Middle Class Destroyed: 50 Percent Of All American Workers Make Less Than $30,533 A Year

The middle class in America has been declining for decades, and we continue to get even more evidence of the catastrophic damage that has already been done.  According to the Social Security Administration, the median yearly wage in the United States is just $30,533 at this point.  That means 50 percent of all American workers make at least that much per year, but that also means that 50 percent of all American workers make that much or less per year.  When you divide $30,533 by 12, you get a median monthly wage of just over $2,500.  But of course nobody can provide a middle class standard of living for a family of four for just $2,500 a month, and we will discuss this further below.  So in most households at least two people are working, and in many cases multiple jobs are being taken on by a single individual in a desperate attempt to make ends meet.  The American people are working harder than ever, and yet the middle class just continues to erode.

The deeper we dig into the numbers provided by the Social Security Administration, the more depressing they become.  Here are just a few examples from their official website

-34 percent of all American workers made less than $20,000 last year.

-48 percent of all American workers made less than $30,000 last year.

-59 percent of all American workers made less than $40,000 last year.

-68 percent of all American workers made less than $50,000 last year.

At this moment, the federal poverty level for a family of five is $29,420, and yet about half the workers in the entire country don’t even make that much on a yearly basis.

So can someone please explain to me again why people are saying that the economy is “doing well”?

Many will point to how well the stock market has been doing, but the stock market has not been an accurate barometer for the overall economy in a very, very long time.

And the stock market has already fallen nearly 1,500 points since the beginning of the month.  The bull market appears to be over and the bears are licking their chops.

No matter who has been in the White House, and no matter which political party has controlled Congress, the U.S. middle class has been systematically eviscerated year after year.  Many that used to be thriving may still even call themselves “middle class”, but that doesn’t make it true.

You would think that someone making “the median income” in a country as wealthy as the United States would be doing quite well.  But the truth is that $2,500 a month won’t get you very far these days.

First of all, your family is going to need somewhere to live.  Especially on the east and west coasts, it is really hard to find something habitable for under $1,000 a month in 2018.  If you live in the middle of the country or in a rural area, housing prices are significantly cheaper.  But for the vast majority of us, let’s assume a minimum of $1,000 a month for housing costs.

Secondly, you will also need to pay your utility bills and other home-related expenses.  These costs include power, water, phone, television, Internet, etc.  I will be extremely conservative and estimate that this total will be about $300 a month.

Thirdly, each income earner will need a vehicle in order to get to work.  In this example we will assume one income earner and a car payment of just $200 a month.

So now we are already up to $1,500 a month.  The money is running out fast.

Next, insurance bills will have to be paid.  Health insurance premiums have gotten ridiculously expensive in recent years, and many family plans are now well over $1,000 a month.  But for this example let’s assume a health insurance payment of just $450 a month and a car insurance payment of just $50 a month.

Of course your family will have to eat, and I don’t know anyone that can feed a family of four for just $500 a month, but let’s go with that number.

So now we have already spent the entire $2,500, and we don’t have a single penny left over for anything else.

But wait, we didn’t even account for taxes yet.  When you deduct taxes, our fictional family of four is well into the red every month and will need plenty of government assistance.

This is life in America today, and it isn’t pretty.

In his most recent article, Charles Hugh Smith estimated that an income of at least $106,000 is required to maintain a middle class lifestyle in America today.  That estimate may be a bit high, but not by too much.

Yes, there is a very limited sliver of the population that has been doing well in recent years, but most of the country continues to barely scrape by from month to month.  Out in California, Silicon Valley has generated quite a few millionaires, but the state also has the highest poverty in the entire nation.  For every Silicon Valley millionaire, there are thousands upon thousands of poor people living in towns such as Huron, California

Nearly 40 percent of Huron residents — and almost half of all children — live below the poverty line, according to the U.S. Census Bureau. That’s more than double the statewide rate of 19 percent reported last month, which is the highest in the U.S. The national average is 12.3 percent.

“We’re in the Appalachians of the West,” Mayor Rey Leon said. “I don’t think enough urgency is being taken to resolve a problem that has existed for way too long.”

Multiple families and boarders pack rundown homes, only about a quarter of residents have high school diplomas and most lack adequate health care in an area plagued with diabetes and high asthma rates in one the nation’s most polluted air basins.

One recent study found that the gap between the wealthy and the poor is the largest that it has been since the 1920s, and America’s once thriving middle class is evaporating right in front of our eyes.

We could have made much different choices as a society, but we didn’t, and now we are going to have a great price to pay for our foolishness…

About the author: 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.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

Middle Class Erosion: 33 Million Americans Will Not Travel During The Holidays Because They Can’t Afford To Do So

We have repeatedly been told that the U.S. economy is “booming”, but meanwhile the middle class in the United States continues to be hollowed out.  The financial bubbles that the Federal Reserve has created have been a great blessing for those at the very top of the economic pyramid, but most of the country is still deeply struggling.  According to one survey, 78 percent of all full-time workers in the U.S. live paycheck to paycheck, and that doesn’t even include part-time workers or those that are unemployed.  We have also been told that unemployment is “low”, but the real numbers tell us that there are more working age Americans without a job in 2018 than there was at any point during the last recession.  Most of the people that my wife and I know are struggling, and I continually get emails from readers all over the country that are struggling.  The sad truth is that the middle class is slowly but surely dying, and more people are falling into poverty with each passing day.

And we got more evidence of this fact on Tuesday.  According to one new survey, 33 million Americans will not travel during the holiday season because they simply cannot afford to do so…

Wallet Hub’s Winter Travel Survey has revealed a disturbing trend: 33 million Americans won’t travel this winter because they can’t afford it.

I have been warning about the effect that rising interest rates would have on the economy, and rising rates are being blamed for this travel slowdown.  The following comes from MSN

However, Americans are still feeling the pinch of the pocketbook—part of that has to do with rising interest rates.

“U.S. consumers will be shelling out billions of dollars in extra charges they otherwise could be spending on other things such as travel,” said Mark A. Bonn, director of the resort and vacation rental management program at Florida State University. “This makes it difficult to travel now, let alone after the holiday spending has ended.”

But of course the truth is that most Americans were deeply struggling long before interest rates started to rise.

Those of us in our prime working years can try to work even harder to make ends meet, but when you are elderly and on a fixed income, there is little that can be done.

According to the Sacramento Bee, 9 million elderly Americans across the country “can’t afford to eat”, and in one of their recent articles they featured the plight of 71-year-old Floridian Janet Burke…

Burke is one of the nearly 9 million elderly people at risk of hunger in the United States. In Florida, with the highest percentage of people 60 and older, more than 750,000 elderly need food assistance, according to experts.

The problems confronting the elderly have become one of the hot topics for candidates this election year. Candidates in South Florida have pointed to the needs of the elderly as one of the key concerns voiced by voters.

More than 100 million Americans receive assistance from the government each month, but many citizens do not believe in receiving any help and so they just quietly suffer as they search for a way to make things better.

Today, I would like to share with you a testimony from someone that has been there.  My good friend Daisy Luther knows what it is like to barely survive from month to month, and the way that she described those struggles in one of her most recent articles was extremely poignant

Let’s talk about poverty.

I don’t mean the kind you’re talking about when your friends invite you to go shopping or for a night out and you say, “No, I can’t. I’m poor right now.”

I don’t mean the situation when you’d like to get a nicer car but decide you should just stick to the one you have because you don’t have a few thousand for a down payment.

I don’t mean the scene at the grocery store when you decide to get ground beef instead of steak.

I’m talking about when you have already done the weird mismatched meals from your pantry that are made up of cooked rice, stale crackers, and a can of peaches, and you’ve moved on to wondering what on earth you’re going to feed your kids.

Or when you get an eviction notice for non-payment of rent, a shut-off notice for your utilities, and a repo notice for your car and there’s absolutely nothing you can do about any of those notices because there IS NO MONEY.

If you’ve never been this level of broke, I’m very glad.

I have been this broke. I know that it is soul-destroying when no matter how hard you work, how many part-time jobs you squeeze in, and how much you cut, you simply don’t make enough money to survive in the world today.

If the U.S. economy really is “booming”, then why are millions upon millions of American families struggling like this?

Sadly, it is because the truth is that the U.S. economy is not “booming”, and we continue to get more indications that another major economic downturn is imminent.

It doesn’t have to be this way.  Blueprints have been proposed that would mean much better days ahead for America, but most Americans seem quite content with the status quo.

Most Americans seem to want corrupt politicians in Washington, a Federal Reserve system that is bankrupting future generations, an exploding national debt, a deeply oppressive system of taxation and a bloated national government that is becoming more monstrous with each passing day.

In this day and age, “liberty” and “freedom” are seen as antiquated concepts that are standing in the way of “progress”, and more government always seems to be the “solution” that is proposed whenever any crisis arises.

If we truly want to turn America around, we need to return to the values and the principles that once made this nation so great, and right now that simply is not happening…

About the author: 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.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

The American Dream Is Getting Smaller, And The Reason Why Is Painfully Obvious…

Over the past decade, an unprecedented stock market boom has created thousands upon thousands of new millionaires, and yet the middle class in America has continued to shrink.  How is that even possible?  At one time the United States had the largest and most vibrant middle class in the history of the planet, but now the gap between the wealthy and the poor is the largest that it has been since the 1920s.  Our economy has been creating lots of new millionaires, but at the exact same time we have seen homelessness spiral out of control in our major cities.  Today, being part of the middle class is like playing a really bizarre game of musical chairs.  Each month when the music stops playing, those of us still in the middle class desperately hope that we are not among the ones that slip out of the middle class and into poverty.  Well over 100 million Americans receive money or benefits from the federal government each month, and that includes approximately 40 percent of all families with children.  We are losing our ability to take care of ourselves, and that has frightening implications for the future of our society.

One of the primary reasons why our system doesn’t work for everyone is because virtually everything has been financialized.  In other words, from the cradle to the grave the entire system has been designed to get you into debt so that the fruits of your labor can be funneled to the top of the pyramid and make somebody else wealthier.  The following comes from an excellent Marketwatch article entitled “The American Dream is getting smaller”

More worrying, perhaps: 33% of those surveyed said they think that dream is disappearing. Why? They have too much debt. “Americans believe financial security is at the core of the American Dream, but it is alarming that so many think it is beyond their reach,” said Mike Fanning, head of MassMutual U.S.

Almost everyone that will read this article will have debt.  In America today, we are trained to go into debt for just about everything.

If you want a college education, you go into debt.

If you want a vehicle, you go into debt.

If you want a home, you go into debt.

If you want that nice new pair of shoes, you don’t have to wait for it.  Just go into more debt.

As a result, most Americans are currently up to their necks in red ink

Some 64% of those surveyed said they have a mortgage, 56% said they had credit-card debt and 26% said they have student-loan debt. Many surveyed said they don’t feel financially secure. More than a quarter said they wish they had better control of their finances.

You would have thought that we would have learned from the very hard lessons that the crisis of 2008 taught us.

But instead, we have been on the greatest debt binge in American history in recent years.  Here is more from the Marketwatch article

It makes sense that debt is on Americans’ minds. Collectively, Americans have more than $1 trillion in credit-card debt, according to the Federal Reserve. They have another $1.5 trillion in student loans, up from $1.1 trillion in 2013. Motor vehicle loans are now topping $1.1 trillion, up from $878.5 billion in 2013. And they have another nearly $15 trillion in mortgage debt outstanding.

That is one huge pile of debt.

We criticize the federal government for running up 21 trillion dollars in debt, and rightly so, but American consumers have been almost as irresponsible on an individual basis.

As long as you are drowning in debt, you will never become wealthy.  In order to build wealth, you have got to spend less than you earn, but most Americans never learn basic fundamentals such as this in our rapidly failing system of public education.

Many Americans long to become financially independent, but they don’t understand that our system is rigged against them.  The entire game is all about keeping consumers on that debt wheel endlessly chasing that piece of proverbial cheese until it is too late.

Getting out of debt is one of the biggest steps that you can take to give yourself more freedom, and hopefully this article will inspire many to do just that.

To end this article today, I would like to share 14 facts about how the middle class in America is shrinking that I shared in a previous article

#1 78 million Americans are participating in the “gig economy” because full-time jobs just don’t pay enough to make ends meet these days.

#2 In 2011, the average home price was 3.56 times the average yearly salary in the United States.  But by the time 2017 was finished, the average home price was 4.73 times the average yearly salary in the United States.

#3 In 1980, the average American worker’s debt was 1.96 times larger than his or her monthly salary.  Today, that number has ballooned to 5.00.

#4 In the United States today, 66 percent of all jobs pay less than 20 dollars an hour.

#5 102 million working age Americans do not have a job right now.  That number is higher than it was at any point during the last recession.

#6 Earnings for low-skill jobs have stayed very flat for the last 40 years.

#7 Americans have been spending more money than they make for 28 months in a row.

#8 In the United States today, the average young adult with student loan debt has a negative net worth.

#9 At this point, the average American household is nearly $140,000 in debt.

#10 Poverty rates in U.S. suburbs “have increased by 50 percent since 1990”.

#11 Almost 51 million U.S. households “can’t afford basics like rent and food”.

#12 The bottom 40 percent of all U.S. households bring home just 11.4 percent of all income.

#13 According to the Federal Reserve, 4 out of 10 Americans do not have enough money to cover an unexpected $400 expense without borrowing the money or selling something they own.

#14 22 percent of all Americans cannot pay all of their bills in a typical month.

This article originally appeared on The Economic Collapse Blog.  About the author: 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.

The Number Of Americans Living In Their Vehicles “Explodes” As The Middle Class Continues To Disappear

If the U.S. economy is really doing so well, then why is homelessness rising so rapidly?  As the gap between the rich and the poor continues to increase, the middle class is steadily eroding.  In fact, I recently gave my readers 15 signs that the middle class in America is being systematically destroyed.  More Americans are falling out of the middle class and into poverty with each passing day, and this is one of the big reasons why the number of homeless is surging.  For example, the number of people living on the street in L.A. has shot up 75 percent over the last 6 years.  But of course L.A. is far from alone.  Other major cities on the west coast are facing similar problems, and that includes Seattle.  It turns out that the Emerald City has seen a 46 percent rise in the number of people sleeping in their vehicles in just the past year

The number of people who live in their vehicles because they can’t find affordable housing is on the rise, even though the practice is illegal in many U.S. cities.

The number of people residing in campers and other vehicles surged 46 percent over the past year, a recent homeless census in Seattle’s King County, Washington found. The problem is “exploding” in cities with expensive housing markets, including Los Angeles, Portland and San Francisco, according to Governing magazine.

Amazon, Microsoft and other big tech companies are in the Seattle area.  It is a region that is supposedly “prospering”, and yet this is going on.

Sadly, it isn’t just major urban areas that are seeing more people sleeping in their vehicles.  Over in Sioux Falls, South Dakota, many of the homeless sleep in their vehicles even in the middle of winter

Stephanie Monroe, managing director of Children Youth & Family Services at Volunteers of America, Dakotas, tells a similar story. At least 25 percent of the non-profit’s Sioux Falls clients have lived in their vehicles at some point, even during winter’s sub-freezing temperatures.

“Many of our communities don’t have formal shelter services,” she said in an interview. “It can lead to individuals resorting to living in their cars or other vehicles.”

It is time to admit that we have a problem.  The number of homeless in this country is surging, and we need to start coming up with some better solutions.

But instead, many communities are simply passing laws that make it illegal for people to sleep in their vehicles…

A recent survey by the National Law Center on Homelessness and Poverty (NLCHP), which tracks policies in 187 cities, found the number of prohibitions against vehicle residency has more than doubled during the last decade.

Those laws aren’t going to solve anything.

At best, they will just encourage some of the homeless to go somewhere else.

And if our homelessness crisis is escalating this dramatically while the economy is supposedly “growing”, how bad are things going to be once the next recession officially begins?

We live at a time when the cost of living is soaring but our paychecks are not.  As a result, middle class families are being squeezed like never before.

A recent Marketwatch article highlighted the plight of California history teacher Matt Barry and his wife Nicole…

Barry’s wife, Nicole, teaches as well — they each earn $69,000, a combined salary that not long ago was enough to afford a comfortable family life. But due to the astronomical costs in his area, including real estate — a 1,500-square-foot “starter home” costs $680,000 — driving for Uber was a necessity.

“Teachers are killing themselves,” Barry says in Alissa Quart’s new book, “Squeezed: Why Our Families Can’t Afford America” (Ecco), out Tuesday. “I shouldn’t be having to drive Uber at eight o’clock at night on a weekday. I just shut down from the mental toll: grading papers between rides, thinking of what I could be doing instead of driving — like creating a curriculum.”

Home prices are completely out of control, but that bubble should soon burst.

However, other elements of our cost of living are only going to become even more painful.  Health care costs rise much faster than the rate of inflation every year, food prices are becoming incredibly ridiculous, and the cost of a college education is off the charts.  According to author Alissa Quart, living a middle class life is “30% more expensive” than it was two decades ago…

“Middle-class life is now 30% more expensive than it was 20 years ago,” Quart writes, citing the costs of housing, education, health care and child care in particular. “In some cases the cost of daily life over the last 20 years has doubled.”

And thanks to the trade war, prices are going to start going up more rapidly than we have seen in a very long time.

On Tuesday, we learned that diaper and toilet paper prices are rising again

Procter & Gamble said on Tuesday that it was in the process of raising Pampers’ prices in North America by 4%. P&G also began notifying retailers this week that it would increase the average prices of Bounty, Charmin, and Puffs by 5%.

P&G is raising prices because commodity and transportation cost pressures are intensifying. The hikes to Bounty and Charmin will go into effect in late October, and Puffs will become more expensive beginning early next year.

I wish that I had better news for you, but I don’t.  We are all going to have to work harder, smarter and more efficiently.  And we are definitely going to have to tighten our belts.

Many middle class families are relying on debt to get them from month to month, and consumer debt in the United States has surged to an all-time high.  But eventually a day of reckoning comes, and we all understand that.

The U.S. economy is not going to be getting any better than it is right now.  So it is time to be a lean, mean saving machine, because it will be important to have a financial cushion for the hard times that are ahead of us.

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.

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.

15 Signs That The Middle Class In The United States Is Being Systematically Destroyed

If your family is really struggling right now, you are far from alone.  I have been publishing The Economic Collapse Blog for more than eight years, and all throughout that time I have seen the middle class in America get smaller and smaller and smaller.  It is almost as if we are all playing a really bizarre game of musical chairs and every month someone pulls a few more chairs from the game.  Yes, there are some people that have gotten exceedingly wealthy over the past eight years, and most of that wealth is concentrated in places such as New York, Washington D.C. and San Francisco.  But meanwhile, most of the rest of the country has been steadily getting poorer.  Just take a look at Detroit – at one time it had the highest per capita income in the entire nation and now it is a rotting, decaying war zone.  Of course dozens of other formerly great manufacturing cities all over the nation have suffered a similar fate.  Since 2001, we have lost more than 70,000 manufacturing facilities and millions of good paying manufacturing jobs.  Those good paying jobs have been replaced by lower paying “service jobs”, and you can’t support a middle class lifestyle on those types of jobs.

In order to have a thriving middle class, you need middle class jobs, and our country is in desperate need of more of those jobs.  At this point most American families are living on the edge, and more are falling into poverty with each passing month.  The following are 15 signs that the middle class in the United States is being systematically destroyed…

#1 78 million Americans are participating in the “gig economy” because full-time jobs just don’t pay enough to make ends meet these days.

#2 In 2011, the average home price was 3.56 times the average yearly salary in the United States.  But by the time 2017 was finished, the average home price was 4.73 times the average yearly salary in the United States.

#3 In 1980, the average American worker’s debt was 1.96 times larger than his or her monthly salary.  Today, that number has ballooned to 5.00.

#4 In the United States today, 66 percent of all jobs pay less than 20 dollars an hour.

#5 102 million working age Americans do not have a job right now.  That number is higher than it was at any point during the last recession.

#6 Earnings for low-skill jobs have stayed very flat for the last 40 years.

#7 Americans have been spending more money than they make for 28 months in a row.

#8 In the United States today, the average young adult with student loan debt has a negative net worth.

#9 At this point, the average American household is nearly $140,000 in debt.

#10 Poverty rates in U.S. suburbs “have increased by 50 percent since 1990”.

#11 Almost 51 million U.S. households “can’t afford basics like rent and food”.

#12 The bottom 40 percent of all U.S. households bring home just 11.4 percent of all income.

#13 According to the Federal Reserve, 4 out of 10 Americans do not have enough money to cover an unexpected $400 expense without borrowing the money or selling something they own.

#14 22 percent of all Americans cannot pay all of their bills in a typical month.

#15 Today, U.S. households are collectively 13.15 trillion dollars in debt.  That is a new all-time record.

When you think of “poverty in America”, you probably think of our blighted inner cities, but that is not where poverty is growing the fastest.

According to author Scott Allard, it is actually our suburbs where poverty is growing more rapidly than anywhere else…

According to a May report from the Pew Research Center, since 2000, suburban counties have experienced sharper increases in poverty than urban or rural counties.

This is consistent with research across the U.S. over the past decade – as well as my own book, “Places in Need.”

This is why tens of millions of square feet of retail space is being closed down and why formerly great shopping malls all over America now resemble ghost towns.

When I was growing up, the shopping mall was the place to be for average middle class kids.  My family was middle class and virtually everyone that I knew was middle class.  In fact, I don’t remember any really wealthy or really poor kids in my school at all.

But today most families have little to no financial cushion and are deep in debt.  As a result, discretionary income has really dried up and that means less shopping.

So we are on pace for the worst year for store closings in American history, and yet the mainstream media keeps telling us that the economy is in “good shape”.

That is a load of nonsense.  The numbers don’t lie, and the U.S. economy is never going to be in “good shape” until the middle class starts growing again.

Is there a solution?

Well, the mayor of Stockton, California seems convinced that the solution is just to give people free money.  The following comes from Reuters

Michael Tubbs, the 27-year-old mayor of Stockton, California, has a radical plan to combat poverty in his cash-strapped city: a “no strings” guaranteed basic income of $500 a month for its residents.

Starting in early 2019, Tubbs plans to provide the monthly stipend to a select group of residents as part of a privately funded 18-month experiment to assess how people use the money.

Wouldn’t it be wonderful if we all just started getting big, fat checks from the government every month?

Why didn’t somebody think about this before?

Of course the truth is that we simply cannot afford to do that.  State and local government debt levels have surged to record highs, and the federal government is now 21 trillion dollars in debt.  We are on a path that leads to national suicide, and we desperately need to start living within our means.

We have been consuming far more wealth than we have been producing for a very long time, but we have been doing it for so long that many of us now think that this is “normal”.  Meanwhile, our long-term debt problems continue to escalate and our once thriving middle class continues to shrink.

If we continue to do the same things, we will continue to get the same results, and right now we are in the process of absolutely destroying the greatest economic machine that the world has ever seen.

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

The Globalists Are Systematically Destroying America’s Middle Class

When people are dependent on the government they are much easier to control.  We are often told that we are not “compassionate” when we object to the endless expansion of government social programs, but that is not how the debate should be framed.  In America today, well over 100 million people receive money from the federal government each month, and the number of Americans that are truly financially independent is continually shrinking.  In fact, only 25 percent of all Americans have more than $10,000 in savings right now according to one survey.  If we eventually get to the point where virtually all of us are dependent on the government for our continued existence, that would give the globalists a very powerful tool of control.  In the end, they want as many of us dependent on the government as possible, because those that are dependent on the government are a lot less likely to fight against their agenda.

Back in 1992, the bottom 90 percent of American income earners brought in more than 60 percent of the country’s income.  But last year that figure slipped to just 49.7 percent.  The wealth of our society is increasingly being concentrated at the very top, and the middle class is steadily being eroded.  Surveys have found that somewhere around two-thirds of the country is living paycheck to paycheck at least part of the time, and so living on the edge has become a way of life for most Americans.

Earlier today, I came across a Business Insider article that was bemoaning the fact that the U.S. economy seems to be rather directionless at this point…

  • We do not have a real plan for health care, and costs continue to gobble up American wages.
  • We do not have a plan for dealing with globalization and economic change, but that change continues to shape our economy.
  • We don’t have a plan to update our decrepit infrastructure.
  • The one plan we did have — the Federal Reserve’s post-financial crisis program — is about to be unwound, marking the end of the last clear, executable plan to bolster America’s economy.

Ultimately, the truth is that we don’t actually need some sort of “central plan” for our economy.  We are supposed to be a free market system that is not guided and directed by central planners, but many Americans don’t even understand the benefits of free market capitalism anymore.

However, that Business Insider article did make a great point about globalization.   Most people don’t realize that our economy is slowly but surely being integrated into a global economic system.   This is really bad for American workers, because now they are being merged into a global labor pool in which they must compete directly for jobs with workers in other countries where it is legal to pay slave labor wages.

Even down in Mexico, many autoworkers are only making $2.25 an hour

Most of the workers at the new Audi factory in the state of Puebla, inaugurated in 2016 and assembling the Audi Q4 SUV, which carries a sticker price in the US of over $40,000 for base versions, make $2.25 an hour, according to the Union.

Volkswagen, which owns Audi, started building Beetles in Puebla in 1967 and has since created a vast manufacturing empire in Mexico, with vehicles built for consumers in Mexico, the US, Canada, and Latin American markets.

Volkswagen, Ford, GM, or any of the global automakers, which can manufacture just about anywhere in the world, always search for cheap labor to maximize the bottom line.

Would you want to work for $2.25 an hour?

Over time, millions of good paying jobs have been leaving high wage countries and have been going to low wage countries.  The United States has lost more than 70,000 manufacturing facilities since China joined the WTO, and this is one of the biggest factors that has eroded the middle class.

In a desperate attempt to maintain our standard of living, we have gone into increasing amounts of debt.  Of course our federal government is now 20 trillion dollars in debt, but on an individual level we are doing the same thing.  Today, American consumers are over 12 trillion dollars in debt, and it gets worse with each passing day.

The borrower is the servant of the lender, and most Americans have become debt slaves at this point.  This is something that Paul Craig Roberts commented on recently

Americans carry on by accumulating debt and becoming debt slaves. Many can only make the minimum payment on their credit card and thus accumulate debt. The Federal Reserve’s policy has exploded the prices of financial assets. The result is that the bulk of the population lacks discretionary income, and those with financial assets are wealthy until values adjust to reality.

As an economist I cannot identify in history any economy whose affairs have been so badly managed and prospects so severely damaged as the economy of the United States of America. In the short/intermediate run policies that damage the prospects for the American work force benefit what is called the One Percent as jobs offshoring reduces corporate costs and financialization transfers remaining discretionary income in interest and fees to the financial sector. But as consumer discretionary incomes disappear and debt burdens rise, aggregate demand falters, and there is nothing left to drive the economy.

This debt-based system continuously funnels wealth toward the very top of the pyramid, because it is the people at the very top that hold all of the debts.

Each year it gets worse, and most Americans would be absolutely stunned to hear that the top one percent now control 38.6 percent of all wealth in the United States…

The richest 1% of families controlled a record-high 38.6% of the country’s wealth in 2016, according to a Federal Reserve report published on Wednesday.

That’s nearly twice as much as the bottom 90%, which has seen its slice of the pie continue to shrink.

The bottom 90% of families now hold just 22.8% of the wealth, down from about one-third in 1989 when the Fed started tracking this measure.

So how do we fix this?

Well, the truth is that we need to go back to a non-debt based system that does not funnel all of the wealth to the very top of the pyramid.  Unfortunately, most Americans don’t even realize that our current debt-based system is fundamentally flawed, and it will probably take an unprecedented crisis in order to wake people up enough to take action.

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