't that the lesson of current events? Not militia violence that smothers true democratic protest from manifesting itself. I know it's easy to generalise and not see each situation in its historic, cultural context...just a thought. It worked for GAndhi, Mandela, MLK...sort of...he did end up dead, like Ab Lincoln. But his cause won in the end.
Sure TPTB want peaceful strung out protest - that way they can A. not die B. get all of the wealth they have looted from the country out and C. hand over power to the next corrupt regime that they can buy with all the money they stole.
Did I mention that you're a moron?
I see your side of the argument : If you want peace, prepare for war! But it didn't work for the roman republic! bad precedent!
There's method to the madness. The only jobs will be with the military. There will be lines at recruitment stations all over the country. Good benefits. Kill for a christian nation.
The rich don't care now, but they will. When the poor have nothing they readily take down the rich to their own level.
Is this president's plan going according to schedule? It makes you wonder. Hey, all of the ordinary citizens know how to get things going again. Why not the president?
Note Saul Alinski's call to destroy the middle class as a necessary condition to social change.
There must be a connection between this depressing article and the posting of a video at the end by a band whose lead singer offed himself. Sincerely, Alice Cooper
Morning Al,
How's things in the valley? Up here in Madison SCHOOL'S OUT FOREVER !
what amazes a non american is the individual's fascination with firearms in the US, as a means of self protect. I would argue it multiplies the probability of incivility, violent riots, by quantum jumps. Do you think that state militia will be deterred by hand guns in case of demonstrations? I don't think so. It'll just up the ante in terms of violence. Unless you local citizens think that the USofA is already a banana republic!
I am of age (19-45) of a state militia. Not in a war fighting division.
Handguns for concealed carry, slug gun with Trijicon for trouble. All the Governor has to do is say a word and the whole structure goes into motion within hours.
But in the meantime, that is a way of ensuring our security and being able to provide for others who cannot defend themselves.
You're a moron - the protests in Libya would look much different right now if the oppressed populace was armed to the teeth. And who in America JUST owns a handgun?
It also reduces the probability of an armed dictatorship by quantum jumps. It's much easier to herd people around when they can only fight back with rocks. Does it create a possibility of increased violence? Yes. But this is more of problem for the oppressor than they oppressed.
As a gun owner, I rely on the words on the immortal words of Clarence Worley. It's better to have a gun and not need it, then need a gun and not have it.
You may want to read this:
http://www.stephenhalbrook.com/registration_article/registration.html
This too shall pass.
By old standards, we would be middle class. But debt is a minor annoyance and everything else is paid for. What is left is not much. Work? we don't work as much because one there is none and two we don't have that much need of it. With all the gloom and doom out there, we are happier now than ever growing our own food and markmanship at the range.
The Republican tax cuts are still in effect and have been for the past ten years. Where are the jobs? ALL Congressional Republicans and their leaders Rush, Glennda, Sarah, and Rupert should be out looking for jobs. Show us exactly where the tax cuts have created US jobs. If they can't, they need to be called liars, voted out of office and kept out of office. Wisconsin is one prime example.
Good thing Wisconsin is a northern state. It's not too hard to image the protesters moving to shut down the banks and Wall Street. Thanks to social media, the MSM has been circumvented.
WTF are you talking about? Protests in WI are about public sector not having to pay into the corrupt system that can no longer support them.
Tax cuts do make the country more competitive and ideal for investment, as capital moves around the world very fast. However, they must be coupled with spending cuts to create surplus as more debt is hostile to business because that just sends the signal that tax will have to increase sometime in the future. The next step this country must take is to remove the looters in government (corrupt bureaucrats and corporate lobbyists) and then we can have a debate if the moochers (welfare state) should be removed as well. If taxes were just for a happy-go-lucky welfare state, then the highest bracket could be decreased in my opinion to around 20%. However, most of your taxes go to corporate welfare.
capitalism = profit, wankers.
They would come to your house and abduct your wife, then sell your children as slave labour. Nearly..but not quite there...Just look at Libya and then you'll know how the real system works...once a country moves to Oligarchy/monarchy for real...Only solution : the people have to take out their pitchforks and never surrender them in spite the bullets. Painful but no other route...more people than oligarchs in any system...that's a certainty!
I lose my job come July 1.
I popped awake tonight with a panic attack over it.
I don't know what I'm going to do because I live in a small town and can't leave it or I lose custody of my kids.
I won't be able to make the mortgage payment that I've made faithfully for over 12 years; I'll either have to do a short sale or take out my IRA and retirement savings to pay down the principal but I'll get taxed out the ass and of course then I'll have "assets" for someone to come after and no cash or savings.
I'm angry, I'm sad, I'm scared.
Wow, I am sorry for you because I can definitely relate to your fear, anger and sadness. Been there...and it's a shock, for certain.
CPL has given you some fantastic advice, a lot of which I've actually done. I found excellent information, advice and hope (maybe corny, but very helpful when you feel like you've been run over by a truck) through listening to and reading Dave Ramsey.He's heavy on evangelical Christianity so if that offends, ignore it. He has solid advice for putting your priorities in order and getting through your personal financial crisis.
For example, priorities are not FICO scores, new cars, McMansions, dinner out 8 days a week, room sized teevees, platinim credit cards, and i-whatevers; priorities are family, shelter, food, utilities and basic clothing. Even though I never was wealthy or oriented towards acquiring the latest and greatest of things, it was still a different mindset than I was used to. It's pretty amazing what you can find to cut out and do without.
Incidentally, along the way, you might even find a new passion that you could turn into a way to make a living. I took something I know and like doing and turned it into a small biz. I'm not making huge bank, but I'm (surprisingly!!) finding plenty of work that I actually enjoy.
Incidentally, kids (I have 3) are quite resiliant but from personal experience, I believe it's really important to tell them the truth about your situation. It eases their angst and they'll help with the belt tightening if they feel like you're all in this together.
Good luck and hang tough!! Wishing you the best.
Thank You!
Many thanks to everyone for the thoughts and excellent suggestions, I really appreciate the support and ideas. I will keep everyone up to date. Thanks to ilene and Z.H. as well.
If you find yourself with no income, survival will be the problem. Default on the mortgage and wait two years for foreclosure. If you cash out your IRA, don't put it into a form that can be seized, whether PM's or cash in the mattress. Perhaps you can take a loan against your IRA, btw.
Before June, you're gonna have to take a sober look at your available credit. Many have maxed out before they formally crashed . . . it will have no more affect upon your credit than a couple cards. Once you're screwed, you're completely screwed. Might as well make it count.
In most states, btw, custodial parents with minor children are the only group of non-disabled people eligible for a full range of support assistance, incl. medicaid, food stamps, rent, utlities, etc.
Step 1: Check with a lawyer first about not paying your mortgage. Debtor prisons are now a popular idea. You have to double check if your state is friend to the banksters or against (in your favor). As one person pointed out, you can be in your pile of bricks for a while. While you are there you will want to confirm some things on your custody agreement. If you are in bad shape, it stands to reason your ex is in bad shape. What will make it easier is if you have a good after marriage relationship with her/him.
Step 2: Shove that money aside into silver, physical silver, it's underpriced/cheap/spendthrift/whatever you like, mainly to protect that money you work very hard for. Do not touch it.
Step 3: Determine need and want. "Fixed" costs
Step 4: Hedging - what to do with all that free time you now have without a tv in every room
Step 5: Shut up.
Step 6: Start looking for a second part time job right now. McDonalds, BK, grocery store, shoe store...does not matter. You have the upper hand. You have a job right now and a lot of employers are being fussy on hiring the unemployed so hedge that social dynamic and get moving kiddo.
Hot damn, that's good stuff. I'm going to copy it to some friends who are in tight spots.
Thanks!
Make good money and spendthrift/hard commodity lifestyle. It's how I've lived my life 45 years. Growing up and as a parent. It hasn't hurt my kids any and with what's coming will make them leaders amongst their peers that rely on schools to fill in the blanks that their parents left empty. We'll be seeing a change on post high school school demographics soon.
However...that being said. The person that is concerned about their future is going to have to make some considerable (or maybe not) changes to extend their ability to survive through a crappy time in their life. Should have put on the list that people need to keep a case of wine or learn to make beer or grow pot. Life shouldn't just be about the work, sometimes stopping a taking a moment to reflect and plan. Both actions are made more poignant with a joint and a bottle of wine.
Thanks for the reminders. I really feel for those who have not known deprivation of any kind. The mall-rats are not going to survive a genuine reversal. I'm 62 years old and have lived in some conditions that the current generation would call hellish. They'd be right, but I survived and am all the better for it. Looking back, it wasn't all that bad!
I'd say once you lose your job, with no reasonable prospects of a replacement (and I'll assume you are competent and have some level of marketable skills) then all bets are off and you need to protect your interests. I agree, stay in the house as long as you can, get a lawyer to rview any foreclosure and dig, dig, dig into the ownership of the loan and the note. If you bought your home in that 2004 - 2008 time frame chances are very good your loan was securitized and the paperwork is severely, and perhaps fatally screwed up. Call it payback time, but protect yourself.
If you stop paying your mortgage, don't leave. Many people are staying in their house for 3 years or more before a foreclosure even starts. Then fight the foreclosure - ask for the note.
The stock market will crash at some point, and go down more than 30%, so you will take the hit no matter what. You can remove up to $10K a year from your 401k - look into it.
Don't panic. Then you have all your original problems, plus a panic attack - Keep fighting and trying as hard as you can and never give up. Keep your head clear and think about your alternatives.
The idea of depleting your IRA if you are thrust into a lower tax bracket may actually make some sense: go ahead and pay the the 10% penalty, it may be lower than a non penalized rate in the future, and your dollars today maybe worth more than if you try to hang on. You hit a key point about paying off your house but then having assets exposed.. Your house may be deflating in value faster than the 10% penalty and the other factors. The distressing problem is the age old dilemna of chasing good money after bad. Will the equity in the house be worth anything? If so cash out now and take the hit, rather than go all in and pay down your house and then be stuck with a paid for house that you may have difficulty hanging onto anyway-losing even more $ and most importantly, your cash reserve and flexibility. Either way, I surely can sympathize with your predicament. Good luck
What would happen with a two-pronged peaceful revolution that consisted of the credit card debt people combining with the student loan people and simply not paying their debt? Anybody have any thoughts as to what would happen to bankers, wall street, etc. or to are economy if we really have one?