Are you constantly tired and do you feel incredibly stressed almost all the time? Well, that means that there is a really good chance that you are a typical American worker. Even though our incomes are going down, Americans are spending more time at work than ever before. In fact, U.S. workers spend more time at work than anyone else in the world. But it was not always this way. Back in 1970, the average work week for an American worker was about 35 hours. Today, it is up to 46 hours. But there are other major economies around the globe that are doing just fine without burning their workers out. For example, the average American worker spends 378 more hours working per year than the average German worker does. Sadly, for many Americans work is not even finished once they leave the office. According to one recent survey, the average American worker spends an extra seven hours per week on work tasks such as checking emails and answering phone calls after normal work hours have finished. Other Americans are juggling two or three jobs in a desperate attempt to make ends meet. Americans are busier than ever and work is often pushing the other areas of our lives on to the back burner. What this also means is that “family vacations” are becoming increasingly rare in the United States. In fact, Americans spend less days on vacation than anyone else in the industrialized world. While some would applaud our “work ethic”, the truth is that the fact that we are being overworked is having some very serious consequences. In fact, as you will see below, Americans are literally being worked to death.
The following is an excerpt from a comment that one reader posted on one of my recent articles. Can you identify with what this family is going through?….
I always try and remember to be thankful and say prayers of gratitude for the blessings I have, however I can tell you that my wife and I are getting more and more exhausted.
Straight forward payroll taxes nailed us for $35k last year and the dozens of other taxes are often over-looked but also hitting us harder and harder.
My wife works 14 hour shifts at her dialysis clinic 3 days a week and every other weekend. On the Tuesdays and thursdays she has off she ends up resting half the day to give her poor feet a break since a nurse on her feet 14 straight hours of continual busyness is exhausting.
On top of that, her company has had a pay freeze for 3 years, has dropped Holidays down to just 2 per year ( Thanksgiving and Christmas of which she must work 1 of them), has canceled the reimbursement of her CEU’s ( medical professionals are required to continue to take schooling and classes for their entire career in order to renew their licenses) –also they no longer match 401k’s and her company health plan just bumped up $30 per week!!
I put in so many hours at times that when I get home I am too tired to eat. I come home, change clothes/shower and go straight to bed–this is not living. I try and keep up with my volunteer work and rounds at our local nursing home but something is going to have to give. My caseloads are growing and growing and people are making appts 2-3 weeks in advance. I never had a schedule so filled in advance before. I usually have more long-term pt’s with needs of stroke, Parkinson’s, traumatic brain injuries..but now ortho pt’s are scheduling surgeries as to when I’ll have slots for hip replacement and knee replacement rehab time.
I’m ground down and in the mean time everything is getting more expensive, they keep taking more of my money I earn and we are having all of our benefits cut or completely stopped.
All over this country, millions of hard working men and women are slowly being worn down by jobs that are sucking the life out of them. Working way too many hours for an extended period of time can have dramatic consequences for your health, your family and just about every other area of your life.
But for some Americans, there is simply no other choice. There are millions upon millions of Americans that live on the edge of financial disaster these days. According to one recent survey, 77 percent of all Americans live paycheck to paycheck at least some of the time, and the middle class in the United States has been shrinking at a very steady pace in recent years.
Many Americans are not working 60 or 70 hours per week because they want to.
Many are doing it because that is what they must do just to survive.
For example, a recent article posted on Economy In Crisis profiled a mother of four up in Michigan named Lisa Bosworth who can’t make ends meet for her family despite working three jobs….
Bosworth remarried but her current husband, Ray, was forced onto medical disability when a prescription medication caused health problems. The couple, who had a fourth child together, struggle to support their family on Lisa’s meager income.
Bosworth’s gross monthly income from working as a classroom aide in Reeths-Puffer schools and doing two Chronicle newspaper routes is $1,900. That amounts to $22,800 annually, nearly $5,000 below the poverty level for a family of six.
When they run out of money near the end of each month, Lisa and Ray Bosworth line up at one of several food trucks that visit Muskegon each month.
Earlier this month, the couple and three of their children waited in line at a food truck at Calvin Christian Reformed Church in Norton Shores. Lisa Bosworth had just finished her two newspaper routes and was clearly fatigued after another 70-hour work week. “I’m tired,” she said.
Today, there are more than 100 million Americans on welfare, and a significant percentage of those people actually do have jobs. In fact, some are working two or three jobs.
Working class Americans are working harder than ever, but at the same time many of them are making less money than they once did.
This is putting an incredible amount of stress on working class families.
In fact, it appears that a lot of Americans are literally working themselves to death.
And as a recent CBS News article described, this is particularly true for poor Americans that do not have much education….
Overall life expectancy has dropped for white Americans who have less than a high school diploma to rates similar to those of the 1950s and 1960s, new research finds.
The study found non-Hispanic white men without a diploma lived on average until 67.5 in 2008, three years less than they did in 1990. The drop in lifespan was even bigger for non-Hispanic white women with low education: They live five years shorter than 1990 rates, from 78 years old to just 73.5.
This is a sign that our society is going backwards. Working class Americans are actually living significantly shorter lives than they used to.
Of course the garbage that passes for “food” these days certainly is not helping matters any, but that is a topic for another article.
Sadly, those that are working themselves to death consider themselves to be the “lucky ones” in our society today.
There are countless millions of other Americans that are sitting at home right now without a job.
The mainstream media is trying to convince us that the unemployment rate has been falling, but that is a lie. If the labor force participation rate was the same today as it was back when Barack Obama first took office, the unemployment rate in the United States would be 11.2 percent right now.
But that doesn’t sound nearly as good as 8.1 percent sounds, right?
And the percentage of working age Americans with a job is actually lower today than when the last recession supposedly ended.
In this economic environment, most people are scared to death of losing the jobs that they currently have because they don’t know if they will be able to get another one.
During the month of August, the unemployment rate actually increased in 26 different U.S. states, and yet we are supposedly in the midst of “an economic recovery”.
But the truth is that we are not better off than we were back during the last recession. In fact, there are a whole host of statistics that indicate that things are getting worse.
Unfortunately, much of the time people tend to forget that the horrible economic numbers that we are seeing have very substantial real life consequences.
People that cannot find work and people that work very long hours for a very long period of time tend to be much more depressed than the population as a whole.
And depression can often lead to suicide. According to a recent Daily Mail article, more Americans now die from suicide than from car accidents….
Suicide is the cause of more deaths than car crashes, according to an alarming new study.
The number of people who commit suicide in the U.S. has drastically increased while deaths from car accidents have dropped, making suicide the leading cause of injury death.
Suicides via falls or poisoning have risen significantly and experts fear that there could be many more unaccounted for, particularly in cases of overdose.
That is incredibly tragic, because there is never a reason for anyone to commit suicide. One of the things that I have learned in my own life is that there is always a way for things to be turned around.
Yes, life can be very hard when you don’t have much money, but our lives should not be about chasing material things anyway. Our lives should be about so much more than that.
If you are currently feeling overly tired and overly stressed because you have been working too much, I encourage you to take a vacation.
We are only given one life to live. We shouldn’t spend it working ourselves to death.
So what do you think about all of this? Please feel free to post a comment with your thoughts below….
When it comes to materialism, has any nation ever surpassed what we are seeing in the United States right now? We define our lives by how much stuff we have, to a large degree our personal and business relationships are defined by how much money we make, and even most of the important dates on our calendar are all about materialism. Just think about it. We throw outrageous birthday parties for our kids and we shower them with gifts. Most of our “holidays” have become highly materialistic, and the biggest holiday of all in our society, Christmas, is an absolute orgy of materialism. We make lists of the “wealthiest Americans” and we glorify their achievements. We spend most of our time either making money or spending it. Even the phrase “the American Dream” reveals how materialistic we are. When most people are asked what “the American Dream” is, they start talking about a house, a car, vacations, retirement, sending your kids to college, etc. The American Dream has become all about money and stuff. Sadly, no matter how big our homes are and no matter how many shiny new toys we accumulate, we never seem to be happy. We always want more, and we always seem to be willing to go into more debt to get it. We are the most materialistic society in the history of the world, and our endless greed is going to end up swallowing us alive.
When it comes to materialism in America, there are outrageous examples all around us, but one of my favorite examples is the “Rich Kids of Instagram“. It is a Tumblr blog of photos from Instagram of young Americans showing off how they are enjoying the vast wealth of their parents. The following is how the Washington Post describes the blog….
The controversial new Tumblr is a collection of snapshots from the photo-sharing site that depicts the children of wealth and privilege — summering in the Hamptons, lounging on yachts and posing by their luxury cars.
One does a back-flip out of a helicopter near St. Tropez. Others snap pictures of their restaurant bills — allegedly paying thousands of dollars for lobster, champagne and high-end liquor.
In the warm patina of the Instagram, the youngsters appear to be living over-the-top lifestyles — and enjoying every moment.
“Our everyday is better than your best day,” reads one caption, a bit tauntingly. And, “Do you have a horse in your backyard? Didn’t think so.”
But just because you have a horse on your property does that make your life better than the rest of our lives?
Of course not.
Wealth does not equal happiness.
Unfortunately, however, most Americans have totally bought into this lie.
Most Americans believe that more money equals a better life.
In response to “the Rich Kids of Instagram”, the Huffington Post recently put together a piece entitled “the Rich Cats of Instagram” that features photos of cats as they “model upscale accessories, lounge with bottles of champagne, sail on yachts and ponder life while relaxing atop piles of money.”
Of course a lot of those pictures are quite funny, but they also reveal a deep truth about our society.
We have spent our lives chasing after the almighty dollar thinking that it will make us happy. Study after study has shown that we tend to link wealth and happiness. The following is from a recent NBC News article about one of those studies….
Many parents already know older children can be materialistic. Some tweens not only want the latest games and clothes, but also think owning these things will bring them happiness, friends and popularity. And marketers are eager to get them to buy: Tweens spend $28 billion a year, not including the more than $200 billion their parents spend on them, according to market research company C+R Research.
But even though we have an incredibly high standard of living compared to most of the rest of the world, are most of us actually happy?
No way. In fact, Americans take more anti-depressants than anyone else on the planet.
It is really easy to get caught up in materialism though. Let me share an example from my own life.
Several months ago our old truck completely died. Instead of pouring thousands of more dollars into fixing it, we decided that we would get another used truck.
So the other day I stopped by a dealership while my wife was grabbing some things from Home Depot. The salesperson started showing me some of the used trucks on the lot, but after a while I suggested that he show me some of the new trucks that were sitting on the other side of the lot.
Before I knew it, I was sitting in the most expensive truck on the lot and he was showing me all of the cool features it had.
And I have to admit – for a few moments there I was really enamored with that truck. It was the coolest truck that I had ever seen in my life.
Of course my wife and I don’t need a truck like that. We only need to haul stuff around a few times a month. And we certainly do not need the amount of debt that it would take to buy such a truck.
But for a few moments there I really wanted it. The pull of materialism can be very strong.
So would that truck have “changed my life” or brought me lasting happiness?
Of course not.
It would have brought some thrills for the first couple of days, but after a while it would just be sitting in the garage taking up space just like any other truck would.
So did I end up buying a truck?
Not yet. But we need one soon. My wife has been without a truck for quite a few months now and she is getting impatient.
But whether we get a nice used truck or a used truck that has one foot in the grave, it really isn’t going to change our lives much.
In the end, our lives should not be defined by what we own or by how much money we have in the bank.
But how do we refer to ourselves in this day and age?
The American people are called “consumers” and the truth is that we consume far more than anyone else on the globe does.
Just look at our eating habits. Of all the major industrialized nations, America is the most obese.
The next time you go into a store, take note of how many people are overweight.
It has not always been this way. Back in 1962, only 13 percent of all Americans were obese.
But now overeating is a national sport. At this point, approximately 36 percent of all Americans are obese, and it is being projected that number will rise to 42 percent by 2030.
While we are gorging ourselves with food, what else do we like to do?
That’s right – we love to watch television. In fact, the average American watches 28 hours of television every single week.
We have become completely and totally addicted to entertainment, and we have become trained to be constantly “plugged in” to something.
Our lives have become all about constantly feeding our greed and our selfishness. In fact, that is a major reason for the breakdown of the family in America. We tend to view marriage as a temporary condition that can be quickly discarded when it no longer makes us happy.
Sadly, the United States has the highest divorce rate in the world by a very wide margin at this point.
In addition, more Americans than ever are putting off marriage these days. Young Americans are being told that “an education” and “a career” are more important. According to the Pew Research Center, only 51 percent of all American adults are currently married. Back in 1960, 72 percent of all adults in America were married.
As a result of these factors, we are an incredibly lonely nation. Today, the United States has the highest percentage of one person households on the entire globe.
In order to fill the void, the American people turn to things that will numb the pain. American use more legal drugs than anyone else on the planet and they also use more illegal drugs than anyone else on the planet.
We have more “stuff” than any other society in the history of the world has ever had, but it has not made us happy.
And how did we pay for all of this?
We paid for a lot of this with debt. In fact, we have accumulated the biggest mountain of debt in the history of the world.
During my lifetime, the debt of the U.S. government has gotten more than 30 times larger. For much more on this, please see my previous article entitled “27 Things That Every American Should Know About The National Debt“.
But the federal government is not the only one with a debt problem. The truth is that our entire society is absolutely drowning in debt.
Over the past 50 years, the total amount of debt in the U.S. has grown from less than a trillion dollars to nearly 55 trillion dollars….
We have used massive amounts of debt in an attempt to feed our endless greed and materialism and we have gotten ourselves into a whole lot of trouble.
This is one of the reasons why I write. I want people to understand how bad things have really gotten.
Thanks to our foolishness, our economy has been declining, it is going to continue to decline, and a massive economic collapse is coming.
Some people believe that this is a message of “doom and gloom”, but that is not the case at all.
Sticking our heads in the sand and pretending that somehow everything is going to be just fine is not going to do anyone any good.
Instead, I believe that warning people about the coming economic collapse is a message of hope.
There is hope in understanding what is happening, developing a plan to deal with it, and preparing yourself and your family for the storm that is coming.
It is the people that are ignoring all of the warnings that are going to be in real trouble.
Millions upon millions of people will be absolutely blindsided by what is coming. Many will give in to total despair once they realize that their prosperity is gone and they have done nothing to prepare for what they are now facing.
My hope is that the information that I write about will be shocking enough that it will wake people up and motivate them to get prepared so that they can handle the incredibly challenging years that are ahead.
And the truth is that our lives should not be about our money and our stuff anyway.
Your possessions are just temporary. None of them are going to last forever and you certainly cannot take them with you when you die.
Even though our economy has had some rough times, we still have a higher standard of living than 99 percent of the humans that have ever lived on this planet have had.
You would think that would be enough for us.
But it isn’t. We have hoarded our wealth and we have lived in luxury and self-indulgence.
When our debt-fueled prosperity disappears, most Americans are not going to know how to handle it.
Most Americans will believe that their lives are “over” at that point.
But those that are not caught up in materialism and that have prepared for what is ahead will understand that the next chapters of their lives can be the greatest chapters of all.
How in the world is someone supposed to actually prepare for an economic collapse? What should you do with your money? How can you make sure that your family is going to be okay? How can you prepare if your resources are extremely limited? These are the kinds of questions people ask me all the time. Once people understand that the economy has been collapsing and will continue to collapse, then the next step for most of them is that they want to get prepared for the storm that is coming. So where should someone get started? Well, the truth is that no two people are facing the exact same set of circumstances, so preparation is going to look different for each individual. But there are certain core principles that we can all benefit from. For example, when a financial storm is coming that is not the time to be blowing thousands of dollars on vacations and new toys. You would be surprised at how many people there are that claim that they have no extra money in their budgets and yet somehow have plenty of money to run down to Wal-Mart and buy a big stack of DVDs. When times are difficult, each hard-earned dollar becomes much more precious, and we all need to start getting into the habit of making the most out of our limited resources. The seemingly endless prosperity that we have all been enjoying for decades is coming to an end, and most of us have absolutely no experience on how to deal with truly hard times. If you are under the age of 60, it might be a really good idea to read a book or two on what conditions were like during the Great Depression of the 1930s. There is a lot that we can learn from our own history.
Another key characteristic that we will all need in the years ahead is flexibility. Anyone that has spent any time in the military knows that very few plans ever work out perfectly. As the global economy breaks down and the world becomes increasingly unstable, conditions are going to change rapidly. What might work really well in one situation might be the exact wrong thing to do 6 months later. If you are not willing or able to adapt to dramatic change then you are going to have a lot of difficulty in the years ahead.
Many people refer to me as a “doom and gloomer” because I run a website called “The Economic Collapse” and I am constantly pointing out that the entire world is heading for a complete and total financial nightmare.
But I don’t think that it does any good to stick your head in the sand. I believe that there is hope in understanding what is happening and I believe that there is hope in getting prepared.
It is those that are completely oblivious to what is really going on that will be totally blindsided by the coming crisis. When they finally realize what has come upon them many of them will totally lose it.
From my little spot on the wall I am trying my best to warn people so that they can have a chance to be prepared for what is coming.
I am not spreading doom and gloom.
I am spreading hope.
And I want to make another point. Generally, things are going to be getting progressively worse as the years roll along. As I have written about before, I believe that the economic collapse is not a single event. Rather, I see it as a series of waves that will be punctuated by moments of great crisis.
So advice about preparation is going to be different depending on whether you are talking about the short-term or the mid-term or the long-term. Hopefully you will keep that in mind as you read my answers to the questions below.
The following are common questions that people ask about how to prepare for the collapse of the economy….
#1 How Do I Get Started?
When the financial crisis of 2008 hit, what was the biggest danger for most Americans?
The biggest danger was that they would lose their jobs and not be able to pay their bills.
During the last recession, millions and millions of Americans did end up losing their jobs.
And because many of them were living paycheck to paycheck many of them also ended up losing their homes.
You do not want that to happen to you.
So what I am about to say next is not considered to be very “sexy” in prepper circles, but it is absolutely crucial advice.
You need to have an emergency fund saved up that can cover your expenses for at least six months.
That way if you lose your job or your business goes under you will be able to keep going for a while as you figure out what your next move will be.
These days it takes the average unemployed American nearly 40 weeks to find a new job, and it will likely be even worse in the next major economic downturn.
So make sure that you have plenty of cash saved up just in case. If you are currently living paycheck to paycheck you are extremely vulnerable.
#2 What Should I Do With My Money?
I get this question a lot.
People always want to know where they should put their money.
Well, my first piece of advice is always to build an emergency fund. See #1 above. Most people do not have one.
After that is done, I am a big believer in not putting all of my eggs into one basket.
Sometimes people will tell me that they are going to take all of their money out of the banks because they don’t feel safe having their money in them.
Well, if you stick all of your money in your mattress, what happens if there is a fire or what happens if someone robs you?
That is why I believe in spreading your risk around. Having money a bunch of different places is a good thing.
But one place I would not put it is in the stock market. If you were fortunate enough to catch the recent rally you should get out while the getting is good.
If you have blind faith in the stock market you are going to be deeply disappointed eventually. I do not have a single penny in the stock market, and a couple of years from now that is going to look like a very wise move.
#3 Should I Invest In Precious Metals?
A lot of people that write about the economic crisis in this country really advocate investing in precious metals because they tend to hold value over time (unlike fiat currencies).
I like precious metals myself, but if you are going to invest you need to get educated so that you know what you are doing. If you go in blindly you are likely to get burned at some point.
In addition, you need to be prepared for wild fluctuations in price over the coming years. There will be times when gold and silver absolutely soar and there will be times when they drop like a rock.
So if you are going to play the game you need to be able to handle the ride.
#4 Should I Get Out Of Debt?
Many that write about the coming economic collapse say that you shouldn’t even bother to pay off your debts because the financial system is going to collapse anyway.
I don’t see it that way.
I don’t believe that our banks are going to totally collapse and suddenly go out of existence.
Not in the short-term anyway.
So I believe that it is actually a good idea to get out of debt. When financial troubles hit you don’t want a horde of bill collectors coming after you.
There is a lot of freedom that comes with getting out of debt, and in this environment it is wise to become as independent of the system as possible.
#5 What If I Don’t Have Any Money To Prepare?
In this kind of economic environment it is no surprise that I get this question a lot.
Many families are just barely scraping by each month and they do not have much money to put into anything.
And I can definitely sympathize with that.
However, I would say that there are very, very few families out there that do not have anything that can be cut out of the budget.
The truth is that American families are experts at blowing money on really stupid stuff.
In general, I recommend that all families do what they can to reduce their expenses.
The smaller of a financial footprint you have, the better off you will be and the more resources you will have to help you get prepared.
Also, now is the time to be looking for ways that you can increase your income.
For many Americans, starting a side business is a way to bring in some extra cash. Yes, this will cut into your television watching time, but now is not the time to be lazy.
The time you spend working hard now while the sun is still shining will pay off later.
Don’t be afraid to work harder than you ever have before.
#6 Should I Rent Or Buy?
This is a question that I also get a lot, and it really depends on your situation.
If you rent, that gives you a lot more flexibility. You can move for a new job or a new opportunity without having to sell a house. And you get to avoid a lot of the expenses and hassles that come with being a homeowner.
If you buy, you get to “lock in” your housing expenses for many years. In a highly inflationary environment this would potentially be very beneficial. And interest rates are very low right now.
In addition, it is going to be really hard to rent a really good “prepper” property. If you are looking for a property that is away from the big cities where you can grow your own food and become more independent of the system, then in most cases you are going to have to buy such a property.
But if you do buy, it is going to be much harder to move if something does happen and you need to go somewhere else.
#7 What About My Health Condition?
Over the next few years, our health care system should continue operating at least somewhat normally. But the truth is that our health care system is in horrible shape and it is not a good thing to be totally dependent on pills and doctors.
Even if economic conditions were perfect it would be a good idea to learn what you can do on your own to improve your health. But this is especially true as we move into a time of great economic instability.
#8 Should I Be Storing Food?
However, even though the United States is experiencing a historic drought right now, I do not believe that there will be major food shortages in America this year or next year.
Down the road, however, is a different story.
And your food dollars are never going to go farther than they do right now. As I wrote about the other day, this drought is likely to cause food prices to go up substantially, and so the food you store now might end up being twice as valuable a few years from now.
In addition, you never know when a major disaster or emergency is going to strike so it is always good to become more independent of the system.
I encourage everyone to learn how to grow a garden. Yes, your space may be limited, but there is actually one family that produces 6000 pounds of produce every year on just 1/10th of an acre right in the middle of Pasadena, California.
If they can do such extraordinary things with their little plot of land, why can’t you try to do what you can with what you have?
#9 Should I Be Storing Water?
It is always good to have some water on hand in case disaster or emergency strikes.
And you should be rotating whatever water you currently have on hand because you don’t want water sitting around indefinitely.
But what is much more important is to make sure that you and your family have access to a source of water that you can depend on if disaster strikes and the grid goes down.
In a previous article I discussed a report put out by the American Trucker Associations entitled “When Trucks Stop, America Stops” that detailed just how incredibly vulnerable our water supply really is….
According to the American Water Works Association, Americans drink more than one billion glasses of tap water per day. For safety and security reasons, most water supply plants maintain a larger inventory of supplies than the typical business. However, the amount of chemical storage varies significantly and is site specific. According to the Chlorine Institute, most water treatment facilities receive chlorine in cylinders (150 pounds and one ton cylinders) that are delivered by motor carriers. On average, trucks deliver purification chemicals to water supply plants every seven to 14 days. Without these chemicals, water cannot be purified and made safe for drinking. Without truck deliveries of purification chemicals, water supply plants will run out of drinkable water in 14 to 28 days. Once the water supply is drained, water will be deemed safe for drinking only when boiled. Lack of clean drinking water will lead to increased gastrointestinal and other illnesses, further taxing an already weakened healthcare system.
So yes, water is definitely something you should be accounting for in your preparations.
#10 Other Than Food And Water What Other Supplies Will I Need?
Anything that you use on a regular basis or that you would use in an emergency situation is something that you should consider storing up.
For example, if you could not buy any more toilet paper from the stores, what would you do?
Basic things like that are often overlooked by many preppers.
In a previous article, I listed dozens of things you may want to consider storing. Preparation is going to look different for every family, but hopefully that list will give you some ideas.
#11 What Happens If The Power Grid Goes Down?
This is a very important consideration – especially if you live in a colder climate.
Some people have a backup generator for such circumstances.
Others have set up wind and/or solar systems for their homes.
Alternative energy solutions are great if you can afford them, and they will enable you to become much more independent of the system.
But not everyone can afford to put in solar panels or a big wind turbine.
So do what you can with what you have.
#12 Should I Leave The Big Cities?
A lot of people ask me this, but there is no easy answer.
In this day and age, a good job is like gold. It can be really, really tough to give up a good job and move to the middle of nowhere.
But without a doubt, society is starting to come apart at the seams and I do expect rioting and major civil unrest in our major cities at some point in the future.
In the end, you need to do what is right for you and your own family. Nobody else can make this decision for you.
#13 Should I Get Some Self-Defense Training?
America seems to be overrun by psychopaths and sociopaths these days, and in such an environment being able to defend yourself becomes more important.
When criminals come to your home, they are not going to sit down and have a debate with you. They are not going to care what your political outlook is or if you sympathize with their plight.
The criminals are simply going to do what they came there to do unless someone stops them.
So yes, some self-defense training may come in very handy in the years ahead.
#14 What Should I Do If My Family And Friends Won’t Listen To Me?
This is another very common question that I get.
What should people do if nobody will listen to them?
Well, you just have to do the best that you can. If they won’t listen now, just keep planting seeds. Keep sending them articles that are packed with statistics and information that show why an economic collapse is going to happen.
In the years ahead we are all going to need our families and our friends because communities will endure what is coming much better than “lone wolf” individuals will be able to.
No matter how hard you prepare, at some point you are going to need the help of someone else.
So don’t be afraid to reach out to others.
If nobody among your family or friends will listen to you at the moment, you may have to prepare on your own right now.
In fact, you may have to do extra preparation because at some point it is probably inevitable that your family and friends will come to you for help.
That is the perspective that my wife and I take. We are not only preparing for ourselves. We are also preparing for the family members that may have to depend on us someday.
Nobody said that preparing was going to be easy.
But beyond any physical preparations, I also believe that it is absolutely crucial to prepare mentally and spiritually.
The times that are coming are going to be incredibly challenging. They are going to require a great deal of physical, mental, emotional and spiritual strength.
If you are a “lone wolf” that believes that you don’t need anyone or anything, then I feel sorry for you and I honestly don’t know how you are going to make it.
None of us have all the answers.
I know that I certainly do not.
I have just written nearly 3000 words, but after I post this article I know that some of the great visitors to my site will post ideas that I never even considered for this article.
We can all learn from each other. Most of the people that I have met that think “they know it all” are some of the most clueless people that I have ever come across.
I never want to stop learning, and hopefully that is the case for you as well.
If we work together, perhaps we can all make it through the horrible, horrible times that are coming.
Yes, it is officially time to start freaking out about the global economy. The European financial system is falling apart and it is going to go down hard. If Europe was going to be saved it would have happened by now. The big money insiders have already pulled their funds from vulnerable positions and they are ready to ride the coming chaos out. Over the next few months the slow motion train wreck currently unfolding in Europe will continue to play out and things will likely really start really heating up in the fall once summer vacations are over. Most Americans greatly underestimate how much Europe can affect the global economy. Europe actually has a larger population than the United States does. Europe also has a significantly larger economy and a much larger banking system. The world is more interconnected today than ever before, and a collapse of the financial system in Europe will cause a massive global recession. Once the global economy slides into another major recession, it is going to take years to recover. The pain is going to be immense. Yes, that is going to include the United States. Sadly, we never recovered from the last recession, and it is frightening to think about how much farther this next recession is going to knock us down.
The big problem is that there is simply way, way, way too much debt in the United States and Europe. It has been a lot of fun spending all of this borrowed money, but now we get to pay the price.
The following are 19 reasons why it is time to start freaking out about the global economy….
#1 The yield on 10 year Italian bonds has now risen to more than 6 percent.
#2 The yield on 10 year Spanish bonds has now risen to more than 7 percent. This is considered to be an unsustainable level.
#3 Citigroup Chief Economist Willem Buiter says that both Italy and Spain are going to need major bailouts.
#4 The Spanish banking crisis continues to get worse. The following is from a CNN article that was posted on Monday….
But the depth of the nation’s crisis has raised doubts about whether €100 billion will be enough to recapitalize the banks. For example, the Bank of Spain, the nation’s central bank, released data Monday showing that “doubtful” loans — those that are more than 3 months overdue — rose to €152.7 billion in April, equal to 8.7% of all the loans held by the nation’s banks.
#5 Unemployment in Spain is sitting at a record high of over 24 percent with no hope in sight.
#6 Unemployment in the eurozone as a whole has hit a brand new all-time record high.
#7 The socialists won an outright majority in the recent parliamentary elections in France. That means that France and Germany are now headed in completely different directions. The close cooperation that we have seen between France and Germany in recent years is now over.
#8 New French President Francois Hollande has promised to implement a top tax rate of 75 percent on those making over 1 million euros a year.
#9 German Chancellor Angela Merkel has declared that Germany will not budge at all on the terms of the Greek bailout.
#10 Analysts at Citigroup Global Markets are projecting that the odds of Greece leaving the euro over the next 12 to 18 months are still between 50 and 75 percent.
#11 Money is being transferred from banks in southern Europe to banks in northern Europe at an astounding pace….
Financial advisers and private bankers whose clients have accounts too large to be covered by a Europe-wide guarantee on deposits up to 100,000 euros ($125,000), are reporting a “bank run by wire transfer” that has picked up during May.
Much of this money has headed north to banks in London, Frankfurt and Geneva, financial advisers say.
“It’s been an ongoing process but it certainly picked up pace a couple of weeks ago We believe there is a continuous 2-3 year bank run by wire transfer,” said Lorne Baring, managing director at B Capital, a Geneva-based pan European wealth management firm.
#12 As I wrote about recently, about 500 million euros a day has been pulled out of Greek banks so far this month.
#13 The Bank for International Settlements is warning that global lending is contracting at the fastest rate that we have seen since the end of the last financial crisis.
#14 Lloyd’s of London has publicly admitted that it is making preparations for a collapse of the eurozone.
#15 Government debt levels all over the industrialized world have exploded in recent years. The following is from a recent article by Stephen Lendman….
Five years ago, OECD countries sovereign debt/GDP ratios were 70%. Today it’s 106% and rising.
Anything over 100% is considered to be an extremely dangerous level.
#16 The economic problems in Europe are already taking a toll on the U.S. economy. At this point U.S. exports to Europe are way down.
#17 One recent poll found that 75 percent of Americans are either “very or somewhat worried” that the U.S. economy is heading for another recession.
#18 Under Barack Obama, the United States has been indulging in a debt binge unlike anything ever seen in U.S. history. The following is from a recent Forbes article….
After just one year of the Obama spending binge, federal spending had already rocketed to 25.2% of GDP, the highest in American history except for World War II. That compares to 20.8% in 2008, and an average of 19.6% during Bush’s two terms. The average during President Clinton’s two terms was 19.8%, and during the 60-plus years from World War II until 2008 — 19.7%. Obama’s own fiscal 2013 budget released in February projects the average during the entire 4 years of the Obama Administration to come in at 24.4% in just a few months. That budget shows federal spending increasing from $2.983 trillion in 2008 to an all time record $3.796 trillion in 2012, an increase of 27.3%.
Moreover, before Obama there had never been a deficit anywhere near $1 trillion. The highest previously was $458 billion, or less than half a trillion, in 2008. The federal deficit for the last budget adopted by a Republican controlled Congress was $161 billion for fiscal year 2007. But the budget deficits for Obama’s four years were reported in Obama’s own 2013 budget as $1.413 trillion for 2009, $1.293 trillion for 2010, $1.3 trillion for 2011, and $1.327 trillion for 2012, four years in a row of deficits of $1.3 trillion or more, the highest in world history.
#19 Barack Obama almost seems more focused on his golf game than on the problems the global economy is having. He just finished up playing his 100th round of golf since he became president.
If you are looking for some kind of a global financial miracle you can stop watching.
If European leaders had a master plan to save Europe they would have shown it by now.
If Barack Obama had a master plan to fix things he would have implemented it by now.
If the Federal Reserve had a master plan to fix things we would have seen it by now.
The entire house of cards is starting to come down and things are going to get really messy.
A lot of people both in the United States and in Europe are going to lose their jobs and their homes over the next few years.
It is likely that the next recession will be even more painful than the last one was.
Now is not the time to panic. If you acknowledge what is coming and prepare accordingly then you will likely be in good shape.
But if you stick your head in the sand and pretend that everything is going to be okay then the next few years will likely be incredibly painful for you.
How should people prepare for the difficult years that are coming? I get asked about that a lot. Once people really examine the facts, it is not too hard to convince them that an economic collapse is coming. But once they accept that reality, most of them want to know what they can do to prepare themselves and their families for the hard times that are ahead. Well, the truth is that it does not have to be complicated. Many of the things discussed throughout this article are things that most of us should be doing anyway. Now is not the time to be splurging on luxuries or expensive vacations. Now is not the time to be going into large amounts of debt. Instead, we all need to get back to the basics and we all need to do what we can to become more independent of the system. Just remember what happened back in 2008. Millions of Americans lost their jobs and millions of Americans lost their homes. Now experts all over the globe are warning that another great financial crisis that could be just as bad as 2008 (or even worse) is coming. Those that don’t take the time to prepare this time are not going to have any excuse.
But there is also a lot of sensationalism out there. There are some people out there that claim that the economy is going to collapse all at once and that we are going to go from where we are now to some type of a post-apocalyptic “Mad Max” society almost overnight.
Well, that is just not going to happen. We are not going to wake up next week in a world where we are all fighting each other with sharp pointed sticks.
Just like anything else, an economic collapse takes time. I like to describe what is happening using an analogy from the beach. When you build a mighty sand castle, it is not totally destroyed by the first wave that comes along, right?
Well, it is the same thing with the U.S. economy. It was the greatest economic machine that the world has ever seen, and it is most definitely in decline. But there are stages to that decline.
The “wave” that came along in 2008 did a huge amount of damage. Our economy has not recovered from that.
Now another wave is coming. But that will not be the end. There will be other waves after that.
Eventually, this thing is coming all the way down. Someday America will be such a horror show that it will be hard to believe that it is the same place that many of us grew up in.
But in the short-term, we are going to be facing a major league recession and millions of Americans will lose their jobs. It won’t be the end of the world, but for some people it may feel like it.
So when you are talking about “how to prepare”, the truth is that it depends on what kind of time frame you are talking about.
In the long-term, a lot of the things that even the hardcore survivalists are doing will not be nearly enough.
In the short-term, there are things that all of us can do to weather the coming storm….
Get Out Of Debt
The global financial system is headed for a massive crisis. Just like in 2008, a lot of people are going to lose their jobs and a lot of people are going to lose their homes.
In such an environment, it makes sense to travel as “lightly” as possible.
That means getting rid of debt.
Some forms of debt are worse than others. Mortgage debt is not that bad. We all need somewhere to live, and not all of us can run out and immediately pay off our mortgages.
But there are other forms of debt that are absolutely toxic. A good example of this is credit card debt. There are very few things that are as good at bleeding your finances as credit card debt is. For example, according to the credit card repayment calculator, if you have a $6000 balance on a credit card with a 20 percent interest rate and only pay the minimum payment each time, it will take you 54 years to pay off that credit card.
During those 54 years you will pay $26,168 in interest rate charges on that credit card balance in addition to the $6000 in principal that you are required to pay back. That is before any fees or penalties are even calculated.
But a lot of Americans still have not learned to stay away from credit card debt. In fact, one out of every seven Americans has at least 10 credit cards.
The truth is that in future years there is a good chance that you may be facing a situation where you are not making as much income, so you want to try to start reducing your expenses right now. Getting out of debt will help you to do this.
A shockingly high number of American families are operating without any kind of financial cushion whatsoever….
-According to a Harris Interactive survey taken in 2010, 77 percent of all Americans are living paycheck to paycheck.
-According to one recent survey, one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.
This is one reason why so many Americans have lost their homes and why so many Americans have fallen below the poverty level in recent years. They simply had no cushion.
Last year, 2.6 million more Americans dropped into poverty. That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.
Don’t let this happen to you. At a minimum, everyone out there should have a cushion that will cover at least 6 months worth of expenses. Preferably, you should have a cushion that will last you at least a year.
Yes, I know that is a tall order. But you would be amazed at how much money the average American family wastes in a typical month. Almost all of us have areas where we can cut back.
Trust me, in the middle of a major recession you will be really glad that you are sitting on a pile of savings.
Get Independent Of The System
What would you do if you lost your job tomorrow?
Would you have any other income?
How long would it be before you lost your home?
Those are very important questions.
The truth is that the system is failing and so we all need to work hard to become more independent of the system.
So what does that mean?
Well, instead of relying on someone else to employ you indefinitely, you can start up a business in your spare time. Yes, it will cut into your television time, but if someday you lose your job you will be extremely happy that you still have some income coming in.
Another way of becoming more independent is to start a garden.
Yes, you can run down the street and buy giant piles of cheap food right now, but that will not be the case forever.
Store Food And Focus On The Essentials
I might get into a little trouble for saying this, but the truth is that there is not going to be a major famine in America in 2012.
However, that does not mean that you should not be storing food and other essentials.
In the old days, our grandparents always saved up food. It was just a natural thing for them to do. This was especially the case if they lived through the Great Depression.
When hard times come, you will be glad that you have food stored up. Plus, food is never going to be cheaper than it is today. Having food stored up is a great hedge against the rising food prices that we will see in the future.
No, we are not going to see hyperinflation by the end of the year like many of the sensationalists are warning. But someday you will be really glad that you stored up food for yourself and your family.
We live in a world that is becoming more unstable with each passing month. You never know when the next natural disaster, pandemic, war or national emergency will strike.
It only makes sense to store food and other basic essentials that you will need in the future.
In a previous article entitled “20 Things You Will Need To Survive When The Economy Collapses And The Next Great Depression Begins”, I listed 20 of the things that you would need in the event of a major disaster, a national emergency or a total economic collapse. These are things that you are going to want to make sure that you have ready right now, because after the crisis begins it may be too late to prepare….
#1) Storable Food
#2) Clean Water
#4) Warm Clothing
#5) An Axe
#6) Lighters Or Matches
#7) Hiking Boots Or Comfortable Shoes
#8) A Flashlight And/Or Lantern
#9) A Radio
#10) Communication Equipment
#11) A Swiss Army Knife
#12) Personal Hygiene Items
#13) A First Aid Kit And Other Medical Supplies
#14) Extra Gasoline (But Be Very Careful How You Store It)
#15) A Sewing Kit
#16) Self-Defense Equipment
#17) A Compass
#18) A Hiking Backpack
#19) A Community
#20) A Backup Plan
In the comments to that article, the readers suggested the following additional items….
A K-Bar Fighting Knife
A Camp Stove
An LED Headlamp
Maps Of Your Area
Rifle For Hunting
Gold And Silver Coins For Bartering
Once again, a lot of these things are not going to be needed right away. The economy is going to go through a lot more ups and downs before it totally dies.
In the short-term, keep an eye on the European debt crisis, the Japanese debt crisis and the U.S. debt crisis. There are a lot of similarities between what happened back in 2008 and what is happening now.
And what happened following the crisis of 2008?
Unemployment shot through the roof.
So be prepared for that.
Make a plan for how you and your family will survive if you end up unemployed.
Also, when it comes to “how to prepare”, there is one aspect that is often overlooked.
During the difficult years ahead, we are all going to have to be mentally and spiritually tough.
It won’t matter how good your physical and financial preparations are if you are cowardly and paralyzed by fear.
The times that are coming are going to test all of our hearts.
Some people are going to make it and some people aren’t.
Some people will become so consumed with fear that they will give up completely.
Don’t let that happen to you.
Prepare your heart, soul, mind and body right now for what is coming. For those that are cowardly the years ahead will be a total nightmare, but for those that overcome the fear the years ahead have the potential to be a great adventure.
What in the world is Barack Obama thinking? The United States of America is falling apart all around him, and yet he decides to take a 17 day Hawaiian vacation. Does he even understand that he is the leader of the free world? Does he even understand that this country is mired in the worst economic downturn since the Great Depression? Last year, a similar Hawaiian vacation by the Obamas ending up costing more than 1 million dollars. Other than when I was in school, I don’t remember ever taking a 17 day vacation. In fact, most Americans do not even get 17 vacation days for an entire year. Yet the Obamas seem to think that part of occupying the White House is to take as many vacations as possible. It has been reported that Michelle Obama spent over 10 million dollars of U.S. taxpayer money on vacations during just one recent 12 month period alone. It would be one thing if they were taking these vacations at a time when America was thriving, but the truth is that the U.S. is facing one crisis after another right now. Our debt is now over 15 trillion dollars. If you can believe it, the U.S. government has not been operating under an approved budget for over 900 days. More Americans fell into poverty last year than ever before. More Americans are on food stamps than ever before. An average of 23 manufacturing facilities were shut down every single day in the United States last year. According to one recent report, only 7 percent of Americans that lost their jobs during the recession have “made it back” to where they were before the recession. So perhaps Barack Obama should spend more time doing his job rather than taking extended vacations.
During this holiday season, tens of millions of American families are suffering horribly. Any sane president would realize that this is not the time to be gallivanting off to Hawaii again. The following short excerpt comes from a recent article in the Daily Mail…..
While most Americans are lucky to get a few weeks of holiday every year, it seems the country’s leader gets a little more freedom in the matter.
President Barack Obama has announced his Christmas vacation to Hawaii – for a staggering 17-day trip.
Obama, who visited the island just two weeks ago for an economic summit, will head to Honolulu on Saturday December 17 until Monday January 2.
But this is not just one isolated incident. Obama has taken a whole bunch of vacations since he moved into the White House. According to the New York Post, Barack Obama enjoyed a total of 10 separate vacations that stretched over a total of 90 vacation days during the years of 2009 and 2010.
In addition, Obama managed to find time for 29 rounds of golf during his first two years in office.
But reportedly the biggest “vacation junkie” of all in the Obama family is Michele Obama.
The following shocking excerpt comes from a different Daily Mail article….
The First Lady is believed to have taken 42 days of holiday in the past year, including a $375,000 break in Spain and a four-day ski trip to Vail, Colorado, where she spent $2,000 a night on a suite at the Sebastian hotel.
And the first family’s nine-day stay in Martha’s Vineyard is also proving costly, with rental of the Blue Heron Farm property alone costing an estimated $50,000 a week.
The source continued: ‘Michelle also enjoys drinking expensive booze during her trips. She favours martinis with top-shelf vodka and has a taste for rich sparking wines.
‘The vacations are totally Michelle’s idea. She’s like a junkie. She can’t schedule enough getaways, and she lives from one to the next – all the while sticking it to hardworking Americans.’
During such hard economic times, how can Michelle Obama justify spending over 10 million dollars of U.S. taxpayer money on luxurious vacations?
The American people expect a president to be at the White House working night and day to solve the problems of this nation.
Sure, it would definitely be understandable to take a day or two off here and there, but the truth is that the president should be one of the hardest working people in the country.
Instead, Obama just seems to do less and less the longer that he is in the White House. In fact, there have been numerous reports that Barack Obama barely even interacts with members of his own party in Congress anymore.
Our country is literally falling apart and we have a total lack of leadership at the top.
Sadly, there does not appear to be much hope on the horizon at the moment.
Right now, Newt Gingrich is leading the race for the Republican nomination. If he wins the nomination, the American people will have a choice between two candidates that are almost identical in 2012. The sad truth is that Newt Gingrich is not a conservative, and he never will be. Rather, he is a big time establishment stooge that would keep marching America down the same road that Bush and Obama have been taking us. When you sit down and really compare the Obama agenda to the Gingrich agenda, you will quickly find that they are almost entirely identical. If the Republican Party nominates Newt Gingrich, it will be a complete and utter disgrace.
The reality is that we desperately need real leadership and real solutions. Europe is on the verge of a massive financial meltdown. If things take a wrong turn, we could easily be looking at a financial crisis even worse than the one we saw back in 2008.
Many in the mainstream media are using the word “recovery” now that the official unemployment has fallen to 8.6%, but as Mac Slavo recently pointed out, the real rate of unemployment is still up around 22 percent.
The official government numbers assume that 315,000 Americans “left the labor force” in November. At a time when our population is constantly expanding, that seems like a shaky assumption at best.
The reality, as many of you out there are experiencing, is that times are hard and millions of Americans are becoming increasingly desperate.
For example, just check out what happened in the Sacramento area recently. One church was hit by copper thieves three nights in row….
Members of a Carmichael church that had been targeted by copper thieves for two nights in a row managed to help nab the suspected thieves when the greedy pair returned for a third night.
Nobody is off limits for thieves these days. If you can believe it, people are even stealing food from food pantries now.
This country is in a massive amount of economic trouble, and we desperately need some solutions.
But perhaps we should be thankful that Obama is taking so many vacations.
After all, just about everything he has done so far has ended up making things even worse.
Perhaps it is better if he simply does nothing at all.
But at some point this country is going to need real leadership and real solutions.
So what do all of you think?
Do you think that there is any hope for this country on the horizon?
Once upon a time in America, virtually anyone with a high school education and the willingness to work hard could get a good job. Fifty years ago a “good job” would enable someone to own a home, buy a car, take a couple of vacations a year and retire with a decent pension. Unfortunately, those days are long gone. Every single year the number of “good jobs” in the United States actually shrinks even as our population continues to grow. Where in the world did all of those good jobs go? Economists toss around terms such as “outsourcing” and “offshoring” to describe what is happening, but most ordinary Americans don’t really grasp what those terms mean. So what is outsourcing? Well, it essentially means sending work somewhere else. In the context of this article I will be using those terms to describe the thousands of manufacturing facilities and the millions of jobs that have been sent overseas. Over the past several decades, the U.S. economy has become increasingly merged into the emerging “one world economy”. Thanks to the WTO, NAFTA and a whole host of other “free trade” agreements, the internationalist dream of a truly “global marketplace” is closer than ever before.
But for American workers, a “global marketplace” is really bad news. In the United States, businesses are subject to a vast array of very complex laws, rules and regulations that make it very difficult to operate in this country. That makes it very tempting for corporations to simply move out of the U.S. in order to avoid all of the hassle.
In addition, the United States now has the highest corporate tax rate in the entire world. This also provides great motivation for corporations to move operations outside of the country.
The biggest thing affecting American workers, however, is the fact that labor has now become a global commodity. U.S. workers have now been merged into a global labor pool. Americans must now directly compete for jobs with hundreds of millions of desperate people willing to work for slave labor wages on the other side of the globe.
So exactly how is an American worker supposed to compete with a highly motivated person on the other side of the planet that makes $1.50 an hour with essentially no benefits?
Just think about it.
If you were a big global corporation, would you want to hire American workers which would cost you 10 or 20 times more after everything is factored in?
It doesn’t take a rocket scientist to figure out why millions of jobs have been leaving the United States.
Corporations love to make more money. Many of them will not hesitate for an instant to pay slave labor wages if they can get away with it. The bottom line for most corporations is to maximize shareholder wealth.
Slowly but surely the number of good jobs in the United States is shrinking and those jobs are being sent to places where labor is cheaper.
According to the U.S. Commerce Department, U.S. multinational corporations added 2.4 million new jobs overseas during the first decade of this century. But during that same time frame U.S. multinational corporations cut a total of 2.9 million jobs inside the United States.
So where are all of our jobs going?
They are going to places like China.
The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.
In addition, over 40,000 manufacturing facilities in the United States have been closed permanently during the past decade.
What do you think is eventually going to happen if the U.S. economy continues to bleed jobs and factories so badly?
As the U.S. has faltered, China has become an absolute economic powerhouse.
Ten years ago, the U.S. economy was three times as large as the Chinese economy. At the turn of the century the United States accounted for well over 20 percent of global GDP and China accounted for significantly less than 10 percent of global GDP. But since that time our share of global GDP has been steadily declining and China’s share has been steadily rising.
According to the IMF, China will pass the United States and will become the largest economy in the world in 2016.
Should we all celebrate when that happens?
Should we all chant “We’re Number 2”?
Our economy is falling to pieces and the competition for the few remaining good jobs has become super intense.
The average American family is having a really tough time right now. Only 45.4% of Americans had a job during 2010. The last time the employment level was that low was back in 1983.
Not only that, only 66.8% of American men had a job last year. That was the lowest level that has ever been recorded in all of U.S. history.
Just think about that.
33.2% of American men do not have jobs.
And that figure is going to continue to rise unless something is done about these economic trends.
Today, there are 10% fewer “middle class jobs” in the United States than there were a decade ago. Tens of millions of Americans have been forced to take “whatever they can get”. A lot of very hard working people are basically working for peanuts at this point. In fact, half of all American workers now earn $505 or less per week.
Things have gotten so bad that tens of thousands of people showed up for the National Hiring Day that McDonald’s just held. With the economy such a mess, flipping burgers or welcoming people to Wal-Mart are jobs that suddenly don’t look so bad.
Right now America is rapidly losing high paying jobs and they are being replaced by low paying jobs. According to a recent report from the National Employment Law Project, higher wage industries accounted for 40 percent of the job losses over the past 12 months but only 14 percent of the job growth. Lower wage industries accounted for just 23 percent of the job losses over the past 12 months and a whopping 49 percent of the job growth.
Thanks to the emerging one world economy, the U.S. is “transitioning” from a manufacturing economy to a service economy.
But it certainly doesn’t help that China is using every trick in the book to steal our industries. China openly subsidizes domestic industries, they brazenly steal technology and they manipulate currency rates.
A recent article on Economy In Crisis described how the Chinese paper industry has been able to grow by threefold over the past decade while the U.S. paper industry has fallen apart….
From 2002 to 2009, the Chinese government poured $33.1 billion into what should be an unproductive industry. But, with the help of government subsidies, China was able to ride export-driven growth to become the world’s leading producer of paper products.
In the same time frame that China pumped $33 billion into its paper industry, U.S. employment in the industry fell 29 percent, from 557,000 workers to just 398,000.
So why should we be concerned about all of this?
Well, just open up your eyes. As I have written about previously, our formerly great cities are being transformed into post-apocalyptic hellholes.
In a comment to a recent article, Trucker Mark described what he has seen happen to the “rust belt” over the past several decades….
I am a product of Detroit’s northwest suburbs and the Cleveland, OH area, where together I lived almost 2/3rds of my 54 years. As a 30-year semi driver, I am intimately familiar with large areas of the industrial Midwest, the Northeast, and even much of central and southern California, and everything in-between. I am also college-educated, in Urban Planning and Economics. What has happened to not just Detroit, but to virtually every city in the southern half of Lower Michigan and northern Ohio is mind-boggling. When I was 18, it was quite common to head over to a car plant and get hired immediately into a middle-class job. At one time I had dozens of friends from school working at car plants, dozens more in other large factories, dozens more in major grocery warehousing and distribution, and me, I was a semi driver delivering to all of those places. Between 1979, when I started driving semis, and now, I must have seen 10s of thousands of factories across just the southern Great Lakes region close their doors. Some of them were small, and some of them employed 10,000 workers or more.
The former Packard plant from your photo closed in 1957, and at one time it employed 12,000 workers, and my roommate in 1982 in Birmingham, MI had been laid-off from the old Dodge Main plant in Hamtramck, which once employed over 20,000 workers, which closed in 1981. In 1970 just Chrysler had over 40 plants in the Detroit-area, and now there are just 11 left open. The Willow Run plant, which at one time turned-out a brand-new B-29 bomber every 40 minutes, and employed 50,000 workers, is long dead too, as is the tank plant north of town too. Even fairly new car plants like Novi Assembly are closed, Pontiac’s ultra-modern robotic car assembly plant too. In Cleveland 100 or more huge old plants stand empty, car plants, steel mills, and machine tool builders, in Akron dozens of rubber plants are long gone, Sharon, Warren, and Youngstown have all lost huge numbers of industrial jobs, Canton and Massillon too, where the NFL started, have been reduced to mere shells of their former selves. Along with the plant closings have gone the hopes and dreams of many thousands of retail operators, restaurant owners, and thousands of other small businesses too. Hundreds of entire major shopping malls stand vacant, as seas of potholes consume local roads. The city of Hamtramck, MI a Detroit suburb of 40,000 people, is bankrupt and has had to layoff all but two employees, one of whom works part-time. The traffic lights are shut-off and stop signs now appear at those intersections instead, as the city can’t even pay its power bill. I could go on & on & on for days but I don’t have the time.
I haven’t driven a semi in almost 2 years as my eyesight has begun giving out early. My last 10 years in the industry was spent delivering fresh and frozen meat on a regular multi-stop route through the Chicago-area and throughout southern Michigan. Between 2001 and 2009, my boss lost 14 of 19 major weekly customers in Michigan to bankruptcy, including three major grocery chains, plus numerous less-frequent customers. The Detroit News reported before Christmas of 2007 a 29% unemployment rate within the city limits of Detroit, with an estimated 44% of the total adult population not working, and another news story reported a 1 in 200 chance of selling a house across the entire metropolitan area, which still has 4 million people total. Since 2003, home prices within the city limits of Detroit have fallen by 90%, and today there are thousands of houses in move-in condition on the market there for $5K to $10K. The suburbs are not immune either.
You know what? Detroit and Cleveland used to be two of the greatest cities in the entire world.
Today very few people would call them great. They are just shells of their former glory.
Sadly, this cruel economy is causing “ghost towns” to appear all across the United States. There are quite a few counties across the nation that now have home vacancy rates of over 50%.
Another reader, Flubadub, also remembers how things used to be….
I am also a product of that generation and remember well the opportunities that existed for anyone with even a high school diploma in those days. Just within a reasonable commute to where I grew up we had US Steel, 3M, General Motors Fisher Body, Nabisco, The Budd Co., Strick Trailer and others providing thousands of jobs that enabled you to provide a decent living for your family. There were also plenty of part time jobs to keep high school students busy enough to avoid the pratfalls of idle youth and afford the 28 cent/ gallon gas for their used cars. Most of it is gone now and I don’t blame the Mexicans or the Chinese for stealing it. I blame the greed of the globalists and their flunkies, the phony free trade advocates in office, who’ve spent the last twenty years giving it all away.
Our jobs are being shipped overseas so that greedy corporate executives can pad their bonuses and our politicians are allowing them to get away with it.
According to a new report from the AFL-CIO, the average CEO made 343 times more money than the average American did last year.
Life is great if you are a CEO.
Life is not so great if you are an average American worker trying to raise a family.
Another reader, Itsjustme, says that things are also quite depressing In New Jersey….
I live in northern NJ in a suburb a very short ride from NYC.
Our region was hit very hard — we once had a very prosperous and booming industrial area; mixed use with many warehouses and commercial buildings, hirise and lowrise.
The majority of companies that were in those buildings are gone. Long vacant; the signage is left and nobody is inside them.
One large commercical building with 15 floors now is home to 2 tenants: a law firm and a Korean shipping company.
It’s very sad what’s happened out here.
The only “companies” moving into these buildings are small change tenants that that are usually Chinese or Middle Eastern; you’ll see them subletting out 2 or 3 offices in these buildings and they operate out of those offices. They’re mostly importers of apparel or soft goods.
My guess is that they are there on very short term leases.
This will benefit our local and state economy not. These groups usually send the money home.
If this is the shape of things to come, we can hang it up right now. No viable companies are moving into our area; if anything new is being built it is retail and service industry garbage, like crummy fast food chain restaurants. No livable wage jobs are entering our local economy.
As I have written about previously, the standard of living of the middle class is being pushed down to third world levels. We have been merged into a “global labor pool”, and what that means is that the standard of living of all workers all over the world is going to be slowly equalized over time.
Our politicians never told us that all of these “free trade” agreements would mean that soon we would be living like the rest of the world.
America used to be the greatest economic machine on the planet. But now we are just another region of the one world economy that has workers that are too expensive to be useful.
In the end, there is not some great mystery as to why we are experiencing economic decline as a nation.
If millions of our jobs are being shipped overseas, it was basically inevitable that we were going to experience a housing crisis. Without good jobs the American people simply cannot afford high mortgage payments.
Today we consume far more wealth as a nation than we produce. We have tried to make up the difference by indulging in the greatest debt binge that the world has ever seen.
We have lived like kings and queens, but our debt-fueled prosperity is not sustainable. In fact, the collapse of our financial system is a lot closer than most people would like to believe.
Things did not have to turn out like this, but we bought into the lies and the propaganda that our leaders were feeding us.
Now our economy lies in tatters and our children have no economic future.