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Goodbye middle class: 51 percent of all American workers make less than 30,000 dollars a year

OWoN: Well Hello Reality Check. We are now a Banana Republic?

The time to rebuild America is now, not tomorrow. Now! If the middle class is not rebuilt in America, the country will change so radically that in another decade it will no longer resemble the country it was only a decade ago.

Canada is not much different. No amount of education, or lack there of, creates prosperity for youth if new job creation is not forthcoming.

Without youth employment, the very way of life for elder people is changing before our eyes, as the systems stall due to a lack of availed capital leading to mass deficit spending, until the money just runs out as it is doing in various States or provinces in Canada. What happens is Health Care stops. Or worse, cities and states go bankrupt and thus denying in real time people care based on false promises that never could, or were intended to be kept. The parties over, you die alone.

And yes, forget Government as a solution. They are the problem, but try everything to convince everyone that they matter. They only matter to the extent of trying to preserve themselves at the expense of the public as history has shown. That is why it is only a short time before all Western countries will face a Sovereign Debt Crisis which will bring home the realities.

When those taps turn off and checks stop, what then?




Goodbye middle class: 51 percent of all American workers make less than 30,000 dollars a year


End of the American Dream
By Michael Snyder
20 October 2015

We just got more evidence that the middle class in America is dying. According to brand new numbers that were just released by the Social Security Administration, 51 percent of all workers in the United States make less than $30,000 a year. Let that number sink in for a moment. You can’t support a middle class family in America today on just $2,500 a month – especially after taxes are taken out. And yet more than half of all workers in this country make less than that each month. In order to have a thriving middle class, you have got to have an economy that produces lots of middle class jobs, and that simply is not happening in America today.

You can find the report that the Social Security Administration just released right here. The following are some of the numbers that really stood out for me…

-38 percent of all American workers made less than $20,000 last year.

-51 percent of all American workers made less than $30,000 last year.

-62 percent of all American workers made less than $40,000 last year.

-71 percent of all American workers made less than $50,000 last year.

That first number is truly staggering. The federal poverty level for a family of five is $28,410, and yet almost 40 percent of all American workers do not even bring in $20,000 a year.

If you worked a full-time job at $10 an hour all year long with two weeks off, you would make approximately $20,000. This should tell you something about the quality of the jobs that our economy is producing at this point.

And of course the numbers above are only for those that are actually working. As I discussed just recently, there are 7.9 million working age Americans that are “officially unemployed” right now and another 94.7 million working age Americans that are considered to be “not in the labor force”. When you add those two numbers together, you get a grand total of 102.6 million working age Americans that do not have a job right now.

So many people that I know are barely scraping by right now. Many families have to fight tooth and nail just to make it from month to month, and there are lots of Americans that find themselves sinking deeper and deeper into debt.

If you can believe it, about a quarter of the country actually has a negative net worth right now.

What that means is that if you have no debt and you also have ten dollars in your pocket that gives you a greater net worth than about 25 percent of the entire country. The following comes from a recent piece by Simon Black

Credit Suisse estimates that 25% of Americans are in this situation of having a negative net-worth.

“If you’ve no debts and have $10 in your pocket you have more wealth than 25% of Americans. More than 25% of Americans have collectively that is.”

The thing is– not only did the government create the incentives, but they set the standard.

With a net worth of negative $60 trillion, US citizens are just following dutifully in the government’s footsteps.

As a nation we are flat broke and most of us are living paycheck to paycheck. It has been estimated that it takes approximately $50,000 a year to support a middle class lifestyle for a family of four in the U.S. today, and so the fact that 71 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.

Needless to say, a tremendous squeeze has been put on the middle class. In many families, both the husband and the wife are working as hard as they can, but it is still not enough. 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.

Sadly, the trends that are destroying the middle class in America just continue to accelerate.

With a huge assist from the Republican leadership in Congress, Barack Obama recently completed negotiations on the Trans-Pacific Partnership. Also known as Obamatrade, this insidious new treaty is going to cover nations that collectively account for 40 percent of global GDP. Just like NAFTA, this treaty will result in the loss of thousands of businesses and millions of good paying American jobs. Let us hope and pray that Congress somehow votes it down.

Another thing that is working against the middle class is the fact that technology is increasingly taking over our jobs. With each passing year, it becomes cheaper and more efficient to have computers, robots and machines do things that humans once did.

Eventually, there will be very few things that humans will be able to do more cheaply and more efficiently than computers, robots and machines. How will most of us make a living when that happens?

The robopocalypse for workers may be inevitable. In this vision of the future, super-smart machines will best humans in pretty much every task. A few of us will own the machines, a few will work a bit… while the rest will live off a government-provided income… the most common job in most U.S. states probably will no longer be truck driver.

For decades, we have been training our young people to have the goal of “getting a job” once they get out into the real world. But in America today there are not nearly enough good jobs to go around, and this crisis is only going to accelerate as we move into the future.

I do not believe that it is wise to pin your future on a corporation that could replace you with a foreign worker or a machine the moment that it becomes expedient to do so. We need to start thinking differently, because the paradigms that worked in the past are fundamentally breaking down.

So what advice would you give to a young adult today that is looking toward the future?

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3 comments :

  1. "I do not believe that it is wise to pin your future on a corporation that could replace you with a foreign worker or a machine the moment that it becomes expedient to do so. We need to start thinking differently, because the paradigms that worked in the past are fundamentally breaking down.

    So what advice would you give to a young adult today that is looking toward the future?"

    It doesn't have to be that way, we make the choice. Through planning, cooperation, learning to overcome our differences and stepping forward in thought and deed we can make a tomorrow much better than we had.

    Many communities across this country have already learned that they can create a sustainable economy with good paying jobs and strengthened community.

    This can be done, but the people within a community have to make the choice. Setting a community goal and working towards it, changing the way when needed, monitoring results, and continually honing and improving for the benefit for all.

    New enterprises tested before tried so that funds aren't wasted and those that show promise worked on with knowledge it's just not a crap shoot, but has a chance to make it.

    ReplyDelete
  2. Let's call a spade a spade. The problem is the type of currency we use: debt.

    Interest rates, inflation and the economy based on fiat debt notes based on a fractional reserve banking system mean that advanced economies can not go below 5% unemployment before they 'overheat'.

    What a load of bollocks. How can there be 'too much employment'? How can currency itself have a price in terms of an interest rate.

    A government would not need to issue bonds (borrow) if its treasury could just produce its own without paying the BIS system. Income tax could be abolished and community infrastructure paid for by either a consumption tax or by sovereign funds based on equity.

    Once we rid ourselves of the need for trading platforms, interest, onflation/deflation, debt-as-currency the picture painted by the article above would be very different.

    ReplyDelete
  3. AJ, you're right and that's why we must return to a system that has real value. The current system is imploding in on itself with rising inflation, ever higher unemployment, a degrading middle class and much more all to the negative. With that comes the opportunity to change things for the better.


    ReplyDelete

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