10 Numbers That Prove That We Are Rapidly Becoming A Nation Of Government Dependents

As the middle class disintegrates and poverty grows, more Americans than ever are becoming dependent on the government just to survive.  Today, we live in a country where most workers do not earn enough to support a middle class family, and we are seeing the homelessness crisis spiral out of control in major cities on both coasts.  During this election cycle, many conservatives have been freaking out that an increasing number of Democrats are openly embracing socialism, but the truth is that we are already most of the way to becoming a socialist country.  In fact, as you will see below, more than half of all Americans currently receive more money from the government than they pay in taxes.  We have become absolutely addicted to government money, and this is one of the major trends that is eating away at our nation like cancer.

The government is not supposed to take care of us from the cradle to the grave.

Rather, our founders understood that the proper role of government is to create and protect an environment of liberty and freedom where we would be empowered to take care of ourselves.

Today, most Americans cannot independently take care of themselves, and that makes them dependents.  And when you are a dependent, you aren’t really free.

One of the reasons why I write so much about the decline of the middle class is because it is an existential threat to our way of life.  If you look around the world, or if you go back through history, you will see that tyrannical regimes tend to thrive when populations are poor and cannot stand up for themselves.  If we want our Republic to survive, we need a strong, independent population that is not economically dependent on the government.  That is what we had throughout most of our history, and that is now what we are rapidly losing.

Just because you are working does not mean that you are independent.  At this point, most jobs do not pay enough to support a middle class family, and the ranks of the “working poor” continue to explode.  In reality, Americans are working harder than ever in 2018, and yet things continue to deteriorate.

The following are a few numbers that prove that we are rapidly becoming a nation of government dependents…

Over half the country now receives more in government transfer payments than they pay in taxes.

-According to one recent survey, the cost of living is higher than the median income in 42 U.S. states.

-Today, 50 percent of all American workers make less than $30,533 a year.

62 percent of Americans say that their financial situations have not improved since the last presidential election.

And here are six more from my friend Alan Yerushalmi

If things are this bad now, how dreadful will the outlook be once we are deep into the next recession?

History has shown that once national governments begin to expand in size, they usually keep expanding until they ultimately collapse.

Sadly, a large portion of the population has become convinced that the government should be in the business of handing out as much “free stuff” as possible.  Housing, healthcare and college education are now being called “human rights”, and tens of millions of our fellow citizens feel that they are entitled to be given these things by the government.  Needless to say, this has chilling implications for the future of our country, and I really like how Ryan McMaken made this point in his most recent article

The political implications of this are considerable. As Ludwig von Mises once noted, once we get to the point that a majority of the voting population receives more in benefits than it pays in taxes, then voters will demand more and more wealth be transferred to them through government programs. It will then become politically necessary to extract larger and larger amounts of wealth from a minority in order to subsidize the majority.

Market economics will become less and less popular because the voters will have realized they can — in the words of James Bovard — “vote for a living” instead of work for a living.

Every additional dollar that the federal government spends is an additional dollar that is being stolen from our children and our grandchildren, and we are already more than 21 trillion dollars in debt.

We have been on the greatest debt binge in human history, and that debt binge delayed our day of reckoning, but it did not cancel it.

In fact, one of my contacts just emailed me with some deeply troubling information.  He has a customer that is a Bank of America board member, and that board member told him that they expect things to really start falling apart by late March “at the latest”.  This is word for word what my contact told me…

“I had a customer this past Saturday who was a very high ranking Bank of America board member, and she said in the meetings, they expect late March, at the latest, that things will really start to disintegrate fairly quickly or very quickly. That was AT THE LATEST she said.”

When I say that “dark days are ahead”, I am not using hyperbole.  We really have reached a turning point, and things will never be the same again.

The relentless march of time is inexorable, and eventually the clock runs out for everyone.  America has been living on borrowed time for quite a while, and a perfect storm is looming on the horizon.

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 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.

The U.S. Has Lost 195,000 Good Paying Energy Industry Jobs

Layoffs - Public DomainNot all jobs are created equal.  There is a world of difference between a $100,000 a year energy industry job and a $10 an hour job running a cash register at Wal-Mart.  You can comfortably support a middle class family on $100,000 a year, but there is no way in the world that you can run a middle class household on a part-time job that pays just $10 an hour.  The quality of our jobs matters, and if current long-term trends continue unabated, eventually we are not going to have much of a middle class left.  At this point the middle class has already become a minority in America, and according to the Social Security Administration 51 percent of all American workers make less than $30,000 a year right now.  We have a desperate need for more higher paying jobs, and that is why what is happening in the energy industry is so deeply alarming.

Just today we got some more disturbing news.  According to Challenger, Gray & Christmas, the U.S. has lost 195,000 good paying energy jobs since the middle of 2014…

Cheap oil has fueled a massive wave of job cuts that may not be over yet.

Since oil prices began to fall in mid-2014, cheap crude has been blamed for 195,000 job cuts in the U.S., according to a report published on Thursday by outplacement firm Challenger, Gray & Christmas.

It’s an enormous toll that is especially painful because these tend to be well-paying jobs. The average pay in the oil and gas industry is 84% higher than the national average, according to Goldman Sachs.

Those are good paying jobs that are not easy to replace, and unfortunately the jobs losses appear to be accelerating.  In their new report, Challenger, Gray & Christmas went on to say that 95,000 of those job cuts have come in 2016, and 17,725 of them were in July alone.

We also got some other bad news for the U.S. economy on Thursday.

Factory orders are down again, and at this point U.S. factory orders have now been down on a year over year basis for 20 months in a row.  That is the longest streak in all of U.S. history.

Needless to say, we have never seen such a thing happen outside of a recession.

In addition, it is being reported that U.S. banks have been tightening lending standards for four quarters in a row.

Once again, this is something that has never happened outside of a recession.

On top of all that, tax receipts continue to plummet.  This is a very bad sign for the economy, because falling tax receipts are usually a sign that we are headed into a recession.  The following comes from Zero Hedge

July “Withheld” receipts – those tax and withholding payments that come straight from wage earner pay stubs – are down 1.0% year over year. 

This data series can be choppy, and looking at the three month trailing average yields a 3.1%.  That’s a touch slower than the 2016 YTD comp of 3.3%, and tells us to not expect too much from Friday’s number.

Also worth noting: YTD non-withheld tax receipts (such as those that come from “Gig economy” workers) are down 6.5%, and July’s comp is 15% lower than a year ago.

Last, corporate tax receipts are down 11% YTD, and if the current pace of these payments holds it will be the first negative comp since 2011. Bottom line: if the tax man isn’t as busy, can the U.S. economy really be expanding?

Are you starting to see a pattern here?

And let’s review what else we have learned over the past couple of weeks…

-U.S. GDP growth came in at an extremely disappointing 1.2 percent for the second quarter of 2016, and the first quarter was revised down to 0.8 percent.

-The rate of homeownership in the United States has fallen to the lowest level ever.

-The Wall Street Journal says that this is the weakest “economic recovery” since 1949.

-Barack Obama is on track to be the only president in U.S. history to never have a single year of 3 percent GDP growth.

Meanwhile, things continue to get worse around the rest of the planet as well.  For example, the economic depression in Brazil continues to deepen and it is being reported that the Brazilian economy has now been shrinking for five quarters in a row

Brazil’s economy, the world’s ninth largest, contracted by 0.3 percent in the first quarter, marking the fifth straight quarter it shrank. Last year, Brazil’s gross domestic product fell to its lowest level since 2009.

Inflation has also shot higher recently, rising 9 percent in 2015, from 6.3 percent in 2014, according to data from the World Bank. Energy as a percentage of exports, meanwhile, fell to 7 percent in 2015, from 9 percent in the previous year.

And of course Brazil is hosting the Olympics this summer, and that is turning out to be a major debacle.  Many of the international athletes will actually be rowing, sailing and swimming in open waters that are highly contaminated by raw sewage, and Brazilian police have been welcoming tourists to Rio with a big sign that says “Welcome To Hell“.  And let us not forget that right next door in Venezuela the economic collapse has gotten so bad that people are killing and eating zoo animals.

As the global economy continues to deteriorate, what should we do?

Legendary investor Bill Gross shared some of his thoughts on the matter in his latest Investment Outlook

“Negative returns and principal losses in many asset categories are increasingly possible unless nominal growth rates reach acceptable levels,” Gross said in his latest Investment Outlook note published Wednesday.

“I don’t like bonds; I don’t like most stocks; I don’t like private equity. Real assets such as land, gold, and tangible plant and equipment at a discount are favored asset categories.”

I tend to agree with Gross.  Bonds are in a tremendous bubble right now, and the stock market bubble has grown to ridiculous proportions.  In the end, the only wealth that you are going to be able to fully rely on is wealth that you can physically have in your possession.

As you have seen in this article, signs of economic decline are all around us.

And yet, many people out there are still convinced that good times are right around the corner.

What is it going to take to convince them that they are wrong?