If you like what you read consider a donation

Thursday, September 16, 2010

The Incredible Shrinking Middle Class....

Today I picked up on an article on “Drudgereport.com” that 1 in 7 or roughly 14.3% of all Americans live at or below the poverty line, which works out to be about 45 million people. According to the article 2009 saw the largest single year increase in the poverty rate since these records have been kept, starting in 1959. Further, the US poverty rate ranks third from the bottom amongst developed nations.

Fortunately there are some safety nets in place to prevent wide spread starvation that could lead to civil unrest and chaos, but is taking its toll. Statistics provided by the various government safety net providers bear this out.  The food stamp program now provides 41 plus million with a subsidy and year over year participation in the program has skyrocketed by about 20%. 17% of all Americans are receiving aid from one anti poverty organization or another.  50 Million Americans are now on medicare which is taxing that program. 10 million or so of our fellow Americans are receiving unemployment benefits, which is up 60% since last year and quadruple the number in 2007. Of all households in the US 28% have at least one person looking for a job. Bankruptcy rates have risen 20% year over year from the period ending June 30th.  14% of all mortgages are delinquent or in foreclosure and 25% of Americans have credit scores below 599.

This is not a pretty picture and the fact that the statistics are rising is not a good thing either. The article that I culled these statistics from goes on to discuss the blame game and hints that Americans are more concerned with the latest TV show while politicians are to busy getting elected to really address the problems. While I agree with the assessment my interest is what can be gleaned from this information to help ourselves, remember knowledge is power and in the case of investing it is profit.

One thing is for sure we need action, simplification and real sensible change not left or right wing dogma.  It appears to me that change is coming but unfortunately at a glacial pace, as reflected by the Tea Party impact in the current election cycle. Not get to political but it is going to take this crisis period that we are currently in to come to a head before we get real change; I just hope it is change for the better and not worse. I mean if you look back throughout history you can find examples of crisis and change. The example of crisis leading to change that is familiar to most people is the post Weimar Republic scenario that paved the way for Hitler. I am not suggesting that we should expect that here in America but one would be foolish to think that type of scenario could not happen; just look at all the things that could never happen but did since 2000.

We as a nation need to come to terms with the cold hard facts that what has been done for the past 30 years or so and particular since 2000 has not worked; but instead created false prosperity and severe imbalances that have yet to be corrected. I believe that it was Einstein that said,  “the definition of insanity is trying the same thing over and over and expecting a different result". This is exactly what we as a nation have been doing since this crisis has begun. It seems that regardless of who is in power the same solutions are being applied, print our way out, monetize our way out, attempt to raise taxes, borrow further to finance and this is digging the hole deeper. Everyone knows when you are in a hole and trying to get out the first rule is stop digging.

I think much of the problem is a societal shift in attitude. The original can do American appears to have become outnumbered by those that believe the government can fix everything and that everything should be equal and fair. I am not sure when the average American became so dependent on government for survival and problem solving but we will not solve these problems until we take back the government and scale it down. This crisis will only get worse as the government keeps pulling levers with the intent of getting the economy going. We as a nation have to correct the imbalances that built up and return to the fundamentals that made America great in the first place. Policies that are akin to trying to cure a heroin addict by giving them more and more heroin are counterproductive as are the tax schemes to “redistribute”  which are as effective as trying to raise the level of water in your swimming pool by scooping buckets of water from the deep end and pouring the in to the shallow end.

Well we have established that there are some powerful trends and that things are likely getting worse not better and that change to fix this is arriving at a snail’s pace. So since we can’t change things what can we do to keep from disappearing like so many of our fellow Americans? That is for tomorrow’s blog post, in the meantime I can’t help but feel upset for so many of my Countrymen at the moment; especially in light of the dearth of leadership across the gamut.




DreamHost coupon

35 comments:

Tony Orlando said...

I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!

Tony Orlando said...

I discovered your homepage by coincidence.
Very interesting posts and well written.
I will put your site on my blogroll.
:-)

Tony Orlando said...

Great post. I will read your posts frequently. Added you to the RSS reader.

admin said...

Thank you for the compliment. I try to give a fresh perspective to what is going on in the world of business, economics and investments.

Swiss Ball Exercises said...

Keep posting stuff like this i really like it

va streamline refinance said...

Great posts. I will come back to this blog on the regular.

fha streamline refinance said...

What a great site and informative posts, I will add back link - bookmark this site?

Cherilyn Redfern said...

Leave me alone!

refi plus said...

Hello. Great job. I did not expect this this week. This is a great story. Thanks!

film indir said...

good quality post thanks

Latrisha Turrubiates said...

It is remarkable, very valuable information

seotons said...

WONDERFUL Post.thanks for share..more wait .. ;)…

topsoil Hockessin said...

Brilliant, thanks, I will bookmark you now.

vizyon filmler indir said...

Ohh very much thanks admin

Edmund Papetti said...

Very much I regret, that I can help nothing. I hope, to you here will help. Do not despair.

fha loan said...

There is obviously a lot to know about this. I think you made some good points in the Feature also.

Dentist West Hills said...

When are you going to post again? You really entertain me!

cellulite cream reviews said...

There could be clearly plenty to know regarding this. I think you've made some very nice points. Also can you please tell me where do i look for a few neat wp themes or templates?

Roger Vertes said...

The template is available through wordpress if you use their theme search there are hundreds of free templates you can customize

cure for genital warts said...

Valuable information and excellent design you got here! I would like to thanks for your time for sharing your thoughts and time into the stuff you article!! Thumbs up! I just hope to have understood this the way it was meant.

Roger Vertes said...

Thanks for the compliment and I hope you understood it too as I always try to be clear in thought, however, I am still human.

va streamline refinance said...

What a great site and informative posts, I will add back link - bookmark this site?

mortgage refinance said...

Hello. Great job. I did not expect this this week. This is a great story. Thanks!

mortgage refinance said...

Great posts. I will come back to this blog on the regular.

photovoltaique said...

This is really a extremely beneficial read for me, Have to admit you might be 1 in the most effective bloggers I ever saw.Thanks for posting this informative article.

mutuelle sante said...

Your place is valueble for me. Thanks!…

online dizi izle said...

Ohh very much thanks admin

satilik konteyner said...

thanks for your post!

abestos removal said...

Super informative article, thanks a million.

Bronchitis Symptoms said...

Enjoyed reading your posts so much that I am going to advise it to my co-workers.

Green Tea Diet said...

Your concepts were simple to understand that I wondered why I in no way looked at it prior to. Glad to know that there’s a blogger out there that certainly understands what he’s discussing. Great job

Marlon Maia said...

stellar blog you own

PS3 said...

Hey, awesome blog you've made.. The length of time did it take you to definitely make this? And where did you get your background??

Fish Tales + 1000 games said...

You actually make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complicated and very broad for me. I'm looking forward for your next post, I’ll try to get the hang of it!

fast cash payday loans said...

This is a lot useful information. I must say I love scanning this a lot. It aids me to get better knowledge of on the subject. It is all well and good written and published. I'll definitely search for this specific content material very fascinating. I really hope it is possible to supply more someday.

Post a Comment