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Bill Gates, Jeff Bezos And Warren Buffett Have More Money Than The Poorest 50% Of The U.S. Population Combined

The problem is not that we have a few people that are rich – the problem is that we have so many that are poor.  As you will see below, three extremely wealthy individuals have as much money as the poorest half of the nation combined.  In a free market capitalist society, there are always going to be some that do better than others, and there is nothing wrong with that.  But in our society today, there are so few that are doing well.  At this point a majority of all Americans are living paycheck to paycheck, and “one in five households have zero or negative net worth”

In the United States, the 400 richest individuals now own more wealth than the bottom 64 percent of the population and the three richest own more wealth than the bottom 50 percent, while pervasive poverty means one in five households have zero or negative net worth.

Those are just several of the striking findings of Billionaire Bonanza 2017, a new report (pdf) published Wednesday by the Institute for Policy Studies (IPS) that explores in detail the speed with which the U.S. is becoming “a hereditary aristocracy of wealth and power.”

That means that if you have no debt and a single dime in your pockets, you have more wealth than one-fifth of the entire country.

Okay, so let’s talk about the three men that have more wealth than the poorest 50 percent of the U.S. population combined.  Those three men are Bill Gates, Jeff Bezos of Amazon.com, and Warren Buffett.  I don’t want to take anything away from what those three have accomplished, because we need more risk takers and entrepreneurs.

Sadly, the level of small business creation has fallen in every presidential administration going all the way back to George H.W. Bush, and the percentage of Americans that are self-employed is hovering near all-time record lows.

As a nation, we desperately need to return to a culture that encourages free market capitalist thinking.  We want young men and women to create, invent, innovate and start new ventures.  But instead, today our culture encourages young people to become dependent on the government and on the big corporations, and as a result the middle class is evaporating.

As I discussed above, at this point 20 percent of all U.S. households have “either zero or negative wealth”

The rise at the wealthiest end of society comes as one in five US households live in what the report’s authors call the “underwater nation”, with either zero or negative wealth. Inequality is even more stark among minorities. Three in 10 black households and 27% of Latino ones have zero or negative wealth, compared with 14% of white families.

In recent years, unprecedented intervention by global central banks has created an absolutely enormous stock market bubble, but the real economy has continued to struggle.

Just look at what is happening to Sears.  This week they announced that they lost between $525 million and $595 million during the 3rd quarter of 2017.

How in the world do you do that?

If they had their employees doing nothing all day but flushing one dollar bills down the toilet, I still don’t think that they could lose that much money in three months.

Sears is going to sell 140 stores in a desperate attempt to stay afloat, but many believe that this is simply delaying the inevitable.  In fact, one prominent analyst named Bill Dreher believes that Sears will never be profitable again

One Wall Street analyst is beginning to doubt whether Sears Holdings will ever be profitable again, as the 124-year-old retailer struggles for liquidity and same-store sales evaporate.

“Sears’ operational performance is clearly NOT improving, and we grow increasingly concerned whether the company will ever return to profitability,” wrote Susquehanna analyst Bill Dreher in a note to clients Wednesday. “Further highlighting the company’s weakened position is the reality that manufacturers are increasingly demanding tighter payment and/or withholding products.”

Once upon a time, Sears was the number one shopping destination for the middle class.

But like the middle class in America, the best days for Sears are now long gone.

If we want to restore our economy to greatness, we need a vibrant middle class.

And in order to have a vibrant middle class, we need to have a system that encourages entrepreneurs and small businesses.  Free markets work if you allow them to, but unfortunately today we are strangling our entrepreneurs and small businesses with rules, regulations, red tape and oppressive levels of taxation, and until we change our ways we are going to continue to get the same very poor results.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

They Are Killing Small Business: The Number Of Self-Employed Americans Is Lower Than It Was In 1990

After eight long, bitter years under Obama, will things go better for entrepreneurs and small businesses now that Donald Trump is in the White House?  Once upon a time, America was the best place in the world for those that wanted to work for themselves.  Our free market capitalist system created an environment in which entrepreneurs and small businesses greatly thrived, but today they are being absolutely eviscerated by the control freak bureaucrats that dominate our political system.  Year after year, leftist politicians just keep piling on more rules, more regulations, more red tape and more taxes.  As a result, the number of self-employed Americans is now lower than it was in 1990

In April 1990, 8.7 million Americans were self-employed, but today only 8.4 million Americans are self-employed.

Of course our population has grown much, much larger since that time.  In 1990, there were 249 million people living in the United States, but today there are 321 million people living in this country.

What this means is that the percentage of the population that is self-employed is way down.

In fact, one study found that the percentage of Americans that are self-employed fell by more than 20 percent between 1991 and 2010.

And if you go back even farther, the numbers are even more depressing.  It may be hard to believe, but the percentage of “new entrepreneurs and business owners” declined by a staggering 53 percent between 1977 and 2010.

Sometimes I like to watch a television show called Shark Tank, and on that show they make it seem like entrepreneurship in America is thriving.

But the exact opposite is actually the case.  In a previous article, I discussed how the number of new businesses being created in the United States has been steadily falling over the years.  According to economist Tim Kane, the number of startup jobs per one thousand Americans has been declining for several consecutive presidential administrations

Bush Sr.: 11.3

Clinton: 11.2

Bush Jr.: 10.8

Obama: 7.8

So why is this happening?

As I mentioned at the top of this article, self-employed Americans are being absolutely strangled by oppressive rules, regulations and taxes.

To illustrate this point, I would like to share with you some quotes from an open letter that was authored by a small business owner named Don Chernoff…

#1 I work for myself and have to pay my own medical expenses. Before the “affordable care act” I was paying about $200 per month for a high deductible policy. It was far from perfect but it got so much worse under the “Affordable” care act.

I now pay over $400 a month, my deductible went from $5,000 to over $6,000 and my out of pocket costs for care have skyrocketed.

#2 I have to spend dozens of hours and thousands of dollars for a tax accountant each spring to prepare my taxes because I cannot possibly understand how to do it myself, and I have a master’s degree in engineering.

#3 Many years ago when I quit a perfectly good job to start my own small business, I was shocked to learn that I had to pay both my share and what had been my employer’s share of Social Security.

#4 Between state, federal and local taxes you’ve probably paid 50% or more of your income in taxes, but that’s not enough for politicians.

If you’ve been lucky enough to have created a business you can sell, now you’ll get to enjoy paying another tax on the capital gain from the sale.

This is another reason why we need a conservative revolution in Washington.  We should demand that our members of Congress lower tax rates dramatically, completely eliminate the self-employment tax, greatly simplify the tax code and get rid of as many regulations on small business owners as possible.

In fact, if it was up to me I would abolish a number of federal agencies completely.

What we are doing right now is not working.  Small businesses have traditionally been one of the main engines of economic growth in this country, but thanks to the left they are unable to play that role at the moment.

It isn’t an accident that over the last ten years the U.S. economy has grown at exactly the same rate as it did during the 1930s.

If we want our economy to be great again, we need to go back and start doing the things that made it great in the first place.  If we continue to suffocate our economy, we will continue to get the same results.

And with each passing day, we get more signs that the economy is heading into another major downturn.  For instance, we just learned that Sears is closing 30 more stores on top of the 150 that had already been announced…

Sears Holdings, which wasn’t shy when it announced at the start of the year that it is closing 150 underperforming stores, has quietly added at least 30 more to the list.

Another 12 Sears stores and 18 Kmarts are among the locations that are closing, from Carson, Calif., to Hialeah, Fla., with most scheduled to shut their doors in July, based on calls to the stores, malls and confirmation in local media.

At the start of the year, the retailer pinpointed the 150 stores it said it would close. But it declined this week to provide a list of additional locations that are slated to shut since then, saying that it update store counts each quarter.

In addition, we just learned that new home sales in April were 11.4 percent lower than they were in March

If you’re surprised by the collapse in new home sales in April, then you’re not paying attention.

The 11.4% MoM plunge in new home sales in April was 5 standard deviations below expectations and the biggest since March 2015.

Yes, the stock market is holding up for the moment, but for most Americans the “real economy” just continues to deteriorate.  Just because we are at the end of a giant financial bubble does not mean that everything is going to be okay.

The numbers that I brought up in this article are just another example of our long-term economic decline.  In a healthy economy, entrepreneurs and small businesses would be thriving.  But instead, they are being systematically strangled out of existence by a political system that is wildly out of control.

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