America is getting poorer. The U.S. government has just released a bunch of new statistics about poverty in America, and once again this year the news is not good. According to a special report from the U.S. Census Bureau, 46.2 million Americans are now living in poverty. The number of those living in poverty in America has grown by 2.6 million in just the last 12 months, and that is the largest increase that we have ever seen since the U.S. government began calculating poverty figures back in 1959. Not only that, median household income has also fallen once again. In case you are keeping track, that makes three years in a row. According to the U.S. Census Bureau, median household income in the United States dropped 2.3% in 2010 after accounting for inflation. Overall, median household income in the United States has declined by a total of 6.8% once you account for inflation since December 2007. So should we be excited that our incomes are going down and that a record number of Americans slipped into poverty last year? Should we be thrilled that the economic pie is shrinking and that our debt levels are exploding? All of those that claimed that the U.S. economy was recovering and that everything was going to be just fine have some explaining to do.
Back in the year 2000, 11.3% of all Americans were living in poverty. Today, 15.1% of all Americans are living in poverty. The last time the poverty level was this high was back in 1993.
However, it is important to keep in mind that the government definition of poverty rises based on the rate of inflation. If inflation was still calculated the way that it was 30 or 40 years ago, the poverty line would be much, much higher and millions more Americans would be considered to be living in poverty.
So why is poverty in America exploding? Who is getting hurt the most? How is America being changed by this? What is the future going to look like if we remain on the current path?
Let's take a closer look at poverty in America....
The Shrinking Number Of Jobs
Unemployment is rampant and the number of good jobs continues to shrink. Once upon a time in America, if you really wanted a job you could go out and get one. Today, competition for even the lowest paying jobs has become absolutely brutal. There simply are not enough chairs at the "economic table", and not being able to get a good job is pushing large numbers of Americans into poverty.....
*There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million people to the population since then.
*Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job. In July, only 81.2 percent of men in that age group had a job.
*If you gathered together all of the unemployed people in the United States, they would constitute the 68th largest country in the world.
*According to John Williams of shadowstats.com, if you factored in all of the short-term discouraged workers, all of the long-term discouraged workers and all of those working part-time because they cannot find full-time employment, the real unemployment rate right now would be approximately 23 percent.
*If you have been unemployed for at least one year, there is a 91 percent chance that you will not find a new job within the next month.
The Working Poor
The number of low income jobs is rising while the number of high income jobs is falling. This has created a situation where the number of "the working poor" in America is absolutely skyrocketing. Millions of Americans are working as hard as they can and yet they still cannot afford to lead a middle class lifestyle.
*Since the year 2000, we have lost approximately 10% of our middle class jobs. In the year 2000 there were about 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.
*Back in 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs.
*Between 1969 and 2009, the median wages earned by American men between the ages of 30 and 50 dropped by 27 percent after you account for inflation.
*According to a report released in February from the National Employment Law Project, higher wage industries are accounting for 40 percent of the job losses in America but only 14 percent of the job growth. Lower wage industries are accounting for just 23 percent of the job losses but 49 percent of the job growth.
*Half of all American workers now earn $505 or less per week.
*Last year, 19.7% of all U.S. working adults had jobs that would not have been enough to push a family of four over the poverty line even if they had worked full-time hours for the entire year.
*The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006.
Unprecedented Dependence On The Government
Because they cannot get good jobs that will enable them to support themselves and their families, millions of Americans that used to be hard working contributors to society are now dependent on government handouts. Nearly every single measure of government dependence is at a record high, and there are no signs that things are going to turn around any time soon.
*One out of every six Americans is now enrolled in at least one government anti-poverty program.
*Nearly 10 million Americans now receive unemployment benefits. That number is almost four times larger than it was back in 2007.
*More than 45 million Americans are now on food stamps. The number of Americans on food stamps has increased 74% since 2007.
*Approximately one-third of the entire population of Alabama is now on food stamps.
*More than 50 million Americans are now on Medicaid.
*Back in 1965, only one out of every 50 Americans was on Medicaid. Today, approximately one out of every 6 Americans is on Medicaid.
*In 1980, just 11.7% of all personal income came from government transfer payments. Today, 18.4% of all personal income comes from government transfer payments.
The Suffocating Cost Of Health Care
Millions of American families are being financially crippled by health care costs. The U.S. health care system is deeply, deeply broken and Obamacare is going to make things even worse. Health care is one of the top reasons why American families get pushed into poverty. Most of us are just one major illness or disease from becoming financially wrecked. Just ask anyone that has gone through it. The health insurance companies do not care about you and they will try to wiggle out of their obligations at the time when you need them the most. If you talk to people that have been through bankruptcy, most of them will tell you that medical bills were at least partially responsible.
*In America today, there are 49.9 million Americans that do not have any health insurance. One single medical bill could easily wipe out the finances of most of those people.
*Only 56 percent of Americans are currently covered by employer-provided health insurance.
*According to a report published in The American Journal of Medicine, medical bills are a major factor in more than 60 percent of the personal bankruptcies in the United States. Of those bankruptcies that were caused by medical bills, approximately 75 percent of them involved individuals that actually did have health insurance.
*According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980. Today they account for approximately 16.3%.
More Children Living In Poverty
The United States has a child poverty rate that is more than twice as high as many European nations. We like to think that we have "the greatest economy on earth", but the reality is that we have one of the highest child poverty rates and it increased once again last year.
*The poverty rate for children living in the United States increased to 22% in 2010. That means that tonight more than one out of every five U.S. children is living in poverty.
*The poverty rate for U.S. adults is only 13.7%.
*Households that are led by a single mother have a 31.6% poverty rate.
*Today, one out of every four American children is on food stamps.
*It is being projected that approximately 50 percent of all U.S. children will be on food stamps at some point in their lives before they reach the age of 18.
*There are 314 counties in the United States where at least 30% of the children are facing food insecurity.
*More than 20 million U.S. children rely on school meal programs to keep from going hungry.
*It is estimated that up to half a million children may currently be homeless in the United States.
The Plight Of The Elderly
The elderly are also falling into poverty in staggering numbers. They may not be out protesting in the streets, but that does not mean that they are not deeply, deeply suffering.
*One out of every six elderly Americans now lives below the federal poverty line.
*Between 1991 and 2007 the number of Americans between the ages of 65 and 74 that filed for bankruptcy rose by a staggering 178 percent.
*The Baby Boomers have only just begun to retire, and already our social programs for seniors are starting to fall apart. In 1950, each retiree's Social Security benefit was paid for by 16 U.S. workers. According to new data from the U.S. Bureau of Labor Statistics, there are now only 1.75 full-time private sector workers for each person that is receiving Social Security benefits in the United States.
Squeezed By Inflation
Rising inflation is squeezing the budgets of average American families like never before. Federal Reserve Chairman Ben Bernanke claims that inflation is still low, but either he is delusional or he has not been to a supermarket lately.
Personally, I do a lot of grocery shopping at a number of different stores, and without a doubt prices are absolutely soaring. Many of the new "sale prices" are exactly what the old "regular prices" were just a few weeks ago.
Some companies have tried to hide these price increases by shrinking package sizes. But there is no hiding the pain on the old wallet once you fill up your cart with what you need to feed your family.
*Over the past year, the global price of food has risen by 37 percent and this has pushed approximately 44 million more people around the world into poverty.
*U.S. consumers will spend approximately $491 billion on gas this year. That is going to be a brand new all-time record.
*Right now, the average price of a gallon of gasoline in the United States is $3.649. That is 94 cents higher than 12 months earlier and it is a brand new record for this time of the year.
A Smaller Share Of The Pie
The size of the "economic pie" in America is shrinking, and the share of the pie for those that are poor is shrinking a lot faster than the share of the pie for those that are wealthy.
*According to the Washington Post, the average yearly income of the bottom 90 percent of all U.S. income earners is now just $31,244.
*When you look at the ratio of employee compensation to GDP, it is now the lowest that is has been in about 50 years.
*At this point, the poorest 50% of all Americans now control just 2.5% of all of the wealth in this country.
*Big corporations are even recognizing the change that is happening to America. Just consider the following example from a recent article in the Huffington Post....
Manufacturers like Procter & Gamble, the household-goods giant responsible for everything from Charmin and Old Spice to Tide, are concentrating their efforts on luxury and bargain items, putting less emphasis on products aimed at the middle class, the Wall Street Journal reports.
Conclusion
America is fundamentally changing. We were a nation that had the largest middle class in the history of the globe, but now we are becoming a nation that is deeply divided between the haves and the have nots.
Perhaps you are still doing fine. But don't think that economic disaster cannot strike you. Every single day, thousands more Americans will lose their jobs or will discover a major health problem. Every single day, thousands more Americans will lose their homes or will be forced to take a pay cut.
If you still have a warm, comfortable home to sleep in, you should be thankful. Poverty is a very sneaky enemy and it can strike at any time. If you are not careful, you might be the next American to end up sleeping in your car or living in a tent city.
It is easy to disregard a couple of statistics, but can you really ignore the vast amount of evidence presented above?
It is undeniable that America is getting poorer. Poverty is spreading and hopelessness and despair are rising. There is a reason why the economy is the number one political issue right now. Millions upon millions of Americans are in deep pain and they want some solutions.
Unfortunately, it appears quite unlikely that either major political party is going to offer any real solutions any time soon. So things are going to keep getting worse and worse and worse.
Should we just keep doing the same things that we have been doing over and over and over and yet keep expecting different results?
What we are doing right now is not working. We are in the midst of a long-term economic decline. Both major political parties have been fundamentally wrong about the economy. It is time to admit that.
If we continue on this path, poverty in America is going to continue to get a lot worse. Millions of families will be torn apart and millions of lives will be destroyed.
America please wake up.
Time is running out.
The poverty level is going to continue to
increase.
This administration is only concerned about
how they can get more and it looks like
they are out to bankrupt our nation
so they can reform it into a socialist state.
The economy is going to continue to go down.
A lot of manipulating is going on right now
to try to keep up the image that we are getting
better.
Don’t be fooled.
Your dollar is losing value more and more each
day.
Robert Kiyosaki and many other financial
experts are saying
“cash is trash”…
Just a matter of time cash
won’t be worth anything
just like has
happened in Germany
and many other countries
in the past.
Thank heaven several months ago
someone referred me
to some info put
together by a millionaire
which has helped me
prepare for the future
in several different ways:
You can check it out here:
Free Video-
How to Profit like the Ultra-Rich in Times of Economic Chaos
http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=290b868b&chan=y
I know this info will help you
Government is only thinking of
what will get them more money
and get them re elected.
They no longer care about the
people they represent.
Times are going to continue to
get harder and harder.
What to do about this?
I am so glad I learned the
answer in a web site I
found put together by a
millionaire.
How to Profit like the Ultra-Rich in Times of Economic Chaos
http://youtu.be/baFZtIfPs74
I know this video can help you also.
My advice if you have a job,do your best each day to try to make your employer money, or save the Co. money as this will ensure he will be able to continue to pay you. It is sad that so many people does not have a job, what is more sad is the number of jobless people that doesn’t want to work.
Next,I would advise everyone, if you don’t just have to have it DO NOT buy it, most of us could get by on less,and in fact later we are going to have to.
A lot of conflicting information on this site. Keep jobs in the U.S.? I agree. Why do you have a link to sell IPODS, having written extensively about why exporting jobs is bad. If you are going to represent and publicize an opinion I agree with(and actually adhere to), don’t discredit yourselves by being idiots.
Everyone has their own take as to how to make it through this Mess, and the coming Catastrophe, but I think Calvin Coolidge (U.S. President, 1923-29) said it best:
“Nothing in the world can take the place of persistence. Talent wil not; nothing is more common than unsuccessful men with talent. Genius will not; unwewarded genius is almost a proverb. Education alone wil not; the world is ful of educated derelicts. Persistence and determination alone are omnipotent.”
And so it is. You will see Harvard-educated graduates working at Wendy’s and Home Depot. Your “America’s Got Talent” hero may be sitting on a sidewalk curb a few months now, with an open guitar case, begging for quarters and dollar bills.
Albert Einstein was a genius, in every sense of the world. But was he a billionaire? Not from what I’ve heard. The guy still led a rather simple, if eccentric, life, right up until he died.
And education? Well, Bill Gates was a college dropout. So was Steve Jobs. What utter failures they became later in life. (tongue in cheek) Your prospective employer may look at your resume, and see you graduated from Harvard (or Yale, or Brown, or MIT, USC, Duke, Notre Dame, University of Arizona, etc…)
A college degree helps open some doors, it’s true. But it does not guarantee success. Success is up to you.
Einstein, compared most scientists before his time, led a fairly wealthy lifestyle.
He could name his fee in a lecture cycle, and he was able to get all the money needed for his researches.
In modern world, famous scientists make like rock stars. For example, Stephen Hawking is worth about $100 million. I am sure his wheelchair is more expensive than the cars of most of the people posting here.
“America is getting poorer” is it true.
Part of the decline is indeed the disappearing manufacturing base, increasing globalization and the off-shoring of high-tech jobs. Another part of this equation is the fact that demographically the U.S. has been changing radically since the ’60′s. This is an uncomfortable truth, but it needs to be told. It seems that high-IQ parents are reproducing less while the opposite is true for the low-IQ parents. It is a documented fact that as income and education increases, use of birth control and abortion increases as well. Nothing can change this trend and soon (in a couple of generations at most) we will be left with a nation of non-producers, left to the whims of the Chinese…not a bright future at all. Imagine what our political leadership will be like then…
The article says “…it is important to keep in mind that the government definition of poverty rises based on the rate of inflation…”
This is not true. The poverty rate is actually not tied to inflation; when inflation goes up by say 3.5% they do not raise the poverty level by the same amount. As Chuck Grassley explained to me, the system is not seamless. Hence it is possible to be living at 98% of the poverty level and get a 3.5% increase in a COLA and be considered to now be living above the poverty level, when in fact the COLA would have only enabled you to keep living at 98% of the poverty level. This problem really needs to be fixed – they are far underestimating the number of people living in poverty due to the way they write people off.
WELDERS!WELDERS!WELDERS!WELDERS!WELDERS!WELDERS!
You want a Job become a welder. IN the midwest we are BEGGING! for welders.
MBA’s can go pound Sand!
I blame Nixon, mostly if you need to blame somebody: took us off the gold standard and normalized relations with China.
Frost asked the question of whther it will be fire or ice, and I contend ice, as we have been hnumbed by a slow decline for thirty some odd years.
As in most analyses, the symptom is diagnosed but the cause is not. That is the case here. An anthropologist by the name of J.D. Unwin initiated a study with the premise that marriage is not necessary and possibly even detrimental to the development of great societies. At the end of this study he completely reversed his hypothesis.
“Perhaps the definitive work on the rise and fall of civilizations,” writes Fitzpatrick, “was published in 1934 by Oxford anthropologist J.D. Unwin”:
In “Sex and Culture,” Unwin studied 86 human civilizations ranging from tiny South Sea island principalities to mighty Rome. He found that a society’s destiny is linked inseparably to the limits it imposes on sexual expression and that those sexual constraints correlate directly to its theological sophistication and religious commitment.
Unwin noted that the most primitive societies had only rudimentary spiritual beliefs and virtually no restrictions on sexual expression, whereas societies with more sophisticated theologies placed greater restrictions on sexual expression, and achieved greater social development.
In particular, cultures that adopt what Unwin dubbed “absolute monogamy” proved to be the most vigorous, economically productive, artistically creative, scientifically innovative and geographically expansive societies on earth.
The following are grave words for the USA that come from noted Harvard sociologist Pitirim Sorokin who found no culture surviving once it ceased to support marriage and monogamy. None.
Now we can do a basic analysis of marriage in the USA. Current illegitimacy rates are as follows:
Black 73%
Hispanic 53%
White 29%
for an overall rate of 41%. The future of the USA has been written. Once the moral corruption begins the fall of a country is inevitable. Only a reversal could stem the tide but I believe that it is now too late.
Once a society degenerates to the level in this country and the west in general, it is doomed. I like to deal in facts. Most discussions are based on fantasies, not fact.
An Alternative to Capitalism (where everyone is middle class)
Several decades ago, Margaret Thatcher claimed: “There is no alternative”. She was referring to capitalism. Today, this negative attitude still persists.
I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: “Home of the Brave?” which was published by the Athenaeum Library of Philosophy:
http://evans-experientialism.freewebspace.com/steinsvold.htm
John Steinsvold
Perhaps in time the so-called dark ages will be thought of as including our own.
–Georg C. Lichtenberg
America is going to
continue to get poorer.
We have allowed our government
to sell us out.
However, there is a ray of
hope for all of us.
A friend recommended a site
put together by a millionaire.
It’s helped me
prepare for our
uncertain future
in many ways:
Free Video here-
“How to Profit like the Ultra-Rich in Times of Economic Chaos”
http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=290b868b&chan=y
To see the poverty in California visualized, watch this:
http://www.youtube.com/vprointernational#p/u/0/zKkJB8Etq54
The creation of a new government agency that will be dedicated to job creation, will only create more government jobs.
What a joke! The government can’t create jobs. Our only hope is to support small businesses, which create the majority of new jobs.
And you need to take control of your finances by getting financial education. The market is rigged against you. Your IRA and 401K are in danger of becoming worthless.
Learn how to leverage the financial crisis to create wealth and protect your family.
*** globaleconomicwarning.blogspot.com ***
“HOW WILL YOU FACE THE AMERICAN APOCALYPSE IN 2011: how you can protect yourself and position yourself for the greatest wealth transfer in history.”
Times are going to continue to
get harder and harder.
There are so many SMART economist in USA.If everybody put down the political issue,working on a co-operation basic,not greed,not selfish.American can definitely find a way out,and it is running out of time.
46.2 million Americans are now living in poverty!!!its really very shocking news for us.I really don’t know why,even Obama taking different kind of billion dollar packages.I heard that since last few years US economy going down.USA trying to find their new financial market all over the world,specially in middle east and for that they need to start issue and start civil war on those countries.They are spending lots of money to run the war and support with own army but it seen that finally the result is they are looser.like Afghanistan and Iraq.Now Mr Hamid Karzai not listening USA command,same in Pakistan and also in Iraq and i think same thing will happen in Libya too.As i am simple person i feel that USA need to solve their own problems.They spending dollar outside but result is not satisfactory so if they use those $$ to support their economy become strong position then it will be good for US citizen and will reduce poverty too.
Every problem has one REAL WHY and now U.S. Government and People has to find the ” REAL WHY ” then working to raise the conditions. I think U.S. has enough potential to do if they really and honestly want to do it. They can get help from the Ethics Expert Consultant of SCIENTOLOGY to get consultancy for ” CONDITIONS FORMULAS ” and How to Use these formulas for the betterment.
It is all to mark the glory of God
To make way for the coming world emperor
To punish the unjust
Thanks be to God
i think that the government should try alot harder to help the people in need instead of throughing them to the left and saying forget them and take the money they dont need it.
it is not right to me the government shouldnt be so stubern with giving back.
and this is coming from a 17 year old…….
GET IT TOGETHER PEOPLE I DONT LIKE TO SEE OUR WORLD OR GOVERNMENT IN THIS TYPE OF SHAPE ITS JUST SAD THEY NEED TO GET IT TOGETHER THE WORLD IS DIEING OUR FAMILY AND PEOPLE ARE DIEING…………………
TIME TO LOVE AND GIVE NOT TIME TO HURT EACH OTHER AND KILL PEOPLE HAVE BABIES TO FEED AND THEY TRY TO FEED THEM BUT THEY CANT…………..
The government doesn’t need to GIVE you anything. That is not their purpose. What they need to do is stop TAKING from us! It isn’t their money that they take. It’s ours! Then they give little bits back to some people to make them beg to the governmant. You become their property then. They can do with you as they wish. They give the bulk of what they have taken to their own family and friends.
its very obviouse to me that the USA is now an impoverished nation. American denial is largely to blame: Denial about the 911 truth: Denial about the capitalist pig agenda: Denial that things are as bad as they are. Well soon many will be living in tent citys perhaps then people will wake up.
but i think the masses are just going to keep voting for dems and reps and thus things will just keep getting worse and worse…americans are insane they vote the same two partys and are actually still expecting a different result- that is by definition -insanity!
so other than voting socialist party in november one would have to be planning your exodose to canada or europe or perhaps australia or like living in a tent city i guess and continue voting for dems and reps
This article frightens me, outside my home, I don’t see the reality of the world, one reason why thousands of people are becoming poor is because Obama’s tax prices have skyrocketed to the max, according to Obama, there is no such thing as a maximum tax, I am worrying about my future right now and everybody else’s, if I don’t get a job after college, I am screwed, I could or somebody else could lose their house any day day, what happened to America? Our country used to be wealthy? I pity the misfortune for the people who lost their homes, Obama has done nothing but millions of people and I hopeless
there was a time back then, when most college majors guaranteed hope, success, and a JOB, now jobs are so limited, so choosing the right college major is really important, hopefully not every job is gone in 10 years, hopefully ONE job will be left, otherwise cry me a river, and I will die of poverty, thanks for a hope or success of our country Obama?????
The U.S. began to dominate the world economy in the aftermath of World War II as Japan and most of Europe was devastated. This created the largest middle class in the history of the world during the 1950s, 60s, and 70s. Yet even during those decades poverty and prejudice were biting issues. Starting in the early 1980s, unions began to be dismantled,which led to a split in the middle class—some did much better and entered the upper middle classes, while others began to sink into the lower middle class and the working poor. Meanwhile, the minimum wage began to decrease when adjusted for inflation. While many of the rich in the 80s did even better and have never looked back. In the 1990s Bill Clinton signed NAFTA and GATT—which greatly increased the exodus of manufacturing to Asia and to the rest of the third world. What saved–what was left of the middle class in the late 90s and the early part of the next decade–was the computer revolution. Once computers plateaued in the second half of the decade, the admixture of jobs going overseas, the housing bubble, rising energy costs, a for-profit health care system (with costs going through the roof), rampant low-skill immigration, and the lack of an effective organized opposition to these policies—the America we have now was created. Welcome to the third world!
What has happened is technology and jobs going over seas has left us without. With technology we can have less workers with a machine doing the work of 10 people and one man to run that machine. We also have people having children they can’t afford to support to begin with. I feel for the ones who lost their jobs but I also know a lot of people where I live who continue having children without a job and no means to support those children except by the government and the government has allowed this to happen. I was a single mom who NEVER went to the government for money. I made a mistake and did not make anyone pay for it. I was never on housing, foodstamps, medicaide or assistance for daycare. I made poverty wages but I still did it on my own. My son is now 24 yrs. old and he remembers what great birthdays and Christmases he had. I remained having good credit and bought my own home when he was 10yrs old. I understand the poor and those who are hit with circumstances beyond their control but what I’m saying is there are a lot of those who by their own accord has been the cause of this crisis. Even God helps those who help themselves but to sit back and make mistake after mistake and not expect the cards around to fall is just insanity and selfishness
To read more about what it’s really like to be poor in America visit my blog. This could be you very very soon.
povertyrocks.blogspot.com