Goodbye Middle Class: 50 Percent Of American Workers Make Less Than 33,000 Dollars A Year

The truth is that most American families are deeply struggling, but you hardly ever hear this from the mainstream media.  Yes, about 10 percent of all American workers are making $100,000 or more a year, but most of those high paying jobs are concentrated in the major cities along the east and west coasts.  For much of the rest of the country, these are very challenging times as the cost of living soars but their paychecks do not.  According to the Social Security Administration, the median income in the United States last year was just $32,838.05.  In other words, 50 percent of American workers made more than $32,838.05 and 50 percent of American workers made less than $32,838.05 in 2018.  Let’s be generous and round that number up to $33,000, and when you break it down on a monthly basis it comes to just $2,750 a month.  Of course nobody can support a middle class lifestyle for a family of four on $2,750 a month before taxes, and so in most families more than one person is working these days.  In fact, in many families today more than one person is working multiple jobs in a desperate attempt to make ends meet, and it still is often not quite enough.

If you want to look at the Social Security wage statistics for yourself, you can find them right here.  As you will see, I am not making these numbers up.

These days many would have us feel bad if we are not making at least $100,000 a year, but according to the report only about 10 percent of all American workers make that much money.

Instead, most Americans are in what I would call “the barely getting by” category.  Here are some key facts that I pulled out of the report…

-33 percent of all American workers made less than $20,000 last year.

-46 percent of all American workers made less than $30,000 last year.

-58 percent of all American workers made less than $40,000 last year.

-67 percent of all American workers made less than $50,000 last year.

That means that approximately two-thirds of all American workers are making $4,000 or less a month before taxes.

Ouch.

But these numbers help us to understand why survey after survey has shown that most Americans are living paycheck to paycheck.  After paying the bills, there just isn’t much money left for most of us.

And for an increasing number of Americans, even paying the bills has become exceedingly difficult.  In fact, a brand new report from UBS says that 44 percent of all U.S. consumers “don’t make enough money to cover their expenses”…

Low-income consumers are struggling to make ends meet despite the “greatest economy ever,” and if a recession strikes or the employment cycle continues to decelerate — this could mean the average American with insurmountable debts will likely fall behind on their debt servicing payments, according to a UBS report, first reported by Bloomberg.

UBS analyst Matthew Mish wrote in a recent report that 44% of consumers don’t make enough money to cover their expenses.

That means that about half the country is flat broke and struggling just to survive financially.

Of course those at the top of the economic food chain often don’t have a lot of sympathy for those that are hurting.  Many of them have the attitude that those that are struggling should just go out and get one of the “good jobs” that the mainstream media is endlessly touting.

But most jobs in the United States are not “good jobs”.

Today, the poverty level for a household of four in the United States is $25,750.  More than 40 percent of the workers in this country make less than that each year.

Starting a business is always an option, but that takes money, and thanks to government regulations it is harder than ever to run a small business successfully.

Just look at what is happening to our dairy farmers.  There are few occupations that are more quintessentially “American” than being a dairy farmer, and since most people drink milk and eat cheese, you would think that it would be a pretty safe profession.

But instead, dairy farms are shutting down at a pace that is absolutely chilling all over the nation.  For example, just check out what has been going on in Wisconsin

Wisconsin lost another 42 dairy farms in July, and since January 1, has lost 491 farms, reports the Wisconsin Department of Agriculture, Trade and Consumer Protection.

At this rate, the Dairy State could lose 735 dairy farms this year, which would be a decline of 9%. In 2018, the state lost 691 farms, a rate of decline of 7.9%.

Over the last decade the state has lost more than 5,000 farms, or 40% of its licensed dairy farms. To state the obvious, the current rate of exits is more than double that of the last decade.

So why is this happening?

Government.

In profession after profession, government control freaks have made it nearly impossible to make a living, and this has pushed the percentage of Americans that are self-employed to historic lows.

If you are struggling right now, I want you to know that you are not alone.  There are tens of millions of other Americans that are really hurting in this economy, and the bad news is that economic conditions will soon get a lot worse.

But you can make it through whatever is ahead.  You just have to keep believing.

A lot of people accuse me of spreading “doom and gloom”, but that is not true at all.  There is hope in understand what is happening, and there is hope in getting prepared for the hard times that are ahead.  When you take steps to prepare, you are telling yourself and everyone around you that you believe that you can make it through the storm that is coming.

Or you could just have blind faith in the system, even though it is exceedingly obvious that the system is crumbling all around us.  Those that are blindly trusting the system to take care of them are building their dreams on a foundation of sand, and when the waves come crashing in those dreams are going to get washed away very quickly.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep.  I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters.  (#CommissionsEarned)  By purchasing those books you help to support my work.  I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I can only allow this to happen if this “About the Author” section is included with each article.  In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished.  This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

A Shocking New Survey Finds That Most Americans Are Completely Unprepared For The Next Recession

Just like in 2008, most Americans are living right on the edge financially, and so any sort of an economic downturn is going to be extremely painful for tens of millions of American families.  When you have not built up a financial cushion, any sort of a setback can be absolutely disastrous.  During the last recession, millions of Americans suddenly lost their jobs, and because most of them were living paycheck to paycheck a lot of them suddenly couldn’t pay their mortgages.  In the end, millions of Americans lost their homes during the “subprime mortgage meltdown”, and today the housing bubble is even larger than it was back then.  Sadly, the reality of the matter is that many of us are just barely scraping by from month to month, and that is a very dangerous position to be in.

A new survey that was just released shows just how vulnerable American consumers have become at this point in time.  According to the survey, the top financial priority for 38 percent of all Americans is just trying to pay the bills, and for 19 percent of all Americans it is dealing with credit card debt.  The following comes from Fox Business

Among survey respondents in the nationally representative poll, 38 percent said their top financial priority is “just staying current on living expenses or getting caught up on all the bills.” Almost 3 in 10 respondents (29 percent) said their chief priority was “saving more money,” and 19 percent indicated they were mainly working on paying down debt from products like credit cards and student loans.

So that means that for nearly 60 percent of all Americans, the top financial priority each month is either finding a way to pay the bills or dealing with credit card debt.

And if you are struggling to pay the bills each month or you are drowning in credit card debt, the truth is that you are definitely not ready for the next recession.

The same survey also discovered that a very large percentage of Americans are not following any sort of a financial budget

More than a decade into the longest economic expansion on record, almost two-fifths of people said in a new Bankrate poll that their main financial priority was just keeping their heads above water on living expenses rather than saving money.

Nearly as many of those surveyed said that they’re not following financial budgets, according to Bankrate’s September Financial Security Poll.

So many people out there spend money whenever they feel like it and they don’t have any sort of a plan for their finances.

And then when they get deep into debt they wonder how that could have possibly happened.

It is so important to take charge of your money and to have a plan for where you want to go financially.  Because if you don’t have a plan for your money, I promise you that somebody else does.  As many of us have learned the hard way, it is all too easy to fall victim to all of the financial predators that are constantly circling these days.  The big financial institutions want to get Americans into as much debt as possible, because the deeper we are in debt the more money they make.

In our society, everything has become all about extracting as much money out of you as possible.  Even when we are at the checkout counter at the supermarket we are asked if we want to get some “cash back” so that they can charge us a “convenience fee” and make even more money.  And of course most of the money that is extracted out of us ultimately ends up at the very top of the financial pyramid, and as a result the gap between the “haves” and the “have nots” continues to grow.

In fact, the U.S. Census Bureau is telling us that the gap between the rich and the poor is now “greater than it has ever been”

In the midst of the longest economic expansion the United States has ever seen, with poverty and unemployment rates at historic lows, the separation between rich and poor from 2017 and 2018 was greater than it has ever been, federal data show.

To be fair, the U.S. Census Bureau has only been measuring this since 1967, and so it is entirely possible that things could have been even worse earlier in our history.

But the numbers do clearly show that the gap has been steadily widening for years, and at this point wealth inequality in the U.S. is far greater than it is in any country in Europe

The Gini index measures wealth distribution across a population, with zero representing total equality and 1 representing total inequality, where all wealth is concentrated in a single household. The indicator has been rising steadily during the past several decades. When the Census Bureau began studying income inequality more than 50 years ago, the Gini index was 0.397. In 2018, the Gini index rose to 0.485.

By comparison, no European country had a Gini index greater than 0.38 between 2017 and 2018.

So what this means is that we have a small group of people at the top of the pyramid doing really, really well, but meanwhile most of the rest of us are deeply struggling.

In fact, survey after survey has shown that the vast majority of Americans are currently living paycheck to paycheck.

The way that our entire system is structured greatly favors Wall Street, the big banks, the largest corporations and those with enormous amounts of money.  And they are able to maintain control of the system by literally buying elections and controlling public opinion through their control of the mainstream media.  Our founders were deeply suspicious of large concentrations of power, and we need to return to the values that our nation was founded upon if we ever hope to turn things around.

Unfortunately, more Americans that ever are convinced that socialism is the answer to the problems that I just discussed, and this is fueling the rise of politicians such as Bernie Sanders and Elizabeth Warren.

But socialist experiments have failed all throughout human history, and socialism would fail here too.

Big government is never the answer.  Sadly, we already have the biggest government in the history of the world, and many Americans seem absolutely determined to make it even bigger.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time. Of course the most important thing that we can share with people is the gospel of Jesus Christ, and if you would like to learn more about how you can become a Christian I would encourage you to read this article.

“I don’t know how I can maintain this face of joy and warmth when I have to go home and forage for food in other people’s garbage”

Despite all the bragging that the mainstream media is constantly doing about the U.S. economy, the truth is that most Americans are deeply struggling right now.  59 percent of us are living paycheck to paycheck, and nearly 50 million Americans are living in poverty.  Sadly, most of those that are living in poverty actually come from a home where at least one person is currently employed.  Millions upon millions of Americans are working as hard as they can, but it simply is not enough to pull them above the poverty line, and it is a very serious national crisis.  Even though employment levels have been relatively stable for the last couple of years, the middle class has continued to disintegrate, and the ranks of the homeless have continued to grow.  Every year the cost of living rises faster than wages are growing, and as a result more U.S. families are being booted out of the middle class on a continual basis.  Many Americans are working two or three jobs in a desperate attempt to make ends meet, but often that isn’t even enough.  And if things are this bad right now, what will things look like once we get deep into the next recession?

Abigail Disney is the granddaughter of the late Roy Disney, and she is exceedingly wealthy, but she does not have any active role with the company her father founded today.

Recently, she heard that employees at Disneyland were having a really rough time making ends meet, and so “she went to Disneyland to see it for herself”

Abigail Disney told the Yahoo News show “Through Her Eyes” that a worker sent her a Facebook message expressing how tragic being employed at the Magic Kingdom has become. So she went to Disneyland to see it for herself.

“Every single one of these people I talked to were saying, ‘I don’t know how I can maintain this face of joy and warmth when I have to go home and forage for food in other people’s garbage,’” Disney, 59, told Yahoo News host and human rights activist Zainab Salbi in an interview posted Monday.

Could you imagine Mickey Mouse and Snow White foraging for food in the dumpster behind an apartment building after a full day of entertaining children?

Apparently this sort of thing is actually happening, and a recent survey of Disney employees discovered that 73 percent of them didn’t make enough money “to pay for basic expenses each month”…

A 2018 survey conducted by on behalf of a group of unions found that nearly three-quarters of full- and part-time employees (73%) said that they didn’t earn enough money working at Disneyland Resort to pay for basic expenses each month. More than half were worried about being evicted, and about one-tenth reported being homeless in the previous two years.

But actually the truth is that the average Disney employee is better off than the average American worker.

Today, the median yearly salary of a Disney employee is $46,127.

According to the Social Security Administration, 50 percent of all American workers make less than $30,533 a year.

Of course the cost of living is much higher in southern California than it is in most of the rest of the nation, and so that must be factored in as well.

Ultimately, anyone that is making less than $50,000 a year is likely to be struggling in this economy, because you simply cannot support a middle class lifestyle for a family of four or more on $50,000 a year at this point.

What makes things so much worse is the fact that most of us are absolutely drowning in debt.  Today, U.S. consumers are nearly 14 trillion dollars in debt, and many of us have already signed up for a lifetime of debt payments before we even leave school.

For example, I recently read about one woman that still owed nearly half a million dollars on her student loans…

Elisha Bokman has been out of school for eight years. Still, her student loan balance is half a million dollars.

Today, for her doctorate degree in naturopathic medicine and master’s in acupuncture from Bastyr University, she owes $499,322.69.

She and her husband struggled to buy a house because of her debt. Eventually, the financial stress led them to a divorce.

Not even bankruptcy will erase those loans, and they will haunt her for decades to come.

Millions upon millions of Americans are silently suffering as they wrestle with their desperate financial circumstances, and this is happening while things are still relatively good.

But now we are heading into a new economic downturn, and much of the country can see what is happening

Middle-class Americans are less optimistic about their economic prospects than they were just six months ago, according to a new report from CUNA Mutual Group.

Although the majority of those polled said they feel relatively stable overall, they graded their chances of achieving the American dream as a “C,” down from a “B-minus” in the fall, the insurance provider found. Close to half were increasingly concerned about an upcoming recession.

Economic conditions are not going to get any better than they are right now, and what we are heading for is going to be very painful.

I can definitely understand that people are very frustrated that they cannot make a decent living even though they are working extremely hard, but how much more frustrated will they be when they don’t have any jobs at all?

For decades we have been painting ourselves into a corner, and we have wrecked the great economic machine that was handed down to us by previous generations.

Now a day of reckoning is at hand, and it will eventually result in the greatest economic temper tantrum that our nation has ever seen.

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

As The Perfect Storm Approaches, Most Americans Are Partying Instead Of Preparing

I can’t think of a time when Americans were more apathetic about getting prepared, and yet this is exactly the time when the urgency to get prepared should be at the highest.  Earlier today, my wife Meranda and I were discussing the fact that every single element of “the perfect storm” is coming together just as we had anticipated.  One by one, the pieces are all falling into place, and I share the most recent things that my research has uncovered with all of you on a daily basis.  Unfortunately, most Americans are absolutely convinced that there is no reason to get prepared for hard times because everything is going to be just great.  In America today, most people either believe that the future is going to be totally wonderful or that the future will be totally wonderful once we get rid of Trump.  Because so many of us have adopted one of these false narratives, most Americans are partying instead of preparing, and that is going to mean big trouble when things really start going haywire.

Are you familiar with “the rule of three”?  I just looked it up on Google, and this is how it is defined…

“You can survive for 3 Minutes without air (oxygen) or in icy water. You can survive for 3 Hours without shelter in a harsh environment (unless in icy water) You can survive for 3 Days without water (if sheltered from a harsh environment) You can survive for 3 Weeks without food (if you have water and shelter)”

Of course these numbers are not exact.  For example, many have gone without food for more than 3 weeks without serious problems.  But in general, this is a pretty good guideline for survival.

Sadly, if a major emergency were to hit this country tonight, most Americans would be completely unprepared when it comes to even the most basic essentials.  In fact, one survey found that only 39 percent of Americans have any sort of an “emergency kit” whatsoever…

When it comes to being prepared for an emergency, 39% say they have an emergency kit, while another 39% have a non-perishable food stock. A little less than one-third (28%) of people have stockpiles of water, and one in four people (25%) have an evacuation plan.

Of those who have an emergency kit, the most common items to have in the kit are: a first-aid kit (86%), flashlights or other light sources (83%), food (65%), water (63%), and blankets (62%).

Those are depressingly low numbers.

So what are all of those people going to do when things hit the fan and the government is not there to rescue them?

Needless to say, a lot of people will really freak out when they can’t get what they need.

But as long as things are relatively “normal”, this astounding lack of preparation will not be a problem.  And right now, Americans are acting as if things will be “normal” for the foreseeable future.  In fact, most of us are partying like it’s 1999 all over again.  According to CNBC, U.S. consumer debt just surpassed the four trillion dollar mark for the first time ever…

As of this month, outstanding consumer debt exceeded $4 trillion for the first time, according to the Federal Reserve.

Relatively strong holiday spending, particularly in November, and increasing credit card debt added more than $41 billion in outstanding balances at the end of 2018, according to LendingTree, a loan comparison website, which analyzed the data from the Fed.

We are spending money as if there is no tomorrow, and that would be fine if tomorrow never arrived.

Of course we really shouldn’t be spending money so wildly anyway, because many of us are already completely drowning in debt.  For example, auto loan delinquencies are already far higher than they were during the peak of the last recession.  The following comes from NBC News

At least 7 million Americans were in serious delinquency on their car loan — 90 or more days behind — at the end of 2018, according to data released Tuesday by the Federal Reserve Bank of New York.

That’s 1 million more than at the end of 2010, after the recession.

And student loan delinquencies also just shot up to the highest level ever.  We have never seen anything like this before in modern American history, and yet the party continues to roll on.

For now.

Unfortunately, all parties eventually come to an end, and the end of this one is going to be particularly painful.

When disaster strikes, most Americans are going to be out of resources very, very rapidly.  One survey found that 78 percent of all American workers are living paycheck to paycheck.  That number is a little higher than other figures that I have seen, but everyone agrees that a solid majority of the country is barely scraping by each month.

When things get really bad, I honestly don’t know how most people are going to make it.

A number of years ago, a survey asked Americans how long they thought they would survive if the electrical grid went down for an extended period of time.

Nearly 75 percent said that they would be dead before the two month mark.

Hopefully you are more resourceful than that.  But without a doubt all of us are going to stand a better chance of surviving what is ahead if we make some basic preparations.  In particular, I would encourage everyone to stock up on some emergency food and make sure that you have a Berkey water filter.  It’s isn’t rocket science, but if you choose to do nothing because you have blind faith in the system, then you and your entire family could find yourselves in a world of hurt when things start getting really crazy out there.

If we had made different choices as a nation, we could have had a very different future.

Sadly, our self-destructive behavior continues to get even worse, and a day of reckoning for America is fast approaching.

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

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

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

But will it really be “an economic hellscape”?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Goodbye American Dream: The Average U.S. Household Is $137,063 In Debt, And 38.4% Of Millennials Live With Their Parents

Once upon a time the United States had the largest and most vibrant middle class in the history of the world, but now the middle class is steadily being eroded.  The middle class became a minority of the population for the first time ever in 2015, and just recently I wrote about a new survey that showed that 78 percent of all full-time workers in the United States live paycheck to paycheck at least part of the time.  But most people still want to live the American Dream, and so they are going into tremendous amounts of debt in a desperate attempt to live that kind of a lifestyle.

According to the Federal Reserve, the average U.S. household is now $137,063 in debt, and that figure is more than double the median household income…

The average American household carries $137,063 in debt, according to the Federal Reserve’s latest numbers.

Yet the U.S. Census Bureau reports that the median household income was just $59,039 last year, suggesting that many Americans are living beyond their means.

As a nation, we are completely and utterly drowning in debt.  U.S. consumers are now nearly 13 trillion dollars in debt overall, and many will literally spend the rest of their lives making debt payments.

Over the past couple of decades, the cost of living has grown much faster than paychecks have, and this has put a tremendous amount of financial stress on hard working families.  We are told that we are in a “low inflation environment”, but that is simply not true at all

Medical expenses have grown 57% since 2003, while food and housing costs climbed 36% and 32%, respectively. Those surging basic expenses could widen the inequality gap in America, as a quarter of Americans make less than $10 per hour.

Getting our healthcare costs under control is one of the biggest things that we need to do.  As I talked about the other day, some families have seen their health insurance premiums more than triple since Obamacare became law.

As the cost of living continues to rise, an increasing number of young people are discovering that the only way that they can make ends meet is to live with their parents.  As a result, the percentage of adults age 26 to age 34 that live at home continued to rise even after the last recession ended…

The share of older Millennials living with relatives is still rising, underscoring the lingering obstacles faced by Americans who entered the workforce during and after the Great Recession.

About 20% of adults age 26 to 34 are living with parents or other family members, a figure that has climbed steadily the past decade and is up from 17% in 2012, according to an analysis of Census Bureau data by Trulia, a real estate research firm.

A staggering 59.8 percent of younger Millennials (18 to 25) are now living with relatives, and overall an all-time record 38.4 percent of all Millennials are currently living with family.

If so many of our young people are unable to live the American Dream, what is the future of this nation going to look like?

Consumers are not the only ones that have been struggling to make ends meet.  Corporate debt has doubled since the last financial crisis, and it now stands at a record high of 8.7 trillion dollars

Fueled by low interest rates and strong investor appetite, debt of nonfinancial companies has increased at a rapid clip, to $8.7 trillion, and is equal to more than 45 percent of GDP, according to David Ader, chief macro strategist at Informa Financial Intelligence.

According to the Federal Reserve, nonfinancial corporate debt outstanding has grown by $1 trillion in two years.

“Everything is fine until it isn’t,” Ader said. “We don’t need to worry about that until we’re in a slowdown and profit declines.”

And let us not forget government debt.  State and local governments all over the nation have piled up record amounts of debt, and the debt of the federal government has approximately doubled over the past decade.

But the fact that we are now 20 trillion dollars in debt as a nation does not tell the full story.  According to Boston University professor Larry Kotlikoff, the federal government is facing a fiscal gap of 210 trillion dollars over the next 75 years…

We have all these unofficial debts that are massive compared to the official debt. We’re focused just on the official debt, so we’re trying to balance the wrong books…

If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $210 trillion. That’s the fiscal gap. That’s our true indebtedness.

We were the wealthiest and most prosperous nation in the history of the planet, but that was never good for us.

We always had to have more, and so we have been on the greatest debt binge in human history.

Now a day of reckoning is fast approaching, and those that believe that we can escape the consequences of our actions are being extremely delusional.

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.

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