22 Statistics That Prove The Middle Class Is Being Systematically Wiped Out Of Existence In America

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DrKrbyLuv's picture
DrKrbyLuv
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22 Statistics That Prove The Middle Class Is Being Systematically Wiped Out Of Existence In America

                               

Business Insider  - complete article link

The 22 statistics that you are about to read prove beyond a shadow of a doubt that the middle class is being systematically wiped out of existence in America.

The rich are getting richer and the poor are getting poorer at a staggering rate. Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a blinding pace.

So why are we witnessing such fundamental changes? Well, the globalism and "free trade" that our politicians and business leaders insisted would be so good for us have had some rather nasty side effects. It turns out that they didn't tell us that the "global economy" would mean that middle class American workers would eventually have to directly compete for jobs with people on the other side of the world where there is no minimum wage and very few regulations. The big global corporations have greatly benefited by exploiting third world labor pools over the last several decades, but middle class American workers have increasingly found things to be very tough.

The reality is that no matter how smart, how strong, how educated or how hard working American workers are, they just cannot compete with people who are desperate to put in 10 to 12 hour days at less than a dollar an hour on the other side of the world. After all, what corporation in their right mind is going to pay an American worker ten times more (plus benefits) to do the same job? The world is fundamentally changing. Wealth and power are rapidly becoming concentrated at the top and the big global corporations are making massive amounts of money. Meanwhile, the American middle class is being systematically wiped out of existence as U.S. workers are slowly being merged into the new "global" labor pool.

So corporations are moving operations out of the U.S. at breathtaking speed. Since the U.S. government does not penalize them for doing so, there really is no incentive for them to stay.

What has developed is a situation where the people at the top are doing quite well, while most Americans are finding it increasingly difficult to make it. There are now about 6 unemployed Americans for every new job opening in the United States, and the number of "chronically unemployed" is absolutely soaring. There simply are not nearly enough jobs for everyone.

The truth is that the middle class in America is dying -- and once it is gone it will be incredibly difficult to rebuild. 

  1. 83 percent of all U.S. stocks are in the hands of 1 percent of the people.

  2. 61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007.
  3. 66% of the income growth between 2001 and 2007 went to the top 1% of all Americans.
  4. 36 percent of Americans say that they don't contribute anything to retirement savings.
  5. A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
  6. 24% of American workers say that they have postponed their planned retirement age in the past year.
  7. Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
  8. Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.
  9. For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.

  10. In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
  11. As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
  12. The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
  13. Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.

  14. In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
  15. The top 1% of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.
  16. In America today, the average time needed to find a job has risen to a record 35.2 weeks.
  17. More than 40% of Americans who actually are employed are now working in service jobs, which are often very low paying.

  18. For the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.
  19. This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
  20. Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
  21. Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.The top 10% of Americans now earn around 50% of our national income.
  22. The top 10% of Americans now earn around 50% of our national income.

 

 

A global war between the international financial theocracy (moneyed elite, banking cartel) and national democratic / constitutional nation states (middle class) has been raging for decades.  Unfortunately; no one bothered to tell the middle class that they were under attack and most haven't yet figured out that they are being ravaged and plundered like so many third world countries in South America, Africa and the Muslim Middle East.

Larry

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V
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Re: 22 Statistics That Prove The Middle Class Is Being ...

Larry 

I think you must have been on vacation. This article was posted here somewhere not too long ago. If I can find it I will tell you where.

V

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Re: 22 Statistics That Prove The Middle Class Is Being ...
Business Insider (DrKrbyLuv) wrote:

So corporations are moving operations out of the U.S. at breathtaking speed. Since the U.S. government does not penalize them for doing so, there really is no incentive for them to stay.

Hmm, perhaps it's the opposite.  The government is punishing companies so much there is no incentive to stay?

I think this article is a lot of fluff to push the authors statist point of view.  At any rate, if you look at Table 3 in this article, you see that wealth in the top 1% versus the next 99% has not changed all the much between 1992 and today.  If you look at table 1, in the same article you can see that wealth has actually moved from the very top and bottom to the top 20%, but still not a dramatic change.

If we look at  table 2 in the article you showed, which I think is whacked because it says wealth is assets and liabilities, it shows the wealth has grown fastest in the opposite of the argument.  It shows the bottom have had a 600% increase in weatlh versus the top 1% having only 36% gain.

Don't get me wrong, I think the middle class is being robbed and destroyed but I  think this article tries to vilify businesses and the wealthy rather than point out some of the issues like:

1) Spending versus savings - have it all now attitude that has taken over our culture.

2) Ultralow interest rates, 0% down, that encourage debt over saving to buy products.

3) Low interest returns on savings that promote spending - why save?

4) Government subsidies that encourage irresponsible spending - particularly on housing - tax deductions, loan guarantees, etc.

Much of this caused by distortions in the market by the Fed and governments, just remember Pelosi's recent comment - don't worry - you can quit your job and be an artist because the government will take care of your health care.

I also believe many of these statistics probably are still warped by the current financial issues.  When all the loans, derivatives, stocks get valued appropriately, I suspect the distributions will change substantially to the debtors that own property versus those that own stocks and bonds.  This will shift the distribution considerably.  Not that it will help, as it just means we all got poorer.

Chris covered a lot of this in "No Exit - The Coming Wealth Trap".

 

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Re: 22 Statistics That Prove The Middle Class Is Being ...

Yeah, the putz when on vacation and didn't tell anyone when or where he was going.....what an arse!Tongue out

No really, I missed you man!  V, you're not allowed a vacation without telling me either.....I'll start to think Black Helicopters came in and took you away.  If I go missing for longer than 5 days, you can BET I'm in either an unmarked grave or unmarked cell somewhere.....FrownEmbarassedCryYellSealed

V wrote:

Larry 

I think you must have been on vacation. This article was posted here somewhere not too long ago. If I can find it I will tell you where.

V

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So Which One Do You Want? Free Enterprise Or Protectionism?

So which is it that you want?

Free Enterprise, which means corporations are free to lobby Congress for special favors, locate factories overseas and pay workers pennies on the dollar because business always looks to lower costs - whether wages or regulatory?

Or Protectionism, which means we protect our industries and key manufacturies and tariff goods imports?

Poet

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Re: So Which One Do You Want? Free Enterprise Or ...
poet wrote:

So which is it that you want?

None of the above - your falling for the same false choices we get with so many other issues.

poet wrote:

Free Enterprise, which means corporations are free to lobby Congress for special favors,

Your First option isn't free Enterprise as Congress should not be involved at all so there would be no lobbying since they couldn't hand out special favors.  Without the special favors, favorite company subsidies, and misdirection of capital via bogus interest rates, we might not be where we are today.

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Re: 22 Statistics That Prove The Middle Class Is Being ...

V wrote:

I think you must have been on vacation. This article was posted here somewhere not too long ago.

Yup, I was on vacation at the shore and for most of that time, I stopped listening and reading about the news here or anywhere else.  And for the past two weeks I haven't put on a pair of shoes (sandals and flip flops only) or socks.  It was really nice to get away with my family.  Sorry if I was repetitive in my post. 

LogansRun wrote:

.....I'll start to think Black Helicopters came in and took you away. If I go missing for longer than 5 days, you can BET I'm in either an unmarked grave or unmarked cell somewhere....

LOL!  Your well placed friends from the dark side will surely bail you out or at least provide a cell with a view at Gitmo.  Speaking of the tyrannical governBank; while I was away I happened to park next to a guy with a "9-11 Truth" bumper sticker...and he noticed my "End the Fed" - "Before they End US" sticker...we both smiled and instantly became friendly.

No matter where I go, I always find warm camaraderie and great conversation with other activists.  

Larry  

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Re: 22 Statistics That Prove The Middle Class Is Being ...

I'd like to cross reference the number of people with economic hardship with the amount of children they are having.  All the factors addressed above have merit, but children play a role in the economic future of the parents.

Bottom line, quickest way to the poor house is to have more kids than you can provide for.  And I don't mean a new iPhone every 6 months.  People need to understand that just b/c you can reproduce...doesn't mean you have to.  For the average family, children are a significant financial burden.

The population boom is entirely overlooked, imo.  Jobs going oversees is huge...but how many jobs are out there.  There are 300+ million in the US, and how many within a productive labor age?  

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Re: 22 Statistics That Prove The Middle Class Is Being ...
rhare wrote:

1) Spending versus savings - have it all now attitude that has taken over our culture.

2) Ultralow interest rates, 0% down, that encourage debt over saving to buy products.

3) Low interest returns on savings that promote spending - why save?

4) Government subsidies that encourage irresponsible spending - particularly on housing - tax deductions, loan guarantees, etc.

Much of this caused by distortions in the market by the Fed and governments, just remember Pelosi's recent comment - don't worry - you can quit your job and be an artist because the government will take care of your health care.

I also believe many of these statistics probably are still warped by the current financial issues.  When all the loans, derivatives, stocks get valued appropriately, I suspect the distributions will change substantially to the debtors that own property versus those that own stocks and bonds.  This will shift the distribution considerably.  Not that it will help, as it just means we all got poorer.

Chris covered a lot of this in "No Exit - The Coming Wealth Trap".

Come on, rhare. Who benefits from those policies you listed? You know very well that lower/middle class people do not benefit from policies that encourage them to take on debt and spend rather than save. Yes they could live beyond their means for some years, but it was all illusory wealth that is getting wiped out a lot faster than it was conjured up. The top 1%, and specifically financial elites, have continued to benefit greatly from these misallocations of capital even after stocks, derivates, loans, etc. lost a lot of value. How? Because they transfer the losses to taxpayers courtesy of the UST and the Fed, and then get free money to continue gambling in those markets, just so they can cash out before the next huge leg down in asset prices. Not all of us are going to get poorer if things continue on the same path, only the large swath of people who unfortunately believed they could achieve an "American Dream:" while billions of people suffered around the world at the hands of corporate elites and corrupted government institutions.

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Re: 22 Statistics That Prove The Middle Class Is Being ...

i suppose i fall into the category of constitutionalist (within reason).  i am not a religious fanatic.  i am for smaller government and less government spending.  i believe in hard work and self reliance.  i am against the government fostering a class of dependency in an effort to keep politicians of the democratic party in power.  i have never been to a tea party.

i hope you realize that the fatal flaw in our system is approaching.  the flaw is when 51 percent of the voting population votes in politicians who state that if they are elected they will tax the capital out of the most productive companies and members of our society and redistribute it to the least productive. 

i have been aware of the data presented at the beginning of this thread for some time.  it is a real problem.  corporate boards have abdicated their responsibilities to manage executive pay and bonuses properly.  many millions of decent paying jobs have been exported.  globalization is here and in action.  this is a very difficult problem to manage.

 i think part of the problem is our current crop of politicians no longer feels required to generate or vote for legislation that represents the views of their own constituents.  there is a name for this type of political behavior - it is called tyranny.  this is a very troubling turn of events and unless this trend is stopped and reversed there is going to be a major social problem(s).  the democrats are on an historic deficit spending spree against the will of the majority of the people.  the majority did not want the health care bill that was passed.  the majority do not want an amnesty for illegals.  the majority did not want the last supreme court justice to be seated.  the majority do not want the currently nominated justice to be seated.  the majority do not want cap and trade.  this stuff just seems to go on and on.

the imposition of tyranny upon the people of america is going to be resisted.  as more tyranny is imposed and more coercion is required to impose it, the resistance will increase.  at some point it will spiral out of control and there will be citizens running around with guns.  the saving grace is we still have the election process.  the media is distorting that process by twisting the nature of the data being presented to the people.  take for instance a speech obama made earlier this week about the fact the repubs did not want to pass the unemployment extension because it was going to be funded totally with deficit spending - the repubs wanted the dems to offset the costs of the bill with corresponding cuts to existing spending or show where additional revenue was going to be generated to offset the costs.  the dems refused and just waited until the new guy from WV showed up in the senate and then just passed it anyway on a 60 to 40 vote. in the speech obama referenced the "bush tax cuts" that only benefited the wealthy.  i found that to be an amazing lie.  the truth is the so called bush tax cuts cut the tax rates for every single person who pays federal taxes.  the lower brackets actually reaped the largest benefit.  when the bill expires on jan 1 the lowest tax bracket moves from 10 to 15 percent.  this is a large percentage increase.  and yet, the dems lie about this on a weekly basis and the mainstream media either reinforces the lie or says nothing at all.  i find this an amazing turn of events and believe it or not, many people in america actually believe what they see on tv news shows.  ask people you know if they are aware that the sun setting of the bush tax cuts are going to increase the lowest tax bracket by 50 percent and see what they say - unless they already know the facts they will not believe you.

so, the repubs AND the dems sold out the middle class and now the dems are using that disaster to build a class of dependency to consolidate their political power and heading toward tyranny.  the media is assisting by twisting the data the people get to make decisions on.  WOW !!!  the enemy is not the russians or the chinese or cuba - the enemy is us.  we are taking ourselves down.  it is a sad story.

 

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