Why the US economy is in real serious trouble.
In the world today with so much media attention focused on the disappearance of flight MH 370 and the current crisis in the Ukraine there lies in wait a more sinister, and even more dangerous realm of reality that is poised to ignite flames of open rebellion right here in the good old USA. Discontentment is already spreading. In every major city millions of people have become even more disillusioned. The day to day drudgery carrying out their existence in the hope that their just might be a ray of sunshine on the horizon to end the vicious cycle of financial distress is an all too familiar occurrence. Unfortunately, our wondrous “Wizards” of economic acumen in Washington have yet to get it right. With every piece of legislation that has been forthcoming has failed miserably to end the economic plight that so many millions of Americas have been and are being swept into every day. They say patience is a virtue but, with each legislative measure that has been discussed and passed during the past 40 years has only left a nation whose patience is wearing mighty thin wondering just when will we as nation be able to enjoy the economic prosperity we had during the 1950’s and 60’s.
Maybe, it is just coincidence or could it just be possible that the media is an accomplice by diverting attention away from the harsh realities that the United States remains in? One has to wonder. It was in 1974 when the media became so fixated on Watergate that the public was blind sided by the oil crisis that sent the country into the first real energy crisis. To date we have yet to remedy our energy policies so that any interruption whether it is a natural disaster or not our energy needs will not fail. In every instance so far when an emergency occurs whether it is weather related or not the power is always disrupted leaving millions of citizens literally in the dark.
The storm clouds of anxiety and uncertainty have only gotten darker fueled by a steady decline to an almost extinction of the middle class wage earner. For years ever since the end of World War II the United States had the most robust economy of any nation in the World. We have always prided ourselves as the worlds number one consumer driven economy. We produced most of everything we bought. We had sufficient incomes that propelled the middle class to be the most populous percentage of the population. Our exports went to every corner of the globe. In essence so many were in fact able to attain the “American Dream. Then all of a sudden the United States took a wrong turn and from that point on our whole economy started to go down hill. Some economists point to that turning point to 1973 when President Nixon took the United States off the gold standard as the start of the economic downturn. Still others sight the NAFTA treaty in 1994 as the real reason why our nations economy went sour. Both instances though contributed to the decline of the US dollar and our whole economy.
When you look around today we come to the realization that the middle class wage earner really is a thing of the past. The income disparity gap has only continued to wipe out the middle class leaving a two class society. When a nation has only two dominate classes one a very small percentage controlling the majority of the wealth and one very large majority with so little disposable incomes leaves a nation in acute distress. We have seen it all through-out history when similar scenarios occur opens the door to mass distention. Remember the French Revolution and the Russian Revolution paving the way for the rise of Communism all resulted because of the expansion of a two class society. The United States is precariously close to that realization. If nothing is not done to reverse the widening of the income disparity gap and returning a majority of the population to middle class the future of America is in grave jeopardy.
We have to remember that to return this nation to a three class society where the middle class is the one with the majority of the population and restore our consumer based economy, one that is dependent on consumer spending, saving, and paying down debt you need to have a majority of the middle class. The fulfillment of the Williams Theory of Economic Evolution by the majority of the population is absolutely essential to preserving the United States way of life. For years though the United States has done the exact opposite through policies, laws and trade agreements all have only increased the two class society virtually wiping out the middle class. Pretty soon there will be massive economic changes that will affect every American. And, you can bet your bottom dollar that these changes are only going to be drastic leaving more and more people so destitute that the only recourse they can see is open rebellion against the status quo.
In every city all across the country there are more poor neighborhoods sprouting up. So plighted it really should be a wake up call for our illustrious legislatures. But, as usual they remain transfixed solely on their next political campaign oblivious to what is really going on right under their noses. All over America we are seeing more foreclosures, bank branches, car dealerships and retail stores close down at an alarming rate. If you didn’t know better, you might be tempted to think that “Space Available” was the hottest new retailer in some areas of the nation. Sure there are places where one would think everything was rosy. The harsh reality though is a sobering realization that the United States really is living on borrowed time. When incomes have only continued to shrink, when the cost of living keeps increasing, and when personal as well as the nations debts have reached astronomical proportions is a guaranteed recipe for catastrophe.
Here are 19 facts that back up the realization that the United States definitely is going in the wrong direction, contrary to what the main stream media is reporting and our elected officials keep spouting.
#1 Real disposable income per capita continues to fall. In the fourth quarter of 2012, it was sitting at $37,265. By the time that the fourth quarter of 2013 had come around, it had dropped to $36,941. That means that average Americans have less money to go shopping with than they did previously.
#2 In January, real disposable income in the U.S. experienced the largest year over year decline that we have seen since 1974.
#3 As disposable income decreases, major retailers are closing thousands of stores all over the country. Some are even calling this “ a retail apocalypse“. This only perpetuates an economic domino effect in reverse.
#4 From September 2013 to January 2014, the personal saving rate in the United States dropped by over 20 percent.
#5 During the fourth quarter of 2013, we witnessed the largest increase in consumer debt in this country that we have seen since 2007.
#6 Fewer Americans are applying for mortgages. In fact, the MBA Purchase Applications Index is now the lowest that it has been since 1995.
#7 Overall, the rate of homeownership in the United States has fallen for eight years in a row.
#8 Many Americans are finding it increasingly difficult to afford a new car or truck. A new study shows the average household in 24 of America’s 25 largest metropolitan areas cannot afford to pay for the average priced new car or truck
#9 Incredibly, over 60 percent of all Americans now have “subprime credit” at this point.
#10 Total consumer credit has risen by a whopping 22 percent over the past three years.
#11 In the third quarter of 2007, the student loan delinquency rate was 7.6 percent. Today, it is up over 15 percent.
#12 Overall, U.S. consumers are $11,360,000,000,000 in debt.
#13 While Barack Obama has been in the White House, median household income in the United States has fallen for five years in a row.
#14 U.S. workers are taking home the smallest share of the income that has ever been recorded.
#15 One recent study found that over 60 percent of the jobs that have been “created” since the end of the last recession pay $13.83 or less an hour.
#16 Middle-wage jobs accounted for 60 percent of the jobs lost during the last recession, but they have accounted for less than 20 percent of the jobs created since then.
#17 According to one recent survey, only about 10 percent of all Americans say that they are better off financially than they were a year ago.
#18 In 2008, 25 percent of all Americans in the 18 to 29-year-old age bracket considered themselves to be “lower class”. In 2014, an astounding 52 percent of them do.
#19 The poverty rate in America has been over 30 percent or above for 3 consecutive years. That is the first time that has happened since 1965.
Despite what the mainstream media keeps telling us the majority of Americans really have a gut feeling that something is not right with the direction this nation is headed. We have realized that there is something fundamentally wrong with our economy and yet our most benevolent, most efficient leaders of state are perpetually in a state of denial and really are too blind to see what actually is happening all across the country. It is our leaders who continue to act as if business as usual will get the job done mind frame that is the major hindrance in correcting the direction this country is headed.
It is these 19 statistics and there are more less obvious ones that indicate the United States really is on the wrong track. The hard reality is that still so many want to work and make a decent living but the sad fact remains that today that ability to work and make a decent living is becoming almost impossible to achieve.The question now has to be: how can this nation correct the path we are on and restore the majority of the population to middle class wage earners and achieve the consumer confidence we had during the 1960’s?
To answer that is going to take a monumental reawakening, maybe a non violent revolution that would restore the balance of power to the people and not the special interest groups that funnel masses amounts of money into political campaigns. Overturning the Supreme Court ruling on Campaign finance would be a good place to start. Focusing on equal trade agreements instead of free trade is another step. We have to realize too that there still is a lot of evidence that the massive financial bubble that the Federal Reserve has inflated is all ready set to burst and when it does the next financial crisis will make the Great Depression look like a picnic. We really are in far worse financial and economic shape that many of us even realize. Be forewarned that the next round of economic trauma could very well spell doom for the US as we know it. The best and most efficient way to advert this coming scenario and it will happen if we fail to act accordingly is going to take drastic measures. Measures that will achieve lasting economic growth, measures that restores the majority of the population to middle class wage earners and measures that will reform our national interests, policies and practices. A common denominator uniting the population instead of dividing as we are seeing today. That common denominator is National Economic Reform’s Ten Articles of Confederation. A common cause that unites instead of divides. Only then will the US be able to rise like the Phoenix out of the ashes of economic and financial decay.