This page has been archived and commenting is disabled.

Half The Country Makes Less Than $27,520 A Year And 15 Other Signs The Middle Class Is Dying

Tyler Durden's picture




 

Submitted by Michael Snyder of THe Economic Collapse blog,

If you make more than $27,520 a year at your job, you are doing better than half the country is.  But you don't have to take my word for it, you can check out the latest wage statistics from the Social Security administration right here.  But of course $27,520 a year will not allow you to live "the American Dream" in this day and age.  After taxes, that breaks down to a good bit less than $2,000 a month.  You can't realistically pay a mortgage, make a car payment, afford health insurance and provide food, clothing and everything else your family needs for that much money.  That is one of the reasons why both parents are working in most families today.  In fact, sometimes both parents are working multiple jobs in a desperate attempt to make ends meet.  Over the years, the cost of living has risen steadily but our paychecks have not.  This has resulted in a steady erosion of the middle class.  Once upon a time, most American families could afford a nice home, a couple of cars and a nice vacation every year.  When I was growing up, it seemed like almost everyone was middle class.  But now "the American Dream" is out of reach for more Americans than ever, and the middle class is dying right in front of our eyes.

One of the things that was great about America in the post-World War II era was that we developed a large, thriving middle class.  Until recent times, it always seemed like there were plenty of good jobs for people that were willing to be responsible and work hard.  That was one of the big reasons why people wanted to come here from all over the world.  They wanted to have a chance to live "the American Dream" too.

But now the American Dream is becoming a mirage for most people.  No matter how hard they try, they just can't seem to achieve it.

And here are some hard numbers to back that assertion up.  The following are 15 more signs that the middle class is dying...

#1 According to a brand new CNN poll, 59 percent of Americans believe that it has become impossible for most people to achieve the American Dream...

The American Dream is impossible to achieve in this country.

 

So say nearly 6 in 10 people who responded to CNNMoney's American Dream Poll, conducted by ORC International. They feel the dream -- however they define it -- is out of reach.

 

Young adults, age 18 to 34, are most likely to feel the dream is unattainable, with 63% saying it's impossible. This age group has suffered in the wake of the Great Recession, finding it hard to get good jobs.

#2 More Americans than ever believe that homeownership is not a key to long-term wealth and prosperity...

The great American Dream is dying. Even though many Americans still desire to own a home, they are losing faith in homeownership as a key to prosperity.

 

Nearly two-thirds of Americans, or 64%, believe they are less likely to build wealth by buying a home today than they were 20 or 30 years ago, according to a survey sponsored by non-profit MacArthur Foundation. And nearly 43% said buying a home is no longer a good long-term investment.

#3 Overall, the rate of homeownership in the United States has fallen for eight years in a row, and it has now dropped to the lowest level in 19 years.

#4 52 percent of Americans cannot even afford the house that they are living in right now...

"Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to the “How Housing Matters Survey,” which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation and carried out by Hart Research Associates. These sacrifices include getting a second job, deferring saving for retirement, cutting back on health care, running up credit card debt, or even moving to a less safe neighborhood or one with worse schools."

#5 According to the U.S. Census Bureau, only 36 percent of Americans under the age of 35 own a home.  That is the lowest level that has ever been measured.

#6 Right now, approximately one out of every six men in the United States that are in their prime working years (25 to 54) do not have a job.

#7 The labor force participation rate for Americans from the age of 25 to the age of 29 has fallen to an all-time record low.

#8 The number of working age Americans that are not employed has increased by 27 million since the year 2000.

#9 According to the government's own numbers, about 20 percent of the families in the entire country do not have a single member that is employed at this point.

#10 This may sound crazy, but 25 percent of all American adults do not even have a single penny saved up for retirement.

#11 As I noted in one recent article, total consumer credit in the United States has increased by 22 percent over the past three years, and 56 percent of all Americans have "subprime credit" at this point.

#12 Major retailers are shutting down stores at the fastest pace that we have seen since the collapse of Lehman Brothers.

#13 It is hard to believe, but more than one out of every five children in the United States is living in poverty in 2014.

#14 According to one recent report, there are 49 million Americans that are dealing with food insecurity right now.

#15 Overall, the U.S. poverty rate is up more than 30 percent since 1966.  It looks like LBJ's war on poverty didn't work out too well after all.

Sadly, it does not appear that there is much hope on the horizon for the middle class.  More good jobs are being shipped out of the country and are being lost to technology every single day, and our politicians seem convinced that "business as usual" is the right course of action for our nation.

Unless something dramatic happens, it is going to become increasingly difficult to eke out a middle class existence as a "worker bee" in American society.  The truth is that most big companies these days do not have any loyalty to their workers and really do not care what ends up happening to them.

To thrive in this kind of environment, new and different thinking is required.  The paradigm of "go to college, get a job, stay loyal and retire after 30 years" has been shattered.  The business world is more unstable now than it has been during any point in the post-World War II era, and we are all going to have to adjust.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 06/05/2014 - 21:28 | 4828748 InjectTheVenom
InjectTheVenom's picture

FORWARD !

Thu, 06/05/2014 - 21:49 | 4828791 Stackers
Stackers's picture

"The American Dream" was always a fabricated marketing term in the first place. People have always had to struggle and work hard simply to survive. All we need to do is diconnect from the consumerist "dream" as some marker of self worth and achievement. The baby boomers got their 'dream' on the backs of future generations prosperity they pulled into their present through excess debt financed consumption. Now welcome to the future where we get to feel the real effect of all that displaced prosperity.

Thu, 06/05/2014 - 21:59 | 4828818 Anusocracy
Anusocracy's picture

"The American Dream is impossible to achieve in this country."

Just a consequence of the actions of the Idiot American Voter.

Vote On!

Thu, 06/05/2014 - 22:07 | 4828834 markmotive
markmotive's picture

The American Dream has been dying for 30 years.

The Coming Collapse of the Middle Class:

http://www.planbeconomics.com/2014/06/the-coming-collapse-of-middle-clas...

Thu, 06/05/2014 - 22:15 | 4828852 Son of Loki
Son of Loki's picture

1-in-4 Merikans Regret Buying a House (Redfin real Estate Analysis)

 

One in four American homeowners (25%) who bought the home they’re currently in said that they would not buy their home again if they had to do it all over, according to a nationwide survey from Redfin and conducted online by Harris Poll among more than 2,000 U.S. adults.

 

http://blog.redfin.com/blog/2014/04/1-in-4-homeowners-have-buyers-remors...

 

Carumba!

 

 

Fri, 06/06/2014 - 03:19 | 4829236 jbvtme
jbvtme's picture

not sure why burying the middle class is such a bad thing. i'm long shovels

Fri, 06/06/2014 - 05:09 | 4829283 johngaltfla
johngaltfla's picture

The middle class died over a decade ago. The banksters and Marxists are now working together to kill them off and start paring down our population to reduce competition and impose "their" version of captialism.

Just Another Anonymous Victim of the Economic Recovery

Fri, 06/06/2014 - 06:30 | 4829328 max2205
max2205's picture

Can we get some new lists....?

Fri, 06/06/2014 - 08:02 | 4829428 tarsubil
tarsubil's picture

No shit. What is the point of reading these same statistics over again?

Fri, 06/06/2014 - 09:26 | 4829696 RevRex
RevRex's picture

damn, so I make more than the average worker, and I retired at age 48...I wonder how long I will still get a pension check...

Fri, 06/06/2014 - 07:34 | 4829403 GubbermintWorker
GubbermintWorker's picture

I'm extremely happy with my home. FIve acres with a vegetable garden, berry bushes, apple trees, standby diesel genset, and since we'eve lived here for 25 yrs there's not much left on the mortgage. We stayed put in a small energy efficient ranch home instead of trading up to a starter castle.

Fri, 06/06/2014 - 09:05 | 4829629 dizzyfingers
dizzyfingers's picture

I now consider "home ownership" a scam that locks "owners" into paying endlessly for municipal and school employees via property taxes. Would never do it again; better to be free of the entanglements of "ownership" -- we don't "own" houses, they own us. Hindsight: if I had all the money I's spent for/on my house over 30 years, I'd be rich.

Fri, 06/06/2014 - 10:51 | 4829984 DadzMad
DadzMad's picture

I do today, my water heater took a shit.  I'm doing my part to boost the economy.  Some WI plumber will get an extra Old Fashioned with his fish fry tonight from my wallet.  Trickle down (or is that up?....).

Thu, 06/05/2014 - 22:18 | 4828854 PT
PT's picture

markmotive:
I was going to post that link.  Now I don't have to.  Thanks.

Thu, 06/05/2014 - 22:19 | 4828858 fonzannoon
fonzannoon's picture

I don't have buyers remorse, I have buyers "holy shit wtf was I thinking".

Thu, 06/05/2014 - 22:27 | 4828876 I MISS KUDLOW
I MISS KUDLOW's picture

"middle class is dyeing" the patient is already brain dead,,,,,,,just the organs are functioning right  now waiting for the transplant donation

Thu, 06/05/2014 - 22:48 | 4828914 PT
PT's picture

I'm good at maths.  So I ended up homeless.

 

Not quite true.  I did manage to snatch a pocket of an egg carton before the "boom" took off in earnest but I can't even imagine trading it for a cardboard box.  The later versions of me (younger people who can do maths) will be homeless.

http://fredgassit.tripod.com/fred018.gif

Fri, 06/06/2014 - 01:57 | 4829188 Wile-E-Coyote
Wile-E-Coyote's picture

Ummm homlesssssss...... so you must be in California using a solar powered laptop??

Fri, 06/06/2014 - 07:32 | 4829399 GubbermintWorker
GubbermintWorker's picture

Did your mom rent out the basement right out from under you?

Fri, 06/06/2014 - 11:54 | 4830221 PT
PT's picture

Sorry you two, read the fine print.  Next time I guess I'd better not use fine print.

Fri, 06/06/2014 - 00:37 | 4829121 Chuck Walla
Chuck Walla's picture

A prosperous middle class is far too independent. Dependency makes for reliable votes for Progressives.

FORWARD SOVIET,
A CENTURY OF FAILURE PROVES NOTHING!

Fri, 06/06/2014 - 01:36 | 4829176 James_Cole
James_Cole's picture

A prosperous middle class is far too independent. Dependency makes for reliable votes for Progressives.

This is the thatcher / reagan dream realized right here (progressives make great boogie men on the teevee though, you're right): 

http://37.media.tumblr.com/e5349c24fddb90f3dbe21a1df044472a/tumblr_mh5j1...

http://spktruth2power.files.wordpress.com/2007/11/media-ownership-sm.gif

http://37.media.tumblr.com/d230c10503e7d79a8c9078434c5ffeda/tumblr_mw41f...

http://www.spiegel.de/images/image-276987-galleryV9-bxkl.jpg

http://www.pewenvironment.org/uploadedImages/PEG/Publications/Fact_Sheet...

etc.

Fri, 06/06/2014 - 03:00 | 4829227 Bay of Pigs
Bay of Pigs's picture

Youre such an assshole and dumbfuck. Nobody cares what you think James. Give it up.

Fri, 06/06/2014 - 03:22 | 4829238 James_Cole
James_Cole's picture

You're funny bop, just show up to call me a dumbfuck and then disappear. It's like having a personal troll. Though you've made one grievous error, my comment was not in regard to gold / silver, so what are you doin' here man?? 

Fri, 06/06/2014 - 10:11 | 4829858 Bay of Pigs
Bay of Pigs's picture

Disappear? Ive been here over 4 years clown. And I've read some really stupid shit around here since then, but yours is always near the top of the list.

Congrats.

Fri, 06/06/2014 - 11:44 | 4830195 Flakmeister
Flakmeister's picture

Naw... 

You are right up there when it comes to displaying how little you truly understand how the world works...

Fri, 06/06/2014 - 12:03 | 4830236 Bay of Pigs
Bay of Pigs's picture

Coming from you, I'll take that as a compliment.

Fri, 06/06/2014 - 09:47 | 4829772 sessinpo
sessinpo's picture

James_Cole    A prosperous middle class is far too independent. Dependency makes for reliable votes for Progressives.

This is the thatcher / reagan dream realized right here (progressives make great boogie men on the teevee though, you're right):

---

To bad thousands of years of progressiveness (that fails and retrys again under new packaging) has failed shows you are wrong.

And to address your images you linked too:

Image 1) Unions are destroying themselves and have tried to adjust by moving to the public sector, since the public sector and the unions are corrupt. And I am in a union.

Image 2) Your chart of the number of corporations controlling media companies is IRRELEVANT because the financial/economic structure has changed. Why don't you just make a comparison to that of the 1950s when there were no cable companies and just 3 networks?

Image 3) Again, the financial world has changed. Is it right? Maybe no, maybe yes. But look at your image. Who cares that kraft has all these brands they created or bought. Get serious. How about pictures of collusion between government and corporations. That is something worth while (fascsism).

Image 4) You bought into the class warfare. Of course the rich always get richer. If yiou had 100 million in assets that made you 100k annually, you are set for life and don't have to work. You can spend your time and excess money to increase your networth. Mean while the average person is spending most of his money on day to day stuff with very little left over to invest to increase wealth. The problem is with the poor that won't save to invest in future wealth.

Image 4) Perhaps you have never heard of economies of scale. Let me provide you the definition. "cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output."

In othe words, costs to consumers are reduced because costs of producers are reduced when producers can mass produce at a lower cost. Sure we could have 1000 hog producers instead of 100 (just picking numbers). But if we had 1000 hog producers, the cost would be higer and so would the cost to consumers.

Fri, 06/06/2014 - 11:45 | 4830200 Flakmeister
Flakmeister's picture

\facepalm...

Unless you are really trying to tell us that Walmart is a good thing...

Are you?

Fri, 06/06/2014 - 01:59 | 4829187 James-Morrison
James-Morrison's picture

The Golden Age of middle class is a myth.

When I was young, our 1 week summer vacation consisted of packing up the Ford and driving to Minnesota or the Dakotas.

We filled up the trunk with cheap sleeping bags, a 10 x10 tent, and a plywood "chuck wagon" my father and I made to carry the "kitchen".

We looked like the Beverly Hillbillies.

History always looks better in the rear view mirror.

We had fun though. We didn't realize we were in the 40-60%.

Fri, 06/06/2014 - 07:08 | 4829369 The Shape
The Shape's picture

Yep, but I bet your holiday was fully paid there and then.

We had fun though. We didn't realize we were in the 40-60%.

And that's the key. Most kids whose parents gave them the debt financed high life are living in misery in adulthood because they're still pining for something that was never sustainable in the first place.

Fri, 06/06/2014 - 09:45 | 4829766 Marco
Marco's picture

It was easier to live within your means then though, there were less fixed costs and employment was more steady. The high fixed costs and constant job insecurity makes life less pleasant now.

Fri, 06/06/2014 - 09:40 | 4829750 Marco
Marco's picture

Day by day the rich get richer, must be a conspiracy of the progressives.

Fri, 06/06/2014 - 03:13 | 4829234 SilverRhino
SilverRhino's picture

That's some seriously fucked up metrics.

Fri, 06/06/2014 - 06:31 | 4829325 max2205
max2205's picture

Impossible....FSA makes 58k a year

 

Disability 60k....oh and 70% aren't disabled

Thats just the non working

 

Why work

Fri, 06/06/2014 - 12:21 | 4829371 NihilistZero
NihilistZero's picture

The Oligarchs destroy opportunities and living standards for the vast majoority of Americans and you're mad some of them are getting a few hundred dollars a month for disabilities???

You truly are a dumb fuck.  Kill yourself, please.

The real "Free Shit Army" is the rentier class and all their sychophants.  Everyone else is just trying to get by.

Thu, 06/05/2014 - 23:58 | 4829068 PT
PT's picture

0.1  The link provided by markmotive's comment 4828834.

0.2  Does anyone remember the term, "mortgage distress"?  It kicked in when someone's mortgage repayments exceeded 30% of their wage.  Or was it 36%?  I can't remember.  Tell you what, benefit of the doubt, I'll give you 36% till mortgage distress kicks in, I'll even use "before-tax" dollars.
So if the median wage is $27520 per year then the median house price should be $120 000 at 7% interest with a 25 year loan.

"Oh, but PT, interest rates aren't 7%."
Okay then, at 4% the median house price should be a tad under $160k.  And do I need to mention that such houses must be within reasonable travel distance of some kind of income producing activity for its occupants?  I will not accept Detroit bomb-wrecks skewing the statistics unless you are willing to factor in the price of supersonic armoured cars to deliver said occupants to their place of work.

"Oh, but PT, we borrow for 30 and 40 years, not 25."
May I ask why?  Over 40 years at 4%, you can borrow $200k instead of $160k (25% increase) but it took you a 60% increase in time to repay.  Your total interest paid as a percentage of what you borrowed increases from 57% to 98%, but that is at 4% interest rates.  Do you guys pay 4%?  (I really don't know.)
At 7% interest, your 60% increase in time to repay lets you borrow 15% more ( borrow $137k instead of $120k ) and total interest paid as a percentage of what you borrowed increases from 107% to 190%.

"Oh, but PT, supply and demand and free markets and blah blah blah if you want a house then ..."
... if you want a house then the price is determined by your stupidity and desperation and the sleaziness of your bankster versus someone else's desperation, stupidity and the sleaziness of their bankster.  (And did I mention that all the good bankers are were fired / passed over for promotion due to "underperformance"... ) "Fwee markits!  There is no better way!"  From a banksters point of view, I've just shown you that there certainly is "no better way". 

But what happened to the "fwee markits" providing prices that their customers can afford?  You know, if no-one can afford to buy tellies then the price of tellies comes down - either through smaller profit margins or smaller tellies.  What happened to increased prices leading to increased supply which then moderates the prices?  Oh yeah, land - they ain't making any more of it.  So, for starters, perhaps we can stop putting "real estate" and "free markets" in the same sentence for this reason alone:  supply is limited and cannot be ramped up to accommodate demand.  (Although we can debate that for a long time - plenty of unused land outside the cities ...)  Besides that, the debt associated with that land is still there and the bankster masters have declare that SOMEONE ELSE has to pay!

You know, (ignoring the effects of accumulated debt) I'd argue that the median wage is not such a bad problem ( don't worry, let it fall a bit more and eventually you will be able to compete with China ) if real estate prices fell to accommodate the wages.  Prices are supposed to bear some kind of relation to what people can afford to pay, be it a TV set, food, clothes, a car, the house someone lives in or the land underneath a supermarket or a factory.  But the owners of the land and the owners of the debt don't want to let that happen.  And they're in charge at the moment.

To PONZI FINANCE and Beyond!!!

Fri, 06/06/2014 - 02:26 | 4829210 MisterMousePotato
MisterMousePotato's picture

I am with you 100% on this. THE problem is that real estate prices are too high. If real estate cost a reasonable amount, all other problems would correct.

I bought a house (a very, very cheap house, I would hasten to mention) for cash. Sold a bunch of junk in the old house. Saved dough for a few months, and bought something sight unseen over the net (finally saw it last week).

Needs some work, but has all the amenities. New steel roof, etc. And, it is in a very, very low cost area. Taxes under $200 a year. Water ten bucks a month. 4g even if that's your thing. Maybe an eighth of a mile to the post office, school, etc. Piped natural gas. The forest begins, literally, at my back door and ends at the North Pole.

With those kinds of expenses (no mortgage, cheap utilities and taxes, car paid for, etc.), I wouldn't know what to do with $27,000 a year (although I'm sure MrsMousePotato would have no trouble educating me). I would thrive and prosperr on half that amount, and could probably survive pretty well on just a quarter of that.

The difference between me and others is mainly my cost for housing. And remember ... if you need ten or 20 thousand dollars a year to pay a mortgage or rent, you actually need an amount greater than that to pay the taxes on the money you need to earn to pay the mortgage.

Think of what this country could be if people could thrive on $27,000 a year, or even lesser amounts. Imagine making that kinda money, being able to support a family, and save half of what you make.

Everyone's running around like we have great big, complicated, economic problems, but all that needs be done is fix taxes and the price of housing.

Fri, 06/06/2014 - 02:41 | 4829218 jaxville
jaxville's picture

   High real estate prices (and other rising living costs) are a direct result of fractional reserve banking/credit based money. Things only get worse until the trash gets taken out.

Fri, 06/06/2014 - 07:14 | 4829376 NihilistZero
NihilistZero's picture

MisterMousePotato, you get it.

Far to many here don't...

Fri, 06/06/2014 - 09:58 | 4829813 sessinpo
sessinpo's picture

NihilistZero     MisterMousePotato, you get it.

Far to many here don't...

---

Acutally either of you get it. Take your concept and apply it everywhere else. For example

If care were less, I could buy another car. If food were less, I could buy more food. If X were less, I could by Y.

Well, no shit. That also means that producer or seller of Y makes less and their employees make less. For example:

The house that sold for 100k now sells for 50k. Well that means less commission for the RE agent and company. That RE has to adjust to lower income. Same goes for contractors. What used to be a 20 k renovation isn't worth it on a property worth only 50k. So the contractor has to find a way to do it for maybe 10k? And thus the contractor has to adjust to a lower income.

Welcome to deflation.

Fri, 06/06/2014 - 12:18 | 4830301 PT
PT's picture

In the time it took real estate prices to quadruple, nothing else went up by any amount even close to that and you refuse to acknowledge this as a problem.  Go back to sleep.

Fri, 06/06/2014 - 14:07 | 4830669 MisterMousePotato
MisterMousePotato's picture

"So the contractor has to find a way to do it for maybe 10k? And thus the contractor has to adjust to a lower income."

Well, yes. But that is exactly the point I was trying to make; viz., that your contractor can now afford to do it for 10k because HIS housing costs, too, are now reasonable. It's no hardship for him; in fact, he'll end up making more when his mortgage is 50k instead of 100k: Lower taxes (he doesn't have to earn so much to pay the mortgage) and, as you point out, everything else will come down in price, too, because all of the people selling (or making) whatever services or goods he is interested in will also be able to do so for less because they, too, don't need two or three thousand dollars a month, every month, coming right off the top to pay for housing.

The system is rediculous.

Fri, 06/06/2014 - 07:52 | 4829414 pelican
pelican's picture

What middle class?

Fri, 06/06/2014 - 09:35 | 4829734 Miggy
Miggy's picture

The "coming" collapse?

Sat, 06/07/2014 - 13:05 | 4832625 PT
PT's picture

Look at the date on the video.  2009 if I remember rightly. 
This link here:
http://www.youtube.com/watch?v=akVL7QY0S8A
was uploaded on 31st January 2008 but then the "About" commentary also says, "Series: "UC Berkeley Graduate Council Lectures" [6/2007] [Public Affairs] [Business] [Show ID: 12620]"

Does that mean the lecture took place in June 2007?  (I don't know.)  Is it starting to look more prophetic now?

Thu, 06/05/2014 - 23:26 | 4829000 BeerMe
BeerMe's picture

Not marketing.  A progressive ideal.

Fri, 06/06/2014 - 00:26 | 4829109 -.-
-.-'s picture

Um...I agree with you Mr. (or Ms.) Stackers,

 

Please, just fucking read, do meaningful drugs accordingly, and listen to music prior to the perfected market for "sounds".

Here is a starter for y'all: The Spectacle (i.e., the Internet) by Guy Dubord, c. 1967

 

XOXO

 

Mezcalero Leo

Fri, 06/06/2014 - 08:52 | 4829568 dizzyfingers
dizzyfingers's picture

Well said!

Fri, 06/06/2014 - 15:52 | 4831067 Chewybunny
Chewybunny's picture

The American Dream is the most subjective thing ever. My family came to the US as refugees, our American dream has already been achieved: we live fairly comfortable lives in comparison to the communist hell hole we came from. 

Fri, 06/06/2014 - 07:33 | 4829401 asking4it2k
asking4it2k's picture

You cant outsource good paying manufacturing jobs for 30+ years and think everything will be ok economically.

Just another reason why "free trade" and globalization have been epic failures for the American middle class.

Fri, 06/06/2014 - 12:31 | 4830377 Martian Moon
Martian Moon's picture

Free trade was used to collapse Britania, back when the sun never set on the British empire.  And the banksters swooped in for the kill.  Britain never recovered.

Wash, rinse, repeat.

Fri, 06/06/2014 - 10:52 | 4829996 SimpleSimon
SimpleSimon's picture

The new Forward is BARACKWARD!

Thu, 06/05/2014 - 21:31 | 4828751 _SILENCER
_SILENCER's picture

 

Snyder is always good for a little late week misery.

It's pretty weird that people are in such denial about America tumbling into the abyss, I'll give him that. I'd wager that if all the people zoned out on their psychotropic zombie pacification drugs had never gone into that delusional, docile "I'll sort it all out with drugs and therapy"  trance (except for the ones that invariably turn into spree shooters), the situation may not have been allowed to get as bad as it has.

 

Well, guillotining the Ivy League Skyscraper People would help, of course, too.

Thu, 06/05/2014 - 21:38 | 4828766 stacking12321
stacking12321's picture

that's what the nazis said, too - kill all the intellectuals!

/godwin'ed ftw

Thu, 06/05/2014 - 21:40 | 4828771 _SILENCER
_SILENCER's picture

I rarely imagine self aggrandizing Wall Street pirates to be intellectuals.

Thu, 06/05/2014 - 21:56 | 4828812 stacking12321
stacking12321's picture

you stated ivy leaguers, you said nothing about wall street pirates.

don't conflate the two.

Thu, 06/05/2014 - 22:19 | 4828859 Anusocracy
Anusocracy's picture

Actually he described them as "Ivy League Skyscraper People".

I inferred a useless a waste of the space-time continuum from that.

Thu, 06/05/2014 - 22:42 | 4828902 stacking12321
stacking12321's picture

don't hate, and don't be prejudiced.

going to an ivy league school doesn't automatically make someone a bad person, nor does living in a skyscraper.

my critera for whether someone is a good person or not is if they engage in acts of aggression or fraud against others, or collaborate with those who engage in agression or fraud (like the feds). as long as they don't, i would be glad to have them as a neighbor, no matter what school they went to.

also, the space-time continuum cannot be wasted.

 

Thu, 06/05/2014 - 23:08 | 4828954 disabledvet
disabledvet's picture

The Nazis had a very specific plan for how they would occupy Great Britain. One of the two quite detailed plans is at the Imperial War Museum in London.

It's a truly terrifying "black book."

Read the history of the Eisentzgruppen and it's General in charge.

That's no work of fiction.

Makes Abraham Lincoln look like a choir boy.

Thu, 06/05/2014 - 23:12 | 4828966 Hopeless for Change
Hopeless for Change's picture

Ivy Leaguers have been at the wheel for a long time now, sir.  Larry Summers Bernanke Geithner Obama Clinton etc etc etc.  I don't think his original comment was a blanket condemnation of all Ivy Leaguers but if the shoe fits, feel free to lace that bitch up and wear it.  

Fri, 06/06/2014 - 08:14 | 4829441 pelican
pelican's picture

Most of those Ivy Leaguers never served in the military, know nothing of long term thinking or basic street sense.  Most  don't understand the roots of power and the struggle for existence. They laugh at the ones who often come from the suburbs, ghettos and country to fight their wars which fatten the pockets of corporations. And in the end, the American people pay for it all.

The plans of the elites of turning the mass of the American people into complete dolts must make them laugh also.  It was very successful.

 

We have gone from the dignity of Roosevelt's, Eisenhower,etc  to the selfies of idiots in DC.

 

So go sing the wiffin poof song as the country turns from the World's main power to Brazil assholes.

 

Historians will look back and reflect how quickly a world power could decline. 

Fri, 06/06/2014 - 09:26 | 4829697 _SILENCER
_SILENCER's picture

TheIvy League Skyscraper People have an ungoldy sense of entitlement as they look down their noses at those that make their looting possible.

They're ravenously jealous of creativity, artistry, and beauty possesed by anyone other than themselves. They don't want you to create things, have talent, a beautiful wife, beautiful kids, a beautiful place to live. They'd much prefer you in the debt slave gulag, mired in regulation, taxation, and usury while the fun times in the casino for them scoop huge benfits. Don't forget you're also supposed to fight the wars, kill the civilians, destroy the property,and poison humanity with homicide in order to fulfill their need for power and control.

 

You're supposed to call a guy who wore his bathrobe to work "your Honor", call cops "sir", grovel to state authority, surrender to the phony green movement, feel guilty about usuing energy, drive a "see how I'm sacrificing" bubble car, be disarmed, and--if you REALLY go along with the plan, stay in a Pharma Haze while the fraud runs rampant around you.

 

So, I say, fuck those motherfuckers and their entire goddamned agenda.

 

Thu, 06/05/2014 - 23:12 | 4828968 Anusocracy
Anusocracy's picture

Judging by your criteria, I would guess that less than 1% of the people working in any skyscraper would be a good people.

Those would be the anarchists.

Fri, 06/06/2014 - 00:49 | 4829132 stacking12321
stacking12321's picture

i don't know if it's 1%, but, yes, the minority. the point being, a blanket statement saying that people in skyscrapers deserve the guillotine is irresponsible, harsh, and unnessessary. such blanket statements are normally made by those who can't be bothered to activate the necessary brain cells to make judgements on specific individuals by their own merits, instead of lazily assigning collective guilt.

some of us prefer the term "voluntaryists", it's more PR-friendly.

 

Fri, 06/06/2014 - 01:51 | 4829185 James_Cole
James_Cole's picture

Most of the people I know work in skyscrapers and most are good people (a few real bad ones mixed in but they make themselves obvious). 

What are we all doing and why only God knows, but sure isn't going the right way. It's something about how humans evolved - we weren't evolved to understand many things that we are now faced with, particularly externalities in such complex systems...

Reminds me of the movie of my namesake, we're all rushing toward doom, seeing it right there in front of us and completely unable to stop it. Human race maybe is just a failed species. 

Fri, 06/06/2014 - 02:14 | 4829199 stacking12321
stacking12321's picture

there are no failed species - only stepping stones.

Fri, 06/06/2014 - 02:31 | 4829213 James_Cole
James_Cole's picture

Life on earth will only be possible for a few billion more years. If humans go down (and likely in spectacular fashion) it may dramatically close that timeline. Sounds ridiculous, but humans might be the last chance for this solar system, epsecially when you consider other factors like asteriods etc. 

Fri, 06/06/2014 - 10:02 | 4829825 sessinpo
sessinpo's picture

stacking12321    don't hate, and don't be prejudiced.

going to an ivy league school doesn't automatically make someone a bad person, nor does living in a skyscraper.

my critera for whether someone is a good person or not is if they engage in acts of aggression or fraud against others, or collaborate with those who engage in agression or fraud (like the feds). as long as they don't, i would be glad to have them as a neighbor, no matter what school they went to.

also, the space-time continuum cannot be wasted.

---

I know you mean well, but you need to live in the real world. Please don't hurt me don't cut it. You're looking for an ass kicking and you don't know it.

Thu, 06/05/2014 - 22:10 | 4828838 Alex DeLarge
Alex DeLarge's picture

 I guess that is why Germany is in the sad state that it is today?

Thu, 06/05/2014 - 23:10 | 4828957 disabledvet
disabledvet's picture

"Blame Bo Bergdahl."

Fri, 06/06/2014 - 00:04 | 4829076 August
August's picture

Crashing a jetliner into Harvard Yard would have been a lot more productive than flying one into the WTC. 

But I guess I'm missing the point.

Thu, 06/05/2014 - 21:30 | 4828752 nmewn
nmewn's picture

Recovery Summer VI: The Year of the Hashtag.

Coming to a theater near you.

Thu, 06/05/2014 - 22:32 | 4828882 NoDebt
NoDebt's picture

That's what we're down to, unfortunately, nmewn.  A lot of "good luck to you, now please vote for me again" BS.  No real help is coming, because they have none to offer.  

Thu, 06/05/2014 - 21:36 | 4828761 Seasmoke
Seasmoke's picture

That is both seriously fucking pathetic and impressive that there hasn't been a revolt. 

Thu, 06/05/2014 - 21:39 | 4828768 stacking12321
stacking12321's picture

i'm not sure why you say that - i've known for a long time that americans are revolting.

Thu, 06/05/2014 - 21:40 | 4828769 LetThemEatRand
LetThemEatRand's picture

That is the one and only reason that our oligarch overlords keep expanding welfare and unemployment.  They print a few dollars to keep the sheep fed, while they plunder what is left of the productive middle class.  Of course there's a limit to how long this can go on before there's no one left to plunder, thus the drones, Homeland Security, militarized police, NSA, etc.

Thu, 06/05/2014 - 21:55 | 4828810 Occams_Chainsaw
Occams_Chainsaw's picture

It's all part of the plan.....

Thu, 06/05/2014 - 22:25 | 4828871 prains
prains's picture

an abundance of population meets the rapid decline in hydrocarbon energy, throw in an increasing erratic global weather pattern, some "hot" water out of fukitshima, stir until boil, add a pinch of drone, rub down with plenty of hungry zombie. Sear all four sides on a fresh grill, turn down heat and retire to professionally guarded Blackwater Island.

Thu, 06/05/2014 - 23:20 | 4828979 BLOTTO
BLOTTO's picture

Its a massive hurdle and mental splinter for the masses to get over the fact that our lives have been hijacked on all 3 levels - physical, mental and spiritual - by those who we think love and care for us.

.

For the small group of independent thinkers out there, the illusion of this reality sticks out like a sore thumb, but, for the masses its unfathomable.

Fri, 06/06/2014 - 00:39 | 4829125 NidStyles
NidStyles's picture

I can't think of anyone outside of the few sycophants on the internet pushing climate change and BS that actually believe that any of those people have any interests other than their own at mind. 

Fri, 06/06/2014 - 08:05 | 4829433 prains
prains's picture

Nid.....you're 'merikan.......nuff said......what you believe is beyond meaningless......the last 300 years of your culture is proof enough to the rest of the world that what you say is at best self interest and at worst a fine Cabernet of Stoopid Juice.

Fri, 06/06/2014 - 09:12 | 4829660 griffey247
griffey247's picture

Idiot 

Sat, 06/07/2014 - 22:25 | 4833586 prains
prains's picture

yes he is

Thu, 06/05/2014 - 21:36 | 4828762 stacking12321
stacking12321's picture

"You can't realistically pay a mortgage, make a car payment, afford health insurance and provide food, clothing and everything else your family needs for that much money. "

if you are having children with an income of $27k annually, you're a dumb shit and should be arrested for child abuse.

unfortunately, it tends to be the stupidest and the poorest who breed the most.

Thu, 06/05/2014 - 21:44 | 4828781 Occams_Chainsaw
Occams_Chainsaw's picture

Idiocracy is happening before our eyes....

Fri, 06/06/2014 - 00:09 | 4829081 PT
PT's picture

... and that is the reason that the human race has not yet gone extinct.
Idiocracy certainly is the documentary.

Fri, 06/06/2014 - 08:53 | 4829572 Almost Solvent
Almost Solvent's picture

Aside from forced sterilization, it's one of the few things TPTB can't really control - sex and babies.

 

It's amazing to me that TPTB regulate the shit - absolute shit - out of everything 'cept sex and babies.

 

Even abortions (in most places) are highly regulated.

 

I need a license to drive a car but I can have 19 kids and raise them to believe in the flying spaghetti monster.

Fri, 06/06/2014 - 10:10 | 4829852 sessinpo
sessinpo's picture

 Almost Solvent   Aside from forced sterilization, it's one of the few things TPTB can't really control - sex and babies.

 It's amazing to me that TPTB regulate the shit - absolute shit - out of everything 'cept sex and babies.

 Even abortions (in most places) are highly regulated.

 I need a license to drive a car but I can have 19 kids and raise them to believe in the flying spaghetti monster.

----

So I have 10 chickens. Each day they lay an egg. And each day I get to choose which ones are good. I certainly don't want to stop their production. They are in their cage for safety. I monitor them and regulate all parts of their life. And each egg they lay are mine and the eggs that are bad, I throw out.

Fri, 06/06/2014 - 17:09 | 4831251 Frilton Miedman
Frilton Miedman's picture

 

 

Stacking, while I get your point, and agree about fiscal responsibility and child raising.

 

This -

" ...if you are having children with an income of $27k annually, you're a dumb shit and should be arrested for child abuse.

 unfortunately, it tends to be the stupidest and the poorest who breed the most."

Is borderline Eugenics.

I'm not disagreeing in priciple, but offering caution that this train of thought might be conterproductive to the reality that level of wealth isn't a measure of intellect or ability.

If that's the case, millions of displaced post-2008 professionals or newly graduated millenials, thanks to globalization, that got STEM degrees who are now under the bus are less entitled to breed.

I know you were being hyperbolic, just offering caution - Eugenics was one of the founding principles of Hitler, it only took him a decade to convince the frustrated & confused public that "inferior" races were responsible for Germany's woes, when in fact, the fault was in Germany's stubborn pride to negotiate WW1 foreign debt terms.

 

 

 

Thu, 06/05/2014 - 21:37 | 4828765 nosoeawe
nosoeawe's picture

does that amount include the value of the obama phone?

Thu, 06/05/2014 - 21:44 | 4828785 Occams_Chainsaw
Occams_Chainsaw's picture

Damn bro....those are free.  WTF you talkin' bout?

Fri, 06/06/2014 - 02:50 | 4829220 Taint Boil
Taint Boil's picture

 

 

The Free Obama Phone: Real or Urban Legend?

You decide - Link

I think it should be called the Reagan Phone

 

I actually made a bet on Zero Hedge once to donate $50 (To Zero Hedge) if anyone could show proof that the “Obama phone” was started under Obama <cricket sounds>. Not one reply ...... I still donated the $50.

 

The average Fox “News” viewer is something like 68 years old. Gram and Gramps watching their daily “shoutCast” doesn’t even know how to use the Internet …. LMAO

 

 

Fri, 06/06/2014 - 02:59 | 4829225 bunnyswanson
bunnyswanson's picture

Welfare recipients/poor have always been eligible for subside to their telephone bill...back when the phone bill was 50.00 or less, it was 12.00, and that gave them a local line with no long distance.   Telephone has been deemed essential in event of an emergency.  Why people are getting cell phones in lieu of a homeline is what is curious.  It would seem that this tool may be used against them after a data collection sweep.  Who we speak to speaks volumes about us.  GPS is another feature.  It's a virtual paper trail, I believe.  Generosity is a carrot on the stick.

Thu, 06/05/2014 - 21:49 | 4828797 kchrisc
kchrisc's picture

As long as they can still afford the materials for a guillotine (.222 Oz. Gold), everything will be alright.

Thu, 06/05/2014 - 21:49 | 4828798 James
James's picture

Re: # 13 - That figure was true for decades.

 

Re: the rest. Was the "illusion" ever true of a "middle class" when all your income went to mortgages,property taxes, upkeep on that home, and that vacation?

Did'nt matter what you made. It was spent foolishly.

We've been had.

Thu, 06/05/2014 - 21:51 | 4828801 nick howdy
nick howdy's picture

God Michael....A gazillion lists of depressing stuff..which are all true...Any solutions?

Thu, 06/05/2014 - 22:08 | 4828807 grid-b-gone
grid-b-gone's picture

$13.23 per hour totals $27,520 annually, yet the monthly reported average hourly wage is over $22. That's a big believability gap.

The higher official number must be what the temp agency charges.

Thu, 06/05/2014 - 22:19 | 4828841 socalbeach
socalbeach's picture

Could be the difference between median and average.

.

Median: "If you make more than $27,520 a year at your job, you are doing better than half the country is."

(didn't downvote you)

Thu, 06/05/2014 - 22:22 | 4828865 I Write Code
I Write Code's picture

Could be less than 2,000 hours/year.

Thu, 06/05/2014 - 22:25 | 4828870 socalbeach
socalbeach's picture

Good point, probably both.

Fri, 06/06/2014 - 01:03 | 4829107 PT
PT's picture

As socal said - the difference between mean and median.
The best example is to imagine a boss with 19 workers.  He pays his workers $100 per week and pays himself $2100 per week.  Total wage bill = $1900+$2100 = $4000 per week.  Total workers (including boss) = 20.  Therefore boss triumphantly claims that average wage at his company = $4000 / 20 = $200 per week!

... but the most common - the modal wage is still $100 per week.

mean : the average we all know and love - total quantity divided by total number involved
median : half way point.  50% is above that number, 50% is below.
mode : the most common number.

And for some strange reason, our beloved MSM always seems to talk about
average (mean) weekly earnings
and
median house prices.

I've always wondered about that.
Kudos to Snyder and ZH for talking about median wages for a change.

Fri, 06/06/2014 - 17:25 | 4831337 Frilton Miedman
Frilton Miedman's picture

 

 

Correct.

In real terms, US total income for 2013 was $14.1 trillion, for a population of 317 million.

The MEAN average personal wage for 2013 would be $44K instead of the median $27K.

Using MEDIAN wage average is a better way to eliminate distortions of the minority wealthy at the top.

The Median wage also represents the fact that 50% of the population makes less than $27K.

Using the MEAN would represent a lopsided ratio closer to the top as if it were the "middle".

 

 

Thu, 06/05/2014 - 21:56 | 4828811 yellowsub
yellowsub's picture

If credit wasn't so easily accessible, I'd probably not be one of the 36% for #5 and waiting the prices further.

People who bought my friend's home in the same town with abFHA loan, closed much faster than my standard 15 year fixed.   I guess those who put 20% with a lot more in the bank is more scrutinized than those who barely scraped enough for 3.5%...

Thu, 06/05/2014 - 21:58 | 4828816 world_debt_slave
world_debt_slave's picture

future cannon fodder

Thu, 06/05/2014 - 22:00 | 4828819 Caveman93
Caveman93's picture

Like WTF!? I am the top 9% at $75K and single? It must be a bad calculator eh?

http://www.whatsmypercent.com/index.php 

Thu, 06/05/2014 - 22:33 | 4828884 stacking12321
stacking12321's picture

link is broken, instead try:

http://www.whatsmypercent.com/

yes, i'm skeptical - i put $111,111 and single (though i don't know what i make) and it said 97%

 

apparently, the 50% mark is at $19,500, i find that hard to believe.

but, the site does go by government tax filings - as soon as a gang of thugs with guns enter into the picture, the truth gets distorted.

Fri, 06/06/2014 - 00:05 | 4829077 adr
adr's picture

It was easier to find a $50k a year job in 1985 than 2014. Nearly every newly available jobs outside a few select industries pays less than $40k. Companies pray older employees die or quit so they can hire newbies for 1/4 the pay.

Fri, 06/06/2014 - 08:53 | 4829574 plane jain
plane jain's picture

True.

My spouse has experience, a degree, and multiple certification in his area of IT.  Thought the offer on his current job was low, but they swore that was he most they could possibly offer.  On the job for a few months and now knows that he makes less than many of the people he is supervising.

My father was an autoworker.  He was making $50K building cars in the '80s with only a high school diploma.

Adjusted for inflation my spouse with over 10 years experience, a degree, and a stack of certs is earning a little better than half what my father did with a high school diploma.  And we have to pay more for health insurance/health care too.  Dad had full coverage and if mom was working we could even have double coverage.

Running up an escalator.

Thu, 06/05/2014 - 22:38 | 4828887 novictim
novictim's picture

The power is with those who can buy our political system.  You are not in that position.  

Even I am not.  It is the 0.1% who have the means ($$$).  It is those who have wealth flowing from Stocks, bonds and investments, and NOT work, who have the time to focus on their private agenda.

Big money from the American aristocracy is competing directly with YOU for politician consideration.  And you lose that battle every-time.

Fri, 06/06/2014 - 12:13 | 4830281 SilverRhino
SilverRhino's picture

Not a bad calculator, they are using 2010 data.   

Thu, 06/05/2014 - 22:02 | 4828828 Caveman93
Caveman93's picture

#7 The labor force participation rate for Americans from the age of 25 to the age of 29 has fallen to an all-time record low.

I do not even understand this one. I would say they are just "Actively Disengaged" and the range should be more like 22-59. The people I work with don't shive a git anymore and it's very VERY apparent. Good job corp Merika! You've managed to de-nut your whole workforce in only 8 years!

Thu, 06/05/2014 - 22:21 | 4828862 Son of Loki
Son of Loki's picture

Exactly, Caveman.

We had a 24-year-old college grad call about one of our job openings. My HR person asked him for a resume, and he said he was not going to waste time putting together a resume for us if he doesn't get the jhob.

 

WTF! I must be on a different Frigg'n Planet!

Thu, 06/05/2014 - 22:03 | 4828830 stinkhammer
stinkhammer's picture

i got mine fuckfaces!

Thu, 06/05/2014 - 22:12 | 4828842 European American
European American's picture

But then again, who's telling "them"(SSA or really the NSA?) how much one generates...unoffically?

The "Black Market", and EVERYTHING that that entails, i.e. the real tangible sustainable assets exchange, will be where it's happening, otherwise, serfcity.

 

 

Thu, 06/05/2014 - 22:26 | 4828863 novictim
novictim's picture

Yes, we now live in the land of Oligarchs who lord it over the harassed and overworked and uninformed Electorate...the game is rigged.

Meanwhile, CSPAN has Saxby Chamblis(Georgia) and Dianne Feinstein(CA) and Susan Colling (Maine) debating "reform" of the NSA and bulk data collection and the violation of the 4th Amendment.

For them, it is quite clear, the 4th Amendment is DEAD,  The NSA is A-O-K, and the US citizen is a muppet deserving of a snear and a guffaw.

Thank you Mark UDall(Colo) and Ron Wyden(Oregon) for fighting for the 4th Amendment...but you are outvoted.

Mark My Words:  

This police state will not be scaled back and will only expand...it's function will be to squash dissent of the jobless and the disenfranchised...from the former "Middle Class".

Oligarchy needs the police state.  Dissent is the target.  (Not terrorism).

The Land of the Free and the Home of the Brave is DEAD.

Thu, 06/05/2014 - 23:05 | 4828940 lakecity55
lakecity55's picture

We are now Ukraine. The shooting hasn't started yet, though. That's good.

Fri, 06/06/2014 - 17:32 | 4831363 novictim
novictim's picture

If only!

We don't have the balls in the USA anymore.  There are no buring mountains of tires.  There is no organized have-nots rioting in the streets with gas masks and clubs.  

 

All we have are useless drumming circles.  What a joke.

Fri, 06/06/2014 - 20:50 | 4831680 acetinker
acetinker's picture

Saxby Chambliss, and the others you mention are bought-and-paid-for examples of human excrement.  But, if you think that a Udall or a Wyden are any better, you are still plugged in to the matrix.  -end transmission-

Attention all planets of the solar federation- We have assumed control... We have assumed control.

Thu, 06/05/2014 - 22:25 | 4828868 Make_Mine_A_Double
Make_Mine_A_Double's picture

I make a 6 figure gross salary and I can't afford a house in metro Seattle (well I could but why would I when the market is 50% over priced).

Forget housing - how the hell does anyone this day live on 25k??

Thu, 06/05/2014 - 23:33 | 4829022 Yes_Questions
Yes_Questions's picture

 

 

on the precipice

 

long ago on a ZH post, someone commented how the household pets may begin to look good for dinner in a time of need

 

the reply turned the tables suggesting the pets might look upon their humans the same way, in a time of need

Its good you get this is not a good situation

 

not that you wouldn't but would that we all will

 

Fri, 06/06/2014 - 10:24 | 4829899 Jethro
Jethro's picture

I'm an advocate of owning pets that you can eat.  Living in the 3rd world for an extended period of time will indelibly change your perspective on what is, and isn't edible. My upbringing as a hillbilly gave me a broader definition of what food is, and how to recognize and obtain it.  My time as an infantryman helped a little as well.  I've raised my daughters to think this way too.  They know that life will be be harder for their generation than it was for mine, and far more difficult than their grandparent's generation, and far more dangerous.

 

Fri, 06/06/2014 - 10:24 | 4829901 dizzyfingers
dizzyfingers's picture

Same for us lowly ones and our tptb masters?

Thu, 06/05/2014 - 22:26 | 4828873 cherry picker
cherry picker's picture

Yeah, and the top half work for .gov.

Thu, 06/05/2014 - 22:29 | 4828878 I Write Code
I Write Code's picture

Yeahbut for better or worse the average household has probably 1.5 wage-earners (the average two-adult household probably has more like 1.9 wage-earners), because the average *household* numbers are in the $50k range nationwide and between $60k and $80k in high-cost urban areas.

And, it has always been this way, or worse - though in olden days it was almost always on *one* earner.

This $27k number certainly demonstrates some uncomfortable facts, but it is not by itself a sign that the middle class is dying, it is the time-tested sign *of* the middle class.  Let's not get all carried away that everyone ought to be living like the Kardashians or the Obamas.

Fri, 06/06/2014 - 00:10 | 4829084 adr
adr's picture

In 1999 the average price of a house in the surrounding area where I now live was $165k. The starting salary in my field was between $50-60k. 

Right now the average house is $325k and the starting salary is $35k. Hell the average salary for a ten year vet is close to $60k now.

What was affordable is no longer for anyone entering the market. So you're screwed before you even start the game.

Either salaries go up, or prices collapse. The Fed is trying to prevent both from happening. 

Fri, 06/06/2014 - 00:31 | 4829114 PT
PT's picture

++++++++++++++++++

Fri, 06/06/2014 - 18:13 | 4831431 Frilton Miedman
Frilton Miedman's picture

 

"Either salaries go up, or prices collapse. The Fed is trying to prevent both from happening. "

I agree, wages & prices have to converge, but there's no denying we'd be screwed by the combination of underwater mortgages, lower wages, lower U6 and higher interest rates.

A catch-22, a la string pushing.

The traditional home price to income ratio has historically been 2.2 x income, it's now near 4x, this means either home prices have to fall around 45%, or wages have to increase by around 45%.

Either case would reap a dramatic effect on (de) inflation if it were to happen too sudden. (I'm talking within even a few years)

The fact that QE has only increased wealth disparity, while lowering household debt serice costs, is complicating the problem, hence both Bernanke and Yellen have hinted that fiscal solutions are unavoidable ...Yellen even directly mentioning wages.

My take, there's gotta be a point to where even the Koch brothers get so stinking filthy rich that they stop moaning about higher taxes to fund, say, infrastructure jobs...etc.

Because there's no denying bribery is a part of the "new norm", courtesy of justice Scalia, we're now at the mercy of billionaire's sense of discretion.

To anyone who understands this, but has been confused on Fed criteria for an exit, it's not hard to put 2 & 2 together - keep an eye on wage growth vs inflation, it's gonna be a while, and I'll guess it hinges on a political seachange toward fiscal rebalance.

Where these things are so feverishly referred to as "Socialism" or "government takeovers" by the biz MSM as soon as they hit the House/Senate floor, Good luck with that.

 

Thu, 06/05/2014 - 22:34 | 4828880 ebworthen
ebworthen's picture

That's all I heard on the propaganda megaphone today: 

"If we get a good jobs report we'll be back to the same employment numbers we had before the financial crisis."

Bull-fucking-shit you lying assholes!  Maybe if we hadn't had 6 million stream across the border and 6 million born AFTER you subtract the dead!

This is a fucking ZOMBIE economy!  The jobs people happen to get are CRAP low-wage servicing the 1% in one way or another slave positions.

The saying goes:  "To hide one lie a thousand lies are needed."  Welcome to the land of 100 Trillion Lies.

Thu, 06/05/2014 - 23:22 | 4828989 Yes_Questions
Yes_Questions's picture

 

 

+ 1 truth to those 100 x 1012 Lies

Fri, 06/06/2014 - 09:18 | 4829673 dizzyfingers
Thu, 06/05/2014 - 22:36 | 4828891 MedicalQuack
MedicalQuack's picture

It has all been modeled that way...video from Quant Cathy O'neill does a good job describing how it works..

http://ducknetweb.blogspot.com/2013/04/modeling-for-inequality-with.html

I used another one of her videos from PBS at the Killer Algorithm page too.."Hedge funds are just around to hose pension funds"..she's good..

http://www.ducknet.net/attack-of-the-killer-algorithms/

Stay tuned for the Q and A at the end of the videos for her opinions of Larry Summers who she worked for yeas ago at DE Shaw..very well done. 

Thu, 06/05/2014 - 23:28 | 4828895 syntaxterror
syntaxterror's picture

Those figures don't include tips for the bartenders and waiters which are 20% of the jobs.

Thu, 06/05/2014 - 22:51 | 4828917 Frilton Miedman
Frilton Miedman's picture

 

 

Listened to some moron pundit on Bloomberg today parrot the meme that small businesses aren't lending because regulations are scaring them.

I wanted to reach through the screen and throttle the knucklehead, fucking corporate shill posing as a representative for small businesses, knows nothing.

I'm a small business, I've been out of my mind tempted to borrow with rates so ridiculously low and my credit rating in great standing.

The ONLY reason I won't borrow is the lack of new business improvement I've seen since the meltdown, things have NOT improved enough since 2009 for me to feel confident in the risk of new debt.

Broke people don't buy stuff, it's just that simple, special interest shills on MSM spreading bullshit when they don't know what they're talking about only makes it worse.

 

 

 

Thu, 06/05/2014 - 23:05 | 4828942 Make_Mine_A_Double
Make_Mine_A_Double's picture

+1 Unemployed folks don't buy shit.

But I have been on a swing through Portland, Boise, Spokane and a few others this week and the heartlanders are as clueless as the city dwellers.

And these are the purchasing managers and if I brought up say - housing crisis in China, neg interest rates in Eurarabia, dismal numbers for the US economy.....I tell ya' their eyes just glaze over. They don't want to hear it or they simply don't understand the pressure cooker that is going on across the world.

This will go down in history as the greatest mind control exercise on a supposedly educated population since Hitler came to power in Germany.

 

Thu, 06/05/2014 - 23:26 | 4828994 Frilton Miedman
Frilton Miedman's picture

 

 

Thank you.

It's absolutely bewildering how susceptible most people are to believing what they hear from MSM pundits as fact and passing it along the group-think echo chamber, especially if it's a politicially charged opportunity to blame "the other party".

I'm all for less regulations, sure, but that does NOTHING for the cause of my slowed business, jobs outsourced to EM's, TBTF's robbing the masses blind of net worth...these things are the direct result of deregulation, not the other way around.

And, before anyone jumps on me for representing the political left, the bulk of jobs lost to EM's and banking deregulation were the result of Clinton's administration...starting with NAFTA, removing Glass-Steagall and creating the CFMA, all under Clinton.

 

 

Thu, 06/05/2014 - 23:37 | 4829029 Yes_Questions
Yes_Questions's picture

 

 

you like us are a hater of them

no need to disclaim

Fri, 06/06/2014 - 09:29 | 4829708 dizzyfingers
dizzyfingers's picture

24/7/365 TV has mind-numbed most of us; too much time to fill with no substance. There may be intelligent life where there's no TV.

Thu, 06/05/2014 - 23:06 | 4828948 Flakmeister
Flakmeister's picture

The triumph of Supply-Side......

R > G

Go one step further and tax R at a preferential rate...

What the fuck did anyone expect?

Thu, 06/05/2014 - 23:34 | 4829024 Frilton Miedman
Frilton Miedman's picture

 

 

Where someone like Romney would pay 13% tax off the gains selling a plant and firing 50 workers, those workers can expect to pay over double that in  taxes if they start a small business after the fact.

Meanwhile, the MSM, especially business MSM like Fox, CNBC & Bloomberg want us to believe regulations are the problem, or the super wealthy pay too much.

 

 

 

 

Fri, 06/06/2014 - 10:24 | 4829900 Flakmeister
Flakmeister's picture

Frilton,

        to show you what a fucked up place the Hedge is, simply look at the U/D votes we garnered by saying something very similar...

BTW, get in the habit of cleaning up your white space...

Thu, 06/05/2014 - 23:09 | 4828956 atomicwasted
atomicwasted's picture

This is why people need to understand the difference between median and mean, and how people obscure that to gild the lily when making their point.  I guarantee you that $27K number is the mean, not the median.  That makes a difference.  If you don't understand why, you need to hold off on commenting until you do.

Thu, 06/05/2014 - 23:33 | 4828998 syntaxterror
syntaxterror's picture

I think the headline is correct.

Fri, 06/06/2014 - 00:20 | 4829098 adr
adr's picture

Go to a mall, any retail store, office, call center, etc. and see what the offer is. You'll find a low of $8.75 and a high of about $35k.

If you are lucky enough to work a public sector union job you will start around $30k and get to $50k after ten years.

I don't think anyone over 50 that didn't lose thier job in the past ten years understands the labor market today.

If you are part of the top 10% you can find a $60k+ job. But that is the point of the article. If 90% of the available jobs pay less than $60k a $27k average wage for the bottom 50% is not only possible but probably high.

With welfare making $30k puts you in a worse position than making $15k. There is no point in taking a $30k job, you'll be living in total poverty watching welfare cases drive a better car than you and walk out of a grocery store with carts full of food.

Fri, 06/06/2014 - 12:35 | 4829133 Frilton Miedman
Frilton Miedman's picture

 

73% of entitlements go to currently employed who qualify (walmart, McD's workers...etc)

Source - http://laborcenter.berkeley.edu/publiccosts/fastfoodpovertywages.shtml

 Welfare requires proof of job search.

I do agree with your comparative argument on the worthiness of settling for a crap paying job for someone who might otherwise remain on an entitlement.

What concerns me about that is the way certain political groups have turned the focus to envy of union wages, rather than focus on the reason other wages are so low.

While there are currently 3 applicants for evey job opening, it'd be bad news if the public is convinced that now is the time to focus on entitlement cuts instead of wages & job creation, where 73% of those entitlements go to currently employed individuals.

As a small business I need more customers, not fewer wealthier customers with my competitors fighting me for lower and lower prices to win their business.

 

 

Fri, 06/06/2014 - 21:07 | 4831711 FredFlintstone
FredFlintstone's picture

It is the median. They have a link to the ssa.gov 2012 wage data.

Thu, 06/05/2014 - 23:20 | 4828976 Atomizer
Atomizer's picture

I made 28,500 in 1988. Was 20/21 years of age. 

Communism and centrally planned business models work. Fuck that. 

 

Edit /staff position. Non-nanny union job. 

Fri, 06/06/2014 - 21:05 | 4831706 FredFlintstone
FredFlintstone's picture

I make $30K in 1988 as a fresh engineering graduate.

Thu, 06/05/2014 - 23:17 | 4828978 Yes_Questions
Yes_Questions's picture

 

 

 

Fuck the fucking hamster wheel!  Its run by a bunch of wimps.

 

... both parents are working multiple jobs in a desperate attempt to make ends meet.

 

its things like this that remind me of that scene in The Warriors (1979) when they're running from Baseball Furies and one of the Warriors stops because he's "sick of running from these wimps" and fight rather than run to exhaustion.

 

 

 

Do NOT follow this link or you will be banned from the site!