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12 Ways The Economy Is In Worse Shape Now Than During The Depths Of The Last Recession
Submitted by Michael Snyder via The Economic Collapse blog,
Did you know that the percentage of children in the United States that are living in poverty is actually significantly higher than it was back in 2008? When I write about an “economic collapse”, most people think of a collapse of the financial markets. And without a doubt, one is coming very shortly, but let us not neglect the long-term economic collapse that is already happening all around us. In this article, I am going to share with you a bunch of charts and statistics that show that economic conditions are already substantially worse than they were during the last financial crisis in a whole bunch of different ways. Unfortunately, in our 48 hour news cycle world, a slow and steady decline does not produce many “sexy headlines”. Those of us that are news junkies (myself included) are always looking for things that will shock us. But if you stand back and take a broader view of things, what has been happening to the U.S. economy truly is quite shocking. The following are 12 ways that the U.S. economy is already in worse shape than it was during the depths of the last recession…
#1 Back in 2008, 18 percent of all Americans kids were living in poverty. This week, we learned that number has now risen to 22 percent…
There are nearly three million more children living in poverty today than during the recession, shocking new figures have revealed.
Nearly a quarter of youngsters in the US (22 percent) or around 16.1 million individuals, were classed as living below the poverty line in 2013.
This has soared from just 18 percent in 2008 – during the height of the economic crisis, the Casey Foundation’s 2015 Kids Count Data Book reported.
#2 In early 2008, the homeownership rate in the U.S. was hovering around 68 percent. Today, it has plunged below 64 percent. Incredibly, it has not been this low in more than 20 years. Just look at this chart – the homeownership rate has continued to plummet throughout Obama’s “economic recovery”…
#3 While Barack Obama has been in the White House, government dependence has skyrocketed to levels that we have never seen before. In 2008, the federal government was spending about 37 billion dollars a year on the federal food stamp program. Today, that number is above 74 billion dollars. If the economy truly is “recovering”, why is government dependence so much higher than it was during the last recession?
#4 On the chart below, you can see that the U.S. national debt was sitting at about 9 trillion dollars when we entered the last recession. Since that time, the debt of the federal government has doubled. We are on the exact same path that Greece has gone down, and what you are looking at below is a recipe for national economic suicide…
#5 During Obama’s “recovery”, real median household income has actually gone down quite a bit. Just prior to the last recession, it was above $54,000 per year, but now it has dropped to about $52,000 per year…
#6 Even though our incomes are stagnating, the cost of living just continues to rise steadily. This is especially true of basic things that we all purchase such as food. As I wrote about earlier this year, the price of ground beef in the United States has doubled since the last recession.
#7 In a healthy economy, lots of new businesses are opening and not that many are being forced to shut down. But for each of the past six years, more businesses have closed in the United States than have opened. Prior to 2008, this had never happened before in all of U.S. history.
#8 Barack Obama is constantly telling us about how unemployment is “going down”, but the truth is that the percentage of working age Americans that are either working or considered to be looking for work has steadily declined since the end of the last recession…
#9 Some have suggested that the decline in the labor force participation rate is due to large numbers of older people retiring. But the reality of the matter is that we have seen a spike in the inactivity rate for Americans in their prime working years. As you can see below, the percentage of males between the ages of 25 and 54 that aren’t working and that aren’t looking for work has surged to record highs since the end of the last recession…
#10 A big reason why we don’t have enough jobs for everyone is the fact that millions upon millions of good paying jobs have been shipped overseas. At the end of Barack Obama’s first year in office, our yearly trade deficit with China was 226 billion dollars. Last year, it was more than 343 billion dollars.
#11 Thanks to all of these factors, the middle class in America is dying. In 2008, 53 percent of all Americans considered themselves to be “middle class”. But by 2014, only 44 percent of all Americans still considered themselves to be “middle class”.
When you take a look at our young people, the numbers become even more pronounced. In 2008, 25 percent of all Americans in the 18 to 29-year-old age bracket considered themselves to be “lower class”. But in 2014, an astounding 49 percent of all Americans in that age range considered themselves to be “lower class”.
#12 This is something that I have covered before, but it bears repeating. The velocity of money is a very important indicator of the health of an economy. When an economy is functioning smoothly, people generally feel quite good about things and money flows freely through the system. I buy something from you, then you take that money and buy something from someone else, etc. But when an economy is in trouble, the velocity of money tends to go down. As you can see on the chart below, a drop in the velocity of money has been associated with every single recession since 1960. So why has the velocity of money continued to plummet since the end of the last recession?…
If you are waiting for an “economic collapse” to happen, you can stop waiting.
One is unfolding right now before our very eyes.
But what most people really mean when they ask about these things is that they are wondering when the next great financial crisis will happen. And as I discussed yesterday, things are lining up in textbook fashion for one to happen in our very near future.
Once the next great financial crisis does strike, all of the numbers that I just discussed above are going to get a whole lot worse.
So as bad as things are now, the truth is that this is just the beginning of the pain.
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shut up raysssssisssss everything is awesum
Please let us watch all Democrats and RINOs starve in the gutter.
Copy and pasted from Michael Snyder’s crass clickbait page: http://whatdoesthebiblesayabout.com/archives/what-do-we-believe-our-stat...
”The following is our statement of faith.....
We believe that the Bible is the inspired and infallible Word of God and declares His design and plan for mankind.
"We hold to the basic truths that Bible-believing Christians have believed for centuries, and it is our desire to share that faith with the world.
We believe that the Lord Jesus Christ will physically return to this earth one day.
We believe in the millennial reign of Christ during which Jesus will rule over earth for 1,000 years following His second coming."
"We believe that a final judgment will take place for all those who have rejected Christ. They will be judged for their sin and cast into the lake of fire. "
http://thetruthwins.com/archives/44-reasons-why-evolution-is-just-a-fair...
Hey Tylers how much is this jesus freak paying you to publish this heavily recycled list of captain obviouses?
The Truth Wins in the end...
http://galeinnes.blogspot.com/2015/07/the-invisible-enslavement.html
It's a great time to start a career in farming.
Unemployed? Try WWOOFing Work!
http://naturecoastpermaculture.com/2014/12/unemployed-try-wwoofing-work/
I see nothing wrong with what he states in these quotes. So you think anybody who believes in Jesus should be ignored?
We believe that a final judgment will take place for all those who have rejected Christ. They will be judged for their sin and cast into the lake of fire.
We believe and look forward to a new heaven and a new earth that God will create. We will live and dwell with Him there forever following the millennial reign of Jesus on Earth.
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I definitely believe anyone who writes or agrees with these statements should not be published anywhere, especially zerohedge. They need help, and have severe anger issues that need to be addressed before another skinny white boy goes cleansing again. Seriously, this guy believes that, by his loving god, anyone not like him will be violently murdered and that he will live on a new earth this nonexistent god creates free from sinners and nonbelievers. I wouldn't want to be his workmate when he realizes there is no god and decides to act himself.
He also believes the earth is about 5000 years old:
http://thetruthwins.com/archives/massive-dinosaur-soft-tissue-discovery-...
That evolution leads to racism:
http://thetruthwins.com/archives/does-a-belief-in-evolution-lead-to-racism
He loves lists,
44 reasons why evolution is just a fairytale for adults:
http://thetruthwins.com/archives/44-reasons-why-evolution-is-just-a-fair...
On fairytales, angels!
http://thetruthwins.com/archives/is-this-a-photo-of-a-real-angel-at-a-ch...
Here the altar boy actually writes about a subject he knows a lot about, gay sex.
http://whatdoesthebiblesayabout.com/archives/what-does-the-bible-say-abo...
Secondly, it is absolutely vital to understand that the only sex acceptable to God is between a man and a woman inside of marriage.
All other sex is sin.
That means that sex between a man and a woman outside of marriage is sin.
And sex between two members of the same sex is sin.
In fact, the Bible addresses this point head on in the book of Leviticus.....
Leviticus 18:22
Do not lie with a man as one lies with a woman; that is detestable.
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Do I think this jesus freak should be ignored? Is the pope a raging pedophile?
You are in my prayers!!!
Sounds like a Christian hating homo-hissy fit to me. Maybe some day they'll figure out what tools to the Zionists they have been.
BTW: The state should have no say whatsoever in what goes on between consenting adults, and any person with a healthy brain would want to keep it way. Trouble is, the queers want to use the state to shove their sexual preferences down our collective throats. Thats why queers make such good Goyims.
You are making anti semitics look bad plz shut it
Keep-on beating that anti-semite strawman, free shut goyim! Besides, the Kazarian's have done a much more thorough job genociding the Semites than they did even the Russians and Germans.
I don't particularly agree with this theology. But I will not stop someone's freedom of exprssion. I will offer an alternative perspective, that was first offered ~500 years ago. See if this is not relevant today:
http://www.truecovenanter.com/truelutheran/luther_trade_and_usury.phtml
I am an athiest, but I cannot help notice how so many people around us seem to have been mind controlled/programmed to react viscerially to any reference to the Christians' god. This visceral reaction parallels so many other Zio-PC programming that one cannot miss the similarities:
Racism
Gay Marriage
Iran
ISIS
Science in General, AGW in particular
Update: free shit goyim reminded me to add anti-semitism to the list
If you are an antisemite then why do you defend christianity, the religion those hooknosed mooks created for those not in the club?
Here is the real bad news - the fiscal gap has been increasing at more than $100,000 per taxpayer per year since 2003:
CBO tells us that the national debt was a little less than $13 trillion in 2014. But the fiscal gap in that year as calculated by Kotlikoff was $210 trillion, more than 16 times larger than the debt estimated by CBO and already judged, by CBO and many others, to be unsustainable. If a $13 billion gap is unsustainable, what term should we apply to a $210 trillion gap? Kotlikoff also calculates that the fiscal gap is equal to about 58 percent of the combined value of all future revenue. Thus, we would need to reduce spending or increase taxes by enough to fill that 58 percent gap if we wanted to put the federal budget on a path to solvency that balances the interests of those now receiving benefits and those who hope to receive benefits in the future.
Kotlikoff goes on to illustrate that the fiscal gap is increasing at an alarming rate and that delay makes our problem much worse. In 2003, just a little more than a decade ago, the fiscal gap was $60 trillion. But by last year it had catapulted to $210 trillion. The fiscal gap may not continue increasing as rapidly as it has over the past decade, but with each passing year - as Congress and the President do their best to avoid action - our hole grows deeper by substantial amounts.
http://www.brookings.edu/research/opinions/2015/04/08-federal-debt-worse...
Zero Bound cause Obama says everything is rockin'
Qualcomm cutting 15% of its FT Work force.
RECOVERY!
One must never utter a disparaging remake in regards to Obozo!
Your name will be taken down and registered for the first entries into the USSA's "get your mind right relaxation holiday camps".
Most poor people are poor because they choose to be. If I wanted to be a billion dollar CEO, I could.
Have you looked at the national debt clock genius? To see how much a newborn is born into negative net worth? You are truly a moron. I guess either don't know what derivatives are, or you actually think they are a good thing ..
I'll say it again: If you go back to the late 1940’s you find that the United States was an oil exporter. We had just won WW II. European economies were in shambles. We had millions of square feet of new factory space while Europe’s factories were largely bombed out or worn out. We were the world’s largest exporter of everything. The world was our oyster. We even went to the moon. Then something happened. We went to the moon for the last time in 1972. By 2015 we were supposed to have a lunar colony and be sailing around Jupiter. What happened? I submit that the answer is simple. We ceased to be an exporter of oil and instead became a net importer of oil. From that time on, we have been in decline. The Fed has done a great job of concealing the fact that we are running an energy deficit. When an organism cannot produce enough energy to sustain itself, it dies. Nation states are nothing more than massive organisms.
"...What happened? I submit that the answer is simple. We ceased to be an exporter of oil and instead became a net importer of oil..."
Yeah.... because oil companies are the ideal conduit for trickle-down economics.
In the early 70's, the U.S. got the bills for a useless fucking war of genocide. Instead of anyone in Congress facepalming themselves and remarking what an absolutely stupid-assed decision Viet Nam was, they simply ignored it... and proceeded to do EXACTLY the same thing for the next 40 years.
Add up all this 'lost' money spent on oil imports and tell me how that compares to the U.S.'s futile 40-years or so of empire-building and genocide? If we never imported a drop of oil during that time, we would be in exactly the same place because of defense spending by treasonous bastards claiming to represent the U.S.
The corporate oligarchs raped the citizens of the U.S. by stealing their money for endless, useless wars that have done nothing but make the U.S. the second most hated nation on earth. It's still going on right now.
Fuck oil. MIC oligarchs have run the U.S. into the dirt along with other corporate oligarchs exporting our jobs. Between the two, the U.S. economy has been destroyed - past tense. It only exists now in the imagination of the fed. Oil imports were not the problem and oil has nothing to do with a solution. There is no solution.
Israeli-firsters in congress have us ramping up SF clownfuckery in Syria - get ready for another ten years of a useless, fake war against the U.S.-created, supplied and supported ISIS. Magog in Israel will end up with their fucking pipelines to Haifa, and the U.S. will end up with more C-141s of aluminum coffins and the fucking BILL (as usual). Then it's on to Iran.
Sorry, 'oil imports' is a weak-assed excuse and pales in comparison to defense spending by treasonous congressional roaches.
I think you're confusing a symptom with the disease.
The US was already bankrupt by the time it enacted the petrodollar system with Saudi Arabia, when it started importing oil like it was going out of style. The cause of that bankruptcy was Guns and Butter - the Great Society and Vietnam. Nixon closing the gold window in '71 was a tacit admission of this.
Make no mistake - the end of Bretton Woods was a US default.
The importing of oil was therefore a symptom of the underlying disease - the US had squandered two decades worth of post-war productivity and growth on welfare programs and a nonsensical war. Importing massive quantities of oil in the petrodollar cycle - and thus artificially propping up the dollar as de facto reserve currency - was the only thing that prevented the US from having the dollar blow up in a raging fireball.
"12 Ways The Economy Is In Worse Shape Now Than During The Depths Of The Last Recession"
This statement assumes that there was a "previous" recession and recovery but every line in each of those FRED graphs seems to be a continuation of the trend in place in 2008.
Yup. Most of these trends have been in place since 2005-2006, and some much earlier. No bottom in sight yet.
This is so stupid. For one, 2008 was not the depths of the recession. More importantly, why are we comparing anything to 2008? It was all a fraud. All those homeowners couldn't afford it. Everyone one was leveraged to the hilt. All those stupid Wall Street jobs producing not a damn thing except the next algorithm.
Heroin addicts remember their highs with fondness. It helps them forget the street whoring that made it possible. Let's go back to those good old days. Or not.
You are one mouse click away from a 2008 scenario. You see, this car turns on a dime, and gives YOU nine cents change.
as long as you can still think you are still beyond the reach of Oligarchy induced dementia.
ZH likes to play at Diogenes. Its time it adopted a sense of balance between the two philosophers of that age.
Diogenes the cynic doubles with Aristotle the genius who invented the ancient world of analytic logic :
If there are 12 ways down there has to be at least one way up.
It all started with that giant sucking sound NAFT
And The Left's reponse to the sheep: This is all nothing that increasing taxes on the rich, legislating a living wage, discharging all college debt, more Obama phones, bringing in more immigrants .. all can't fix.
but...but... President Jarrett says everything is fine. she's going to Martha's Vineyard with the wookie
there'll be some serious carpet munchin goin on there
"...the percentage of males between the ages of 25 and 54 that aren’t working and that aren’t looking for work has surged ..."
Surged is the wrong word here. It is a straight 40 degree climb from 1980...
- Inflation is hidden in our privatization schemes, not just DoD contracting out, DoE nuclear work, Education for Government work force... think who does our Testing for USDA, FDA, and how much that is costing these days... what about the cost of annual training for medical doctors and our Justices, even if Private Industry is picking up the Tab for these things doesn't mean we don't get charged for them one way or another, What about the Dollars spent on Lobbying and Campaign Contributions or Gifts like Plane Rides, Lunches, Dinners, Conference Fees, Resort fees for Conferences,... and you know Education, Health Care, and Housing has gone up... and who can forget Public & Private Executive Compensation & Remodeling their offices, Limos, Car Fleets, Corporate Housing, new Buildings
- Americans are picking up the Cost for the Lifestyle of our Public & Private Executives... while we watch money stagnate(Capital), Malinvestment, Looting, Financial Schemes, Rentier Behavior, Off Shore Retirement & Trust Accounts
- Who paid for the Corporate Bailouts after the 2008 Financial Crisis? Who paid to make Jamie Dimon & Lloyd Blankfein Billionaires? Who paid to make TBTF twice as big as they were in 2007? That is Inflation!
OK, I take responsibility for TREND #2. My ex-Wife got the house.
As for all the other trends .... here's my excuse.
I shot the Sheriff, but I DID NOT shoot the Deputy!!
Middle class is gone, except for those in public service unions with insane retirement plans. The small decrease in average incomes hides much more dramatic decreases in the stability of the jobs and the freedom to just live in a middle class way, for virtually anyone in conventional jobs. If the US had lost a war in, oh, I dunno, maybe the years 2001 to 2008, it could hardly be worse.
Though the problems go back at least ten years earlier, and have only gotten worse since 2008.
It's all too depressing, someone pass me a Kardashian or something.
yes, and public unions will preserve what they have by raking you over the coals until pitchforks show up at the courthouse. Truthfully, they already should have been burnt to the ground. Of course it's a gazillion dollar solid marble monstrosity that wont burn.
To be fair on #3, $37 billion in 2008 funny money is equivalent to about $60 billion or so in today's funny money assuming 7.5% per year in real inflation (per a quick look at the Shadowstats charts). So, food stamp costs have "only" gone up by about $14 billion in Obama's terms. That's still over a 20% rise in real food stamp costs.
What's even more interesting is that number of people receiving food stamps has gone from 32 million in January, 2009 to 45 million in April, 2015. Figures per charts at trivisonno.com. That's about 40+% increase in the number of people receiving food stamps.
The second number is a far more telling number of how "great" this recovery has been.
Shit, is this the start of a list? Have I become Michael Snyder, Jr.?
I'll just leave this here since it was skipped in the list
http://www.marketwatch.com/story/social-security-disability-fund-faces-u...
meh 50 is the new 20 and 29.5 hour per week is the new 40 hour/wk! homes ? who needs homes when ma and pa has a basement free!
Process that shipped jobs overseas started decades ago. Judicial pedants ignoring whether workers would price themselves out of a job, obsessed repeatedly over conferring ever increasing remuneration upon trade union manufacturing workers. Conferring itself simultaneously, seemingly using increased manufacturing sector wage gains as justification for its own increasing remuneration, judicial remuneration now inflicts the same population of taxpayers who were once highly paid. The former manufacturing sector regarded for skill now suffer loss of self esteem with low skill work and lower service sector wages, while exorbitant law profession remuneration is now infamously endemic