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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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Delusional? Let's see, we cut corporate taxes for decades, they have run away profits AND they gave away all the jobs they promised to create...the gov't is the last place most americans can get a decent job with benefits...are you suggesting we get rid of that?
Would you then revamp laws governing corporations...or are you one of the right wingnuts who thinks the corporations are just fine?
yes "delusional" as in living in a pampered Govt LaLa Land for the past 3 years whilst there's been a RECESSION on. The private sector has taken all the pain, cut all the costs and the staff have suffered lay-offs. In the public sector NOTHING. In fact the Govt is still increasing spending 3 years in!!!
The Govt is indeed "the last place to get a decent job". The average wage and the public pension is miles higher than the private sector that pays for these deluded-self-worth paper pushers.. and it's about time they were paid considerably LESS, not more, than the average private sector who they live off.
Regards being right-wing and on corporate taxes you've not twigged from my avatar i'm no wing (ie. Zero Govt) which answers your second question, there wouldn't be any taxes in my world coz there'd be no Govt parasites. You could have worked that out all by yourself which suggests you are a brain-dead public sector zombie
All ideologues have their heads firmly planted in their sphincters. Pity.
Zero Brains,
You are the perfect stooge.
Falling for Walker.s false flag operation in WI. Creating a $140M deficit for the next year while giving away about that much in tax breaks to his coporate masters. Lying about a $3.6B long term deficit based on fantasy nos.
When Walker and other govenors eliminate the rights of workers to collectively bargain and they piss away the money that should have gone to decent wages and benefits to fund yet more tax breaks for corporations, they'll come after you. Increased state and local taxes and cuts in service.
Even someone writing for Forbes can see this kind of situation stinks.
http://blogs.forbes.com/leesheppard/2011/02/15/wisconsins-cheesy-tax-cuts/
In the giant race to the bottom you are more than willing to push the person in front of you to the edge of the cliff.
Don't be surprised if someone grabs you by the collar and takes you over the edge with them.
In the meantime, continue to be the perfect stooge supporting assualts on working people. Your corporate masters are pleased.
Spot on 2-dimensional trader! The kleptocrats will take from the middle class, public and private, and give it to their corporate cronies all in the name of balancing the budget. The fraud is pervasive and won't end until the middle class is beaten and fights back. Starve the fucking beast and stomp on its lifeless body.
Oh, and one more thing - this union vs. private argument is polarizing and only works to the benefit of the kleptocrats. We should be fighting them, not ourselves.
CC,
What many ZHers don't understand is that the civil unrest they've been calling for (mostly from the right) is being led by public union employess (mostly left).
What is interesting to note is that Walker tried to buy-off what he thought were his right-wing/consevative Law Enforcement unions--the state police, local police and firefighters unions--that supported, him by making them not subject to the big changes in collective bargaining.
The problem he has now is that the state police aren't doing much and many cop and firefighter locals have thrown in with the other public employees.
Since there's been little to no violence (and only about 10 arrests over 7 days), the protestors are policing themselves, the cops are left directing traffic and sharing in the Brotherhood of Bratwurst.
Walker's even losing/lost the state prison guards (largely conservative).
His give-aways to his corporate owners, ginned-up budget crisis and heavy-handed tactics don't play.
This is the street level showdown many ZHers have called for.
They don't recognize it or support it because it didn't come from the side of the political spectrum they expected.
Walker's even losing the State Troopers now. They feel betrayed. They know they're next.
http://www.wlea.org/
See message to Members from Executive Board
To – WLEA Members From – WLEA Executive Board (Message 2)The Governor’s proposal for modifying (or complete dismantling, depending on your viewpoint) the collective bargaining language for government employees contains more provisions that are intended to cost employees more in the long run.
When he was Candidate Walker, he never talked publicly about union dismantling during the campaign. As Governor Elect Walker, he brought the subject up publicly during a luncheon at the Milwaukee Press Club on December 7, 2010. It was reported in many papers across the state. His anti-union stance wasn’t a surprise, but the introduction of this radical change caught many people off guard, including people who actually voted for him during the election. http://www.jsonline.com/news/statepolitics/111463779.html
Nearly 60% of UK employers say they will not take on public sector workers when hiring... over-paid cushy jobs in public sector LaLa Land is not good training for commercially disciplined reality apparently!
http://www.ft.com/cms/s/0/a41baaac-3d06-11e0-bbff-00144feabdc0.html#axzz...
At my wife's company she has an ex-public sector employee and he is looking for another job back in the public sector because he says it is much easier with no pressure.
But don't worry global arms sales have reached a record $400bn
That's ok because we have nano surveillance http://www.activistpost.com/2011/02/how-close-are-we-to-nano-based.html#...
Bankers are Wankers.
http://www.illuminati-news.com/moriah.htm
There is NO recovery - this i just mouthing hussein propaganda. If you are gonna post a video of The Man Who Sold the World - use one from the guy who wrote and preformed the song, David Bowie.
Nirvana's grunge style produces a sad, haunting sound, which fits the mood of the article. The recession is more Smells like Teen Spirit than Ziggy Stardust. Maybe ripped flannels will make a comeback
Plus One, Freddie.
http://www.youtube.com/watch?v=7n0pf7anLa4
I was thinking its ben uncle (Dude with Beard)
Yes WHAT RECOVERY?? ...the only recovery is bankrupt Wall Street from the drain, bailed out by the Washington-Fed ponzi.... socialism for bwankers... The Parasite Club looks after its members but nobody else has seen any recovery
Paul Farrell presents an interesting take...
http://www.marketwatch.com/story/fed-dictator-bernanke-needs-to-be-toppl...