19 Very Surprising Facts About The Messed Up State Of The U.S. Economy

19 - Public DomainBarack Obama and the Federal Reserve are lying to you.  The “economic recovery” that we all keep hearing about is mostly just a mirage.  The percentage of Americans that are employed has barely budged since the depths of the last recession, the labor force participation rate is at a 36 year low, the overall rate of homeownership is the lowest that it has been in nearly 20 years and approximately 49 percent of all Americans are financially dependent on the government at this point.  In a recent article, I shared 12 charts that clearly demonstrate the permanent damage that has been done to our economy over the last decade.  The response to that article was very strong.  Many people were quite upset to learn that they were not being told the truth by our politicians and by the mainstream media.  Sadly, the vast majority of Americans still have absolutely no idea what is being done to our economy.  For those out there that still believe that we are doing “just fine”, here are 19 more facts about the messed up state of the U.S. economy…

#1 After accounting for inflation, median household income in the United States is 8 percent lower than it was when the last recession started in 2007.

#2 The number of part-time workers in America has increased by 54 percent since the last recession began in December 2007.  Meanwhile, the number of full-time jobs has dropped by more than a million over that same time period.

#3 More than 7 million Americans that are currently working part-time jobs would actually like to have full-time jobs.

#4 The jobs gained during this “recovery” pay an average of 23 percent less than the jobs that were lost during the last recession.

#5 The number of unemployed workers that have completely given up looking for work is twice as high now as it was when the last recession began in December 2007.

#6 When the last recession began, about 17 percent of all unemployed workers had been out of work for six months or longer.  Today, that number sits at just above 34 percent.

#7 Due to a lack of decent jobs, half of all college graduates are still relying on their parents financially when they are two years out of school.

#8 According to a new method of calculating poverty devised by the U.S. Census Bureau, the state of California currently has a poverty rate of 23.4 percent.

#9 According to the New York Times, the “typical American household” is now worth 36 percent less than it was worth a decade ago.

#10 In 2007, the average household in the top 5 percent had 16.5 times as much wealth as the average household overall.  But now the average household in the top 5 percent has 24 times as much wealth as the average household overall.

#11 In an absolutely stunning development, the rate of small business ownership in the United States has plunged to an all-time low.

#12 Subprime loans now make up 31 percent of all auto loans in America.  Didn’t that end up really badly when the housing industry tried the same thing?

#13 The average cost of producing a barrel of shale oil in the United States is approximately 85 dollars.  Now that the price of oil is starting to slip under that number, the “shale boom” in America could turn into a bust very rapidly.

#14 On a purchasing power basis, China now actually has a larger economy than the United States does.

#15 It is hard to believe, but there are 49 million people that are dealing with food insecurity in America today.

#16 There are six banks in the United States that pretty much everyone agrees fit into the “too big to fail” category.  Five of them have more than 40 trillion dollars of exposure to derivatives.

#17 The 113 top earning employees at the Federal Reserve headquarters in Washington D.C. make an average of $246,506 a year.  It turns out that ruining the U.S. economy is a very lucrative profession.

#18 We are told that the federal deficit is under control, but the truth is that the U.S. national debt increased by more than a trillion dollars during fiscal year 2014.

#19 An astounding 40 million dollars has been spent just on vacations for Barack Obama and his family.  Perhaps he figures that if we are going down as a nation anyway, he might as well enjoy the ride.

If our economy truly was “recovering”, there would be lots of good paying middle class jobs available.

But that is not the case at all.

I know so many people in their prime working years that spend day after day searching for a job.  Most of them never seem to get anywhere.  It isn’t because they don’t have anything to offer.  It is just that the labor market is absolutely saturated with qualified job seekers.

For example, USA Today recently shared the story of 42-year-old Alex Gomez…

“I’ve had to seriously downgrade my living situation,” said Alex Gomez, a 42-year-old with a master’s degree in entrepreneurship. Gomez lost his last full-time job in 2009 and has been looking for work since a short-term contract position ended in 2012.

Gomez’s home was foreclosed on, so the Tampa resident lives with three roommates in a college neighborhood. He drained his 401(k) trying to save his house, and he has around $150,000 in student loans. His mother is tapping her 401(k) to pay his rent. Gomez subsists on that and about $200 a month in food stamps.

“I have been applying and looking for pretty much anything at this stage,” he said. Although he’s looking for work in engineering or data management, “I applied to a supermarket as a deli clerk because I used to be a deli clerk as a teenager,” he said. He was told he was overqualified and turned down.

Does Alex Gomez have gifts and abilities to share with our society?

Of course he does.

So why can’t he find a job?

It is because we have a broken economy.

We are in the midst of a long-term economic decline and the system simply does not work properly anymore.

And thanks to decades of very foolish decisions, this is only the start of our problems.

Things are only going to get worse from here.

If The Economy Is Recovering, Why Is The Labor Force Participation Rate At A 36 Year Low?

Unemployment - Public DomainShould we be concerned that the percentage of Americans that are either working or looking for work is the lowest that it has been in 36 years?  In August, an all-time record high 92,269,000 Americans 16 years of age and older did not “participate in the labor force”.  And when you throw in the people that are considered to be “in the labor force” but are not currently employed, that pushes the total of working age Americans that do not have jobs to well over 100 million.  Yes, it may be hard to believe, but there are more than 100 million working age Americans that are not employed right now.  Needless to say, this is not a sign of a healthy economy, and it is a huge reason why dependence on the government has soared to absolutely unprecedented levels.  When people can’t take care of themselves, they need someone else to take care of them.  If the percentage of people in the labor force continues to decline like it has been, what is that going to mean for the future of our society?

The chart below shows the changes in the civilian labor force participation rate since 1980.  As you can see, the rate steadily rose between 1980 and 2000, but since then it has generally been declining.  In particular, this decline has greatly accelerated since the beginning of the last recession…

Labor Force Participation Rate

We have never seen an extended precipitous decline of this nature before.  But instead of admitting that we have a very serious problem on our hands, many mainstream economists are dismissing this decline as “structural in nature”.  For example, check out the following excerpt from a recent Reuters article

A paper published on Thursday by the Brookings Institution, a Washington-based think tank, suggested the decline was primarily due to an aging population and other structural factors, and concluded the labor force would continue to shrink.

But there is a major flaw in this analysis.  It turns out that older Americans are the only group for which employment numbers have actually been going up.  I really like how Zero Hedge made this point the other day…

Well that’s very odd, because it was only two months ago that the Census wrote the following [5]: “Many older workers managed to stay employed during the recession; in fact, the population in age groups 65 and over were the only ones not to see a decline in the employment share from 2005 to 2010 (Figure 3-25)… Remaining employed and delaying retirement was one way of lessening the impact of the stock market decline and subsequent loss in retirement savings.”

Figure 3-25
Yes, Baby Boomers are hitting retirement age.

But that does not explain why the labor force participation rate numbers for younger groups have been going down.

Each month, the U.S. economy has to add somewhere between 100,000 and 150,000 jobs just to keep up with population growth.  Since job creation has been tepid at best in recent years, the only way that the government has been able to get the official unemployment rate to steadily “go down” has been to remove millions upon millions of Americans from the labor force.

According to the official government numbers, since 2007 768,000 jobs have been added to the economy, but a whopping 13 million Americans have been added to the numbers of those “not in the labor force”.

As a result, the official unemployment rate has magically been “declining”.

But the truth is that our employment crisis has not been solved at all.

And it isn’t just the number of jobs that we need to be concerned about.  We are also dealing with a multi-year decline in the quality of our jobs.  In fact, the Wall Street Journal just reported that 34 percent of all U.S. workers are “freelancers” now…

More evidence that this isn’t your parents’ labor market: Roughly one in three U.S. workers is now a freelancer.

Fifty-three million Americans, or 34% of the nation’s workforce, qualify as freelancers, according to a new report from the Freelancers Union, a nonprofit organization, and Elance-oDesk Inc., a company that provides platforms for freelancers to find work. These individuals include independent contractors, temps, and moonlighters, among others.

In other words, about a third of all workers in the country are “temps” at this point.

I don’t know about you, but to me that is an extremely alarming statistic.

If the economy really was recovering, this would not be happening.

And as millions upon millions of Americans are being forced out of the official labor force, an increasing number of people are turning to the underground economy.

For example, in some of our major cities we are witnessing a rise in the number of street vendors.  The following is an excerpt from a recent Los Angeles Times article entitled “More Angelenos are becoming street vendors amid weak economy“…

Sitting at her street vending booth with products arrayed neatly on a sequined purple tablecloth, Jackie Lloyd reflects nostalgically on the days when she had a steady salary and regular hours.

That was four years ago, before the 39-year-old was laid off from her job as an elementary school cafeteria worker and mounting bills forced her to venture into self-employment.

Now the Pico-Union resident hops from location to location, selling body oils, shea butter, soap and incense. She moves when nearby businesses complain or she feels unsafe.

Some days, her sales bring in $150. Others, they don’t break $20.

In order to have a strong middle class, we need middle class jobs.

If our labor force participation rate continues to fall and the quality of our jobs continues to decline, the middle class will continue to shrink.  For much more on this, please see my previous article entitled “30 stats to show to anyone that does not believe the middle class is being destroyed“.

But our authorities never seem to want to admit what our real problems are.

Instead, they love to come up with alternative theories for our economic struggles.

One of the latest theories being put forward by the Federal Reserve is that the economy is not moving along like it should because ordinary Americans are “hoarding money”

One of the great mysteries of the post-financial crisis world is why the U.S. has lacked inflation despite all the money being pumped into the economy.

The St. Louis Federal Reserve thinks it has the answer: A paper the central bank branch published this week blames the low level of money movement in large part on consumers and their “willingness to hoard money.”

This seems completely absurd to me.

From what I can see, most families are just doing their best to survive from month to month these days.

I certainly don’t see a lot of people “hoarding money”.

What about you?

What do you think?

Please feel free to share your thoughts by posting a comment below…

37 Reasons Why “The Economic Recovery” Is A Giant Lie

37 Sign“If you repeat a lie often enough, people will believe it.”  Sadly, that appears to be the approach that the Obama administration and the mainstream media are taking with the U.S. economy.  They seem to believe that if they just keep telling the American people over and over that things are getting better, eventually the American people will believe that it is actually true.  On Friday, it was announced that the unemployment rate had fallen to “7 percent”, and the mainstream media responded with a mix of euphoria and jubilation.  For example, one USA Today article declared that “with today’s jobs report, one really can say that our long national post-financial crisis nightmare is over.”  But is that actually the truth?  As you will see below, if you assume that the labor force participation rate in the U.S. is at the long-term average, the unemployment rate in the United States would actually be 11.5 percent instead of 7 percent.  There has been absolutely no employment recovery.  The percentage of Americans that are actually working has stayed between 58 and 59 percent for 51 months in a row.  But most Americans don’t understand these things and they just take whatever the mainstream media tells them as the truth.

And of course the reality of the matter is that we should have seen some sort of an economic recovery by now.  Those running our system have literally been mortgaging the future in a desperate attempt to try to pump up our economic numbers.  The federal government has been on the greatest debt binge in U.S. history and the Federal Reserve has been printing money like crazed lunatics.  All of that “stimulus” should have had some positive short-term effects on the economy.

Sadly, all of those “emergency measures” do not appear to have done much at all.  The percentage of Americans that have a job has stayed remarkably flat since the end of 2009, median household income has fallen for five years in a row, and the rate of homeownership in the United States has fallen for eight years in a row.  Anyone that claims that the U.S. economy is experiencing a “recovery” is simply not telling the truth.  The following are 37 reasons why “the economic recovery” is a giant lie…

#1 The only reason that the official unemployment rate has been declining over the past couple of years is that the federal government has been pretending that millions upon millions of unemployed Americans no longer want a job and have “left the labor force”.  As Zero Hedge recently demonstrated, if the labor force participation rate returned to the long-term average of 65.8 percent, the official unemployment rate in the United States would actually be 11.5 percent instead of 7 percent.

#2 The percentage of Americans that are actually working is much lower than it used to be.  In November 2000, 64.3 percent of all working age Americans had a job.  When Barack Obama first entered the White House, 60.6 percent of all working age Americans had a job.  Today, only 58.6 percent of all working age Americans have a job.  In fact, as you can see from the chart posted below, there has been absolutely no “employment recovery” since the depths of the last recession…

Employment-Population Ratio 2013

#3 The employment-population ratio has now been under 59 percent for 51 months in a row.

#4 There are 1,148,000 fewer Americans working today than there was in November 2006.  Meanwhile, our population has grown by more than 16 million people during that time frame.

#5 The “inactivity rate” for men in their prime working years (25 to 54) has just hit a brand new all-time record high.  Does this look like an “economic recovery” to you?…

Inactivity Rate Men

#6 The number of working age Americans without a job has increased by a total of 27 million since the year 2000.

#7 In November 2007, there were 121.9 million full-time workers in the United States.  Today, there are only 116.9 million full-time workers in the United States.

#8 Middle-wage jobs accounted for 60 percent of the jobs lost during the last recession, but they have accounted for only 22 percent of the jobs created since then.

#9 Only about 47 percent of all adults in America have a full-time job at this point.

#10 The ratio of wages to corporate profits in the United States just hit a brand new all-time low.

#11 It is hard to believe, but in America today one out of every ten jobs is now filled by a temp agency.

#12 Approximately one out of every four part-time workers in America is living below the poverty line.

#13 In this economic environment, there is intense competition even for the lowest paying jobs.  Wal-Mart recently opened up two new stores in Washington D.C., and more than 23,000 people applied for just 600 positions.  That means that only about 2.6 percent of the applicants were ultimately hired.  In comparison, Harvard offers admission to 6.1 percent of their applicants.

#14 According to the Social Security Administration, 40 percent of all U.S. workers make less than $20,000 a year.

#15 When Barack Obama took office, the average duration of unemployment in this country was 19.8 weeks.  Today, it is 37.2 weeks.

#16 According to the New York Times, long-term unemployment in America is up by 213 percent since 2007.

#17 Thanks to Obama administration policies which are systematically killing off small businesses in the United States, the percentage of self-employed Americans is at an all-time low today.

#18 According to economist Tim Kane, the following is how the number of startup jobs per 1000 Americans breaks down by presidential administration

Bush Sr.: 11.3

Clinton: 11.2

Bush Jr.: 10.8

Obama: 7.8

#19 According to the U.S. Census Bureau, median household income in the United States has fallen for five years in a row.

#20 The rate of homeownership in the United States has fallen for eight years in a row.

#21 Back in 1999, 64.1 percent of all Americans were covered by employment-based health insurance.  Today, only 54.9 percent of all Americans are covered by employment-based health insurance, and thanks to Obamacare millions more Americans are now losing their health insurance plans.

#22 As 2003 began, the average price of a gallon of regular gasoline was about $1.30.  When Barack Obama took office, the average price of a gallon of regular gasoline was $1.85.  Today, it is $3.26.

#23 Total consumer credit has risen by a whopping 22 percent over the past three years.

#24 In 2008, the total amount of student loan debt in this country was sitting at about 440 billion dollars.  Today, it has shot up to approximately a trillion dollars.

#25 Under Barack Obama, the velocity of money (a very important indicator of economic health) has plunged to a post-World War II low.

#26 Back in the year 2000, our trade deficit with China was 83 billion dollars.  In 2008, our trade deficit with China was 268 billion dollars.  Last year, it was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in world history.

#27 The gap between the rich and the poor in the United States is at an all-time record high.

#28 Right now, 1.2 million students that attend public schools in the United States are homeless.  That is a brand new all-time record high, and that number has risen by 72 percent since the start of the last recession.

#29 When Barack Obama first entered the White House, there were about 32 million Americans on food stamps.  Today, there are more than 47 million Americans on food stamps.

#30 Right now, approximately one out of every five households in the United States is on food stamps.

#31 According to the Survey of Income and Program Participation conducted by the U.S. Census, well over 100 million Americans are enrolled in at least one welfare program run by the federal government.

#32 In 2000, the U.S. government spent 199 billion dollars on Medicaid.  In 2008, the U.S. government spent 338 billion dollars on Medicaid.  In 2012, the U.S. government spent 417 billion dollars on Medicaid, and now Obamacare is going to add tens of millions more Americans to the Medicaid rolls.

#33 In 2000, the U.S. government spent 219 billion dollars on Medicare.  In 2008, the U.S. government spent 462 billion dollars on Medicare.  In 2012, the U.S. government spent 560 billion dollars on Medicare, and that number is expected to absolutely skyrocket in the years ahead as the Baby Boomers retire.

#34 According to the most recent numbers from the U.S. Census Bureau, an all-time record high 49.2 percent of all Americans are receiving benefits from at least one government program.

#35 The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.

#36 When Barack Obama was first elected, the U.S. debt to GDP ratio was under 70 percent.  Today, it is up to 101 percent.

#37 The U.S. national debt is on pace to more than double during the eight years of the Obama administration.  In other words, under Barack Obama the U.S. government will accumulate more debt than it did under all of the other presidents in U.S. history combined.

Fortunately, it appears that most Americans are not buying into the propaganda.  According to a new CNN survey, the percentage of Americans that believe that the economy is getting worse far exceeds the percentage of Americans that believe that the economy is improving…

Americans views on the state of the nation are turning increasingly sour, according to a new national poll.

And a CNN/ORC International survey released Friday also indicates that less than a quarter of the public says that economic conditions are improving, while nearly four in ten say the nation’s economy is getting worse.

Forty-one percent of those questioned in the poll say things are going well in the country today, down nine percentage points from April, and the lowest that number has been in CNN polling since February 2012. Fifty-nine percent say things are going badly, up nine points from April.

So what do you think?

Do you believe that the U.S. economy is getting better or getting worse?  Please feel free to share what you think by posting a comment below…

The U.S. Labor Force Participation Rate Is At A 35 Year Low

Lazy PersonThe percentage of Americans that are participating in the labor force is the lowest that it has been in 35 years.  During the 70s, 80s and 90s, the labor force participation rate consistently rose as large numbers of women entered the workforce.  It peaked at 67.3 percent in early 2000, and just before the last recession it was sitting at about 66 percent.  Since the start of the last recession, the labor force participation rate has not stopped falling and it is now at a 35 year low.  In September, 11,255,000 Americans were considered to be “unemployed”, and an astounding 90,609,000 Americans were considered to be “not in the labor force”.  The number of Americans “not in the labor force” has increased by more than 10 million since Barack Obama entered the White House.  When you add the number of unemployed Americans to the number of Americans “not in the labor force”, you come up with a grand total of more than 101 million working age Americans that do not have a job.

The Obama administration and the mainstream media continue to insist that we are in the midst of an “economic recovery”, but that is a total joke.  Does the chart posted below look like a recovery to you?…

Labor Force Participation Rate

Americans are leaving the labor force in droves.  If the labor force participation rate was at the same level that it was when Obama first became president, the official unemployment rate would be up around 10 percent and everyone would be wondering when the “economic depression” would finally end.

It is funny how our perceptions of reality are so greatly shaped by what our televisions tell us to think.

Below I have posted a chart of the “inactivity rate” of U.S. men in the 25 to 54-year-old age group.  As you can see, the percentage of men in their prime working years that are not employed and not considered to be unemployed either has been rising steadily…

Inactivity Rate Men

We have millions upon millions of men just sitting around and doing essentially nothing.  Not that women are doing so much better.  In fact, the labor force participation rate for women is at a 24 year low.

Some people may be tempted to think that all of this is happening because more Americans are choosing to stay home and raise children.  But that is not the case at all.  In fact, in a previous article I showed that the marriage rate in the U.S. is at an all-time low and the birth rate for young women in this country is also at an all-time low.

People are not staying home because of family obligations.  Rather, people are staying home because there aren’t enough jobs available.

And when Americans that are actually employed do lose their jobs, it is taking them a very, very long time to find another one.  Just check out the following chart…

Average Duration Of Unemployment 2013

Once again, I must ask – does that look like a “recovery” to you?

Obama can say the word “recovery” as much as he would like, but that does not make it a reality.

So is anyone out there actually doing well?

Yes, as I have talked about frequently, some pockets of the country are doing quite nicely.  In fact, government workers (think Washington D.C.) and finance workers (Wall Street, etc.) are tied for the lowest rates of unemployment in the nation (3.9 percent).

But for almost everyone else, things are very hard right now and poverty continues to grow.

Just today, I came across a recent study that discovered that nearly half of all public students in the United States come from low income homes.

That is an incredible number.

But this is just the beginning of our problems.  Our debt continues to grow by leaps and bounds and our big banks are engaging in extraordinarily reckless behavior.  As Richard Russell recently discussed, it is only a matter of time before this entire house of cards comes tumbling down…

In this whole process, debt has been created to an extent never seen before in history.  So far, the debt has been managed with super-low interest rates and borrowing.  But the compounding process goes on, and the debt mountain continues to grow.  So, to be brief, I see the theme of today as the “haves” doing whatever they have to — to remain in power.

 

The dangers in the background for the haves are the possibilities that (1) interest rates will begin to advance, and (2) inflation will rise and be so visible that even the common man will recognize it, and begin to protest, or even revolt and (3) the whole debt structure will rise so high that it will topple over of its own weight and take down the entire world economy with it.

So as bad as things are today, the truth is that they are far, far better than what is eventually coming.

If you want to get a glimpse of the future of the U.S. economy, just check out what has happened to Greece

Greeks are on average almost 40 percent poorer than they were in 2008, data indicated, laying bare the impact of a brutal recession and austerity measures the government may be forced to extend into next year.

Gross disposable incomes fell 29.5 percent between the second quarters of 2008 and 2013, statistics service ELSTAT said on Tuesday. Adding in cumulative consumer price inflation over the same period takes the decline close to 40 percent.

As you can see from the charts posted above, our economy has never even come close to getting back to the level that we were at before the last financial crisis.

And now the next wave of the economic collapse is approaching.

Right now, Spain has an unemployment rate that is above 26 percent and Greece has an unemployment rate that is above 27 percent.

We will eventually be heading up toward those levels.

As millions of good paying jobs continue to be shipped overseas, and as technology continues to eliminate millions of our jobs, the unemployment situation in this country will continue to grow even worse.

And whenever the next great financial crisis inevitably strikes, that will greatly accelerate our employment problems.

If you can move toward becoming more independent of the “system”, now would be a good time to do so.  The job that you have today may not be there next month or next year.

We are moving into the greatest period of economic instability in U.S. history.

Get ready for it while you still can.

20 Ordinary Americans Talk About The Economic Despair That Is Growing Like A Cancer All Around Them

MicrophoneThere are hundreds of formerly prosperous communities all over America that are being steadily transformed into rotting, decaying hellholes.  The good paying middle class jobs that once supported those communities are long gone, and they have been replaced with low paying service jobs if they have been replaced at all.  When you visit those communities, it is almost as if all of the hope has been sucked right out of the air.  It can be absolutely heartbreaking to look into the hollow eyes of someone that has totally given in to despair, but unfortunately the number of Americans that are giving up on the economy continues to grow.  Today, the labor participation rate is the lowest that it has been in 35 years, and more than 100 million Americans are enrolled in at least one welfare program.  It is easy to say that they should just “get a job”, but as I have written about repeatedly, our economy simply is not producing enough jobs for everyone anymore.  The percentage of working age Americans with a job has remained at the same level that it was at during the worst days of the last recession, and meanwhile the quality of our jobs has continued to steadily decline.  Median household income has fallen for five years in a row, but the cost of living continues to rise rapidly.  The middle class is being systematically shredded, and poverty is growing at an alarming rate.  The U.S. economy has been in decline for a long time, and the really bad news is that it appears that this decline is about to accelerate.

We are a nation that consumes far more wealth than we produce.  We are a nation that buys far more from the rest of the world than they buy from us.  We are a nation that has a “buy now, pay later” mentality.

As a nation, we have accumulated the largest mountain of debt in the history of the world.  40 years ago, the total amount of debt in our system (government, business and consumer) was about 2 trillion dollars.  Today, it is more than 56 trillion dollars.

The consequences of decades of incredibly foolish decisions are starting to catch up with us, and it is those at the bottom of the food chain that will suffer the most.

I could spend the rest of this article quoting 30 or 40 more statistics that show how bad things are, but today I wanted to do something different.  Today, I wanted to share some quotes from some of my readers about what they are seeing where they live.  The following are 20 quotes from ordinary Americans about the economic despair that is rapidly growing like a cancer all around us…

#1 David:

“Yes, the American economy is in the pits. I know five languages, have three degrees (including two graduate degrees), and have lived overseas for 16 years and I still can’t find a job in the USA. Everything is broken in America. Maybe I should give up my American citizenship.”

#2 Zach:

“I’ve been struggling since I finished college in the summer of 2010. My dream is to work in the courts, law enforcement but it’s almost impossible to get a call back for an interview. I interviewed with Garland, Texas PD for a position in the city jail and I made the final 30 of 300 applicants that applied for the 3 positions.”

#3 Akitawoman:

“I have two Master’s degrees, am 61 years old and earning $10 per hour. What does that say about the current economy?”

#4 Cincinnati Dave:

“I work for one of the banks mentioned in your article. I was in mortgages. I saw all of this coming, so several months ago I asked to get into another area of the bank and fortunately, for me, they granted by request. A lot of people are losing their jobs and there is really no prospects out there for anything else whereby the same kind of money could be made. I will make nothing near what I had been earning but am at the least grateful to be employed. This is all so sad to watch happen.”

#5 Iceman:

“I used to work for WF processing mortgages. The week that the rates went up, I was out of work, not one extra week of work.”

#6 Tim:

“The U.S. economy is producing mostly part-time, low-wage jobs. These jobs barely pay enough to put food on the table.”

#7 K:

“What I am aware of, is every person I know, who had to switch jobs in the last five years took a pay cut. The smallest cut among my friends was 10%, the average was closer to 18%. No we are heading down a bad road, and we are past the point of no return.”

#8 Makati:

“After spending most of my life in the middle class, I now consider myself lower class due to age and income. Nothing wrong with that. I am still able to provide myself with what I need and some of my ‘wants’. I am like most retirees today.”

#9 Mondobeyondo:

“As many of you already know (but maybe some new members of this blog don’t) – I live in Phoenix, Arizona. Where you live here, determines (to a great extent) your economic well being. Those in the “East Valley” – Chandler, Gilbert, Scottsdale, etc – have the jobs, the opportunities and the transportation. Those in the wealthier areas of the “West Valley” also have these benefits.

The remainder – those who live in the older west side of town, and the south side of town – are mainly forgotten and left to struggle. Many are hard working citizens who just want a chance. Unfortunately, chance costs money, in the view of many people, and as far as the municipal government is concerned, there’s no money for us. It’s cheaper to let them live in a tent in the park, where the cops at least have an excuse to evict them.”

#10 2Gary2:

“We are no longer the land of opportunity where anyone can make it.”

#11 GOM:

“There is no middle class here in the Florida Panhandle. Only folks who have money are the retired and they hate everyone. They own all the antique stores [big business] and most thriving businesses and restuarants. Military is big here, they spend every dime they have on stupid stuff and taxis. Tourist are way down since the spill. Now for the good news. A major food chain here is going out of business [Food World] Another is losing 20k a month to theft. Every other property it seems is up for sale. There are tons of empty real estate [store fronts] There are thrift stores opening everywhere. People are selling goods on the streets, only to be run off by the cops. Crime is getting out of hand. Most don’t go out after dark. Police are beating up the homeless at the beaches. Panhandling now is mainly younger people. Where did all the older ones go?”

#12 Rodster:

“In my area which is SW Florida, it’s been getting tighter for my customers so on a case by case basis I lower my price when they need auto repairs. I still find road signs advertising homes for sale (cash only). Many are advertised as foreclosed.

 

I’ve started seeing people living out of their cars. It’s not a daily occurrence but I have been noticing it.”

#13 Devery:

I have been looking after the homeless now for 4 years. Last winter I had an encounter where I was told that I could not hand out blankets and sleeping bags in the dead of winter and that I would be arrested for trespassing if “me and my friends” didn’t move along.

So, I adopted the policy that I would pull up next to them, have them get in the car and we would go for a drive. I would find a place to pull over and give them what they needed then I would drop them off in a different place.

#14 Robert:

“Around where I live in the SE, things seem ok but I live in a university town. Go to some of the surrounding small towns and it is desolate. Car dealerships closed. Entire streets with abandoned stores. The only activity is a one clerk post office. I know people in our church who are a paycheck away from going over the edge or going over due to a spouse dying and losing one of their social security checks. I see grim. More homeless. A local church is feeding many more including some folks living out of their cars—lots of children. Mostly minimum wage jobs in the area. If it were not for the university and its 34,000 students, this place would look as bad as the smaller communities.”

#15 TN Gal:

“Here in southeast TN we have jobs, mostly part-time or low wage. Our problem these days are so many people dependent on government programs no one wants to work. They do better on programs than working partying and paying for insurance. Housing still very depressed. Seeing more homeless around and local churches straining to provide food. Crime is up and drugs, which were down, are coming back with a vengeance. Middle class here are senior citizens on SS, younger retirees not the older ones. Older ones seem to be struggling. Sad.”

#16 Deb:

Michael, I live in North Central Illinois. About 60 miles southeast of Chicago. The town we live in has about 8,000 in it. Very “middle class” farm community. Unemployment is high and so is underemployment. We know many people living off 2 part time jobs. That seems to be the norm around here. Or people taking jobs that they would never of considered in the past, just to get by. My son used to work for CAT in Aurora, but was “let go” in order to bring in new workers at a lower pay scale. It took him over a year(which really isn’t bad) to find a part time job with 3M.

#17 Susan:

“Drive around Los Angeles at 3:00 AM any day and you will see the devastating and pervasive homelessness from 8 to 80 year olds.  And the massage parlors and hookers on the streets of used to be ‘high-end’ neighborhoods are exploding. No other way to make a living.”

#18 XSANDIEGOCA:

“A couple of years ago it was reported 9K people a night slept in their cars here in San Diego County. Special car parks are set up in some church parking lots. The cops look the other way. Wonder what the figure is now?”

#19 Jimbo:

“My own viewpoint is that a collapse of the current economic system is inevitable and imminent.”

#20 El Pollo de Oro:

“During a conversation on prepping, someone recently said to me, ‘If things get half as bad as these preppers think they will, I don’t want to be alive.’ So, how bad will things will get? Real unemployment is already at Great Depression levels (John Williams’ Shadow Statistics contradicts the BLS’ bogus figures), but when this depression deepens, I think we’ll be looking at 50% or 60% unemployment easily. Much worse than the 1930s. It will be absolute hell for millions of Americans, and when the money stops flowing down to the man on the street, the blood will flow in the streets (Gerald Celente). Lots of it.”

The Number Of Private Sector Jobs Fell By 278,000 Last Month But The Economy Is Getting Better?

Barack Obama Oval OfficeHave you heard about the “wonderful” employment numbers that were just released?  Last month, the unemployment rate declined to 7.3 percent.  Somehow this happened even though the percentage of working age Americans with a job actually declined and the number of private sector workers fell by 278,000.  So how did the federal government magically produce a drop in the unemployment rate even though less people have jobs?  Well, they did it by pretending that more than half a million Americans “dropped out of the labor force” last month.  If the government is to be believed, the number of Americans that want to work dropped by an astounding 516,000 in a single month even though the population of our country is constantly increasing.  The federal government continues to feed us absolutely absurd numbers month after month, and at this point “the official unemployment rate” is essentially meaningless.

But that doesn’t mean that Barack Obama is about to drop the charade.  In fact, he continues to insist that the economy is getting better.  The following is an excerpt from one of Obama’s recent weekly radio addresses

Over the past four and a half years, we’ve fought our way back from the worst recession of our lifetimes. And thanks to the grit and resilience of the American people, we’ve begun to lay a foundation for stronger, more durable economic growth.

Oh really?

Does he actually believe that anyone is still buying what he is saying?

The cold, hard truth is that the U.S. economy has not recovered while Obama has been in the White House.  If you doubt this, please see my previous article entitled “33 Shocking Facts Which Show How Badly The Economy Has Tanked Since Obama Became President“.

Since World War II, the percentage of working age Americans that is employed had always bounced back dramatically after a recession ended.

Unfortunately, that has not happened this time.

As you can see from the chart posted below, the percentage of working age Americans with a job has stayed below 59 percent since late 2009.  This chart reflects the most recent employment numbers…

Employment-Population Ratio 2013

So where is the recovery Obama?

Can he possibly put a positive spin on the chart above?

Of course not.

The truth is that the official unemployment rate should still be up around 10 percent like it was a few years ago.

But that wouldn’t make Obama look very good, would it?  So the U.S. government has been pretending that millions upon millions of Americans have been “leaving the labor force”.  This has pushed the labor force participation rate to a 35-year-low

Labor Force Participation Rate

At this point, we have more than 90 million Americans that are considered to be “not in the labor force”…

On Friday, the BLS reported that the 90,473,000 Americans not currently in the labor force marked the first time the figure exceeded the 90 million threshold.

In January 2009, when President Obama first took office, there were 80.5 million Americans 16 years and older not in the labor force, meaning the number of Americans not in the labor force has increased 10 million during his presidency.

For men, the BLS reported the labor force participation rate, the percentage of the population working or considered looking for work, was 63.2 percent in August, basically unchanged from 63.5 percent in July. It’s also a record low.

How low can that number possibly go?

Meanwhile, the quality of our jobs continues to decline rapidly as well.  If you can believe it, at this point more than 40 percent of all U.S. workers actually make less than what a full-time minimum wage worker made back in 1968.

As a result, the U.S. middle class is steadily dying.  The following is from a recent Yahoo article

It’s the elephant in the room no one wants to talk about…

The middle class in the U.S. economy is on the verge of collapse. Yes, I said collapse. That social class that once helped the U.S. economy grow and prosper is coming apart. Will the U.S. economy ever be the same without it or is this the new norm?

For much more on this, please see my previous article entitled “44 Facts About The Death Of The Middle Class That Every American Should Know“.

And unfortunately, things look like they may start getting a lot worse for ordinary Americans.

There are a couple of major events which could potentially cause our economic decline to accelerate greatly in September…

#1 Fed Tapering

Right now, there is not much demand for U.S. Treasury bonds.  Foreigners have become net sellers of U.S. Treasuries and domestic demand has become quite weak.  Without the Federal Reserve buying up tens of billions of dollars worth of U.S. Treasuries each month, where will the demand come from?

That is a very good question.  If the Fed starts to taper quantitative easing in September, that is almost certainly going to send bond yields soaring.  Already, bond yields have been rising steadily, and if they get too high it is going to be absolutely disastrous for the U.S. economy.

#2 War With Syria

If the U.S. attacks Syria, it will likely cause financial markets all over the planet to descend into chaos and send the price of oil skyrocketing.

And that assumes that the conflict is limited to only the United States and Syria.  If Syria decides to retaliate by launching missiles at Israeli cities, that will set off a major regional war in the Middle East and the consequences for the global economy will be off the charts.

So as bad as the U.S. economy is right now, the truth is that things could easily get much, much worse.

Let us hope for the best, but let us also prepare for the worst.

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