Middle class in USA being systematically destroyed....

[Mr S]

http://finance.yahoo.com/tech-ticker/th ... CXRT%2CDIA

The Middle Class in America Is Radically Shrinking. Here Are the Stats to Prove it
Posted Jul 15, 2010 02:25pm EDT by Michael Snyder in Recession

From The Business Insider

Editor's note: Michael Snyder is editor of theeconomiccollapseblog.com

The 22 statistics detailed here 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.

Here are the statistics to prove it:

• 83 percent of all U.S. stocks are in the hands of 1 percent of the people.
• 61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007.
• 66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.
• 36 percent of Americans say that they don't contribute anything to retirement savings.
• A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
• 24 percent of American workers say that they have postponed their planned retirement age in the past year.
• Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
• Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.
• 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.
• 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.
• As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
• The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
• Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.
• In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
• The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.
• In America today, the average time needed to find a job has risen to a record 35.2 weeks.
• More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.
• or 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.
• 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.
• Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.
• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
• The top 10 percent of Americans now earn around 50 percent of our national income.

Giant Sucking Sound

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 10 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.

What do most Americans have to offer in the marketplace other than their labor? Not much. The truth is that most Americans are absolutely dependent on someone else giving them a job. But today, U.S. workers are "less attractive" than ever. Compared to the rest of the world, American workers are extremely expensive, and the government keeps passing more rules and regulations seemingly on a monthly basis that makes it even more difficult to conduct business in the United States.

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 six 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.

Many of those who are able to get jobs are finding that they are making less money than they used to. In fact, an increasingly large percentage of Americans are working at low wage retail and service jobs.

But you can't raise a family on what you make flipping burgers at McDonald's or on what you bring in from greeting customers down at the local Wal-Mart.

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

[ladislav]

Not bad for the richest country on earth. I am gonna get a loudspeaker and ride through the streets of Manila and read this article aloud so that others would hear the truth. Too many girls are making googie eyes at me and whispering: Amerikano! Amerikano! meaning- rich! RICH!

You have just described a third world social structure without the benefit of being able to choose to be a laborer in a cheap country. Here in the Philippines a laborer can and does support a family because everything is so cheap.

Which goes to show that an average American cannot afford to be a worker,but must have highly technical degrees and unmatched expertise in science, business, education and other such fields. He/she simply cannot be a blue collar thug anymore. Those times are long gone! Few nations can compete with a smart and organized American specialist, though. And Americans should sell their consulting expertise in the international environment, as well. Which means we all need to internationalize ourselves. To become marketable in the world job marketplace. And ESL degree is a start.

The gangsta ghetto culture is not conducive to producing such specialists, though.`All it can produce is swaggering morons who cant spell.

If you rest on the laurels for too long, other people will snatch the advantage from under you. Too much trumpeting about being the richest in the world will make others jealous as well. And that will be the end of you.

The same thing happened in Japan. They got to be too big for their breeches and bang! Pride comes before fall.

[Mr S]

That's why I've diversified my higher education so that I can get an education related job pretty much anywhere overseas. Americans are too pigeon-holed in regards to skills and what they will and can do with them. The only way to make good money in the states going towards the future will be to specialize in a field that few others have experience or expertise in. Welcome to globalization America, you elected these internationalists to create a "more fair world" and now you will become 2nd and 3rd world like most other peoples and their nations over the next few decades...

When I eventually finish my education I'll be able to weather most economic storms around the world, and not being tied town to one geographic area increases these odds as well. If they want Americans to embrace internationalism, well I have, but with a twist...

I'll worry about getting into potential serious relationships with girls after 45 yrs or age, why bother giving up the prime years of my social life?

[momopi]

• 36 percent of Americans say that they don't contribute anything to retirement savings.
• A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
• 24 percent of American workers say that they have postponed their planned retirement age in the past year.
<snip>
• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.

The article is quite selective in its points. Technically social security contributions count as retirement (you could debate over if SS will be there in 20 years). In 2008 when the stock market crashed, the number of US millionaires were reduced by 28%. After a reovery in 2009, the numbers rose by 16% in 2009. This is normal consider how many people have their assets in real estate, stocks, and mutual funds.

That's why I've diversified my higher education so that I can get an education related job pretty much anywhere overseas. Americans are too pigeon-holed in regards to skills and what they will and can do with them. The only way to make good money in the states going towards the future will be to specialize in a field that few others have experience or expertise in. Welcome to globalization America, you elected these internationalists to create a "more fair world" and now you will become 2nd and 3rd world like most other peoples and their nations over the next few decades...

It's not necessary to get a job working for someone else. Every time I want to bid on a property, I have to pay my home inspector $300 and all he does is poke around the house with a flashlight and write me a report. When a tenant moves out, I have to pay the locksmith $120 to change the locks, $200 to the carpet cleaner, and if something needs to be fixed, more $$ to another contractor. All of these guys are independent and work for themselves. They're also quite busy and I have to make appointments and wait for several days before they can come.

I'd bow down and say "I'm wrong" 100 times, if someone can figure out how to out-source carpet cleaning to India right now. Maybe sometime in the future, when carpet cleaning is done by remote-controlled robots, they can be controlled by an operator overseas. But for now, I still have to call Marisel to come in a van and do it.

I'll worry about getting into potential serious relationships with girls after 45 yrs or age, why bother giving up the prime years of my social life?

As a person, the only priceless currency is our youth and health (they go hand in hand). As you get older, you "spend" this currency and there is no way to get it back. Use yours wisely!

[jamesbond]

I just heard a news report that said 75% of Americans live paycheck to paycheck! Also, a whopping 87% of Americans retire at or below the poverty level! WTF? Also the average American is 10,000 in credit card debt!

These are pretty interesting statistics for America, supposedly the "wealthiest country in the world."

[starkeep]

I just heard glen beck a newscaster makes 300 million a year and many other actors and sports players are paid 100 million plus a year. Totally
rediculus salarys while the rest of the country is taxed heavily and lucky to have a job at 8 dollars a hour minus taxes. With high unemployment here
and jobs disapearing rapidly its no way to run a country and pay a select few millions while the rest suffer. That 1 percent that has everything is way out of line with the 90 percent who dont. i have to say i have a hate of many of these rich people who live in mansions and do a little skit or throw a basketball around. While most of the engineers and doctors are all foreign born.

[globetrotter]

Want to ruin your month? Do this:

Get the US Census income figures by age cohort and quintile. Break them down into fifths, bottom quintile (the poor), second q. (lower middle class), 3rd Q. (middle class), 4th (upper middle class) and 5th (upper middle class and The Rich).

Now, REMOVE all of the income from the TOP FIFTH.

They earn 66% of all USA income, have 85% of the assets, etc.

NOW, apply this to the CIA Factbook or WB or UN PPP Per Capita Income or PPP Per Capita GDP figures.

Sit down first.

Once you do this you find out a stunning fact:

The United States of America is, for the average Joe, a nation with a median income of $16,000 to $22,000 depending on population, the recent downturn, illegal immigrants and other mitigating factors. If you are an average guy the USA is like living in Israel or Mexico.

This is why, when I or you move overseas, we have such a much better life. We bring our skillsets and earn the same amount of money but we don't have that top 20% that is making our lives too expensive as we try to keep up with their debt-based lifestyles of consumption.

This is a figure that is most useful and something that needs to be calculated for each nation - what do the BOTTOM 80% earn? Forget the rich and upper middle class - what is life for the average Joe?

http://www.globalrichlist.com/

[momopi]

I just heard glen beck a newscaster makes 300 million a year and many other actors and sports players are paid 100 million plus a year. Totally
ridicules salary while the rest of the country is taxed heavily and lucky to have a job at 8 dollars a hour minus taxes. With high unemployment here
and jobs disappearing rapidly its no way to run a country and pay a select few millions while the rest suffer.

Glenn Beck made $32 million last year, of which:
$13 million were profits from selling his books and magazine
$10 million were made by radio programs
$4 million were made by newsletter, web, and merchandize
$3 million were from speaking eventsw
$2 million was paid by FOX network

See here:
http://www.tvsquad.com/2010/04/08/glenn ... -from-fox/
http://www.forbes.com/forbes/2010/0426/ ... k-inc.html

Here's a list of top paid athletes, none of which made $100 million:
http://sportsillustrated.cnn.com/specia ... index.html

Here's a list of top paid Hollywood personalities, of which only 1 person made $100 million:
http://www.worstpreviews.com/headline.php?id=16673

That 1 percent that has everything is way out of line with the 90 percent who dont. i have to say i have a hate of many of these rich people who live in mansions and do a little skit or throw a basketball around. While most of the engineers and doctors are all foreign born.

You forgot a zero, it's not 1%, it's 10%. Here's the exact quote that has been cited over and over again: "...with the top 10% possessing 80% of all financial assets [and] the bottom 90% holding only 20% of all financial wealth."

Kobe Bryant owns a nice mansion in Newport Beach, about 15 mins from here. Should I hate him because all he does is throw a basket ball around and makes $30 million/year? Nah!!! GO LAKERS! ;p~~~

[jamesbond]

The United States of America is, for the average Joe, a nation with a median income of $16,000 to $22,000 depending on population, the recent downturn, illegal immigrants and other mitigating factors. If you are an average guy the USA is like living in Israel or Mexico.http://www.globalrichlist.com/

Jesus, Mary and Joseph! I can't believe the average American only makes $16,000 to $22,000 a year but in this economy, I guess that maybe true! My friend who has a masters degree in psychology can't find a job in the psychology field, so he is selling shoes! I have another friend of mine who has an MBA (and he graduated on the honor role) who is working in customer service making $ 12.50 an hour! I myself am working two jobs and am continually looking for better job opportunities.

The idea of living in a poor country doesn't sound so bad after all! Hell, at least in a poor country (like the Philippines, Mexico) the women will be friendlier and easier to meet!

[ladislav]

The idea of living in a poor country doesn't sound so bad after all! Hell, at least in a poor country (like the Philippines, Mexico) the women will be friendlier and easier to meet!

And $12.50 a day will pay for your rent, utilities and food.

[Master]

The idea of living in a poor country doesn't sound so bad after all! Hell, at least in a poor country (like the Philippines, Mexico) the women will be friendlier and easier to meet!

And $12.50 a day will pay for your rent, utilities and food.

where do you get the money to get laid then?

[Jackal]

Which goes to show that an average American cannot afford to be a worker,but must have highly technical degrees and unmatched expertise in science, business, education and other such fields. He/she simply cannot be a blue collar thug anymore. Those times are long gone!

I don't know if I'd say, "can't." There will always be a black market economy which is run by criminals. These unemployed blue-collar workers have two choices: they can get more education and training or they can become criminals--and there will always be criminals.

I once had a neighbor who was a construction worker by day, but I was quite sure he was selling drugs on the side because all these different people kept coming to his door and then just left after a minute. I suppose he was already practicing his criminal skills. But that's a bad route to go: eventually, these people will just get robbed or killed by even tougher criminals or become part of the already huge prison population in the US. Crime has a negative effect on GDP and is just another force bringing the US down.

[Jackal]

...Once you do this you find out a stunning fact:

The United States of America is, for the average Joe, a nation with a median income of $16,000 to $22,000 depending on population, the recent downturn, illegal immigrants and other mitigating factors. If you are an average guy the USA is like living in Israel or Mexico.

If you want to go even deeper, you could also create create some kind of ratio between the median income in a country and the average cost of living in a country to get some idea of the actual buying power you have with a given amount of money in each country--this is tricky to do and I haven't found any free sites which compare the costs of living of different countries in a systematic and mathematical way.

But it's obvious to see that $16000 goes a lot further in poorer countries.

I'll use the simple "beer indicator." Buying a local brand of beer in a bar in Eastern Europe costs somewhere between 1 and 2 USD. In the US, buying a local brand of beer in a bar costs what these days? 5 or 6 USD?

[ladislav]

The idea of living in a poor country doesn't sound so bad after all! Hell, at least in a poor country (like the Philippines, Mexico) the women will be friendlier and easier to meet!

And $12.50 a day will pay for your rent, utilities and food.

where do you get the money to get laid then?

You teach online. That is what I am doing.

[globetrotter]

Lots of indicators.

One hour of cybercafe internet access costs 30¢ in Rural China.

One.Hour. USA Kinko's is now $15 DOLLARS for one hour. Madness.

Do you earn 50 X as much in the USA?

That is the top figure you will see. 50 times. Bottom can be as low as 5 X for a car that's 4k in China and 20k in USA.

Lunch will cost me 90¢. I am trying to lose weight so I won't eat another meal today. When was the last time you ate for $27 A MONTH? If I went to a very nice restaurant it would cost me 40 Yuan, $6. In many countries around the world it is much cheaper and much healthier to eat out every day. In America it is much cheaper and much healthier to eat at home.