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22 Statistics That Prove The Middle Class Is Being Systematically Wiped Out Of Existence In America
Here's #8.
8. Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.
Here's the link to that claim.
Are the Rich Getting Richer? The Data Say Yes
The reasons behind this imbalance aren't hard to find. Mainstream economists have long noted that automation and offshoring have resulted in massive job losses for the less educated, while government workers and the highly educated have secured high-paying employment that's largely protected from the effects of globalization.
Here's the link to that claim.
Economists Expect Shifting Work Force
It isn't just weak growth that's damping job growth. "Companies, in the name of making money, substitute against labor through outsourcing or technology," said Allen Sinai of Decision Economics. Wages and benefits make workers "so expensive that who wants to hire them? As a result, the displaced workers won't be rehired unless we have double the growth rate we're expecting."
Good luck on that one.
Real Estate Newsletter Articles this Week: Existing-Home Sales Increased to
4.15 million SAAR in November
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At the Calculated Risk Real Estate Newsletter this week:
[image: Existing Home Sales]*Click on graph for larger image.*
• NAR: Existing-Home Sales Increase...
11 hours ago
8 comments:
You have to be fair, at leats the upper class allowed the middle class to borrow enough to look middle class for a long time. It almost worked.
That Maxed Out Mama item was hilariois!
I suggest that you might like to open this link and then download the inflation report by Andrew Smithers. I find much of his writing pretty enlightening. The report mentions UK inflation, but it's mainly about US inflation.
http://www.smithers.co.uk/reports.php
Just in case you can't be bothered, here are his conclusions. They seem pretty consistent with a stagflationist view.
• Deflation is more likely than inflation so long as output is falling or stagnant.
• Inflation will become a serious risk once output picks up to the trend growth rate, even if there is still a substantial output gap. This is because concerns about inflation are rationally based and liable to turn quickly into expectations.
• If such expectations are allowed to pick up, central banks will need to slow demand even if there is an output gap, judged by other criteria.
• The resulting loss of output is likely to be greater than would be needed so long as inflationary expectations had been contained.
• We are therefore likely to see either (i) a sustained period of below trend growth or (ii) a brief period in which it moves above trend, only to be forced down again by the need to bring down inflationary expectations.
GYSC,
It still can! It just requires more interest only loans at 0% interest rates! That's sure to keep the illusion alive until I am dead and buried (I hope). Woohoo!
dearieme,
Well, you know I am going to read all the details of an article titled, "Inflation: Neither Inevitable Nor Helpful."
They say not to judge a book by its title, but I've got to tell you that I already love the theory.
This is what happens.
Back in the 50s, a janitor could earn enough to buy a house, a car, and send his kids to college.
These days all of those jobs are taken by immigrant labor, some of it illegal, for far less lower wages.
This is a demon of our own design. The systematic destruction of the middle class has been brought about by the very politicians they elected and the very policies they endorsed.
It's sad, really. But that is the reality.
Wow, Gawains is alive! I was afraid you passed out in one of those houses you have to deal with.
GawainsGhost,
Indeed.
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