The Mainstream Media Warns America Will Be Facing An “Economic Hellscape” If The Government Shutdown Continues

Is the mainstream media overhyping the economic impact of the government shutdown for political purposes?  Of course they are.  Once upon a time the mainstream media in the United States at least attempted to maintain a facade of objectivity, but those days are long gone.  In this case, they want to stir up as much public resentment against President Trump as possible in order to try to force him to end the government shutdown.  And when NBC News breathlessly declared that the U.S. “would face an economic hellscape” if this shutdown stretches on for an extended period of time, their article quickly went viral all over the Internet.

But will it really be “an economic hellscape”?

Here are some of the things that they say we will be facing in their “doomsday scenario”

  • 38 million low-income Americans lose food stamps
  • 6 million face an uncertain timetable for collecting tax refunds
  • 2 million without rental assistance and facing possible eviction
  • 800,000 paycheck-less federal employees plunged into dire financial straits
  • Shuttered parks and museums while overstressed airports cause tourism to tank
  • Federal court system slows to a crawl
  • Disaster relief money doesn’t get to storm-ravaged areas

Yes, things would certainly be unpleasant for a lot of people, and there would be a whole lot of anger around the country.

But such a scenario does not qualify as “an economic hellscape”.  I would encourage the folks over at NBC News to pick up a copy of The Beginning Of The End if they really want to know what the initial phases of a major economic crisis scenario could look like in this nation.

The most alarming item on their list is the fact that 38 million Americans could soon lose access to food stamps.  According to the U.S. Department of Agriculture, that will officially happen by the end of February

By the end of February, the Supplemental Nutrition Assistance Program, or SNAP, run by the Department of Agriculture, would be out of funding — meaning almost 40 million low-income Americans could find themselves struggling to pay for food, said Joseph Brusuelas, chief economist for the accounting firm RSM US.

Things would certainly be tough for a lot of low income people, and there would be a lot more traffic at shelters and food banks, but nobody would starve to death.

The worst case scenario would be if mobs of angry people started taking to the streets and rioting in large urban areas.  That is definitely a possibility, especially if this shutdown lasts for several more months.

But for the moment, most of the focus is on the hundreds of thousands of federal workers that are not getting paychecks right now.  We are being endlessly bombarded with sob stories about how much these workers are suffering after missing one paycheck.

If people can’t handle going a couple of weeks without pay, how are they going to handle things when a real crisis erupts in this country?

With no end to the shutdown in sight, some lower paid federal workers have decided that it is time to find a new job

Transportation Security Agency officers forced to work without knowing when their next paycheck is coming are no longer just calling in sick. Now, 18 days into the partial government shutdown, some are resigning, according to Hydrick Thomas, who heads the TSA Council on the American Federation of Government Employees.

“Every day I’m getting calls from my members about their extreme financial hardships and need for a paycheck. Some of them have already quit and many are considering quitting the federal workforce because of this shutdown,”  the official said in a statement posted to the union’s website on Tuesday.

I can’t say that I blame TSA workers too much for quitting.  It is an absolutely miserable job, and the starting salary for TSA security officers is somewhere “between $25,000 to $30,000 a year”.

Of course we don’t actually need a TSA at all.  Many of us would love to go back to the days before 9/11 when we could get on flights without having someone inspect our private areas.

Another aspect of the shutdown that is horrifying NBC News is the fact that no new beers are being approved right now

The Alcohol and Tobacco Tax and Trade Bureau is out during the shutdown. That means the federal government will not approve beer labels or process permits, which translates into no new beers.

At this moment there are literally millions of people around the world that actually have nothing to eat and no clean water to drink, and this is what we are whining about?

I have an idea.  Why don’t we shut down the “Alchohol and Tobacco Tax and Trade Bureau” permanently and let people make beer without having to get permission from the federal government first?

As I have proposed, we could save enormous amounts of money by simply shutting down useless government agencies that we do not need.

But that would make far too much common sense to work in America in 2019.  We live at a time when the American people expect the federal government to protect them from just about every potential danger that you can possibly imagine.

Look, I don’t want to seem completely unsympathetic to the plight of all of these federal workers that are being used as pawns in this game of political brinkmanship.  Because 78 percent of all Americans are living paycheck to paycheck, that means that a lot of these federal workers are not going to be able to pay their bills, and that would be extremely stressful for anyone.  And at this point, thousands of federal workers have already begun filing for unemployment benefits

More than 4,700 federal employees filed for unemployment in the last week of December, compared with 929 the week prior, according to the Department of Labor. There is no federal data available yet for the first week of January. Unemployment rules vary by state; generally the government provides benefits to eligible workers who have lost a job “through no fault of their own,” for a maximum of 26 weeks.

But the mainstream media is blowing things way out of proportion when they start using phrases such as “economic hellscape”.

Yes, this shutdown is going to cause some significant pain for a lot of people, but it is definitely not the end of the world.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

 

78 Percent Of Americans Are Living Paycheck To Paycheck – Including Many Government Workers Affected By The Shutdown

In just a few days, this will officially be the longest government shutdown in U.S. history, and there is no end in sight.  President Trump is pledging that he will not sign any spending bill unless it includes funding for a border wall, and the Democrats are promising their supporters that they will never agree to a single penny for a wall.  This could be the confrontation that ends up defining Trump’s presidency, and whoever backs down now is going to look incredibly weak.  But the longer this shutdown lasts, the more painful things are going to become for the hundreds of thousands of federal workers that are going without pay, and for the hundreds of thousands of workers that are employed by government contractors that rely on business from the federal government.

You should never play a game of chicken with somebody that is crazier than you are.  In this case, it looks like both sides fully expect the other party to blink first, but the truth is that neither side is likely to yield any time soon.

So the days ahead are likely to be exceedingly painful for most federal workers, because just like the population as a whole, most of them are living paycheck to paycheck.

In fact, one survey found that 78 percent of American workers are currently living paycheck to paycheck…

Government workers are far from alone in feeling stressed about not getting paid. Nearly 80 percent of American workers (78 percent) say they’re living paycheck to paycheck, according to a 2017 report by employment website CareerBuilder. Women are particularly vulnerable: 81 percent of them report living paycheck to paycheck, compared with 75 percent of men.

As I have repeatedly stressed, living paycheck to paycheck is something that you do not want to do if at all possible.  When you live paycheck to paycheck, you are just one major disaster away from financial ruin.  For example, if somebody in your family has a major accident or a significant medical emergency, it can quickly render you completely destitute.

That same survey also discovered that 70 percent of all workers are currently in debt

Just more than 70 percent of all respondents say that they’re in debt, and a quarter of workers say they weren’t able to make ends meet at the end of every month of the past year.

If you are scrambling to make debt payments every month and you have no financial cushion to fall back on, then you have no room for error, and that is where most Americans find themselves today.

So for most federal workers, this government shutdown is not just an inconvenience.

According to Professor Paul Light, somewhere around 800,000 government workers are currently going without pay…

The shutdown has left approximately 800,000 federal workers in financial limbo. Around 420,000 “essential” employees are working without pay, while another 380,000 have been ordered to stay home, according to calculations provided to CNBC by Paul Light, a professor of public service at New York University.

Of course the mainstream media is going to be filled with sob stories from these workers for as long as this shutdown lasts.  For instance, CNN recently profiled the plight of TSA security officer Jessica Caraballo

The partial government shutdown that began December 22 left Caraballo and 420,000 other federal workers across the country forced to work without a paycheck. Two weeks have passed and dozens of families like the Caraballos have put their lives on hold.

“Rent is due, light bill, gas bill, my car bill is due the 26th,” Caraballo said. “I already got my last paycheck and there’s no paycheck to come.”

“I don’t know when we would be able to celebrate birthdays, when we would be able to get ahead,” she added. “This is a pushback.”

Without a doubt things are tough right now for families like the Caraballos, but what will they do when a real national emergency strikes?

As we watch all the chaos that a minor disruption has created, it should cause all of us to realize that any sort of a major disruption could be extremely catastrophic for most of the country.

The vast majority of us are deeply, deeply dependent on the system.  That is fine and dandy as long as the system is functioning well, but what if someday it stops functioning altogether?

For the moment, many government workers can just pile up more debt to get through this short-term crisis.  Of course many of them are already drowning in debt, and we just learned that U.S. consumer borrowing was up another 22 billion dollars during the month of November.

However, if this shutdown lasts for another month or two, the mood of this nation is going to get quite sour, and that will especially be true once the food stamp benefits run out

The U.S. Department of Agriculture, which oversees SNAP at the federal level, is one of the agencies unfunded during the partial government shutdown. USDA Secretary Sonny Perdue announced Tuesday that SNAP would be funded through February, thanks to the funding bill that expired on Dec. 22, which included a provision allowing federal agencies to make obligated payments to support certain programs for 30 days after its expiration date.

Can you imagine the uproar that we would see if 38 million people were suddenly cut off from food stamps?

I think that the left is counting on that as negotiating leverage if they need it.

At this point we do not know how the political gridlock in Washington will end.  Today, President Trump walked out of a meeting with Chuck Schumer and Nancy Pelosi when Pelosi told him point blank that there will be no money for a wall.  At this point there does not seem to be any room for a compromise, and it will be politically disastrous for either side to back down now.

Meanwhile, hundreds of thousands of government workers are going to be hurting, and the pain will intensify with each passing day.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

Nearly 40 Million Americans Are Still On Food Stamps

If the U.S. economy is “doing well”, then why are almost 40 million Americans still on food stamps?  That number is almost exactly where it was at the end of the last recession, and supposedly we have made so much progress since that time.  Of course any progress that has been made has been extremely uneven.  Earlier today, I wrote about how the gap between the rich and the poor in this country is the biggest that it has been since the 1920s.  For years, the Federal Reserve’s quantitative easing program pumped “hot money” into the financial markets, and that was an enormous blessing to the top 1 percent.  But meanwhile tens of millions of average families have continued to struggle and the middle class has continued to decline.  In the U.S. today, 66 percent of all of our jobs pay less than 20 dollars an hour, and close to 40 million Americans rely on the federal government to feed them every month.  The following comes from Bloomberg

Judging by the number of Americans on food stamps, it doesn’t feel like one of the best job markets in almost a half century and the second-longest economic expansion on record.

Enrollment in the Supplemental Nutrition Assistance Program, better known as food stamps, fell to 39.6 million in April, the most recent government data show. That’s down from a record 47.8 million in 2012, but as a share of the population it’s just back to where it was as the economy emerged from the longest and deepest downturn since the Great Depression.

It is hard to argue that we are a “prosperous nation” with a number like that hanging over our heads.

Yes, some Americans have prospered individually in recent years, but many more have been deeply suffering.

In order for a family of four to qualify for food stamps, they must make less than $2,665 a month

SNAP is available for households with incomes up to $2,665 per month for a family of four, or 130 percent of the federal poverty level. Recipients are also subject to asset and employment tests, and states can modify the program with federal permission. Households receiving SNAP had an average monthly gross income of $814 in 2016, and 20 percent had no income.

Could your family survive on just $2,665 a month?

Yet that is exactly where tens of millions of Americans find themselves today.

Yesterday I wrote about the “cesspool” that the once beautiful city of Portland, Oregon has become, and in this article I would like to share with you an excerpt from an article about the epidemic of squatters in the city of Detroit

The Detroit Land Bank owns nearly 30,000 residential structures in the city, and with as many as 4,300 of them occupied — it’s a magnitude unlike any other place.

Squatters are a tricky problem: remove them and add to the city’s homeless population and its massive inventory of abandoned buildings. Let them stay, and the land bank is summoned often to investigate what some of its occupants may be up to: dog fighting, prostitution, drug dealing, overdoses, gambling, gun possession or running a chop shop.

Detroit police also are called regularly to land bank properties to investigate dead bodies — at least 50 homicides over the last four years.

This is what life is like for much of the country today.  The small sliver of our population that is “living the high life” is greatly outnumbered by people just barely surviving from month to month.

In fact, 102 million working age Americans do not have a job at this moment.  In case you were wondering, that number is substantially higher than it was at any point during the last recession.

If you can believe it, during the last recession we never even hit the 100 million mark.

There are so many parallels that could be made between the current state of affairs and America in the 1920s.  During the “roaring twenties”, everybody thought that the good times would last forever and that stock prices would go up indefinitely, and then one day we suddenly plunged into the worst financial crisis and the worst economic depression that the nation had ever seen.

And most people don’t even realize that we are far more vulnerable today than we have ever been in all of U.S. history.  I have been sharing numbers that back up that premise on an almost daily basis, and today let me share another example with you that comes from Mike Maloney

  • Just prior to the dotcom collapse of 2000 and the hundreds of bankruptcies that followed, 9% of the S&P 1,500 were zombie companies.
  • Just prior to the 2008 financial crisis and the hundreds of bankruptcies that followed, 12% of the S&P 1,500 were zombie companies.
  • Right now, 15% of the S&P 1,500 are zombie companies.

Just like the “roaring twenties”, our current debt-fueled economic bubble will burst as well, and many believe that it will result in the worst economic crisis that America has ever known.

But as long as the music on Wall Street keeps playing, the optimists will continue to insist that “happy days are here again” and that the party can keep on going indefinitely.

Of course no party lasts forever, and eventually the moment will come when it is time to turn out the lights for good.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

Handout Nation: Combined Enrollment In America’s 4 Largest Safety Net Programs Hits A Record High Of 236 Million

Margaret Thatcher once said that the problem with socialism “is that eventually you run out of other people’s money”.  As you will see below, the combined enrollment in America’s four largest safety net programs has reached a staggering 236 million.  Of course that doesn’t mean that 236 million people are getting benefits from the government each month because there is overlap between the various programs.  For example, many Americans that are on Medicaid are also on food stamps, and many Americans that are on Medicare are also on Social Security.  But even accounting for that, most experts estimate that the number of Americans that are dependent on the federal government month after month is well over 100 million.  And now that so many people are addicted to government handouts, can we ever return to a culture of independence and self-sufficiency?

On Wednesday, CNN ran an editorial by Bernie Sanders in which he called President Trump’s proposed budget “immoral” because it would cut funding for government aid programs.

But is it moral to steal more than a hundred million dollars from future generations of Americans every single hour of every single day to pay for these programs?

Of course the answer to that question is quite obvious.

There will always be some Americans that are unable to take care of themselves, and we should want to help them.

But as millions upon millions of Americans continue to jump on to the safety net, eventually we are going to get to the point where it is going to break.

As I mentioned above, the combined enrollment in the four largest safety net programs has reached a new all-time record high…

More than 74 million Americans are on Medicaid and CHIP (Children’s Health Insurance Program).

More than  58 million Americans are on Medicare.

More than 60 million Americans are on Social Security.

Approximately 44 million Americans are on food stamps.  And even though we are supposedly in an “economic recovery”, this number is still dramatically higher than the 26 million Americans that were on food stamps prior to the last financial crisis.

When you add the figures for those four programs together, you get a grand total of 236 million, and that doesn’t even count any of the other federal programs which are helping people.

Once again, there is overlap in enrollment between these various programs, but even accounting for that most experts believe that well over a third of the country is currently receiving benefits from the government each month.

How far down this road do we have to go before people start calling it “socialism”?

As I was writing this, I was reminded of one of Benjamin Franklin’s most famous quotes

“When the people find that they can vote themselves money that will herald the end of the republic.”

In our country today, many politicians have discovered that one of the best ways to win elections is to promise the voters as much free stuff as possible.  This is one of the primary reasons why Bernie Sanders did so well.  Young people loved his socialist policies, and he received more votes from Millennials in the primaries and caucuses than Donald Trump and Hillary Clinton combined.

As older generations of Americans continue to die off, the Millennials will just become even more powerful politically.  And considering the fact that they are far more liberal than other generations, that is a very alarming prospect…

In the minds of 80 percent of baby boomers and 91 percent of elderly Americans, communism was a major problem in years past and remains a significant concern today. But millennials, aged 16 to 20 years, see it differently. Only 55 percent of the younger generation take issue with communism, 45 percent say they would vote for a socialist and 21 percent say they’d vote for a communist.

And millennials made all that clear during the Democratic presidential primary, when many of them cast their vote for Vermont Sen. Bernie Sanders, a self-avowed socialist. In fact, the report credits the New England lawmaker with a “bounce” that led to less than half of millennials — 42 percent — having a favorable view of capitalism.

At this point, the Republic that our founders established is barely recognizable, and if it is going to be saved we need a conservative revolution as soon as possible.

A good place to begin would be to dramatically reduce the size and scope of the federal government, and there are some promising signs in the budget that President Trump has proposed.  He wants to completely eliminate 66 federal programs, and liberals are screaming bloody murder over this.

Of course Trump’s budget is “dead on arrival” in Congress because many among his own party do not support him.  Most Republicans campaign as conservatives but govern like Democrats, and it is high time that we held them accountable for that.  In 2018 we are going get Trump a whole bunch of friends in Congress, and a lot of those establishment Republicans that have been betraying conservatives for years are going to have to find a new line of work.

We simply cannot afford to keep sending the same cast of characters back to Washington time after time.  Just look at the debacle that the effort to repeal Obamacare has become.  According to Senate Majority Leader Mitch McConnell, getting any sort of bill through the Senate is going to be extremely challenging

Referring to behind-the-scenes work among Senate Republicans on a healthcare bill, McConnell said, “I don’t know how we get to 50 (votes) at the moment. But that’s the goal.”

Under a scenario of gathering the votes needed for passage in the 100-seat chamber, Republican Vice President Mike Pence would be called upon to cast any potential tie-breaking Senate vote.

McConnell opened the interview by saying, “There’s not a whole lot of news to be made on healthcare.” He declined to provide any timetable for producing even a draft bill to show to rank-and-file Republican senators and gauge their support.

And yet somehow when Obama was in office the Republicans in the House and the Senate were able to easily pass a bill to repeal Obamacare and get it to Obama’s desk.

Why can’t they get that exact same bill to Trump’s desk?

We definitely need to “drain the swamp” in D.C., and we can start with Congress.

But the alliance between big money and big government is going to be hard to defeat, and so if we want our country back we are going to have to fight harder than we have ever fought before.

EBT Card Outage?: It Is 8 Days Into June And Many Americans Are STILL Waiting For Food Stamp Money

Supermarket Bananas - Public DomainWidespread reports continue to pour in from all over the nation of “glitches” with the food stamp system.  It is eight days into the month and large numbers of people still have not received their benefits, and in other instances it is being reported that EBT cards are simply not working correctly.  So what in the world is going on here?  On downdetector.com there are scores of reports of problems with the EBT system from people all over the nation.  Could this simply be another example of government incompetence, or is something else at work here?

I had heard some rumblings about this over the past few days, but I had not really taken them seriously until I read an article from highly respected author Ray Gano

It interesting over the weekend I got several emails telling me about cell phones being down, internet being down, and get this, EBT cards not working and having no money associated to them.

This is a concern because when the US Government has payment failures, then there is possibly something happening that the press is not telling you about.

Now, we know that computers have problems and that states, counties and cities run on computers. But what is interesting is that since the beginning of 2016, The US government has had over 2,700 reports on downdetector.com showing that they have been late loading the money onto these EBT cards.

Folks, we are now going on 8 days where the Government has not paid the EBT payments so that people have food.

So I went over to downdetector.com myself, and I was stunned to see that reports of EBT outages continue to pour in every hour.  Here are just a few of the recent comments that have been left by people that are still waiting for their food stamp benefits for June…

Heidi Lynn: I was supposed to get mine on the 5th and still nothing. Even ebt NJ site says $0 as well as my EBT card says $0. I’m on disability. I forgot to add I tried calling NJ Board of Services and was on hold for over an hour. I had to hang up to take dog out, etc. Does anyone know what’s going on yet?

Ann Wilson: Now that it’s been a whole week since I was supposed to get my June benefits, and haven’t, I’m planning on going to my Illinois FCRC office. I hope they will be able to fix this difficulty.

Jenn Johnson: I always get mine on time. I was due to get mine today June 7th and nothing. I am from kentucky. Why is there nothing on the news about this?

Jarrett Manhart: Havnt received mine either. They are never late. And my fone is off so i cant call em. Im on Wi-Fi down the street from me.

Sunny Nicole Jones: I haven’t gotten mine either! I’m glad it’s not just me though because then I would really be worried!

But when I went to confirm these widespread outages with articles from the mainstream media, I came up empty.

Either the mainstream media does not know what is going on yet, or it is being ignored.

If you have not gotten your EBT benefits for this month yet or you know someone that is in that position, please feel free to let me know.  I want to get to the bottom of this.  There are people all over the nation that are reporting problems with the food stamp system, but nobody seems to know exactly how widespread this issue is just yet.

Today there are well over 40 million Americans on food stamps, and a lot of them would start rioting tomorrow if you told them that their food stamp cards were being turned off permanently.

EBT cards are the modern equivalent of the bread lines of the 1930s.  Instead of having to wait in long lines for food, the government just zaps money on to EBT cards each month, and those that are hurting are able to get something to eat.

But down in Venezuela, extremely long food lines are a daily reality for much of the population right now.  The following comes from the Daily Mail

Venezuela was once South America’s richest nation, but a fall in oil prices combined with other economic problems has led to desperate citizens taking drastic measures.

Nearly half of Venezuelans say they can no longer afford to eat three meals a day, according to a recent poll by the local firm Venebarometro. The poll surveyed 1,200 adults at their homes during the first week of April and had a margin of error of plus or minus of about two percentage points

Those who can, cross the border into Colombia to buy, bring back and then use or sell food and other basic commodities.

Could you imagine not being able to provide three meals a day for your family any longer?

Close to half the population of Venezuela is already in that position, and the economic collapse down there grows worse with each passing day.

Most Americans just assume that nothing like that could ever happen here.

Most Americans just assume that the government will always have plenty of money to give out.

As I mentioned above, there are well over 40 million Americans that receive EBT benefits.

However, when you factor in all government programs, more than 100 million Americans get some form of money or benefits from the federal government each month.

So what would happen someday if suddenly the spigot was turned off?

What would those 100 million people do?

How would they survive?

Hopefully this current EBT outage is just a temporary technical glitch, and hopefully the government will get it fixed in short order.

But someday there will be a major crisis that will cause food stamp benefits to be cut off either permanently or for an extended period of time.

When that day arrives, what will that do to our communities?

Please feel free to share what you think by posting a comment below…

*About the author: Michael Snyder is the founder and publisher of The Economic Collapse Blog. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*

Flat Broke, Living In A Moldy Basement And Relying On Food Stamps And Medicaid

Lock In The Rain - Public DomainCould you imagine being a single parent and trying to survive in America today on $10.50 an hour?  For a moment, I want you to imagine that you are living in a moldy apartment that is so badly maintained that rain seeps in whenever it rains.  You are employed, but you are completely dependent on government programs such as food stamps and Medicaid in order to make ends meet.  Sometimes you would really like to take your small child somewhere fun, like a movie theater, but you can’t really afford the gas money.  You are working as hard as you can, but you never seem to get anywhere, and you feel trapped because nobody seems to want to hire you for a better job.  What I have just described for you is real life for a 22-year-old single mother from Chicago named Adriana Alvarez, but there are tens of millions of other Americans that have similar stories.  If every day seems like it is a soul-crushing struggle for you, I want you to know that you are not alone.  The long-term economic collapse that I chronicle on my website is not just about facts and figures.  It is about real people that are quietly leading lives of silent desperation, and by now it has becoming exceedingly apparent that our politicians, the mainstream media and the gigantic corporations that dominate our economy do not really care much about the rest of us at all.

Life fundamentally changes once you become a parent.  Instead of living just for yourself, all of a sudden you have a precious little child that is completely and totally dependent on you.  And it is absolutely heartbreaking for any parent to look into the eyes of a little child and try to explain why there is not enough food or why they can’t afford a better place to live.

With that in mind, I want you to read an excerpt from Adriana’s recent blog post entitled “What It’s Really Like To Support Yourself On McDonald’s Pay“…

I’m a single mom with a three-year-old son named Manny. To support him, I work full-time as a cashier at a McDonald’s in Chicago.

I’ve worked at McDonald’s for five years, but still make only $10.50 an hour. The only way my son and I can make it is with food stamps, Medicaid, and a child care subsidy. Most of my coworkers are in the same boat, no matter how long they’ve held their jobs.

With child care, transportation to work, food, rent, and our other basic expenses, there’s no money left over for living. Every time I think about taking Manny somewhere fun, like to a movie, I have to think about whether we can really afford the gas.

When you only make $10.50 an hour and you have a child to take care of, you are obviously very limited as far as where you can live, and where Adriana lives sounds extremely depressing

We live in a basement apartment, because it’s all I can afford. When it rains, water seeps into the apartment. This wetness brings mold, and I can’t get rid of the smell. We can’t even leave anything on the floor, which is tough with a three-year-old. Toys or anything else on the floor may get ruined when the water comes in.

So what is the solution for Adriana?

Well, she is taking part in nationwide strikes to try to force McDonald’s to pay workers like her a livable wage.

Unfortunately, that simply is not going to happen.  McDonald’s restaurants are already experiencing a sales downturn, and if they raise wages substantially they will get crushed by the competition.

And of course those jobs were never meant for people that are trying to raise families.  When I was growing up, it was teenagers and senior citizens that worked at McDonald’s.  I know, because I was one of those teenagers.

But now millions upon millions of Americans in their prime working years are doing these kinds of jobs.  As good jobs have disappeared from our economy, the competition for the jobs that remain has become extremely intense.  It is really easy to tell Adriana that she should “get a better job”, but that can be extremely difficult in this economy, especially if you don’t have much education.

I know a lot of sharp, talented, responsible people that have been unemployed for a very long time or that are working at places like McDonald’s because nobody else will hire them.  I am amazed that there is not a place for their talents and abilities in the “greatest economy on Earth”.  But you know what?  Things are about to get a whole lot worse out there.

A few months ago, I wrote that the crashing price of oil was going to cause massive job losses in the energy industry, and now it is happening.

According to Yahoo, more than 100,000 layoffs have already been announced, and this could be just the tip of the iceberg…

Since crude prices began tumbling last year, energy companies have announced plans to lay off more than 100,000 workers around the world. At least 91,000 layoffs have already materialized, with the majority coming in oil-field-services and drilling companies, according to research by Graves & Co., a Houston consulting firm.

And remember, these are not $10.50 an hour jobs.  Many of these jobs pay well into the six figures annually.  These are exactly the kinds of jobs that the U.S. economy simply cannot afford to lose.

Meanwhile, Barack Obama is colluding with Congress to push through the next great job killing trade agreement.  The following was in the Wall Street Journal on Thursday…

Lawmakers introduced fast-track trade legislation into the House and Senate Thursday that could pave the way for President Barack Obama to conclude a major agreement with 11 nations around the Pacific.

This agreement is called “The Trans-Pacific Partnership”, and it would result in millions more good jobs being sent overseas.  For much more about this shocking betrayal of the American people, please see my previous article entitled “Obama’s Secret Treaty Would Be The Most Important Step Toward A One World Economic System“.

What our economy desperately needs is more jobs, not less jobs.

And traditionally, small businesses have been the primary engine of job growth in this country.

Unfortunately, our politicians have been absolutely killing small businesses for decades.  Just look at the chart below.  It comes from the U.S. Census Bureau, and it is extremely alarming.  Back in 1980, nearly half of all firms in America were considered to be “young”, and those young firms accounted for almost half of all job creation.  Since that time, there has been a slow, steady, depressing decline…

 

Share Of Firms That Are Young

And as I discussed the other day, more businesses have closed in the United States than have opened for each of the past six years.

Prior to 2008, that had never happened before in all of American history.

Thank you Barack Obama.

When I talk about our “long-term economic collapse”, I am not exaggerating.

Our economy is literally dying right in front of our eyes, and it is people like Adriana Alvarez that are paying the price.

We desperately need to go back and start doing the things that once made this country so great, but unfortunately we continue running in the other direction as fast as we can.

So in the end, things are going to get much, much worse.

Things did not have to turn out this way, but these are the choices that we have made, and now we get to live with them.

The 2.6 Billion Dollar Welfare Payment That The U.S. Government Gives To Wal-Mart

Wal-Mart Should the federal government be spending billions of dollars to pump up Wal-Mart’s profits?  I know that question sounds really bizarre, but unfortunately this is essentially what is happening.  Because Wal-Mart does not pay them enough money, hundreds of thousands of Wal-Mart employees enroll in Medicaid, food stamps and other social welfare programs.  Even though Wal-Mart makes enormous profits, they refuse to properly take care of their employees so the federal government has to do it.  And of course this is not just a Wal-Mart problem.  There are hundreds of other major corporations doing exactly the same thing.  And they will keep on doing it as long as they can because relying on the federal government to take care of their employees allows them to make much larger profits.  This gives these companies an enormous competitive advantage and it distorts the marketplace.  If you love the free enterprise system, you should be aghast at this.  Our big corporations have become the biggest “welfare queens” of all, and Wal-Mart is near the top of that list.

Does your local Wal-Mart store seem like it needs help from the federal government?

Of course not.

Wal-Marts all over the nation were absolutely packed this holiday season, but according to a recent Bloomberg article, the average amount of welfare that Wal-Mart employees receive from the government each year breaks down to about $420,000 per store…

Wal-Mart’s low wages have led to full-time employees seeking public assistance. These are not the 47 percent, lazy, unmotivated bums. Rather, these are people working physical, often difficult jobs. They receive $2.66 billion in government help each year (including $1 billion in healthcare assistance). That works out to about $5,815 per worker. And about $420,000 per store.

Does that make you angry?

It should.

Today, Wal-Mart employs approximately 1.2 million people in the United States, and it makes a yearly profit of about 17 billion dollars.

So why does it need 2.6 billion dollars of help from the U.S. government?

Wal-Mart is a colossal money-making behemoth.  Just consider the following numbers

The size of Wal-Mart is sometimes difficult to visualize. To put it into some context, consider the following: 100 million U.S. shoppers patronize Wal-Mart stores every week. Wal-Mart has twice the number employees of the U.S. Postal Service, a larger global computer network than the Pentagon, and the world’s largest fleet of trucks. Americans spend about $36 million dollars per hour at the stores. Wal-Mart now sells more food than any other company in the world, capturing one of every four dollars spent on food in the U.S. The average American family of four spends over $4,000 a year there. Each week, it has 200 million customers at more than 10,400 stores in 27 countries. If the company were an independent country, it would be the 25th largest economy in the world.

Wal-Mart does well enough to be able to pay their workers a livable wage.

And yet they refuse to do it.

Shame on them.

Meanwhile, the six heirs of Wal-Mart founder Sam Walton have as much wealth as the poorest one-third of all Americans combined.

This reminds me of something that I read in the fifth chapter of James the other day…

Come now, you rich men, weep and howl for your miseries that shall come upon you.  Your riches are corrupted and your garments are moth-eaten.  Your gold and silver are corroded, and their corrosion will be a witness against you and will eat your flesh like fire. You have stored up treasures for the last days.  Indeed the wages that you kept back by fraud from the laborers who harvested your fields are crying, and the cries of those who harvested have entered into the ears of the Lord of Hosts.  You have lived in pleasure on the earth and have been wayward. You have nourished your hearts as in a day of slaughter.

But we continue to reward this behavior, don’t we?

100 million of us continue to visit Wal-Mart every single week, and we continue to fill up our shopping carts with cheap products that are made outside this country.

We refuse to support American workers and American businesses, and this is a recipe for utter disaster.  For much more on this, please see my previous article entitled “National Economic Suicide: The U.S. Trade Deficit With China Just Hit A New Record High“.

The truth is that we cannot consume our way to prosperity.  When we consume far more wealth than we produce, we pile up debt and we become poorer as a nation.

And as a country we have become exceedingly cold-hearted toward our workers.  If you truly love free markets and capitalism, you should be encouraging big companies to pay their workers properly.  Instead, we are moving closer and closer to the slave labor model employed by China and other communist nations with each passing day.  Sadly, I am becoming increasingly convinced that many prominent “pro-business” voices in America today are actually closet communists.  They seem to want everything to be made in China and for American workers to be paid just like Chinese workers.

At this point, the U.S. middle class is well on the way to being destroyed.  As I have written about previously, 40 percent of all American workers now make less than what a minimum wage worker made back in 1968 after you account for inflation.

How is the middle class supposed to survive in such an environment?

And for any “pro-business” people that want to defend Wal-Mart, do you actually like paying suffocating taxes to support all of the people that are being forced on to the safety net?

What is our society going to look like as millions more Americans become dependent on the federal government each year?  Government dependence is already at an all-time record high.  How much worse do things have to get before we admit that we have a real problem?

Unfortunately, it looks like our problems are only going to accelerate in 2015.  Thanks to the stunning decline in the price of oil, we are starting to lose good paying jobs in the energy industry

One company caught in the industry downturn is Hercules Offshore Inc. The Houston-based firm is laying off 324 employees, roughly 15% of its workforce, because oil companies aren’t renewing contracts for its offshore drilling rigs in the Gulf of Mexico while crude prices are depressed.

“It’s been breathtaking,” said Jim Noe, executive vice president of Hercules, which was founded in 2004. “We’ve never seen this glut of supply and dislocation in oil markets. So we’re not surprised to see a significant decline in demand for our services.”

These are jobs that we cannot afford to lose.

Since the end of the last recession, the energy industry has been the leading creator of good paying jobs in America.

But now as the U.S. energy boom goes bust, it might lead the way in job losses.

In order to have a middle class, we have got to have middle class jobs.

Unfortunately, those kinds of jobs are disappearing and the entire U.S. economy is moving toward the Wal-Mart model.

In the end, we will all pay a great price for such foolishness.

 

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