The Social Security Administration has just released wage statistics for 2013, and the numbers are startling. Last year, 50 percent of all American workers made less than $28,031, and 39 percent of all American workers made less than $20,000. If you worked a full-time job at $10 an hour all year long with two weeks off, you would make $20,000. So the fact that 39 percent of all workers made less than that amount is rather telling. This is more evidence of the declining quality of the jobs in this country. In many homes in America today, both parents are working multiple jobs in a desperate attempt to make ends meet. Our paychecks are stagnant while the cost of living just continues to soar. And the jobs that are being added to the economy pay a lot less than the jobs lost in the last recession. In fact, it has been estimated that the jobs that have been created since the last recession pay an average of 23 percent less than the jobs that were lost. We are witnessing the slow-motion destruction of the middle class, and very few of our leaders seem to care.
The “average” yearly wage in America last year was just $43,041. But after accounting for inflation, that was actually worse than the year before…
American paychecks shrank last year, just-released data show, further eroding the public’s purchasing power, which is so vital to economic growth.
Average pay for 2013 was $43,041 — down $79 from the previous year when measured in 2013 dollars. Worse, average pay fell $508 below the 2007 level, my analysis of the new Social Security Administration data shows.
Flat or declining average pay is a major reason so many Americans feel that the Great Recession never ended for them. A severe job shortage compounds that misery not just for workers but also for businesses trying to profit from selling goods and services.
Average pay declined in 59 of the 60 levels of worker pay the government reports each October.
And please keep in mind that “average pay” is really skewed by the millionaires and billionaires at the top end of the spectrum.
Median pay in 2013 was just $28,031.02. That means that 50 percent of American workers made less than that number, and 50 percent of American workers made more than that number.
Here are some more numbers from the report that the Social Security Administration just released…
-39 percent of American workers made less than $20,000 last year.
-52 percent of American workers made less than $30,000 last year.
-63 percent of American workers made less than $40,000 last year.
-72 percent of American workers made less than $50,000 last year.
I don’t know about you, but those numbers are deeply troubling to me.
It has been estimated that it takes approximately $50,000 a year to support a middle class lifestyle for a family of four, and so the fact that 72 percent of all workers make less than that amount shows how difficult it is for families that try to get by with just a single breadwinner.
The way that our economy is structured now, both parents usually have to work as hard as they can just to pay the bills.
But there was one group of Americans that did see their incomes actually increase last year.
Those making over 50 million dollars had their pay increase by an average of $12.8 million in 2013.
For everyone else, the news was not good.
And of course this is a trend that has been going on for a long time.
Posted below is a chart that comes from the Federal Reserve. It shows how real median household income in the United States has declined since the year 2000…
Meanwhile, the cost of living has continued to rise at a steady pace.
Needless to say, this is putting a tremendous squeeze on the middle class. With each passing day, more Americans are losing their spots in the middle class and this has pushed government dependence to an all-time high. According to the U.S. Census Bureau, 49 percent of all Americans now live in a home that receives money from the government each month. This is completely and totally unsustainable, but our long-term economic problems just keep getting worse.
Our politicians have stood by as millions upon millions of good paying jobs have been shipped out of the country. Millions of other middle class jobs have been lost to technology. This has resulted in intense competition for the middle class jobs that remain.
And at this point we are even losing lots of lower paying retail jobs. For example, it is being reported that Sears plans to close 110 more stores and lay off more than 6,000 workers. Sears says that the report “isn’t accurate”, but it isn’t denying that stores will be closed either…
In an email to USA Today, Sears spokesman Howard Riefs said the store count and closures “isn’t accurate,” but did not provide store closures or layoff numbers.
“As we stated in our (second quarter earnings report), we disclosed that we would be closing unprofitable stores as leases expire and in some cases will accelerate closings when it is economically prudent. And that we would consider closing additional stores during the remainder of the year,” Riefs said. “Make no mistake, we believe the store will continue to play an integral role in our transformation, however, if a store is not generating a profit, it is straightforward that the store should be considered for closure.”
No matter how many stores Sears does end up closing over the next few months, the truth is that our economy is a complete and total mess at this point.
Our politicians and the mainstream media are trying to put a happy face on everything, but the cold, hard numbers prove that we are not anywhere close to where we were prior to the last recession.
Because it is so difficult to find a good job in America today, I often recommend to people that they should consider starting their own businesses.
But thanks to the bureaucratic control freaks in the Obama administration and in our state governments, small business ownership in America today is at an all-time low. It is almost as if they don’t want the “little guy” to win. Every avenue of prosperity for the middle class is under assault, and there does not appear to be much hope that this will change any time soon.
And the truly frightening thing is that this is about as good as things are going to get for the middle class. We are rapidly approaching the next major wave of our long-term economic decline, but that is a topic for a future article.
Thanks to the Federal Reserve, the middle class is slowly being suffocated by rising food prices. Every single dollar in your wallet is constantly becoming less valuable because of the inflation the Fed systematically creates. And if you try to build wealth by saving money and earning interest on it, you still lose because thanks to the Federal Reserve’s near zero interest rate policies banks pay next to nothing on savings accounts. The Federal Reserve wants you to either spend your money or to put it in the giant casino that we call the stock market. But when Americans spend their paychecks they are finding that they don’t stretch as far as they once did. The cost of living continues to rise at a much faster pace than wages are rising, and this is especially true when it comes to the price of food.
Someone that I know wrote to me today and let me know that she had to shut down the food pantry that she had been running for the poor for so many years. It isn’t that she didn’t want to help the poor anymore. It was that she just couldn’t deal with the rising food prices any longer. Now she is just doing the best that she can to survive herself.
Perhaps you have also noticed that food prices have gotten pretty crazy lately. In particular, meat prices have become absolutely obscene. For example, the average price of ground beef has risen to a new record high of over $4.09 a pound. Over the past twelve months, that works out to a whopping 17 percent increase…
The average price for a pound of ground beef climbed to another record high–$4.096 per pound–in the United States in September, according to data released today by the Bureau of Labor Statistics (BLS).
In August, according to BLS, the average price for a pound of all types of ground beef topped $4 for the first time–hitting $4.013. In September, the average price jumped .083 cents, an increase of 2.1 percent in one month.
A year ago, in September 2013, the average price for a pound of ground beef was $3.502 per pound. Since then, it has climbed 59.4 cents–or about 17 percent in one year.
The “intellectuals” over at the Federal Reserve insist that “a little bit of inflation” is good for an economy, but the truth is that inflation slowly robs us of our buying power.
In a previous article, I shared a chart that showed how food inflation has risen dramatically since the year 2000. For this article, I wanted to show how food inflation has risen since the 1970s. As you can see, the rise in food prices has been absolutely relentless for more than 40 years…
If our paychecks were going up at the same rate or even faster that would be okay.
But they aren’t.
In fact, CNN is reporting that our paychecks have fallen back to 1995 levels…
Americans also don’t feel any better off. While more people may have jobs, they aren’t bringing home fatter paychecks. Wages and income have remained stagnant for years, making it tough for folks even though inflation is low. Median household income, which stood at $51,939 last year, is back to 1995 levels.
Consumers expect a median income boost of 1.1% over the next year, Curtin said. But that won’t keep up with their inflation expectations of 2.8%.
“American households, on average, are still struggling with their living standards slowly eroding,” he said.
The purchasing power of our dollars is continually diminishing.
And this could be just the beginning. Right now, severe drought is affecting some of the most important agricultural areas around the globe. Most people are aware of the nightmarish drought in California, but did you know that things in Brazil are even worse? Brazil is one of the most important food exporters in the world, and so they definitely need our prayers.
In addition, a “black swan event” such as a worldwide explosion of the Ebola pandemic could quickly drive food prices into the stratosphere.
Just this week, we learned that food prices in the Ebola-stricken regions of Liberia, Guinea and Sierra Leone have already risen by an average of 24 percent…
Infection rates in the food-producing zones of Kenema and Kailahun in Sierra Leone, Lofa and Bong County in Liberia and GuDeckDedou in Guinea are among the highest in the region. Hundreds of farmers have died.
The three governments quarantined districts and restricted movements to contain the virus’ spread. But those measures also disrupted markets and led to food scarcity and panic buying, further pushing up prices, WFP and the Food and Agriculture Organization have said.
“Prices have risen by an average of 24 percent,” said WFP spokeswoman Elisabeth Byrs, adding an assessment of major markets showed the price of basic commodities was rising in Guinea, Liberia and Sierra Leone and in neighboring Senegal.
If you have been storing up food, I think that you will be very happy with your decision in the long run.
Without a doubt, food prices are only going to be going up from here.
But the Federal Reserve continues to insist that inflation is under control.
One of the ways that they make the “official numbers” look good is by playing accounting games. They regularly change the way that inflation is calculated in order keep everyone calm.
You don’t have to take my word for it. Posted below is an excerpt from an article by Mike Bryan, a vice president and senior economist in the Atlanta Fed’s research department…
The Economistretells a conversation with Stephen Roach, who in the 1970s worked for the Federal Reserve under Chairman Arthur Burns. Roach remembers that when oil prices surged around 1973, Burns asked Federal Reserve Board economists to strip those prices out of the CPI “to get a less distorted measure. When food prices then rose sharply, they stripped those out too—followed by used cars, children’s toys, jewellery, housing and so on, until around half of the CPI basket was excluded because it was supposedly ‘distorted'” by forces outside the control of the central bank. The story goes on to say that, at least in part because of these actions, the Fed failed to spot the breadth of the inflationary threat of the 1970s.
I have a similar story. I remember a morning in 1991 at a meeting of the Federal Reserve Bank of Cleveland’s board of directors. I was welcomed to the lectern with, “Now it’s time to see what Mike is going to throw out of the CPI this month.” It was an uncomfortable moment for me that had a lasting influence. It was my motivation for constructing the Cleveland Fed’s median CPI.
I am a reasonably skilled reader of a monthly CPI release. And since I approached each monthly report with a pretty clear idea of what the actual rate of inflation was, it was always pretty easy for me to look across the items in the CPI market basket and identify any offending—or “distorted”—price change. Stripping these items from the price statistic revealed the truth—and confirmed that I was right all along about the actual rate of inflation.
It is all a game to them.
It is all about getting to the “right number” to release to the public.
But anyone that goes to the grocery store knows what has been happening to food prices.
The next time you get to the checkout register and you feel tempted to ask the cashier what organ you should donate to pay for your groceries, please keep in mind that it is not the fault of the cashier.
Instead, there is one entity that you should blame.
Blame the Federal Reserve – their policies are slowly pushing the middle class into oblivion.
Have you ever cried yourself to sleep because you had no idea how you were going to pay the bills even though you were working as hard as you possibly could? You are about to hear from a single mother that has been there. Her name is Yolanda Vestal and she is another victim of Obama’s “economic recovery”. Yes, things have never been better for the top 0.01 percent of ultra-wealthy Americans that have got millions of dollars invested in the stock market. But for most of the rest of the country, things are very hard right now. At this point, more than 102 million working age Americans do not have a job, and 40 percent of those that are actually working earn less than $20,000 a year in wages. If we actually are experiencing an “economic recovery”, then why is the federal government spending nearly a trillion dollars a year on welfare? And that does not even include entitlement programs such as Social Security and Medicare. We live in a nation where poverty is exploding and the middle class is shrinking with each passing day. But nothing is ever going to get fixed if we all stick our heads in the sand and pretend that everything is “just fine”.
What you are about to read is an open letter to Barack Obama that has gone absolutely viral on the Internet in recent days. It is a letter that a single mother named Yolanda Vestal posted on her Facebook page, and it has really struck a nerve because countless other young parents can clearly identify with what she is going through. The following is the text of her letter…
Dear President Obama,
I wanted to take a moment to say thank you for all you have done and are doing. You see I am a single Mom located in the very small town of Palmer, Texas. I live in a small rental house with my two children. I drive an older car that I pray daily runs just a little longer. I work at a mediocre job bringing home a much lower paycheck than you or your wife could even imagine living on. I have a lot of concerns about the new “Obamacare” along with the taxes being forced on us Americans and debts you are adding to our country. I have a few questions for you Mr. President.
Have you ever struggled to pay your bills? I have.
Have you ever sat and watched your children eat and you eat what was left on their plates when they were done, because there wasn’t enough for you to eat to? I have.
Have you ever had to rob Peter to pay Paul, and it still not be enough? I have.
Have you ever been so sick that you needed to see a doctor and get medicine, but had no health insurance because it was too expensive? I have.
Have you ever had to tell your children no, when they asked for something they needed? I have.
Have you ever patched holes in pants, glued shoes, replaced zippers, because it was cheaper than buying new? I have.
Have you ever had to put an item or two back at the grocery store, because you didn’t have enough money? I have.
Have you ever cried yourself to sleep, because you had no clue how you were going to make ends meet? I have.
My questions could go on and on. I don’t believe you have a clue what Americans are actually going through and honestly, I don’t believe you care. Not everyone lives extravagantly. While your family takes expensive trips that cost more than most of us make in two-four years, there are so many of us that suffer. Yet, you are doing all you can to add to the suffering. I think you are a very selfish and cold hearted man, who does not care what is best for the people he was elected by (not by me) to represent, but more so out for the glory of your name attached to history. So thank you Mr. President, thank you for pushing those of us that are barely staying afloat completely under water and driving America into the ground. You have made your mark in history, as the absolute worst and most hated president of the United States. God have mercy on your soul!
These are the kinds of emotions that millions of American parents are wrestling with on a daily basis. Many of them are working as hard as they possibly can and yet still find themselves unable to adequately provide for their families.
And now that food stamps are being cut back, more of them than ever are going to be forced to turn to food banks for help. The following is what the head of a large food bank in Casper, Wyoming told one local newspaper about the increase in demand that he is witnessing in his area…
Across the state, food banks and other related programs aiming to feed the needy are worried the supply to meet the uptick in need during the holiday season won’t meet the growing demand for food caused by the expiration of SNAP benefits.
“People are scared to death of the lack of food availability,” Martin said.
Martin called Joshua’s Storehouse a reliable barometer for measuring the rate of need in Casper. The number of people using the food bank skyrocketed before the reduction in SNAP, he said.
Fewer than 2,000 people used the food bank in October 2012. Last month 2,500 people went there for help.
And of course this is not just happening in rural areas either. Margarette Purvis, the head of the largest food bank organization in New York City, says that she is anticipating a huge surge in demand and that veterans are being hit particularly hard…
“On this Veterans Day, when we’re waving our flags — I need every New Yorker to know — 40 percent of New York City veterans are relying on soup kitchens and pantries.”
Purvis says that there are 95,000 vets relying on food banks in New York City alone.
Meanwhile, anger and frustration with the economy are starting to rise to very dangerous levels in this nation.
In a previous article, I noted that violent crime in America rose by 15 percent last year. One of the primary reasons for this is the economic despair that we see in our streets.
As the economy gets even worse, people will become even more desperate. We will start to see even more flash mob crimes like we saw in Chicago recently. Posted below is a video news report that shows footage of a flash mob in Chicago dragging entire racks of merchandise out of a Sports Authority store…
When you watch stuff like this, it helps to explain why demand for armored vehicles among the ultra-wealthy in America is skyrocketing.
Unfortunately, most Americans cannot afford armored vehicles and walled vacation homes in the middle of nowhere.
Most Americans are going to have to live right in the middle of all of this as it happens.
A volcano of anger, frustration and despair is simmering just below the surface in America.
When that volcano finally erupts, it is going to be a very frightening thing to behold.
This is the time of the year when Americans run out to their favorite retail stores and fill up their shopping carts with lots of cheap plastic crap made by workers in foreign countries where it is legal to pay slave labor wages. By doing this, the American people are actively participating in the destruction of the U.S. economy. You see, buying products that are made in America is not just a matter of national pride. It is a matter of national survival. If we do not support American workers, they are going to continue to see their jobs shipped out of the country. If we do not support American businesses, they are going to continue to die off at a staggering rate. Last year, the United States had a trade deficit with the rest of the world of 558 billion dollars. More than half a trillion dollars that could have gone into the pockets of U.S. workers and U.S. businesses went overseas instead. If that money had stayed in the country, taxes would have been paid on that mountain of cash and our local, state and federal government debt problems would not be as severe. As a result of our massive trade imbalance, we have lost tens of thousands of businesses, millions of jobs and trillions of dollars of national wealth. Both major political parties have sold us out on these issues, and we are getting poorer as a nation with each passing day. We desperately need a resurgence of economic patriotism in the United States before it is too late.
Yes, I know that it is very tempting to buy foreign-made products. After all, they are almost always cheaper.
But most people don’t often think about why they are cheaper.
Unfortunately, in the name of “free trade” American workers have been merged into a global labor pool where they have to compete directly for jobs with workers on the other side of the globe that live in countries where it is legal to pay slave labor wages. This makes employing American workers a tremendous liability.
If a company hires you and pays you 10 to 15 dollars an hour with benefits, how is it going to compete with another company that pays workers a dollar an hour with no benefits on the other side of the planet?
Both major political parties are pushing this emerging “one world economic system“, but it is absolutely killing American jobs. We have already seen a mass exodus of jobs and businesses out of this country, and wages for the jobs that remain in the United States are being forced down because there are hordes of unemployed workers that are willing to take just about any decent job they can find.
It has become painfully obvious that our politicians are not going to do anything to help us on these issues, so what we need is a mass awakening among the American people.
We need to educate people that buying things that are made in America is good for the economy and that buying things that are made elsewhere is bad for the economy.
But for now, most Americans are clueless. They will line up on Black Friday morning and trample one another in a desperate attempt to save a few bucks on cheap plastic devices that were made on the other side of the planet.
And they will pay for much of this “shopping” with credit cards.
Credit card debt is on the rise once again. In fact, average credit card debt per borrower was 4.9 percent higher in the third quarter of 2012 than it was in the third quarter of 2011. It looks like most of us didn’t learn our lessons from the last financial crisis.
But not all Americans enjoy the shopping that is typically involved with this time of the year. One recent survey found that approximately 45 percent of all Americans think that there is so much financial pressure associated with the holidays that they wouldn’t mind skipping them completely.
That same poll found that approximately 41 percent of all Americans would only be able to survive for two weeks without a paycheck. Many Americans are up to their eyeballs in debt, their incomes are not keeping up with rising prices, and they find themselves scratching and clawing just to make it from month to month.
Meanwhile, we continue to destroy our own jobs and businesses by spending our money on products that have been made outside the country.
The following are 55 reasons why you should buy products that are made in America this holiday season…
1. When you buy products that are made in America you support American workers.
2. When you buy products that are made in America you support companies that are doing business in America.
7. When NAFTA was passed in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars. In 2010, we had a trade deficit with Mexico of 61.6 billion dollars.
8. One professor has estimated that cutting the U.S. trade deficit in half would create 5 million more jobs in the United States.
9. Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the globe since 1975. That 8 trillion dollars could have gone to support U.S. businesses and pay the wages of U.S. workers. Federal, state and local taxes would also have been paid on that 8 trillion dollars if it had stayed in the United States.
10. According to the Economic Policy Institute, America is losing half a million jobs to China every single year.
11. The United States has lost an average of approximately 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.
16. Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.
17. As I have written about previously, 95 percent of the jobs lost during the last recession were middle class jobs.
18. Due in part to the globalization of the labor pool, only about 24 percent of all jobs in the United States are “good jobs” at this point.
20. The United States now has 10 percent fewer “middle class jobs” than it did just ten years ago.
21. According to the Economic Policy Institute, the U.S. economy loses approximately 9,000 jobs for every $1 billion of goods that are imported from overseas.
22. As our economic infrastructure is gutted, formerly great manufacturing cities all over America are being transformed into festering hellholes.
23. Between 2001 and 2007, the value of products that Wal-Mart imported from China grew from $9 billion to $27 billion.
24. In 2001, American consumers spent 102 billion dollars on products made in China. In 2011, American consumers spent 399 billion dollars on products made in China.
25. The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
26. Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Today, China’s high-tech exports are more than twice the size of U.S. high-tech exports.
27. In 2002, the United States had a trade deficit in “advanced technology products” of $16 billion with the rest of the world. In 2010, that number skyrocketed to $82 billion.
28. The United States has lost more than a quarter of all of its high-tech manufacturing jobs over the past ten years.
29. Manufacturing employment in the U.S. computer industry was actually lower in 2010 than it was in 1975.
30. The Chinese undervalue their currency by about 40 percent in order to gain a critical advantage over foreign competitors. This means that many Chinese companies are able to absolutely thrive while their competition in the United States goes out of business.
31. According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.
33. Since the auto industry bailout, approximately 70 percent of all GM vehicles have been built outside the United States.
34. Do you remember when the United States was the dominant manufacturer of automobiles and trucks on the globe? Well, in 2010 the U.S. ran a trade deficit in automobiles, trucks and parts of $110 billion.
35. In 2010, South Korea exported 12 times as many automobiles, trucks and parts to us as we exported to them.
36. In 2010, China produced 627 million metric tons of steel. The United States only produced 80 million metric tons of steel.
37. In 2010, China produced 7.3 million metric tons of cotton. The United States only produced 3.4 million metric tons of cotton.
41. China is now the number one supplier of components that are critical to the operation of U.S. defense systems. How stupid can we possibly be?
42. According to author Clyde Prestowitz, China’s number one export to the U.S. is computer equipment. According to an article in U.S. News & World Report, during 2010 the number one U.S. export to China was “scrap and trash”.
43. All over the United States, road and bridge projects are being outsourced to Chinese firms. Just check out the following excerpt from a recent ABC News article….
In New York there is a $400 million renovation project on the Alexander Hamilton Bridge.
In California, there is a $7.2 billion project to rebuild the Bay Bridge connecting San Francisco and Oakland.
In Alaska, there is a proposal for a $190 million bridge project.
These projects sound like steps in the right direction, but much of the work is going to Chinese government-owned firms.
“When we subsidize jobs in China, we’re not creating any wealth in the United States,” said Scott Paul, executive director for the Alliance for American Manufacturing.
49. In recent years the U.S. economy has embraced “free trade” and the emerging one world economy like never before. Instead of increasing the number of jobs in our economy, it has resulted in the worst stretch of job creation in the United States in modern history….
If any single number captures the state of the American economy over the last decade, it is zero. That was the net gain in jobs between 1999 and 2009—nada, nil, zip. By painful contrast, from the 1940s through the 1990s, recessions came and went, but no decade ended without at least a 20 percent increase in the number of jobs.
51. China now holds approximately more than a trillion dollars of U.S. government debt. If you were alive back when Jesus was born and you had spent a million dollars every single day since then, you still would not have spent that much money by now.
53. Without enough good jobs, more Americans than ever before are falling into poverty. Today, more than 100 million Americans are enrolled in at least one welfare program run by the federal government.
54. According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades if current trends continue.
55. If U.S. consumers do not start supporting U.S. workers and U.S. businesses, eventually we will all be so poor that very few of us will be able to afford to buy any gifts during the holiday season.
This economic decline has been really hard on everyone, but it has been particularly hard on American men. During the last recession male employment dropped like a rock and it has not recovered much at all since then. That is why many referred to the last recession as a “mancession”. Industries where men are disproportionately represented such as construction and manufacturing have really been hit hard in recent years. In the old days, you could take a high school education down to the local factory and get a job that would enable you to live a middle class lifestyle and support a growing family on just that one income. Sadly, those days are long gone. Today, American men live in a world where their labor is not really needed. Wages are falling because almost any worker can be easily replaced by the vast pool of unemployed American workers that are currently searching for work, and a lot of big companies are shifting labor-intensive jobs overseas where workers only make a small fraction of what they make in the United States. American workers (especially those without much education) are considered to be expensive liabilities in a world where labor has become a global commodity. So the percentage of working age American men that have jobs is likely to continue to decline and wages are likely to continue to stagnate as well.
For many men, a long-term bout with unemployment can almost be worse than a major illness. It can be really hard to feel like a man when you don’t have a job. Men often see themselves as filling the “provider” role, and when they aren’t providing for their families self-esteem can fall through the floor. It is easy to feel worthless when there is no money coming in and your wife and your kids are looking at you with worry every single day.
As you read this, there are millions upon millions of unemployed men sitting at home with a glazed look in their eyes. When you talk with these men, many of them seem as though the life has been sucked right out of them.
As I wrote about recently, when you cannot find a job month after month after month people start to look at you differently. Some start to look at you with pity in their eyes, and others start to look at you with disgust in their eyes.
Most Americans don’t really understand how much the economy has fundamentally changed, and many of them still believe that it shouldn’t be too difficult to find a job in “the greatest economy on earth”.
But things have changed. If you don’t have a college education or some highly specialized skills then it is going to be exceedingly difficult to get a good paying job in this economy.
Unfortunately, finding a job is not going to be getting any easier. Times are hard now, but they are going to be getting a lot harder.
The following are 16 signs that this economic decline is sucking the life out of the American male….
#3 During the recent economic downturn millions of men saw their family finances get absolutely destroyed. According to the Federal Reserve, the median net worth of families in the United States declined “from $126,400 in 2007 to $77,300 in 2010“.
#4 As you can see from the chart below, in the 1950s there were times when nearly 85 percent of all working age men had a job. Sadly, that number has stayed below 65 percent since the end of the last recession….
#5 More unemployed fathers than ever are staying at home with the kids. Over the past decade the number of “stay at home dads” has doubled.
#6 Prior to the recession, women accounted for approximately 45 percent of the workforce. Now, they account for 49.4 percent of the workforce.
#7 According to one new survey, 23 percent of all small business owners in America have gone for more than a year without pay. More than half of all small business owners are men.
#8 The decline in manufacturing jobs has had a disproportionate impact on men. Back in 1940, 23.4% of all American workers had manufacturing jobs. Today, only 10.4% of all American workers have manufacturing jobs.
#9 More than half of all middle management jobs in America are now held by women.
#10 More than half of all health care jobs in America are now held by women.
#11 American men love to watch television. But because of harsh economic conditions more families than ever are eliminating cable television service. According to one survey, a whopping 6.9 million American homes cancelled cable service last year.
#12 According to the New York Times, approximately 57 percent of all Americans that are currently enrolled in college are women.
#13 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.
#14 According to another study, “young, urban, childless women” make more money in America today than young, urban, childless men do.
#15 According to CNN, in the United States today men in the 25 to 34 age bracket are nearly twice as likely to live with their parents as women the same age are….
The number of adult children who live with their parents, especially young males, has soared since the economy started heading south. Among males age 25 to 34, 19% live with their parents today, a 5 percentage point increase from 2005, according to Census data released Thursday. Meanwhile, 10% of women in that age group live at home, up from 8% six years ago.
#16 Our system often treats elderly American men like absolute trash. Just check out what happened to one elderly veteran up in Montana recently….
Warren C. Bodeker is an 89 year old World War II Army Airborne combat veteran and war hero, living in Montana, who is being thrown off of his own land and thrown out of his own house, by Montana Federal Bankruptcy Trustee, Christy Brandon, with the approval of the U.S. Bankruptcy Court in Montana. And to make matters worse, Warren’s wife Lorna just died of cancer this past year, and is buried there on their land, right next to the house. Warren had planned to live there till he died and then be buried right next to his wife, there on their property at 11 Freedom Lane, in the town of Plains, Montana, but now, not only is he being forced off his land, he is being forced to exhume his wife’s body and take her with him.
As the ability of men (and women) to take care of their families continues to decline, the middle class continues to shrink rapidly.
Most Americans continue to expect our economy to be able to bounce back to where it was before, but the truth is that the U.S. economy is in the midst of a long-term decline.
We are heading for an absolute economic nightmare, and we desperately need to come together as a nation and find some real solutions.
Unfortunately, our nation is becoming more divided than ever, and most of our politicians are proposing that we continue to do the exact same things that got us into this mess.
So what do all of you think about “the mancession” and what this economic decline is doing to the American male? Please feel free to post a comment with your thoughts below….
Once upon a time, anyone that was relatively competent and willing to work hard could go out and easily get a job that would enable that person to financially support a family. Unfortunately, that is simply no longer true anymore. Well paying “middle income jobs” are being rapidly replaced with “low income jobs” and part-time jobs. As the economy crumbles, it is becoming increasingly difficult for the typical American worker to survive from month to month. The number of companies that provide benefits such as health insurance has fallen steadily over the past ten years, and paychecks have not been keeping up with the rising prices of food and gas. Average American families are seeing their budgets squeezed like never before, and many of them are going into huge amounts of debt in order to make up the difference. Sadly, this is a problem that has developed over an extended period of time and that is not going to be reversed overnight. Over the past four decades, the ratio of wages and salaries to GDP in America has fallen dramatically. The typical American worker is not as valued as much as he or she used to be, and if current trends continue even more of us will be working part-time jobs or “low income jobs” in the years ahead.
In America today there is a great deal of focus on the unemployed, but there are also millions upon millions of Americans that are working part-time jobs because that is all that they can find.
It can be absolutely soul crushing to go all the way through school getting good grades, spend a ton of money on an education, and then work for 8 bucks an hour doing meaningless work for some predator corporation that simply does not care about how talented you are.
Today, an astounding 48 percent of all Americans are considered to be either “low income” or are living in poverty.
According to the New York Times, approximately 100 million Americans are either living in poverty or in “the fretful zone just above it”.
A lot of those people actually do have jobs. Unfortunately, a part-time job that pays 8 or 9 dollars an hour just will not get you anywhere close to getting over the poverty line.
This is not the way that the U.S. economy used to work. Back in the old days, good paying jobs that would allow you to live “the American Dream” were plentiful.
But now millions upon millions of Americans are scrambling for anything that they can get. According to a recent survey conducted by Gallup, the percentage of Americans that are working part-time jobs but that would like full-time jobs is now higher than it has been at any other time in the last two years.
In this economy, a good paying full-time job is incredibly precious. If you still have one, you should consider yourself to be very fortunate.
Check out the following chart. It is a chart that shows the level of wages and salaries as a percentage of GDP in the United States since the late 1940s. As you can see, the slice of the pie being taken home by American workers has been dropping like a rock since about 1970….
Is that a clear trend or what?
And it is going to continue year after year as long as we continue to pursue the same foolish economic policies.
As our politicians continue to allow millions of American jobs to be shipped overseas, competition for the jobs that remain inside this country is becoming extremely intense.
Back in 1967, 97 percent of all U.S. men with a high school degree between the ages of 30 and 50 had jobs. Today, that figure is down to 76 percent.
As you read this, there are hordes of hard working American workers sitting at home staring at their televisions as they wonder why nobody will hire them.
But even if you do have a job that does not mean that you are in good shape. The percentage of “low income jobs” just continues to climb. 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.
Many Americans work as hard as they can and still find that they must turn to the government for financial assistance. According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
And that number is just going to keep climbing unless we change what we are doing as a nation.
Perhaps you are working a “low income job” right now. Most of us have worked a job like that at least once in our lives. Hopefully you will find the following list amusing. Yes, I have exaggerated a few things slightly, but I think you will get the point.
The following are 20 signs you might be a typical American worker….
#1 If you are working three jobs and you still don’t have enough money at the end of the month, you might be a typical American worker.
#2 If your job involves asking the question “Would you like fries with that?”, you might be a typical American worker.
#3 If you shop at the dollar store because Wal-Mart is too expensive, you might be a typical American worker.
#4 If your job requires you to wear a smock, a brightly colored polo shirt or lots of “flair”, you might be a typical American worker.
#5 If people are constantly asking you where the restroom is while you are at work, you might be a typical American worker.
#6 If your employer hires extra part-time workers in order to avoid giving anyone full-time hours, you might be a typical American worker.
#7 If you are required to watch a mindless “training video” after being hired, you might be a typical American worker.
#8 If the company you work for is owned by someone on the other side of the world, you might be a typical American worker.
#9 If a trained seal could do your job and you feel like your expensive education is going to waste, you might be at typical American worker.
#10 If you don’t have any health insurance at all, you might be a typical American worker. Only about 25 percent of all part-time workers in the United States receive employee benefits such as health insurance or paid sick leave.
#11 If your car is older than your kids are, you might be a typical American worker.
#12 If you can’t afford to buy the things that you are selling to the public, you might be a typical American worker.
#13 If the balances on your credit cards are larger than your bank accounts are, you might be a typical American worker.
#14 If going to Burger King is your idea of “fine dining”, then you might be a typical American worker.
#15 If it costs more to fill up your car with gas than you will make at your job today, you might be a typical American worker. The price of gasoline has increased by 83 percent since Barack Obama first took office, and the average cost of a gallon of gas in the United States is now up to $3.52.
#16 If you eat your cereal with a fork so that you can save milk, you might be a typical American worker.
#17 If your electricity bill keeps going up but your paycheck never does, you might be a typical American worker.
#18 If it feels like you are losing an organ every time you pay for health insurance each month, you might be a typical American worker.
#19 If you feel like your employer is constantly tempted to replace you with someone younger and cheaper, then you might be a typical American worker.
#20 If you are so poor that you cannot even afford to pay attention, you might be a typical American worker.
Unfortunately, a lot more Americans are going to be forced into working these kinds of jobs if current trends continue.
Since the year 2000, we have lost 10% of our middle class jobs even though our population has increased by more than 30 million since then. In the year 2000 there were about 72 million middle class jobs in the United States, but today there are only about 65 million middle class jobs.
The lack of good jobs in America has some very real consequences. In particular, our young adults are really feeling the pain of not being able to find quality employment.
According to a recent poll conducted by Generation Opportunity, huge numbers of Americans in the 18 to 29 year old age bracket are delaying major life decisions due to the poor economy….
-44% are delaying buying a home
-28% are delaying saving for retirement
-27% are delaying paying off student loans or other debt
-27% are delaying going back to school or getting more education
-23% are delaying starting a family
-18% are delaying getting married
All of those things take a lot of money, and if you simply don’t have the money it makes things really tough.
Sadly, the economy is about to get even worse.
As I have written about previously, what is going on in Greece right now is a warning sign for the rest of the world, and we are on the precipice of another major global financial crisis.
There are an increasing number of voices in the financial world that believe that we are going to see a Greek default in March. So will this actually happen? I certainly don’t know. But what some folks are currently saying about the situation sure does make for interesting reading.
In the old days, you could graduate from college, get a good job, work for the same company for 30 years, save up for retirement and count on a comfortable life in your old age.
That paradigm is now totally shattered. The entire global economic system is in a state of chaos and things change faster today than they ever have before.
If you have a job today, it may be gone tomorrow.
The financial institution or insurance company that you are working with today may be out of business by next month.
We live in a world that is becoming increasingly unstable. That is why it is imperative to try to become more self-sufficient and less dependent on the system.
It is tough to plan in such an environment, but one thing is for sure – tough times are coming and things are not going to get any easier than they are now.
Have you ever heard of the dodo bird? Once upon a time, dodo birds lived on the island of Mauritius in the Indian Ocean. But if you go there today you won’t find any because they are extinct. Well, if you are a blue collar worker in America today it looks like you are headed for a similar fate. Blue collar workers are truly becoming an “endangered species” in the United States. In the old days, the balance of power between business owners and labor was more even because they both needed each other. But today that has all changed. Thanks to robotics, automation and computers there is simply not as much of a need for physical laborers anymore and nothing is going to reverse that trend. Big employers will continue to look for ways to replace men with machines, and there is nothing wrong with that. But there is another major trend that is also destroying blue collar jobs in America that we should do something about. Right now, it is perfectly legal for big corporations to shut down manufacturing facilities in the United States and send the jobs over to nations on the other side of the globe where it is legal to pay slave labor wages and where there are barely any regulations. As you will see later on this article, this has been the biggest reason for the shocking blue collar job losses in America over the past decade. The big corporations don’t care that you need to pay the mortgage and put food on the table for your families. All they care about it the bottom line, and if dramatic changes are not made soon, the number of blue collar jobs leaving the United States will continue to increase.
Once upon a time, almost everyone who wanted a job in America could get one. If you go back a few decades, you will find that about 95 percent of all men between the ages of 25 and 54 had a job. Today that figure is struggling to stay above 80 percent.
If you are a blue collar worker in America, you are simply not valued. Your bosses are constantly trying to think of ways to replace you or send your job overseas.
According to Reuters, 23.7 million American workers are either unemployed or underemployed right now. The more “blue collar” you are, the more likely you are to be unemployed. The following chart that shows the unemployment rate during 2010 broken down by level of education comes from the Bureau of Labor Statistics….
If you are an unskilled worker in America today, you simply are not needed. Yes, once upon a time nearly anyone could go out and get a factory job, but those days are over. Neither major political party seems the least bit interested in trying to keep manufacturing jobs in America.
Back in the year 2000, more than 20 percent of all jobs in America were manufacturing jobs. Today, about 5 percent of all jobs in America are manufacturing jobs.
To have that huge of a shift in a little over a decade is absolutely mind blowing.
Many Americans had been hoping that Barack Obama would stand up for the working man like he promised to do. But just like so many of Obama’s other promises, that one was totally worthless as well.
The Obama administration has been pushing hard for even more “free trade” deals that will allow big corporations to ship even more of our jobs out of the country. The Obama administration simply does not value blue collar jobs at all. In fact, U.S. Trade Representative Ron Kirk is running around telling the press that there are lots of things that “we don’t want to make in America” anymore.
If you are a blue collar worker, Barack Obama does not care about you.
He never cared about you.
In fact, the vast majority of the politicians in both major political parties do not care about you.
What they do care about is winning elections and taking care of the big donors that keep helping them win elections.
Many of those donors are systematically shipping huge numbers of our jobs overseas.
In addition, now that labor has become a “global commodity”, wages for the jobs that remain in America are being steadily driven lower.
We were told that the “one world economy” would be great for America, but the truth is that it has only been great for the giant corporations. For the average working man, it has been a disaster.
But we should have all seen this coming. It didn’t take a genius to figure out what was going to happen once you put American workers into the same labor pool as slave laborers on the other side of the world. After all, what greedy corporate executive really wants to pay U.S. workers ten to twenty times as much compensation just because it is the “right” thing to do?
Today, formerly great cities all over America are being transformed into hellholes while shiny, new industrial cities are popping up all over China.
For example, a couple of decades ago the Chinese city of Shenzhen was a sleepy little fishing town.
In 2012, it is a teeming metropolis of over 13 million people.
Foxconn (the builder of iPhones, iPads and many other products that we buy) runs a factory in Shenzhen that employs over 400,000 people. Most of those people work for about a dollar an hour.
A recent article posted on Business Insider described the incredibly long hours and the nightmarish working conditions that those workers must endure. The following is a brief excerpt from that article….
A Chinese working “hour” is 60 minutes–unlike an American “hour,” which generally includes breaks for Facebook, the bathroom, a phone call, and some conversation. The official work day in China is 8 hours long, but the standard shift is 12 hours. Generally, these shifts extend to 14-16 hours, especially when there’s a hot new gadget to build.
At Foxconn, they don’t really care about the health and safety of the workers. Workers are expected to do the same repetitive tasks as rapidly as they can for as long as they can. When their bodies break down, they are fired….
Some workers can no longer work because their hands have been destroyed by doing the same thing hundreds of thousands of times over many years (mega-carpal-tunnel). This could have been avoided if the workers had merely shifted jobs. Once the workers’ hands no longer work, obviously, they’re canned.
But the Obama administration insists that allowing big corporations to ship our jobs over to countries with working conditions like that is “good for the economy”.
Well, it might be good for the profits of the largest corporations, but it is a total nightmare for the rest of us. Just consider the following stats….
*The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.
*Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.
*In all, more than 56,000 manufacturing facilities in the United States have shut down since 2001.
*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.
*According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades.
Are you starting to get the picture?
If you are a blue collar worker that cannot find a job, it is not because you have failed as a human being.
Rather, the truth is that you cannot find a job because of the failed trade policies of the federal government.
We are experiencing the bitter fruit of a “one world economy”. Globalization was never intended to make the lives of American workers better, and now many are finally waking up and realizing this.
Hopefully, as Americans wake up on these issues they will fight to turn this nation in a more positive direction.
Unfortunately, way too many Americans are giving up hope completely. The following comes from a recent article in the Guardian….
The year 2011 will be remembered as the time when many ever-optimistic Americans began to give up hope. President John F Kennedy once said that a rising tide lifts all boats. But now, in the receding tide, Americans are beginning to see not only that those with taller masts had been lifted far higher, but also that many of the smaller boats had been dashed to pieces in their wake.
As I have written about so many times, we are watching the middle class in America be systematically destroyed.
The economy is not getting better. There may be moments when the economy seems like it is improving, but the reality is that we are mired in a nightmarish long-term decline. If you are not yet convinced of this, please see this article and this article.
Even those running our economy are saying that things are not going to be getting much better any time soon.
For example, the President of the Federal Reserve Bank of Chicago, Charles Evans, recently admitted that the employment picture is not going to be much brighter than it is now by the end of 2012. He recently said that “at the end of the year, we’re not going to be very different from 8.5 percent unemployment.”
And remember – history has shown us that most pronouncements by Federal Reserve officials are usually far too optimistic.
If you are a blue collar worker in America, there is simply not too much to be optimistic about right now.
You might want to think about how you and your family are going to survive without any work.
The millions of jobs that have been sent overseas are not coming back. Even if you still have a decent job, now is the time to be developing a side business or developing other alternative streams of income.
What you don’t want to do is to just sit there and hope that somehow things will “magically” turn around if we just vote in the “right” politician.
If you want to get a really good idea of what is really going on with the U.S. economy right now, just go tour some of the formerly great industrial cities in the “Rust Belt”.
In Cuyahoga County, Ohio one out of every five houses is sitting vacant. It is not that those homes are not needed – it is just that there are not nearly enough people with good jobs available to buy up all of the foreclosures.
So thousands of perfectly good houses are being torn down. The following comes from a recent CBS News report by Scott Pelley….
Across America, recession-fueled foreclosures and plummeting home values have left countless properties abandoned and vulnerable to looting. As Scott Pelley reports, the problem has gotten so bad in Cleveland, Ohio, that county officials have demolished more than 1,000 homes this year – and plan to demolish 20,000 more – rather than let the blight spread and render nearby homes worthless.
Can you imagine that?
20,000 homes being demolished in one county alone?
Of course Detroit is in even worse shape than Cleveland. If you can believe it, the median price of a home in Detroit is now just $6000.
It would be great if I could tell you that hope is just around the corner, but it is not. The plight of the blue collar worker in America is going to get worse and worse.
But just because blue collar workers in America are an endangered species does not mean that you have to be a victim.
We should all seek to become less dependent on the system.
If you are completely and totally dependent on having a “job” (just over broke), then you have put yourself in a very vulnerable position.
That job could disappear at any moment.
Over the next few years, the number of good jobs is going to continue to decrease. Things are going to be really tough. But those that have prepared and that have tried to become more independent are going to be in much better shape than those that have not.
Once upon a time, the United States had the largest and most vibrant middle class that the world has ever seen. Unfortunately, that is rapidly changing. The statistics that you are about to read prove beyond a reasonable doubt that the U.S. middle class is dying right in front of our eyes as we enter 2012. The decline of the middle class is not something that has happened all of a sudden. Rather, there has been a relentless grinding down of the middle class over the last several decades. Millions of our jobs have been shipped overseas, the rate of inflation has far outpaced the rate that our wages have grown, and overwhelming debt has choked the financial life out of millions of American families. Every single day, more Americans fall out of the middle class and into poverty. In fact, more Americans fell into poverty last year than has ever been recorded before. The number of middle class jobs and middle class neighborhoods continues to decline at a staggering pace. As I have written about previously, America as a whole is getting poorer as a nation, and as this happens wealth is becoming increasingly concentrated at the very top of the income scale. This is not how capitalism is supposed to work, and it is not good for America.
Today I went over to Safeway and I was absolutely appalled at the prices. I honestly don’t know how most families make it these days. I ended up paying over 140 dollars for about two-thirds of a cart of food. That was after I “saved” 67 dollars on sale items.
When the cost of the basic things that we need – housing, food, gas, electricity – go up faster than our incomes do, that means that we are getting poorer.
Sadly, if you look at the long-term numbers, some very clear negative trends emerge….
-The number of good jobs continues to decrease.
-The rate of inflation continues to outpace the rate that our wages are going up.
-American consumers are going into almost unbelievable amounts of debt.
-The number of Americans that are considered to be “poor” continues to grow.
-The number of Americans that are forced to turn to the government for financial assistance continues to go up.
After you read the information below, it should become abundantly clear that the U.S. middle class is in a whole heap of trouble.
The following are 30 statistics that show that the middle class is dying right in front of our eyes as we enter 2012….
#1 Today, only 55.3 percent of all Americans between the ages of 16 and 29 have jobs.
#2 In the United States today, there are 240 million working age people. Only about 140 million of them are working.
#3 According to CareerBuilder, only 23 percent of American companies plan to hire more employees in 2012.
#4 Since the year 2000, the United States has lost 10% of its middle class jobs. In the year 2000 there were about 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.
#5 According to the New York Times, approximately 100 million Americans are either living in poverty or in “the fretful zone just above it”.
#6 According to that same article in the New York Times, 34 percent of all elderly Americans are living in poverty or “near poverty”, and 39 percent of all children in America are living in poverty or “near poverty”.
#7 In 1984, the median net worth of households led by someone 65 or older was 10 times larger than the median net worth of households led by someone 35 or younger. Today, the median net worth of households led by someone 65 or older is 47 times larger than the median net worth of households led by someone 35 or younger.
#8 Since the year 2000, incomes for U.S. households led by someone between the ages of 25 and 34 have fallen by about 12 percent after you adjust for inflation.
#9 The total value of household real estate in the U.S. has declined from $22.7 trillion in 2006 to $16.2 trillion today. Most of that wealth has been lost by the middle class.
#10 Many formerly great manufacturing cities are turning into ghost towns. Since 1950, the population of Pittsburgh, Pennsylvania has declined by more than 50 percent. In Dayton, Ohio 18.9 percent of all houses now stand empty.
#11 Since 1971, consumer debt in the United States has increased by a whopping 1700%.
#12 The number of pages of federal tax rules and regulations has increased by 18,000% since 1913. The wealthy know how to avoid taxes, but most of those in the middle class do not.
#13 The number of Americans that fell into poverty (2.6 million) set a new all-time record last year and extreme poverty (6.7%) is at the highest level ever measured in the United States.
#14 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.
#16 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.
#17 Most Americans are scratching and clawing and doing whatever they can to make a living these days. Half of all American workers now earn $505 or less per week.
#18 Food prices continue to rise at a very brisk pace. The price of beef is up 9.8% over the past year, the price of eggs is up 10.2% over the past year and the price of potatoes is up 12% over the past year.
#19 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
#20 The average American household will have spent a staggering $4,155 on gasoline by the end of 2011.
#21 If inflation was measured the exact same way that it was measured back in 1980, the rate of inflation in the United States would be well over 10 percent.
#22 If the number of Americans considered to be “looking for work” was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to 11 percent.
#23 According to the Student Loan Debt Clock, total student loan debt in the United States will surpass the 1 trillion dollar mark at some point in 2012. Most of that debt is owed by members of the middle class.
#24 Incredibly, more than one out of every seven Americans is on food stamps and one out of every four American children is on food stamps at this point.
#25 Since Barack Obama took office, the number of Americans on food stamps has increased by 14.3 million.
#26 In 2010, 42 percent of all single mothers in the United States were on food stamps.
#27 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”.
#28 According to a recent report produced by Pew Charitable Trusts, approximately one out of every three Americans that grew up in a middle class household has slipped down the income ladder.
But we never recovered from the last financial crisis. We are like a boxer that is not ready to handle another blow.
And who is going to get hurt the most? It will be those at the bottom of the food chain of course. Tens of millions of Americans that are living in poverty will experience a massive amount of pain, and millions more Americans will fall out of the middle class and will join them.
If you have a good job, do your best to hang on to it. If you don’t have a job, do your best to get one while you still can. Jobs will become very precious in the years ahead.
But also try to do what you can to become less dependent on the system. Almost anyone can find ways to make some extra money on the side. Yes, it will likely cut into your television time. If someday you were to lose your job you don’t want to be left with zero income.
Right now, the U.S. economy is slowly dying and as time goes by the number of middle class Americans it will be able to support will continue to decrease.
Yes, it is like a perverse game of musical chairs, but this is where we are at.
I encourage all of you to think about how you plan to make it through the collapse that is ahead.
Sticking our heads in the sand and pretending that everything is going to be okay is not going to help anyone.
But if we all start planning for the storm that is ahead, and if we get others around us to wake up as well, that is going to do a great deal of good in the long run.
The ratio of government handouts to wages and salaries in the United States is now at an all-time high. According to TrimTabs Investment Research, government handouts have reached a level that is equivalent to 35 percent of all wages and salaries in the United States. Considering the fact that this figure was only 21 percent back in the year 2000 and only 10 percent back in 1960 that is very frightening. The sad truth is that today the American people are more dependent on direct government payments than they ever have been before. What this does is that it takes formerly independent Americans and transforms them into “sheeple” and pets of the government. Today we have tens of millions of Americans that eagerly await the crumbs that the federal government tosses them each month. This is one reason why our national debt is exploding, but our politicians like this system because it enables them to buy votes. Meanwhile, the federal government and the international corporations that dominate our economy have rigged the game so that power and money are becoming increasingly centralized in their hands. As a result of the system that the “big boys” have developed, millions of small businesses across the country are being absolutely crushed, the standard of living of the middle class is gradually being destroyed and more American families slip into poverty ever single day. What we need to do is to dramatically reduce the power of both the federal government and the big corporations so that small businesses and individuals can thrive once again, but instead “activists” such as Michael Moore are out there demanding even more taxes and even more government handouts.
Not that a “safety net” is a bad thing. We simply are not going to allow tens of millions of Americans to starve out in our streets. However, it has gotten to the point where the majority of American families are now dependent on the U.S. government in one form or another and that is very, very wrong.
More government handouts are never a long-term solution to anything. Handouts do not give people dignity. Handouts do not teach people to be independent. Handouts do not enable people to live the “American Dream”. Handouts are not the path to prosperity.
What the American people need are jobs and an environment where small businesses can thrive. But instead, the federal government has allowed the big global corporations to ship millions of our jobs out of the country and the federal government continues to burden our small businesses with an endless array of new taxes and regulations.
Who is successful in America today?
It is the big boys. Everyone else is being crushed.
This is what the founding fathers tried to warn us about. They did not want the federal government to have much power at all, and they were deeply suspicious of large corporations.
But we have turned our backs on the principles of the founding fathers.
We should be figuring out how to get back to the America that our founding fathers originally tried to create, but instead all of the attention is being given to “activists” such as Michael Moore who are calling for even more taxes and even more government handouts. The following video is of Michael Moore giving a speech to protesters in Madison, Wisconsin on March 5th, 2011. His speech was entitled “America Is Not Broke”….
Yes, the “little guy” is being absolutely crushed in America today. But for people like Michael Moore the solution is always to tax the middle class more and to pass out even more government handouts.
That isn’t going to solve anything. Most of the ultra-wealthy have turned avoiding taxes into an art form. A third of all the wealth in the world is now held in “offshore banks“. Many of our largest corporations don’t pay a dime in federal taxes even as they pass out multi-million dollar bonuses to their executives.
Raising taxes in most definitely not the answer. Those that have mastered the art of avoiding taxes will continue to do so no matter how high you raise them.
The truth is that we need to shut down the IRS and scrap the current tax system entirely. It simply does not work.
What we need to do is to get the federal government and the big corporations under control and transfer the power back to the American people.
That is what our founding fathers intended. They intended for the common man to be empowered to start businesses, create wealth and pursue happiness.
But instead tens of millions of Americans have become addicted to government handouts. When large numbers of people give up and willingly become wards of the government that is not good for society.
Unfortunately, more Americans today are dependent on the U.S. government than ever before. Just consider the following statistics….
-According to TrimTabs Investment Research, social welfare benefits in the United States have risen by $514 billion over the past two years alone.
-As 2007 began, only about 26 million Americans were on food stamps, but today over 44 million Americans are now on food stamps.
-Over 50 million Americans are now on Medicaid.
-Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 American is on Medicaid.
-Right now the U.S. government is either writing or guaranteeing well over 90 percent of all mortgages in the United States.
-It is being projected that extended unemployment benefits will cost the federal government $34 billion over the next two years.
-30 U.S. states have borrowed a total of $41.5 billion from the federal government just so that they could continue paying out unemployment benefits during the recession.
-Entitlement programs such as Social Security and Medicare now account for 58% of all U.S. government spending.
But what else should we expect? The federal government has been using a sledgehammer to endlessly pound away on the capacity of small businesses and individuals to create wealth and jobs and opportunities. The business atmosphere in the United States is now so toxic that it is amazing that any small businesses have survived.
Most Americans find themselves with no other way to make a living other than to work for someone else. But the big global corporations have discovered that they can make much larger profits by getting rid of American workers and by shipping our jobs overseas and our politicians are allowing them to get away with it.
The truth is that both political parties don’t have the answers. Neither party seems to have any clue about how to stop millions of jobs from leaving the United States and neither party seems to have any clue about how to create a business environment inside the United States where individuals and small businesses can actually thrive.
How much longer will it be before we all finally admit that we are experiencing total system failure in this country? Should we all just quit trying and sit on our couches waiting for the next government handout? The truth is that there aren’t nearly enough jobs for all Americans anyway.
The middle class is dying and the establishment has us all fighting with each other. The left and the right are busy fighting about taxes and budget cuts while the ultra-wealthy continue to enjoy massive profits and incredibly low taxes in the globalized economic system that we have allowed our politicians to create.
Yes, there are tens of millions of Americans that are deeply suffering right now and they need to be helped.
But government handouts are never a long-term solution to anything. What we need to do is to massively reduce the power of the federal government, massively reduce the power of the big corporations and stop businesses and jobs from being shipped out of the country. We also need to create an environment in the United States that is very favorable to small businesses. That would give our country a chance to start creating good jobs again.
But instead, we continue to allow our politicians to destroy our economy. We actually have 10 percent fewer middle class jobs in this country than we did just ten years ago. The middle class is being systematically destroyed. All of the wealth and all of the power are slowly being transferred into the hands of big government and the big corporations.
The vast majority of the rest of us are being transformed from strong, independent, prosperous Americans into dehumanized sheeple that can’t wait for the next government check to come in.
Does anyone out there actually believe that this is what our founding fathers originally intended?
From now on, whenever you hear the term “the global economy” you should immediately equate it with the destruction of the U.S. middle class. Over the past several decades, the American economy has been slowly but surely merged into the emerging one world economic system. Unfortunately for the middle class, much of the rest of the world does not have the same minimum wage laws and worker protections that we do. Therefore, the massive global corporations that now dominate our economy are able to pay workers in other countries slave labor wages and import the products that they make into the United States to compete with products made by “expensive” American workers. This has resulted in a mass exodus of manufacturing facilities and jobs from the United States.
But without good, high paying jobs the U.S. middle class cannot continue to be the U.S middle class. The only thing that the vast majority of Americans have to offer in the economic marketplace is their labor. Sadly, that labor has now been dramatically devalued. American workers now must directly compete for jobs with millions upon millions of workers on the other side of the world that toil away for 15 hours a day at slave labor wages. This is causing jobs to leave the United States at an almost unbelievable rate, and it is putting tremendous downward pressure on the wages of millions of jobs that are still in the United States.
So when you hear terms such as “globalization” and “the global economy”, it is important to keep in mind that those are code words for the emerging one world economic system that is systematically wiping out the U.S. middle class.
A one world labor pool means that the standard of living for the U.S. middle class will continue falling toward the standard of living in the third world.
We keep hearing about how the U.S. economy is being transformed from a “manufacturing economy” into a “service economy”. But “service jobs” are generally much lower paying than “manufacturing jobs”. The number of good paying “middle class jobs” in the United States is rapidly decreasing. So how can the U.S. middle class survive in such an environment?
What makes things even worse for manufacturers in the United States is that other nations often impose a “value-added tax” of 20 percent or more on U.S. goods entering their shores and yet most of the time we do not reciprocate with similar taxes.
But whenever someone mentions how incredibly unfair and unbalanced our trade agreements with other nations are, they are immediately labeled as a “protectionist”.
Well, someone should be looking out for U.S. interests when it comes to trade, because the current state of the global economy is ripping the U.S. middle class to shreds.
Right now, the United States consumes far more wealth than it produces. This nation buys much, much more from the rest of the world than they buy from us. This is called a “trade deficit”, and it is one of the most important economic statistics. The U.S. runs a massive trade deficit every single year, and it is wiping out our national wealth, it is destroying our surviving industries and it is absolutely shredding middle class America.
We cannot allow tens of thousands of factories to continue to leave the United States. We cannot allow millions of jobs to continue to be “outsourced” and “offshored”. We cannot allow tens of billions of dollars of our national wealth to continue to be transferred into foreign hands every single month.
The truth is that the global economy is bad for America. The following are 23 facts which prove that globalism is pushing the standard of living of the middle class down to third world levels….
#4 The U.S. economy is rapidly trading high wage jobs for low wage jobs. According to a new 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.
#5Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.
#6 In Germany, exports account for approximately 40 percent of GDP. In China, exports account for approximately 30 percent of GDP. In the United States, exports account for approximately 13 percent of GDP.
#7 Do you remember when the United States was the dominant manufacturer of automobiles and trucks on the globe? Well, in 2010 the U.S. ran a trade deficit in automobiles, trucks and parts of $110 billion.
#8 In 2010, South Korea exported 12 times as many automobiles, trucks and parts to us as we exported to them.
#9 The U.S. economy now has 10 percent fewer “middle class jobs” than it did just ten years ago.
#10 The United States currently has 7.7 millionfewer payroll jobs than it did back in December 2007.
#11 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.
#12 In 2002, the United States had a trade deficit in “advanced technology products” of $16 billion with the rest of the world. In 2010, that number skyrocketed to $82 billion.
#13 The United States now spends more than 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
#14 In China, working conditions are so bad that large numbers of “employees” regularly try to commit suicide. One major employer, Foxconn, has even gone so far as to install “anti-suicide nets” in an attempt to keep their employees from jumping off of their buildings.
#15 Wages for workers in China are incredibly low. For example, one facility in the city of Longhua that makes iPods employs approximately 200,000 workers. These workers put in endless 15-hour days but they only make about $50 per month.
#16 In Bangladesh, manufacturing workers toil in absolutely horrific conditions and make an average of about $38 per month.
#17 In Vietnam, teenage workers often work seven days a week for as little as 6 cents an hour making promotional Disney toys for McDonald’s.
#18 Since 2001, over 42,000 manufacturing facilities in the United States have been closed.
#19 Half of all American workers now earn $505 or less per week.
#218.4 million Americans are currently working part-time jobs for “economic reasons”. These jobs are mostly very low paying service jobs.
#22 When you adjust wages for inflation, middle class workers in the United States make less money today than they did back in 1971.
#23 According to Willem Buiter, the chief economist at Citigroup, China will be the largest economy in the world by the year 2020, and India will surpass China by the year 2050.
Those that promote “free trade” can never explain how the U.S. middle class is going to continue to have plenty of jobs in the new global economy.
By merging our labor pool with the rest of the world, we have also merged our standard of living with the rest of the world. High unemployment is rapidly becoming “the new normal” in America, and wages are going to continue to decline in many, many industries.
Already, there are quite a few formerly great U.S. cities (such as Detroit) that are beginning to resemble third world hellholes. If something is not done about our massive trade imbalance, even more cities are going to follow Detroit into oblivion.
Unfortunately, most of our politicians continue to insist that globalism is good for our society. They continue to insist that we should not be worried that jobs formerly done by middle class American workers are now being done by slave laborers on the other side of the globe. They continue to insist that having 43 million Americans on food stamps is a temporary thing and that soon our economy will be better than ever.
Well, it is time to stop listening to the politicians that are promoting “the global economy”. They are lying to us.
Globalism is great for nations such as China and it is helping multinational corporations make huge profits, but for the U.S. middle class it is an economic death sentence.
If you want an America where there are less jobs, where more Americans are on food stamps and other anti-poverty programs and where our cities continue to be transformed into deindustrialized hellholes, then you should strongly support the emerging global economy.
But if you care about the standard of living of the U.S. middle class and you want for there to be some kind of viable economic future for your children and your grandchildren then you had better start caring about these issues and doing something about them.