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The Pauperization Of America
Wolf Richter www.testosteronepit.com
It’s been an unrelenting process. Survey after survey—most recently “The Lost Decade of the Middle Class“—has shown that wages haven’t kept up with inflation since the wage peak in 2000. Periods when real wages rose, for example during the deflationary stretch between March and October 2009, a godsend for struggling workers, were stepped out by the Fed, like nasty brushfires. So, families ended up making less at the end of the decade than at the beginning, a phenomenon not seen in the US since World War II. And the middle-income tier actually shrank in size—the process of hollowing out the American middle class.
But there is a new phenomenon: a ballooning lower class. It now engulfs 32% of all adults. In America! Where lower class is the unmentionable class, the class that doesn’t exist, just like the upper class doesn’t exist, but for different reasons.
Political candidates trip all over each other to promise debt-funded goodies and tax cuts—real or imaginary—to the “middle class.” They all claim that a thriving middle class is the foundation of the American economy. The middle class rules! “Everyone is in the middle class,” I was told in high school by the dad of the chick I was dating. That was in the seventies. Now 32% of all American adults find themselves in the unmentionable lower class, according to a survey by the Pew Research Center. Up from 25% in 2008. And none of the presidential candidates has even mentioned them.
A similar phenomenon is playing out in Europe, with more acute overtones. “Poverty is returning to Europe,” said Jan Zijderveld, head of Unilever’s European operations. The world’s third largest consumer products company was adjusting its commercial strategy to this new reality, he said, by redeploying to Europe what worked in poor countries of the developing world. Other stars of the industry affirmed it. “The logic of pauperization,” L’Oréal CEO Jean-Paul Agon called it [read.... The “Pauperization of Europe”].
In America, the hardest hit were young adults, of whom a stunning 39% considered themselves in the lower class, up from 25% in 2008. If trends hold for the next few years, the lower class, the politically unmentionable entity, will ensnare half of all young adults.
Education does matter but isn’t a guarantee: 41% of those with a high school education or less ended up in the lower class. But even among college grads, the trend is grim: 17% considered themselves in the lower class, up from 12% in 2008.
While upward mobility survived, despite the headwinds, there has been a pernicious economic maelstrom: “downward mobility.” The middle class has shrunk from 53% to 49% since 2008, and the upper-middle class from 19% to 15%. Only the upper class has remained stable at 2%. These movements resulted in an awful number: 38% of the people in the lower classes were new arrivals.
Political persuasion didn’t matter, however. Of those in the lower classes, 32% were conservatives, 30% moderates, and 33% liberals.
The system, it seems, has succeeded in wringing out any excess enthusiasm from those who are struggling to climb the hurdles in front of them, though that very enthusiasm is a vital ingredient in economic success:
Americans in the lower class are more negative about their current financial standing and more pessimistic about their economic future than adults who place themselves in the middle or upper classes. Those in the lower classes also are significantly more likely than other Americans to doubt that hard work brings success.
And it has had a harsh impact on the economy: 84% of the people in the lower classes cut back on spending last year. But then, 62% of the lucky ones, those that remained in the middle class, and 41% of the even luckier ones, those in the upper classes, also cut back. A sign that the tough times have left skid marks.
Yet hope has been swirling around the financial markets. The Fed keeps dangling QE3 out in front of them, and the European Central Bank has come up with its own juicy carrot. Then, just as markets reached multi-year highs, there was an ugly dose of reality. Read.... The Calamity Economy Strikes Again, But Hope Is Back In Vogue.
And here is China. Read.... China’s New Stimulus Will Unleash Inflation, by hard-hitting Chriss Street.
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Woooo! Might have to recheck what stage of development of the 'american' process'American' nations are in...
The article is quite brutal as it delivers sheer admission of straightforward reality: in 'american'nations, the middle class is the king class, the 'american' middle class rules.
Usually, middle class 'Americans' dance around, claiming that the power lies elsewhere than in the middle class.
'American' denial of most straightforward points stems down from two facts:
-'americans' look for the no return point. As soon as it reaches, 'Americans' release the pressure of denial.
-'americans' run out of resources to fund their denial effort.
Both cases usually never bide well and no matter the case, one has to wonder what is forcing this sudden burst in honesty from a your typical US citizen author: either we have reached the point 'American' middle class is confident about exposing themselves and their goal or/and they no longer have enough resources to keep denying as they used to.
Gloomy.
Your really pushing on a rope here AA. Because you forget (or ignore) that the way various populations behave today is more a product of what has been done to them than organic cultural evolution. Most American's are behaving just as those who brainwashed them want. Same for the Brits, the Chinese, the crazy-ass Arabs, etc. All playing thier part in the grand production that is being run by people who don't give a shit about country. They will burn one down and move onto the next in the interest of power, pleasure and keeping the party going. Same as it ever way.
The more you cry about "american" this and that, the more it seems there is a undertone of jealosy involved.
What you mention above though is human nature. Nothing to do with nation. And yes, it all ends badly.
Get used to the new Feudalism.
The only ones that matter are the top 1/10 of 1% - our Lords and Masters. The rest of us serve and exist at their pleasure. Some are treated better than others - the estate managers who run thing for theior masters, skilled tradesmen who build their castles, the warriors that protect them and keep the rest of the serfs in theior place, but as long as you depend on wages you are one of the serfs who serve those who OWN. Forget the old 'upper', 'middle' and 'lower' class divisions. If you have to work for a living - and cannot live off of your accumulated capital (how many have ANY real savings?), you are one of the serfs.
The rentier class is contracting and getting wealthier - all the rest are getting poorer.
"I make you right," as my Australian friends would say.
"Get use to the new Feudalsim"
Oh I am, it's feudal to fight the leviathan. Easier to just go Galt. Stop funding the corrupt beast.
While once again, there is a typical 'american' offuscation move by proclaiming feudalism instead of 'Americanism' (the world is not returning to feudalism, the world is more and more dominated by 'Americanism'), it is hard to see how going galt would counter balance the following accurate point:
If you have to work for a living - and cannot live off of your accumulated capital
On the contrary, going galt would fasten the downfall of 'americans' who are solidly entrenched in the 'american' middle class...
Your vocabulary is as bad as your grammar.
It's hasten, not fasten.
And, I can't follow the flow of your thoughts because your grammar is clearly they of a non-native English speaker.
I think you're a member of an elite troll regiment in the PRC Army's Internet Corps.
Err ick nick jabu schwala gulu berbep bu. !@$%@%^^@ @#$ @#% 6#@%6&&$ @7
China is suffering from a shortage of puppy dogs. Anonymous is the reason.
Really? US marines, true blooded 'Americans' would better fit the demand as they enjoy throwing puppies off a cliff.
Puppy off the cliff... a few years back, it was a YT success.
Brought to you for your entertainment courtesy of the US marine corps.
AnAnonymous said:
Not seen in the video was the Chinese citizenism citizen at the bottom of the cliff, AnAnonymous, who just happened to have been out for a wok.
Marines are trained to kill. Pure and simple. They don't care what it is, either.
Puppy dogs, baby birds, arabs who haven't progressed culturally or intellectually in 50 centuries.
DO NOT fuck with a Marine! UH RUH!
Gotta stop the upper class from destroying the middle class so the lower class won't have to look for work.
The 'American' upper class is doing as much as they can to maintain the 'american' middle class.
The 'american' middle class, through their behemoth aggregate demand, put the world on the path of resources depletion.
The 'american' upper class is doing their best to engineer as many wars, as many extortion of the weak, farming of the poor schemes they can, it is not enough to make up for the lack of resources looming ahead.
'Americans' run a farming of the poor scheme: all the programs to the poor are only devoted to increase the welfare of the middle class.
The 'american' middle class is the biggest looter of all...
.
The Chinese citizenism AnAnonymousitizen class is the biggest roadside pooter of all...
What exactly is the Chinese impact on resource consumption? Since you seem to be an expert please explain in tons of resources the real consuptive truth.
The Chinese (as so many other locations in the world) has had a empowering effect on consumption.
Chinese consume less for their production and take less in exchange for their production.
That is why as a result of smithian economics (core of 'American' economics), outsourcing is a necessity for 'americans'
By shipping production to China, it allows 'Americans' to consume even more as a chinese would consume less than your typical 'american' for the same volumes of goods.
Secondly, as 'Americans' are in love with cooking the books, another effect is that 'Americans' have been able to under report their own consumption.
The Chinese do not consume for themselves (that is why that story of decoupling and new engine of growth can not come true), they consume to enable more 'American' consumption.
By moving some consumptive activity like production into China, 'Americans' are now able to report that consumption as Chinese when by all means, it is 'American'.
The 'Americans' have managed the high achievement that now consumption performed to satisfy the needs of the contracting is no longer his but the contracted's consumption.
When a baker is ordered one hundred loaves of bread by a customer, the demand on flour, salt, water, energy source and work is no longer reported as issued by the customer, but by the baker.
It is very handy when it comes to undereport the actual consumption of a customer.
The baker could consume only one of his bread loaves, he is the one that is blamed for excessive demand if it does not tick as it should.
In the end, in 'American' economics, it is much better to consume final products everytime as it falsely shrinks the consumption size.
A person who is chauffeured around, eats at restaurants, does not work etc is given a very special position thanks to 'american' economics.
"an empowering effect on consumption"
That means that the Chinese have increased the power of consumption. In a world of finite resources that means that the Chinese are as guilty as anyone in the use of finite goods. This argument even elevates the waste of the Chinese.
There are very few Americans who are chauffeured around and eat at restaurants that do not work. In most of cases those that eat on the welfare dime have work opportunities and do not take them because being on welfare is more advantageous.
There are as many "Name the country" elites that do as they will. The rest of us get by as best we can. I'm sorry your Politburo spent on lavish lifestyles while you ate rat shit and worked so hard. Wait, you write English very well, form well shaped thoughts, and therefore must be the 1% of China. What exactly are you trying to lie about again?
In a world of finite resources that means that the Chinese are as guilty as anyone in the use of finite goods. This argument even elevates the waste of the Chinese.
____________________________________________
Of course, how could it be otherwise?
It is typical for 'Americans' to shed responsibility onto others when it comes to things they consider as bad consequences of 'Americanism'
Complementarily, 'Americans' claim responsibility for anything coming with consequences they value.
The whole humanity is as guilty (or more) than 'Americans' but only 'Americans' can be that virtuous.
It is always because of humanity and always thanks to 'Americans'
The weak is guilty as the strong in an extortion scheme, the poor as guilty as the rich in a farming scheme.
And remember, jungle amazonian fighters are also as guilty as 'americans': their failure to remove their resources from 'american' consumption scheme makes them just as guilty as your typical 'american' person.
This is an 'American' world and this is the kind of 'american' thinking one has to put up with on a daily basis...
It is typical for 'Hans' to shed responsibility onto others when it comes to things they consider as bad consequences of 'Hanism'
Complementarily, 'Hans' claim responsibility for anything coming with consequences they value.
Whee, this trolling stuff is easy!
Please see "The Tragedy of the Commons" and then form a coherent thought.
Tragedy of the commons is just one side of the natural course of 'americans' economics.
Private ownership changes nothing to the deal.
Been telling that many times already...
??Tangent??
Please explain your rationale. The American scheme you decry stems from the British system of 'Make the World Britain!' Who exactly runs the banking system in both said countries? Who gains from a war between the US and China? Who gained from the second World War?
Do your research. The globalist reach has you in a strangle hold. Report back to your masters.
What other global system is there, beside 'Americanism'?
It is been a long time since the British royals no longer exist as traditional royalty. The british royals are 'Americans' themselves.
'America' won the battle of the mind and heart a long time ago.
At least the heart and the mind of certain persons, like criminals who are long time supporters of 'Americanism'...
Rare video footage of AnAnonymous at work. This was made using a hidden video camera while on a tour of the Peoples Liberation Ministry of Truth:
http://www.youtube.com/watch?v=UNddvWsu7wM&t=11s
I'm Barack Obama, and I approve this message
- and all that it implies
You really think MIttens gives a damn about ANYONE that works for a living?
Get past the false duopoly and realize that the existing political system has been coopted and is owned by the wealthy. The illusion of 'choice' is preserved and the masses distracted by God, Gays and Guns - social issues where government should have NO say - while the nation is looted and the masses impoverished.
Personally I think the Repubs don't WANT to win in 2012 - they know things are beyond salvage. They'll let Obama and the Dems take the blame for another 4 years - knowing that collapse awaits - before Jeb takes over as the figurehead in 2016, presiding over the final death of the Republic. History has shown tht the starving masses are easily manipulated and all too willing to sell themselves into slavery - willing to follow a tyrant who promises safety and a full stomach. The 'thousand year Reich' might have actually made it with the weapons, technology and tools we've given our leaders.
Personally I think the Repubs don't WANT to win in 2012
Here's what I don't understand. There was a great video on Denninger's site of an interview with a surgeon who made a compelling case that Obamacare was designed to fail so that a true single payer system can be implemented. Problem with that situation is that to get there the current health care system will have to collapse. Who will get the blame for the collapse? Obama and the Dems. The thing I don't understand is why do the Dems want to win the presidency in 2012? Seems like both sides should be trying to give the election to the other.
He doesn't take the blame for any of his current fuck-ups, at least not from his followers. He'll just blame the Repubs in Congress, and his dozy acolytes will lap it up. Besides, most them want single payer anyhoo.
If you read John Mauldin's latest column, you can see the demographic patterns favor a bottom in the economy around 2016. At some point this mess has to be deleveraged. It is just a question of how. The Democrats are just kicking the can past the election so they can get a second term.
In the 1970's educators began re-writing 12th grade science textbooks so they can be read at an 8th grade reading level. Instead of working the students harder (i.e., teaching them) they simply dumbed down the books.
actually even the dozy zombies that do vote are seeing this as a 2 Party = 1 Party State carve-up with only jingoism and 2 primary colours seperating them.
The danger for both the Reps and Dems is not who is in power, but both OWN the political system which is so out of whack with the country and whose combined efforts are failing so miserably to stop anything. The danger builds that they're both held responsible for all that is going on and they both get hammered in 2016
Look across Europe and you see carnage amongst establishment Parties, some so tarnished they're now minority Parties never to return.
Recessions change the order. Depressions have a habit of obliterating major Parties forever. Both Reps and Dems are in the crosshairs for a public turkey shoot
Both are meaningless fronts for the ZOG. And we are the ones in the crosshairs. Literally.
Oh jesus. Really? The joos? Show me the math on that. Subtract out every penny that goes to Israel (which is too much, you'll get no argument from me there) and show me how the the ballooning lower class would be better off?
The math doesn't even come close to adding up. Your enemies are the banking/insurance industries and mega corporations who place globalism before nationalism. Blaming the joos just plays into the hands of the elites who want you to focus your anger on the age-old saw of joo-bashing.
This is incidentally the same tactic used by the elites throughout the ages. Wise up.
Your enemies are all around you and you're most likely voting for them.
If one were charitably inclined, they might excuse yur obfuscation of the mans' term "ZOG,*" by bringing up the non sequitor 'the joos' as an innocent mistake....
as there is no particular reason to extend any such charity yur way, I must therefore point out that only an apologist for the sionist sabbatean konspirators in our midst would make such a glaringly obvious mistake.
Yur banking/insurance industries and mega corporations who place globalism before nationalism are mere stand-ins for the kreepy kooks who direct things from the background, and have no signifcance except as konvenient fall guys to throw under buses when things get dicey for them...
Blaming "the banking/insurance industries and mega corporations who place globalism before nationalism" dupes just plays into the hands of the elites who want you to focus your anger on them instead of on the krypto kosher kleptocrats where in belongs...
but yu probably know that, and as their witting\unwitting tool, want to keep that knowledge to yurself.
*for those what need to be told, ZOG is an acronym for "Zionist Occupied Government...a true and accurate description of what is the kurrent kase in all of the western fallen lands...Sionists bein atheistic, devil-worshipping, humanity-hatin hegemonists, there is little rational justification for konnecting them to a group of peeple kommonly kalled "Jews"...only satanist sabbateans do that.
Nice try bub.
Stuff it, Adolph.
The real problem is people like you that bring up the rep/dem argument all the time.
The real problem is people like you that point out other people who bring up the rep/dem argument all the time.
32% of Americans consider THEMSELVES as lower class. That's certainly a big shift. Not just in wealth, but in self-image.
The .5% owns the government.
No, the people who can create money from nothing own the government, as well as any other important source of power they can identify. Like the media, the educational system, entertainment, and science.
The rich are their servants.
"the people who can create money from nothing own the government"
Almost there. The real government is the people who control "the people who can create money from nothing".
Let's get explicit. The people who create money ex nihilo refers to the central banks, in our case the Fed, represented by the FOMC. The people who control them are the great money trusts that have existed for centuries, and who are the stockholders of the Federal Reserve corporation. You know who they are. If you don't, you can look them up easily enough. The odd part is that, for most Americans, they are not household names. That's just the way they want it.
It is difficult and inconvenient, but it is possible to live without being their debt slaves. There are many of us doing it.
Yes, that's right. Sorry, I implied Ben Bernanke but I meant "the Nameless Ones who call Bernanke and Tell Him What to Do."
If we know the guy's name -- he doesn't have real power.
( Except in rare cases where it's, for instance, a really old woman who everybody thinks has no real power. Or a really old familiy which we are not allowed to discuss. )