75 Economic Numbers From 2012 That Are Almost Too Crazy To Believe

75 Economic Numbers From 2012 That Are Almost Too Crazy To BelieveWhat a year 2012 has been!  The mainstream media continues to tell us what a “great job” the Obama administration and the Federal Reserve are doing of managing the economy, but meanwhile things just continue to get even worse for the poor and the middle class.  It is imperative that we educate the American people about the true condition of our economy and about why all of this is happening.  If nothing is done, our debt problems will continue to get worse, millions of jobs will continue to leave the country, small businesses will continue to be suffocated, the middle class will continue to collapse, and poverty in the United States will continue to explode.  Just “tweaking” things slightly is not going to fix our economy.  We need a fundamental change in direction.  Right now we are living in a bubble of debt-fueled false prosperity that allows us to continue to consume far more wealth than we produce, but when that bubble bursts we are going to experience the most painful economic “adjustment” that America has ever gone through.  We need to be able to explain to our fellow Americans what is coming, why it is coming and what needs to be done.  Hopefully the crazy economic numbers that I have included in this article will be shocking enough to wake some people up.

The end of the year is a time when people tend to gather with family and friends more than they do during the rest of the year.  Hopefully many of you will use the list below as a tool to help start some conversations about the coming economic collapse with your loved ones.  Sadly, most Americans still tend to doubt that we are heading into economic oblivion.  So if you have someone among your family and friends that believes that everything is going to be “just fine”, just show them these numbers.  They are a good summary of the problems that the U.S. economy is currently facing.

The following are 50 economic numbers from 2012 that are almost too crazy to believe…

#1 In December 2008, 31.6 million Americans were on food stamps.  Today, a new all-time record of 47.7 million Americans are on food stamps.  That number has increased by more than 50 percent over the past four years, and yet the mainstream media still has the gall to insist that “things are getting better”.

#2 Back in the 1970s, about one out of every 50 Americans was on food stamps.  Today, about one out of every 6.5 Americans is on food stamps.

#3 According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”

#4 According to one recent survey, 55 percent of all Americans have received money from a safety net program run by the federal government at some point in their lives.

#5 For the first time ever, more than a million public school students in the United States are homeless.  That number has risen by 57 percent since the 2006-2007 school year.

#6 Median household income in the U.S. has fallen for four consecutive years.  Overall, it has declined by over $4000 during that time span.

#7 Families that have a head of household under the age of 30 have a poverty rate of 37 percent.

#8 The percentage of working age Americans with a job has been under 59 percent for 39 months in a row.

#9 In September 2009, during the depths of the last economic crisis, 58.7 percent of all working age Americans were employed.  In November 2012, 58.7 percent of all working age Americans were employed.  It is more then 3 years later, and we are in the exact same place.

#10 When you total up all working age Americans that do not have a job in America today, it comes to more than 100 million.

#11 According to one recent survey, 55 percent of all small business owners in America “say they would not start a business today given what they know now and in the current environment.”

#12 The number of jobs at new small businesses continues to decline.  According to economist Tim Kane, the following is how the decline in the number of startup jobs per 1000 Americans breaks down by presidential administration

Bush Sr.: 11.3

Clinton: 11.2

Bush Jr.: 10.8

Obama: 7.8

#13 The U.S. share of global GDP has fallen from 31.8 percent in 2001 to 21.6 percent in 2011.

#14 The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.

#15 There are four major U.S. banks that each have more than 40 trillion dollars of exposure to derivatives.

#16 In 2000, there were more than 17 million Americans working in manufacturing, but now there are less than 12 million.

#17 According to the Pew Research Center, 61 percent of all Americans were “middle income” back in 1971.  Today, only 51 percent of all Americans are.

#18 The Pew Research Center has also found that 85 percent of all middle class Americans say that it is harder to maintain a middle class standard of living today than it was 10 years ago.

#19 62 percent of all middle class Americans say that they have had to reduce household spending over the past year.

#20 Right now, approximately 48 percent of all Americans are either considered to be “low income” or are living in poverty.

#21 Approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.

#22 According to one survey, 77 percent of all Americans are now living paycheck to paycheck at least part of the time.

#23 Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

#24 The average amount of time that an unemployed worker stays out of work in the United States is 40 weeks.

#25 If you can believe it, approximately one out of every four American workers makes 10 dollars an hour or less.

#26 According to the U.S. Census Bureau, an all-time record 49 percent of all Americans live in a home where at least one person receives financial assistance from the federal government.  Back in 1983, that number was less than 30 percent.

#27 Right now, more than 100 million Americans are enrolled in at least one welfare program run by the federal government.  And that does not even count Social Security or Medicare.  Overall, there are almost 80 different “means-tested welfare programs” that the federal government is currently running.

#28 When you account for all government transfer payments and all forms of government employment, more than half of all Americans are now at least partially financially dependent on the government.

#29 Barack Obama has been president for less than four years, and during that time the number of Americans “not in the labor force” has increased by nearly 8.5 million.  Something seems really “off” about that number, because during the entire decade of the 1980s the number of Americans “not in the labor force” only rose by about 2.5 million.

#30 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.

#31 According to USA Today, many Americans have actually seen their water bills triple over the past 12 years.

#32 There are now 20.2 million Americans that spend more than half of their incomes on housing.  That represents a 46 percent increase from 2001.

#33 Right now, approximately 25 million American adults are living with their parents.

#34 As the economy has slowed down, so has the number of marriages.  According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married.  Back in 1960, 72 percent of all U.S. adults were married.

#35 At this point, only 24.6 percent of all jobs in the United States are good jobs.

#36 In 1999, 64.1 percent of all Americans were covered by employment-based health insurance.  Today, only 55.1 percent are covered by employment-based health insurance.

#37 Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark.

#38 If you can believe it, one out of every seven Americans has at least 10 credit cards.

#39 One survey of business executives has ranked California as the worst state in America to do business for 8 years in a row.

#40 In the city of Detroit today, more than 50 percent of all children are living in poverty, and close to 50 percent of all adults are functionally illiterate.

#41 It is being projected that half of all American children will be on food stamps at least once before they turn 18 years of age.

#42 More than three times as many new homes were sold in the United States in 2005 as will be sold in 2012.

#43 If you can believe it, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed last year.

#44 The U.S. economy continues to trade good paying jobs for low paying jobs.  60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.

#45 Our trade deficit with China in 2011 was $295.5 billion.  That was the largest trade deficit that one country has had with another country in the history of the planet.

#46 The United States has lost an average of approximately 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.

#47 According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

#48 The U.S. tax code is now more than 3.8 million words long.  If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.

#49 According to the IMF, the global elite are holding a total of 18 trillion dollars in offshore banking havens such as the Cayman Islands.

#50 The value of the U.S. dollar has declined by more than 96 percent since the Federal Reserve was first created.

#51 2012 was the third year in a row that the yield for corn has declined in the United States.

#52 Experts are telling us that global food reserves have reached their lowest level in almost 40 years.

#53 One recent survey discovered that 40 percent of all Americans have $500 or less in savings.

#54 If you can believe it, one recent survey found that 28 percent of all Americans do not have a single penny saved for emergencies.

#55 Medical costs related to obesity in the United States are estimated to be approximately $147 billion a year.

#56 Corporate profits as a percentage of GDP are at an all-time high.  Meanwhile, wages as a percentage of GDP are near an all-time low.

#57 Today, the wealthiest 1 percent of all Americans own more wealth than the bottom 95 percent combined.

#58 The wealthiest 400 families in the United States have about as much wealth as the bottom 50 percent of all Americans combined.

#59 The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.

#60 At this point, the poorest 50 percent of all Americans collectively own just 2.5% of all the wealth in the United States.

#61 Nearly 500,000 federal employees now make at least $100,000 a year.

#62 In 2006, only 12 percent of all federal workers made $100,000 or more per year.  Now, approximately 22 percent of all federal workers do.

#63 If you can believe it, there are 77,000 federal workers that make more than the governors of their own states do.

#64 Nearly 15,000 retired federal workers are collecting federal pensions for life worth at least $100,000 annually.  The list includes such names as Newt Gingrich, Bob Dole, Trent Lott, Dick Gephardt and Dick Cheney.

#65 U.S. taxpayers spend more than 20 times as much on the Obamas as British taxpayers spend on the royal family.

#66 Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began.

#67 If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.

#68 During fiscal year 2012, 62 percent of the federal budget was spent on entitlements.

#69 Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, approximately one out of every 6 Americans is on Medicaid.

#70 It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

#71 Medicare is also growing by leaps and bounds.  As I wrote about recently, it is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.

#72 Thanks to our foolish politicians (including Obama), Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years.  That comes to approximately $328,404 for each and every household in the United States.

#73 Amazingly, the U.S. national debt is now up to 16.3 trillion dollars.  When Barack Obama first took office the national debt was just 10.6 trillion dollars.

#74 During the first four years of the Obama administration, the U.S. government accumulated about as much debt as it did from the time that George Washington took office to the time that George W. Bush took office.

#75 Today, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was originally created back in 1913.

Please share this article with as many people as you can.  Time is running out, and we need to wake up as many people as possible.

75

We Are Witnessing The Death Of Small Business In America

Historically, small businesses have been the primary engine of new job creation in the United States.  If the economy was getting healthy, we would expect to see the number of jobs at new businesses rise.  Instead, we are witnessing just the opposite.  We are told that the economy is supposed to be “recovering”, but the number of “startup jobs” at new businesses has fallen for five years in a row.  According to an analysis of U.S. Department of Labor data performed by economist Tim Kane, there were almost 12 startup jobs per 1000 Americans back in the year 2006.  By 2011, that figure had fallen to less than 8 startup jobs per 1000 Americans.  According to Kane, the number of jobs in the United States at businesses that are less than one year old has fallen from 4.1 million in 1994 to 2.5 million in 2010.  Overall, the number of “new entrepreneurs and business owners” has fallen by more than 50 percent as a percentage of the population since 1977.  The United States was once known as “the land of opportunity”, but now that is fundamentally changing.  At this point we truly do have a “crisis of entrepreneurship” in this country, and that is a huge reason why America is in decline.  We are witnessing the slow death of the small business in America, and that is incredibly bad news for all of us.

Unfortunately, the problems that small businesses are experiencing right now have been building up for decades.  The economic environment for small businesses in America has become incredibly toxic.  Sadly, we can see this in the numbers.  According to Kane, the following is how the decline in the number of startup jobs per 1000 Americans breaks down by presidential administration

Bush Sr.: 11.3

Clinton: 11.2

Bush Jr.: 10.8

Obama: 7.8

Obviously, we are headed very much in the wrong direction.  Kane speculates about why this may be happening in his paper

There is anecdotal evidence that the U.S. policy environment has become inadvertently hostile to entrepreneurial employment. At the federal level, high taxes and higher uncertainty about taxes are undoubtedly inhibiting entrepreneurship, but to what degree is unknown. The dominant factor may be new regulations on labor.  The passage of the Affordable Care Act is creating a sweeping alteration of the regulatory environment that directly changes how employers engage their workforces, and it will be some time until those changes are understood by employers or scholars. Separately, there has been a federal crackdown since 2009 by the Internal Revenue Service on U.S. employers that hire U.S. workers as independent contractors rather than employees, raising the question of mandatory benefits. New firms tend to use part-time and contract staffing rather than full-time employees during the startup stage. According to Labor Department data, the typical American today only takes home 70 percent of compensation as pay, while the rest is absorbed by the spiraling cost of benefits (e.g., health insurance). The dilemma for U.S. policy is that an American entrepreneur has zero tax or regulatory burden when hiring a consultant/contractor who resides abroad. But that same employer is subject to paperwork, taxation, and possible IRS harassment if employing U.S.-based contractors. Finally, there has been a steady barrier erected to entrepreneurs at the local policy level. Brink Lindsey points out in his book Human Capitalism that the rise of occupational licensing is destroying startup opportunities for poor and middle class Americans.

Kane raises some very good points in his analysis.  Without a doubt, small businesses in the United States are being taxed into oblivion.  If you doubt this, just read this article.

And the regulatory environment for small businesses is more suffocating than it has ever been before.  Unfortunately, our politicians never seem to learn that lesson.  During his first term, Obama piled on mountains of new regulations, and now that he has won a second term he is preparing to unleash another massive wave of new regulations.

But many times the worst offenders are politicians on the state and local level.  There are some areas of the country (such as California) that have created absolutely nightmarish conditions for small businesses.  California had the worst “small business failure rate” in the country in 2010.  It was 69 percent higher than the national average.  And in 2011, the state of California ranked 50th out of all 50 states in new business creation.

Yet the politicians in California just continue to pile on even more regulations and even more taxes.

Sadly, this kind of thing is happening from coast to coast and it is killing off hordes of small businesses.  Just consider the following statistics…

-According to the U.S. Census Bureau, the U.S. economy lost more than 220,000 small businesses during the last recession.

-As a share of the population, the percentage of Americans that are self-employed fell by more than 20 percent between 1991 and 2010.

-As a share of the population, the percentage of “new entrepreneurs and business owners” dropped by a staggering 53 percent between 1977 and 2010.

-The average pay for self-employed Americans declined by $3,721 between 2006 and 2010.

So what needs to be done?

Well, first of all, the tax burden and the regulatory burden on small businesses both need to be greatly reduced.

Secondly, the balance of power in our nation needs to be dramatically shifted.  Conservatives run around talking about the need to reduce the power of government and liberals run around talking about the need to reduce the power of corporations, and actually both of them are right.

Our founding fathers intended to establish a Republic where power would never be concentrated in the hands of just a few.  That is why they tried to strictly limit the power of the federal government in the U.S. Constitution, and that is why they greatly restricted the size and scope of corporations in early America.  For much more on this, please see this article: “Corporatism Is Not Capitalism: 7 Things About The Monolithic Predator Corporations That Dominate Our Economy That Every American Should Know“.

Our founding fathers wanted to empower individual citizens and small businesses.  They never intended for us to have a system where big government and big corporations dominate everything and crush the “little guy” at every opportunity.

Even as we witness the death of the small business in America, corporations are absolutely thriving.  The following chart shows how corporate profits after tax have exploded to new record highs in recent years…

So has this been good for workers?  No, it has not translated into more jobs and higher wages.  In fact, wages and salaries as a percentage of GDP are now at an all-time low…

That is why it is imperative that we change “the rules of the game” so that the balance of power is shifted back in the direction of individual citizens and small businesses.  We desperately need to turn back to the principles that this nation was founded upon.

If nothing is done, these trends are going to get even worse.  Barack Obama certainly has no plans to reduce the size and the power of the government.  Since he was elected, an average of 101 new federal employees have been added to the government payroll every single day…

In the 1,420 days since he took the oath of office, the federal government has daily hired on average 101 new employees. Every day. Seven days a week. All 202 weeks. That makes 143,000 more federal workers than when Obama talked forever on that cold day in January of 2009.

And if nothing is done, the monolithic predator corporations that dominate our economy will just get even larger and even more powerful.  Meanwhile, hundreds of thousands more small businesses will close up shop all over the country.

Unfortunately, most Americans seem totally apathetic about these issues.  They seem content to wear “meggings“, watch “Honey Boo Boo” on television and let our government and corporate overlords run everything.  Most of them have even been brainwashed into believing that this is the American way of doing things.

So where do we go from here?

Well, this nation will probably continue to keep doing the same things that it has been doing, and it will continue to get the same results.

The death of small business in America is happening right in front of our eyes, and everybody can see it happening, but very few people are doing anything to stop it.

Show This To Anyone That Believes That Taxes Are Too Low

Every year average Americans pay dozens of different types of taxes, and yet many of our politicians are very open about the fact that they want to raise rates even higher and invent even more ways to bleed us all dry.  Someday historians will look back and be absolutely amazed at how stupid we were.  We have the most complicated tax code in all of human history and at this point the federal tax code is more than four times as long as the entire collected works of William Shakespeare.  In many places it is so incomprehensible that nobody actually understands what it means and the entire thing is absolutely riddled with loopholes from the beginning to the end.  Trust me, I used to study this stuff.  Nobody could ever read the entire thing – it is close to four million words long.  But that is just for federal income taxes.  We have a number of other taxes taken out of our paychecks such as state income taxes, Social Security taxes and Medicare taxes.  Sadly, the taxes taken out of your paycheck are only just the beginning.  As I will detail below, there are more than 40 other taxes that average Americans pay each year in addition to the taxes that are taken out of our paychecks.  Our politicians love to find ways that they can “raise revenue” without us feeling it.  Most people just focus on income tax rates and they forget about the dozens of other ways that they are bleeding us dry.  It really is kind of like “death by a thousand cuts”, and of course the middle class gets hit the hardest.  The poor are exempt from many taxes, the ultra-wealthy are masters at cheating the system and avoiding taxes, and so the most pain is always felt by those in the middle.  Hard working middle class families and small businesses all over America are being financially raped by this insidious system.  If you know of anyone out there that believes that taxes are “too low”, please show this article to them.

Just counting federal, state and local income taxes, some Americans will be paying marginal tax rates of over 50 percent in 2013.  But like I said, there are a lot of other taxes we pay than just those.

The following are 44 more taxes that at least some average Americans are paying now or will be paying soon other than federal, state and local income taxes…

#1 Building Permit Taxes

#2 Capital Gains Taxes

#3 Cigarette Taxes

#4 Court Fines (indirect taxes)

#5 Dog License Taxes

#6 Drivers License Fees (another form of taxation)

#7 Federal Unemployment Taxes

#8 Fishing License Taxes

#9 Food License Taxes

#10 Gasoline Taxes

#11 Gift Taxes

#12 Hunting License Taxes

#13 Inheritance Taxes

#14 Inventory Taxes

#15 IRS Interest Charges (tax on top of tax)

#16 IRS Penalties (tax on top of tax)

#17 Liquor Taxes

#18 Luxury Taxes

#19 Marriage License Taxes

#20 Medicare Taxes

#21 Medicare Tax Surcharge On High Earning Americans Under Obamacare

#22 Obamacare Individual Mandate Excise Tax (if you don’t buy “qualifying” health insurance under Obamacare you will have to pay an additional tax)

#23 Obamacare Surtax On Investment Income (a new 3.8% surtax on investment income that goes into effect next year)

#24 Property Taxes

#25 Recreational Vehicle Taxes

#26 Toll Booth Taxes

#27 Sales Taxes

#28 Self-Employment Taxes

#29 School Taxes

#30 Septic Permit Taxes

#31 Service Charge Taxes

#32 Social Security Taxes

#33 State Unemployment Taxes (SUTA)

#34 Tanning Tax (a new Obamacare tax on tanning services)

#35 Telephone Federal Excise Taxes

#36 Telephone Federal Universal Service Fee Taxes

#37 Telephone Minimum Usage Surcharge Taxes

#38 Telephone State And Local Taxes

#39 Tire Taxes

#40 Tolls (another form of taxation)

#41 Traffic Fines (indirect taxation)

#42 Utility Taxes

#43 Vehicle Registration Taxes

#44 Workers Compensation Taxes

Sadly, this list is far from complete.  There are many more forms of taxation that could be included.

When you account for all forms of taxation, there are some Americans that “play by the rules” that are sending more than half of their incomes to the government.

This is why “tax avoidance” has become a multi-billion dollar industry in the United States.  People are sick and tired of being drained dry by a system that is way too complicated and way too unfair.

Posted below are 30 reasons why the U.S. tax system is stupid.  Some of these facts I have discussed before, and some of them are new.  You might want to be sitting down while you are reading this, because this list is likely to make many of you very angry…

1. Thanks to Proposition 30, many high income residents of California will be paying marginal income tax rates of 51.9% in 2013 if the fiscal cliff is not avoided.  Keep in mind that the 51.9% figure only includes federal and state income taxes.  It does not count any of the dozens of other taxes that we pay each year.

2. If a fiscal cliff deal is not reached, many residents of New York and Hawaii will also be paying marginal income tax rates of more than 50 percent.

3. If Americans fully funded the government through their taxes without any borrowing, the average American would have to work for 197 days just to meet the expenses incurred by government.

4. The U.S. tax code is now 3.8 million words long.  If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.

5. According to the National Taxpayers Union, U.S. taxpayers spend more than 7.6 billion hours complying with federal tax requirements each year.  Imagine what our society would look like if all of that time was spent on more economically profitable activities.

6. 75 years ago, the instructions for Form 1040 were two pages long.  Today, they are 189 pages long.

7. There have been 4,428 changes to the tax code over the last decade.  It is incredibly costly to change tax software, tax manuals and tax instruction booklets for all of those changes.

8. According to the National Taxpayers Union, the IRS currently has 1,999 different publications, forms, and instruction sheets that you can download from the IRS website.

9. Our tax system has become so complicated that it is almost impossible to file your taxes correctly.  For example, back in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household.  All 46 of them came up with a different result.

10. In 2009, PC World had five of the most popular tax preparation software websites prepare a tax return for a hypothetical household.  All five of them came up with a different result.

11. The IRS spends $2.45 for every $100 that it collects in taxes.  That is incredibly inefficient.

12. According to The Tax Foundation, the average American has to work until April 17th just to pay federal, state, and local taxes.  Back in 1900, “Tax Freedom Day” came on January 22nd.

13. When the U.S. government first implemented a personal income tax back in 1913, the vast majority of the population paid a rate of just 1 percent, and the highest marginal tax rate was just 7 percent.

14. Residents of New Jersey pay $1.64 in taxes for every $1.00 of federal spending that they get back.

15. The United States is the only nation on the planet that tries to tax citizens on what they earn in foreign countries.

16. According to Forbes, the 400 highest earning Americans pay an average federal income tax rate of just 18 percent.

17. Warren Buffett had an effective federal income tax rate of just 17.4 percent for 2010.

18. The top 20 percent of all income earners in the United States pay approximately 86 percent of all federal income taxes.

19. Sadly, as Bill Whittle has shown, you could take every single penny that every American earns above $250,000 and it would only fund about 38 percent of the federal budget.

20. The United States has the highest corporate tax rate in the world (35 percent).  In Ireland, the corporate tax rate is only 12.5 percent.  This is causing thousands of corporations to move operations out of the United States and into other countries.

21. Some tax havens are doing a booming business in setting up sham headquarters for U.S. corporations.  For example, the city of Zug, Switzerland only has a population of 26,000 people but it is the headquarters for 30,000 companies.

22. In 1950, corporate taxes accounted for about 30 percent of all federal revenue.  In 2012, corporate taxes will account for less than 7 percent of all federal revenue.

23. In a previous article, I discussed how many of our largest corporations make huge profits and yet pay less than nothing in taxes….

What U.S. corporations are able to get away with is absolutely amazing.

The following figures come directly out of a report by Citizens for Tax Justice.  These are combined figures for the tax years 2008, 2009 and 2010.

During those three years, all of the corporations below made a lot of money.  Yet all of them paid net taxes that were below zero for those three years combined.

How is that possible?  Well, it turns out that instead of paying in taxes to the federal government, they were actually getting money back.

So for these corporations, their rate of taxation was actually below zero.

If you have not seen these before, you are going to have a hard time believing some of these statistics…..

*Honeywell*

Profits: $4.9 billion

Taxes: -$34 million

*Fed Ex*

Profits: $3 billion

Taxes: -$23 million

*Wells Fargo*

Profits: $49.37 billion

Taxes: -$681 million

*Boeing*

Profits: $9.7 billion

Taxes: -$178 million

*Verizon*

Profits: $32.5 billion

Taxes: -$951 million

*Dupont*

Profits: $2.1 billion

Taxes -$72 million

*American Electric Power*

Profits: $5.89 billion

Taxes -$545 million

*General Electric*

Profits: $7.7 billion

Taxes: -$4.7 billion

Are you starting to get the picture?

24. Exxon-Mobil paid $15 billion in taxes in 2009, but not a single penny went to the U.S. government.

25. If Bill Gates gave every single penny of his entire fortune to the U.S. government, it would only cover the U.S. budget deficit for 15 days.

26. The number of traffic accidents spikes each year right around April 15th.  The following is from a recent Bloomberg article….

Deaths from traffic accidents around April 15, traditionally the last day to file individual income taxes in the U.S., rose 6 percent on average on each of the last 30 years of tax filing days compared with a day during the week prior and a week later, according to research published in the Journal of the American Medical Association.

27. The elite are not stupid.  They are not just going to sit there and let our politicians tax them into oblivion.  In fact, many of them will openly cheat if that is what it takes to avoid taxes.  Most of them have become masters at avoiding taxes or they have hired people that do that kind of work for them.  According to the IMF, the global elite are holding a total of 18 trillion dollars in offshore banking havens such as the Cayman Islands.

28. It has been reported that 80 percent of all international banking transactions involve offshore banks.  A whopping 1.4 trillion dollars is being held in offshore banks in the Cayman Islands alone.

29. An article that appeared in the Guardian estimated that a third of all the wealth on the entire planet is being kept in offshore banks.  One of the primary reasons for this is tax avoidance.

30. If a deal is not reached and the “fiscal cliff” is not avoided, the average American taxpayer can expect to pay about $3,500 more in taxes next year.

Clearly, the tax system that we are using right now is not working.

The big corporations and the ultra-wealthy have mastered the art of moving money offshore and using loopholes to make their tax burdens as low as possible.

So our politicians just keep finding more ways to squeeze more money out of the middle class and small businesses in order to make up the difference.

If you are a middle class American and you don’t think that you are paying enough taxes already then you are one sick puppy.

They are draining blood from us in dozens of different ways, and they are constantly inventing new ways to tax all of us.

So what is the solution?

Well, a good first step would be to completely abolish the federal income tax.  It is terribly inefficient, it is way too complicated and it is terribly unfair.  It rewards those that know how to exploit loopholes and those that know how to cheat the system.  Those that “play by the rules” always get the short end of the stick.

Our government could easily be funded by tariffs and other forms of taxation that are more equitable.  There were vast stretches of American history when there was no federal income tax, and the federal government did just fine.

And of course one of our biggest problems is that the federal government simply spends way, way too much money.  There is not a single category of government spending that does not need to be reduced and/or made much more efficient.  The amount of waste that goes on in Washington D.C. is absolutely mind boggling.

Unfortunately, both political parties seem content to be married to the current system so I would not expect any significant changes any time soon.

So what do you think about all this?

Do you believe that taxes are too low, or do you believe that they are too high?

Please leave a comment below with your thoughts, and please share this article with as many people as you can.

They Are Going To Make It Nearly Impossible To Pass On A Farm Or A Business To Your Children

If you have a farm or a small business, would you like to pass it on to your children when you die?  Well, unless Congress does something, it is going to become much, much harder to do that starting next year.  Right now, there is a 5 million dollar estate tax exemption and anything above that is taxed at 35 percent.  But on January 1st, the exemption will go down to 1 million dollars and the tax rate will go up to 55 percent.  A lot of liberals are very excited about this, because they believe that the government will be soaking wealthy people like Warren Buffett and Bill Gates.  But the truth is that a lot of farms, ranches and small businesses will be absolutely devastated by this change in the tax law.  There are many farmers and ranchers out there today that do not make much money but are sitting on tracts of land that are worth millions of dollars.  According to the American Farm Bureau, approximately 97 percent of all farms and ranches in the United States would be subject to the estate tax if the exemption was reduced to just a million dollars.  That means that the children of these farmers and ranchers would be faced with a very cruel choice when it is time to inherit these farms and ranches.  Either they come up with enough money to pay the government about half of what the farm or ranch is worth, or they sell the farm or ranch that may have been in their family for generations.  Needless to say, most farm and ranch families do not have that kind of cash lying around.  Most of them are just barely making it from year to year.  So this change in the tax law is going to greatly accelerate the death of the family farm in America.  This is also going to devastate many family-owned small businesses.  Many small businesses don’t make much money, but they have buildings or land or assets worth millions of dollars.  Children that may have wanted to continue the family legacy will be forced to sell because of the massive tax bill that they get from Uncle Sam.  This is an insidious cruelty, and it shows just how broken our system has become.

The desire to leave the wealth that you have worked so hard to accumulate all your life to your children is something that is common to virtually all human societies.  We want to know that future generations will be taken care of.

It is simply immoral for the federal government to swoop in and tax farms, ranches and small businesses that were intended to be passed down from parents to their children at a 55 percent tax rate.

A lot of the people that are going to be affected by this change are not “wealthy” at all.  A recent Fox News report examined what this change in the law is going to mean for rancher Kevin Kester and his family…

Rancher Kevin Kester works dawn to dusk, drives a 12-year-old pick-up truck and earns less than a typical bureaucrat in Washington D.C., yet the federal government considers him rich enough to pay the estate tax — also known as the “death tax.”

Kester told Fox News that he has no doubt that his ranch will have to be sold when he dies just to pay the tax bill…

“There is no way financially my kids can pay what the IRS is going to demand from them nine months after death and keep this ranch intact for their generation and future generations,” said Kester, of the Bear Valley Ranch in Central California.

Two decades ago, Kester paid the IRS $2 million when he inherited a 22,000-acre cattle ranch from his grandfather. Come January, the tax burden on his children will be more than $13 million.

Reading that should make you angry.  Every single year, thousands upon thousands of farms, ranches and small businesses are going to be lost to the federal tax monster.

It is almost as if the federal government does not want income-producing assets to remain in the hands of the “little guy”.

What in the world are we supposed to do?

It isn’t as if all of those farmers and ranchers can go off to the big cities and find good jobs.  As I wrote about yesterday, our politicians are standing aside as millions of our good jobs are shipped out of the country.

The cold, hard truth is that our system does not work for average Americans any longer.  Those that roll out of bed every morning, work hard and never complain always seem to get the short end of the stick.

The people that are the backbone of America are the ones that the government is always the hardest on.

Unfortunately, we have gotten to a point where the government is searching for more “revenue” from anywhere it can because it desperately needs more money.  U.S. government finances are a complete and total mess and we are drowning in the biggest ocean of debt the world has ever seen.

We are more than 16 trillion dollars in debt and there are more than 100 million Americans that are enrolled in at least one welfare program.

Someday has to pay for all this.

Middle class Americans are already hit with dozens of different taxes each year, and you can be certain that our politicians will continue to invent ways to extract even more “revenue” out of us.

And of course our politicians will never stop their wild spending.  Despite all of the negotiations that have taken place over the past couple of years, our spending problems just continue to grow.  For example, the federal budget deficit for the month of October was $120 billion, which was more than 20 percent larger than the federal budget deficit for October 2011 was.

So what is the solution?

Well, Treasury Secretary Timothy Geithner now says that he wants to eliminate the debt ceiling entirely.  He says that we should just have no limit and that the federal government should just be able to go into debt as much as it wants.

In the end, all of this debt is going to absolutely crush us.  We have literally destroyed the future of America, and yet most of the country still seems clueless about all of this.  The blind are leading the blind, and we are headed straight for complete and utter disaster.

One day, when people look back on this period in American history, what do you think people are going to say about us?

Share This Massive List Of Post-Election Firings And Layoffs With Everyone You Can

The victory by Barack Obama on election night has resulted in a huge wave of firings and layoffs all over America.  A large number of businesses seem to have suddenly shifted into panic mode.  The number of layoff announcements that we have seen in the last 48 hours has been absolutely shocking.  So why is this happening?  Well, the truth is that the federal government is absolutely suffocating small businesses all over America with rules, regulations and taxes.  If you have never tried to run a small business, then you have no idea how oppressive this system actually is for people that are trying to run small businesses successfully.  It has steadily gotten worse over the years no matter who has been in the White House and no matter who has controlled Congress.  So we shouldn’t put 100% of the blame on Obama.  Bush massively expanded government and made things harder on small business people too.  But what many small business people were looking for on this election day was just a little bit of help.  Many were desperately holding out hope that Obamacare would be repealed so that they would not have to get rid of some of their employees.  Many were hoping to get a little bit of relief from the crippling regulations and taxes that are absolutely crushing them.  But now that Barack Obama has been given another four years, they understand that there is no hope on the horizon and that things are only going to get worse.  So they are making the hard decisions that they feel are necessary in order to survive in this economic environment.

And I certainly don’t blame them.  You only want to have employees if you can make a profit on them.  And in this environment it is getting harder than ever to make a profit on an employee.  You see, the truth is that what you cost your employer goes far beyond your salary or your hourly wage.  I think many of you would be absolutely shocked if you learned how much it actually costs your employer to employ you.  And now thanks to Obamacare, that cost is going to go up even more.

Many businesses are not even feasible at all in this economic environment.  Many small businesses had been holding out hope that somehow this election might turn things around and make it possible for them to keep going, but when Obama won it was kind of like the straw that broke the camel’s back.

You can’t do what the federal government and the state governments are doing to us and expect to have a thriving economy.  They are choking the life out of us.

New businesses and small businesses are supposed to be at the heart of our economic system.  Unfortunately, the environment that has been created is absolutely killing them.  This is a recipe for disaster.

In a previous article, I noted that the number of jobs created at new businesses in 2010 in the United States was less than half of what it was back in the year 2000.

Now we can expect that number to get even worse and we can expect large numbers of small businesses to shrink in size or close their doors completely.

The following is a list of some of the post-election firings and layoffs that we have seen since Tuesday night…

#1 Utah

A Utah coal company owned by a vocal critic of President Barack Obama has laid off 102 miners.

The layoffs at the West Ridge Mine are effective immediately, according to UtahAmerican Energy Inc., a subsidiary of Murray Energy Corp. They were announced in a short statement made public Thursday, two days after Obama won re-election.

The layoffs are necessary because of the president’s “war on coal,” the statement said. The slogan is one used frequently during the election by Murray Energy CEO Robert Murray, who was an ardent supporter of Republican presidential candidate Mitt Romney.

In its statement, UtahAmerican Energy blames the Obama administration for instituting policies that will close down “204 American coal-fired power plants by 2014” and for drastically reducing the market for coal.

#2 Ohio

I work for the oldest and largest health insurer in the state of Ohio in the underwriting department. At 9 a.m.this morning, my department (about 50) were called into a meeting in the executive boardroom. We were informed that due to a provision in the healthcare ‘reform’ effective 2014 called guarantee issue, our services would no longer be needed, and we were offered severance  So Obama got to keep his job, and we lost ours. It is maddening that some tyrant 400 miles away can have such a ruinous effect on peoples lives.

#3 Nevada

A Las Vegas business owner with 114 employees fired 22 workers today, apparently as a direct result of President Obama’s re-election.

“David” (he asked to remain anonymous for obvious reasons) told Host Kevin Wall on 100.5 KXNT that “elections have consequences” and that “at the end of the day, I need to survive.”

Here’s an excerpt from the interview. Click the audio tab below to hear even more from this compelling conversation:

“I’ve done my share of educating my employees. I never tell them which way to vote. I believe in the free system we have, I believe in the right to choose who they want to be president, but I did explain as a business owner that I have always put my employees first. I always made sure that when I went without a paycheck that [I] made sure they were paid. And I explained that I always put them first and unfortunately I’m at a point where I’m being forced to have to worry about me and my family now and a business that I built from just me to 114 employees.

#4 Posted below is a list of layoff headlines from the past few days that was posted on AmericanThinker.com

Obama was “fired up” and so were the voters, and so now, the mass firings begin. Here’s a collection of today’s headlines.  Please say a prayer for the families who will be suffering. Had Romney won, many of these companies would now be hiring.

Teco Coal officials announce layoffs

Momentive Inc plans temporary layoffs for 150

Wilkes-Barre officials to announce mandatory layoffs

600 layoffs at Groupon

More layoffs announced at Aniston Weapons Incinerator

Murray Energy confirms 150 layoffs at 3 subsidiaries

130 laid off in Minnesota dairy plant closure

Stanford brake plant to lay off 75

Turbocare, Oce to lay off more than 220 workers

ATI plans to lay off 172 workers in North Richland Hills

SpaceX claims its first victims as Rocketdyne lays off 100

Providence Journal lays off 23 full-time employees

CVPH lays off 17

New Energy lays off 40 employees

102 Utah miners laid off because of ‘war on coal’, company says

US Cellular drops Chicago, cuts 640 jobs

Career Education to cut 900 jobs, close 23 campuses

Vestas to cut 3,000 more jobs

First Energy to cut 400 jobs by 2016

Mine owner blames Obama for layoffs (54 fired last night)

Canceled program costs 115 jobs at Ohio air base

AMD trims Austin workforce – 400 jobs slashed

100 workers lose jobs as Caterpillar closes plant in Minnesota

Exide to lay off 150 workers

TE Connectivity to close Guilford plant, lay off 620

More Layoffs for Major Wind Company (3,000 jobs cut)

Cigna to lay off 1,300 workers worldwide

Ameridose to lay off hundreds of workers

#5 According to the Blaze, the following major corporations have all announced layoffs in just the past two days…

Energizer

Exide Technologies

Westinghouse

Research in Motion Limited

Lightyear Network Solutions

Providence Journal

Hawker Beechcraft

Boeing (30% of their management staff)

CVPH Medical Center

US Cellular

Momentive Performance Materials

Rocketdyne

Brake Parts

Vestas Wind Systems

Husqvarna

Center for Hospice New York

Bristol-Meyers

OCE North America

Darden Restaurants

West Ridge Mine

United Blood Services Gulf

You can get the rest of the details right here.

#6 The following is a list of companies that will be laying off workers just because of Obamacare that was compiled by FreedomWorks

Dana Holding Corp.

As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing “$24 million over the next six years in additional U.S. health care expenses”.  After laying off several white collar staffers, company insiders have hinted at more to come.  The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.  

Stryker

One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December.  Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce – an estimated 1,170 positions.

Boston Scientific

In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could “lead to significant job losses” for his company.  Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas – to China.

Medtronic

In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs.  That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.  

Others

A short list of other companies facing future layoffs at the hands of Obamacare:

  • Smith & Nephew – 770 layoffs
  • Abbott Labs – 700 layoffs
  • Covidien – 595 layoffs
  • Kinetic Concepts – 427 layoffs
  • St. Jude Medical – 300 layoffs
  • Hill Rom – 200 layoffs

A lot of other businesses are going to reduce the number of employees they have or reduce the average work week in order to avoid the Obamacare insurance coverage mandate that will soon be implemented.

This is how CNSNews.com describes the choice that many employers will be facing…

That section, known as the employer mandate, requires any business with 50 or more full-time employees to provide at least the minimum level of government-defined health coverage to those employees. In other words, a business must provide insurance if it has 50 or more employees working an average of just 30 hours per week, which is 10 hours per week fewer than the traditional 40-hour work week.

Thus, by cutting employees’ hours to ensure they average less than the 30 per week, employers could potentially avoid the cost of providing the minimum insurance levels mandated by Obamacare.

So if your company trims the number of workers to just under 50 or starts going to “29 hour work weeks”, then you will know who to blame.

All of this is complete and utter insanity.  We are committing national economic suicide.

But perhaps we deserve this.  After all, Americans willingly chose their leaders on election day.  It is getting harder and harder to deny that our politicians are truly a reflection of who we are as a nation.

The American people chose this path, and now we get to see where it leads us.

Is Wal-Mart Destroying America? Facts About Wal-Mart That Will Absolutely Shock You

America absolutely loves Wal-Mart.  100 million customers visit Wal-Mart every single week in this country.  But is Wal-Mart good for America?  That is a question that most people never stop and ask.  Most of us love shopping in big, clean stores that are packed with super cheap merchandise, but the truth is that Wal-Mart is destroying America in a lot of ways.  As you will see below, Wal-Mart has destroyed tens of thousands of small businesses and countless manufacturing jobs over the past couple of decades.  Wal-Mart has become a gigantic retail behemoth that sells five times more stuff than any other retailer in the United States.  Unfortunately, a large percentage of all the stuff sold at Wal-Mart is made overseas.  What that is costing the U.S. economy in terms of lost jobs and lost revenue is incalculable.  But Wal-Mart is a perfect example of where our economic system is headed.  Our economy is becoming completely and totally dominated by highly centralized monolithic predator corporations that ruthlessly crush all competition and that will stoop to just about anything in order to cut costs.  In the future, will we all be working for gigantic communal entities that funnel all of the wealth and economic rewards to a very tiny elite?  That sounds very much like how communist China works, and red-blooded Americans should want no part of that.  America is supposed to be about free enterprise and competition and working together to build up this country, and Wal-Mart is destroying all of that.

The following are 20 facts about Wal-Mart that will absolutely shock you….

#1 The average U.S. family now spends more than $4000 a year at Wal-Mart.

#2 In 2010, Wal-Mart had revenues of 421 billion dollars.  That amount was greater than the GDP of 170 different countries including Norway, Venezuela and the United Arab Emirates.

#3 If Wal-Mart was a nation, it would have the 23rd largest GDP in the world.

#4 Wal-Mart now sells more groceries than anyone else in America does.  In the United States today, one out of every four grocery dollars is spent at Wal-Mart.

#5 Amazingly, 100 million customers shop at Wal-Mart every single week.

#6 Wal-Mart has opened more than 1,100 “supercenters” since 2005 alone.

#7 Today, Wal-Mart has more than 2 million employees.

#8 If Wal-Mart was an army, it would be the second largest military on the planet behind China.

#9 Wal-Mart is the largest employer in 25 different U.S. states.

#10 According to the Economic Policy Institute, trade between Wal-Mart and China resulted in the loss of 133,000 manufacturing jobs in the United States between 2001 and 2006.

#11 The CEO of Wal-Mart makes more in a single hour than a full-time Wal-Mart associate makes in an entire year.

#12 Tens of thousands of Wal-Mart employees and their children are enrolled in Medicaid and are dependent on the government for healthcare.

#13 Between 2001 and 2007, the value of products that Wal-Mart imported from China grew from $9 billion to $27 billion.

#14 Amazingly, 96 percent of all Americans now live within 20 miles of a Wal-Mart.

#15 The number of “independent retailers” in the United States declined by 60,000 between 1992 and 2007.

#16 According to the Center for Responsive Politics, Wal-Mart spent 7.8 million dollars on political lobbying during 2011.  That number does not even include campaign contributions.

#17 Today, Wal-Mart has five times the sales of the second largest U.S. retailer (Costco).

#18 The combined net worth of six members of the Walton family is roughly equal to the combined net worth of the poorest 30 percent of all Americans.

All over the country, independent retailers are going out of business because they cannot compete with Wal-Mart and their super cheap Chinese products.  Often communities will give Wal-Mart huge tax breaks just to move in to their areas.  But what many communities don’t take into account is that the introduction of a Wal-Mart is often absolutely devastating to small businesses….

A study of small and rural towns in Iowa showed lost sales for local businesses ranging from -17.2% in small towns to -61.4% in rural areas, amounting to a total dollar loss of $2.46 BILLION over a 13-year period.

When we buy stuff made by people working for slave labor wages in China, we destroy good paying American jobs and we make America poorer.  This is a point that I have tried to make over and over.

Wal-Mart often tells one thing to the public and then does another thing in private.  Sadly, the truth is that Wal-Mart does not care about U.S. manufacturing jobs.  Wal-Mart just wants to get products as cheaply as they possibly can, and most of the time that means getting them from China.

Just check out this first-hand testimony from an 81-year-old retired apparel manufacturer….

I was president of the Southwestern Apparel Manufacturers Association. There was a meeting sometime between 1985 and 1990. Walmart had contacted our organization and asked if they could meet with us at our beautiful Apparel Mart we had here in Dallas, which has now been razed, because all the independent merchants don’t exist that used to come to it. Two people from Walmart came down and they said they were going to be sourcing goods from overseas and we would have to meet those prices for consumer products and to get ready for it—we are going to be sourcing the world. Walmart was the only company that came out and said this.

It was sort of shocking: I was selling them some merchandise at the time. On the back of their trucks it was saying “Bring it Back to America!” They had the big “keep it in America” program going at that time on the big signs in the stores. Meanwhile when I reminded the buyer of that, she told me, “that is just for domestic consumption, we’re going to buy at the cheapest we can anywhere on earth.”

As I have written about previously, the United States has lost more than 56,000 manufacturing facilities since 2001.

We are losing millions of good jobs that cannot be replaced.  If you can believe it, the United States has actually lost an average of about 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.

Last year, the U.S. trade deficit with China was the biggest trade deficit that one nation has had with another nation in the history of the world, and Wal-Mart played a huge role in that.

In fact, Wal-Mart has actually been forcing some U.S. manufacturers to pack up and move overseas.  The following is from a recent article by Amy Traub….

Walmart’s market power is so immense that the even the largest suppliers must comply with its demands for lower and lower prices because they cannot afford to have their goods taken off its shelves. Companies that used to manufacture products in the United States, from Levi’s jeans to lock maker Master Lock, were pressured to shut their U.S. factories and moved manufacturing abroad to meet Walmart’s demand for low prices.

Unfortunately, the vast wealth that Wal-Mart is sucking out of our communities is not put back into our communities.  The profits are funneled out to Wal-Mart executives and shareholders.  We may enjoy the low prices, but very little of the money that we give to Wal-Mart gets recycled in our local areas.

In the old days, you could actually support a family selling electronics or running a general store.  But you can’t support a family working at Wal-Mart.  The vast majority of the jobs that Wal-Mart creates are very low paying.  Large numbers of Wal-Mart employees are actually on welfare, and this is part of the reason why we have seen such an explosion in the number of the working poor in America.

At this point, more than 40 percent of all jobs in America are low wage jobs and the middle class is rapidly disappearing.

If we do not support American jobs and American manufacturers they will continue to go away and the welfare rolls in this country will continue to explode.

There is not going to be any prosperity in this country without jobs.  Unfortunately, most Americans simply do not understand how good jobs are being systematically destroyed in America every single day.

The path that America is headed on today is only going to end in complete and total disaster.  We are being transformed from a wealthy nation into a poor nation.  In the end, we will be dominated by a very tiny elite and everyone else will either be among the working poor or will be totally dependent on the government.

Our system is supposed to be about open, honest competition.  But that is not what Wal-Mart is about.  Wal-Mart is about crushing small businesses and manufacturers here in America and getting us all to buy their super cheap Chinese-made goods.

So what do all of you think about Wal-Mart?  Please feel free to post a comment with your thoughts below….

25 Signs That Middle Class Families Have Been Targeted For Extinction

The middle class in America is being systematically wiped out, and most people don’t even realize what is happening.  Every single year, millions more Americans fall out of the middle class and become dependent on the government.  The United States once had the largest and most vibrant middle class in the history of the world, but now the middle class is rapidly shrinking and government dependence is at an all-time high.  So why is this happening?  Well, America is becoming a poorer nation at the same time that wealth is becoming extremely concentrated at the very top.  At this point, our economic system is designed to funnel as much money and power to the federal government and to the big corporations as possible.  Individuals and small businesses have a really hard time thriving in this environment.  To most big corporations these days, workers are viewed as financial liabilities.  Most corporations want to reduce their payrolls as much as possible.  You see, the truth is that most corporations want to be just like Apple.  If you can believe it, Apple makes $400,000 in profit per employee.  Big corporations don’t care that you need to pay the mortgage and provide for your family.  Their goal is to make as much money as possible.  And most of the control freaks that run our bloated federal government don’t care much about middle class families either.  To many politicians and federal bureaucrats, middle class families are “useless eaters” that are constantly damaging the environment with their “excessive” lifestyles.  In this day and age, neither the federal government nor the big corporations really have much use for middle class Americans, and that is really, really bad news for the the future of the middle class family in America.

There are three key factors that are constantly chipping away at the middle class….

-Globalization

-Inflation

-Taxes

Labor has become a global commodity, and American workers are often 10 to 20 times as expensive as workers on the other side of the world are.  Middle class jobs (such as manufacturing, etc.) have been leaving this country at an astounding pace.  Competition for the jobs that remain has become extremely fierce, and this has driven wages down.  The following is from a recent article in the New York Times….

But in the last two decades, something more fundamental has changed, economists say. Midwage jobs started disappearing. Particularly among Americans without college degrees, today’s new jobs are disproportionately in service occupations — at restaurants or call centers, or as hospital attendants or temporary workers — that offer fewer opportunities for reaching the middle class.

As paychecks have stagnated, the cost of living has continued to escalate.  Middle class families are finding that their paychecks simply do not go nearly as far as they did before.  This is creating a tremendous amount of financial stress in households all over America.

Meanwhile, our politicians are taxing the middle class like crazy.  Most people only focus on federal and state income taxes, but that is only a small part of the story.  As I detailed the other day, our politicians are taxing us in literally dozens of different ways and it is almost always the middle class that ends up getting hit the hardest.

If America wants to be great again, it is going to need a thriving middle class.  But right now the federal government and the big corporations are gobbling up all of the power and all of the money and the middle class is shrinking rapidly.

If current trends continue, eventually there will not be much of a middle class left.

The following are 25 signs that middle class families have been targeted for extinction….

#1 Over the past several decades, millions upon millions of middle class Americans have been systematically turned into government dependents.  Back in 1960, social welfare benefits made up approximately 10 percent of all salaries and wages.  In the year 2000, social welfare benefits made up approximately 21 percent of all salaries and wages.  Today, social welfare benefits make up approximately 35 percent of all salaries and wages.

#2 Unemployment is at epidemic levels and the vast majority of the new jobs that have been “created” in recent years have been low paying jobs.  Of those Americans that do have a job at this point, one out of every four works a job that pays $10 an hour or less.

#3 The “working poor” is a group that is rapidly growing in this country.  If you can believe it, the United States actually has a higher percentage of workers doing low wage work than any other major industrialized nation does.

#4 Over the past several decades, the percentage of low income jobs has steadily increased.  Back in 1980, less than 30% of all jobs in the United States were low income jobs.  Today, more than 40% of all jobs in the United States are low income jobs.

#5 The way that our economic system is structured today, almost all of the economic rewards go to the very top of the food chain.  The following is how income gains in the United States were distributed during 2010….

-37 percent of all income gains went to the top 0.01 percent of all income earners

-56 percent of all income gains went to the rest of the top 1 percent

-7 percent of all income gains went to the bottom 99 percent

#6 Several decades ago, there was a much more even distribution of income in this country.  Back in the 1970s, the top 1 percent of all income earners brought in about 8 percent of all income.  Today, they bring in about 21 percent of all income.

#7 As the middle class shrinks, the number of “low income” and “poor” Americans is rapidly rising.  Today, approximately 48 percent of all Americans are currently either considered to be “low income” or are living in poverty.

#8 Manufacturing jobs once enabled huge numbers of Americans to enjoy a middle class lifestyle.  Unfortunately, those jobs are leaving this country at a breathtaking pace.  Back in 1940, 23.4% of all American workers had manufacturing jobs.  Today, only 10.4% of all American workers have manufacturing jobs.

#9 In the old days, any man that was willing to work hard and wanted a job could get one.  Today, there are millions of American men sitting on their couches at home wondering why nobody will hire them.  Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

#10 The middle class is shrinking at the same time that America is getting poorer as a nation.  In the middle of the last century, the United States was #1 in the world in GDP per capita.  Today, the United States is #13 in GDP per capita.

#11 Every year now, we see millions of Americans fall out of the middle class.  In 2010, 2.6 million more Americans descended into poverty.  That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

#12 The shrinking middle class is having a disproportionate impact on children.  At this point, approximately 22 percent of all American children are living in poverty.

#13 In the old days, most Americans grew up in middle class neighborhoods.  Sadly, this is no longer true.  In 1970, 65 percent of all Americans lived in “middle class neighborhoods”.  By 2007, only 44 percent of all Americans lived in “middle class neighborhoods”.

#14 The concentration of wealth at the very top of the food chain is astounding.  Right now, over 50 percent of all stocks and bonds are owned by just 1 percent of the U.S. population.

#15 When you concentrate too much power in the hands of the federal government and the big corporations, it is inevitable that massive amounts of wealth will become concentrated in just a few hands.  In the United States today, the wealthiest one percent of all Americans have a greater net worth than the bottom 90 percent combined.

#16 There is nothing wrong with making money, but there is something wrong with a game where individuals and small businesses cannot compete fairly.  According to Forbes, the 400 wealthiest Americans now have more wealth than the bottom 150 million Americans combined.

#17 When the number of poor people rapidly expands in a society, that is a recipe for social unrest.  At this point, the poorest 50 percent of all Americans collectively own just 2.5% of all the wealth in the United States.

#18 The hidden tax of inflation is absolutely devastating middle class families all over America.  Since 1970, the U.S. dollar has lost more than 83 percent of its value.  Any dollars that middle class families try to save are constantly losing a little bit more value every single day.

#19 American workers that try to play by the rules find that they are constantly fighting a losing battle.  According to one study, between 1969 and 2009 the median wages earned by American men between the ages of 30 and 50 dropped by 27 percent after you account for inflation.

#20 In recent years, many middle class families have seen their paychecks get smaller.  Median household income in the United States has fallen 7.8 percent since December 2007 after adjusting for inflation.

#21 In recent years, many middle class families have seen many of their basic expenses absolutely soar.  For example, health insurance costs have risen by 23 percent since Barack Obama became president.

#22 Just turning on the lights and heating their homes has become a major burden for many middle class families.  Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.

#23 Just putting gas in the car has become a major financial ordeal for millions of hard working Americans.  The average price of a gallon of gasoline in the United States has increased by more than 100 percent since Barack Obama became president.

#24 Sadly, government dependence is now at an all-time high, and that is the way that many among the elite like it.  When Barack Obama took office, there were 32 million Americans on food stamps.  Now, there are more than 46 million Americans on food stamps.  In particular, an astounding number of children are on food stamps right now.  At this point, approximately one-fourth of all American children are enrolled in the food stamp program.

#25 Many middle class families will not be in the middle class for too much longer.  According to a shocking new study from the National Bureau of Economic Research, 200,000 U.S. households will use the money from their tax refunds this year “to pay for bankruptcy filing and legal fees“.

Unless major changes are made on a national level, the middle class is going to continue to disappear.

If you are playing the game the way that the system tells you to play it and you expect to live a middle class lifestyle for many years to come there is a good chance that you will be deeply disappointed at some point.

Millions upon millions of Americans have done everything that the system told them to do and the system has still failed them.  They got good grades all the way through school, they went to college, they worked really hard, they stayed out of trouble and they gave everything they could to their employers.  In spite of all that, millions of hard working families have still lost their jobs and their homes in recent years.

Do not trust that the system will take care of you, and you should not trust that the government will take care of you either.

We don’t need the federal government to hand out more money to everyone.  Government handouts are already at record levels and the government is not even coming close to paying for all of this reckless spending.

More government spending is not going to solve any of our problems.

Instead, what we need is an environment where the size and power of the federal government is limited and the size and the power of the big corporations is limited.  We need an environment where individuals and small businesses can thrive and compete fairly.

Unfortunately, neither major political party is going to move us in that direction, so there is not much hope for solutions on the national level any time soon.

On an individual level, we can all learn how to prepare for the very difficult years that are coming.  It is imperative that we all work to become more independent of the system, because the system could fail at any time.

If you have blind faith that your job will always be there and that the federal government will rescue you if the economy crashes then you are likely to be bitterly disappointed at some point.

The truth is that our economy is slowly dying and the great American middle class is being systematically wiped out.

Many of the things that worked in the past are not going to work any longer.

You can choose to adapt or you can suffer the consequences.

Our world is rapidly changing, and we all need to prepare for what is coming.

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