The Middle Class Is Being Wiped Out Of Existence In America

[suminvestor]

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.

Some facts from the article:

• 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% of the income growth between 2001 and 2007 went to the top 1% of all Americans.

• A staggering 43 percent of Americans have less than $10,000 saved up for retirement

• 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

• The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth

• 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

• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009

http://www.businessinsider.com/22-statistics-that-prove-the-middle-class-is-being-systematically-wiped-out-of-existence-in-america-2010-7

I thought it was a good read.

What does everyone think?

[NotMyHouse]

http://www.businessinsider.com/22-statistics-that-prove-the-middle-class-is-being-systematically-wiped-out-of-existence-in-america-2010-7

I thought it was a good read.

What does everyone think?

It would be interesting to compare the disparity in wealth at the lower end with that which existed in pre-revolutionary Russia.

[concerned_money]

http://www.businessinsider.com/22-statistics-that-prove-the-middle-class-is-being-systematically-wiped-out-of-existence-in-america-2010-7

I thought it was a good read.

What does everyone think?

I think most americans would call you a communist !

Saying that most americans are now living in the past, their values are over since the bailouts !

Edited July 15, 2010 by concerned_money

[LittleSteroid]

It would be interesting to compare the disparity in wealth at the lower end with that which existed in pre-revolutionary Russia.

not sure about the numbers but in 1917 in Tsar Russia you were either aristocracy on nobody. There was no middle class at that time. ...but, are you suggesting USA could go RED?

[scepticus]

http://www.businessinsider.com/22-statistics-that-prove-the-middle-class-is-being-systematically-wiped-out-of-existence-in-america-2010-7

I thought it was a good read.

What does everyone think?

this what I think

http://www.housepricecrash.co.uk/forum/index.php?showtopic=147055

Edited July 15, 2010 by scepticus

[TheUsualSuspect]

There is no such thing as middle-class. It is an illusion created by debt and advertising.

In real-terms we are all getting poorer.

How come a single man could get married at 20-21, have 2 kids afford a home and his wife could stay at home in the 60s ? Yet now, a couple can both work, not be able to afford kids or a home ?

Yet according to the media, politicians and the nefarious GDP measure we're richer ?

Where is all the money going ?

Answer that question and you start to see where the problem lies. We're not richer, we're just more in debt.

[Live Peasant]

not sure about the numbers but in 1917 in Tsar Russia you were either aristocracy on nobody. There was no middle class at that time. ...but, are you suggesting USA could go RED?

Tsarist Russia had a well developed middle-class. Lenin's father was regional head of the Education service and by all accounts an extremely good administrator.

One of the ironies of Lenin's rise to power was that he was a man of independent means relying on rents from the tenant farmers. Not enormously wealthy but enough to support himself throughout his tours of Europe.

Robert Service's biography of Lenin is well worth a read.

[tomwatkins]

There is no such thing as middle-class. It is an illusion created by debt and advertising.

In real-terms we are all getting poorer.

How come a single man could get married at 20-21, have 2 kids afford a home and his wife could stay at home in the 60s ? Yet now, a couple can both work, not be able to afford kids or a home ?

Yet according to the media, politicians and the nefarious GDP measure we're richer ?

Where is all the money going ?

Answer that question and you start to see where the problem lies. We're not richer, we're just more in debt.

+1

Best synposis I have seen. I never used to believe in conspiracies but can all the people in power for the last forty years or so be collectively thick?

"You've never had it so good"-Harold Mcmillan We never had it again.

[huw]

How come a single man could get married at 20-21, have 2 kids afford a home and his wife could stay at home in the 60s ? Yet now, a couple can both work, not be able to afford kids or a home ?

IMO fundamentally because of he hadn't yet traded his birthright for endless foreign-made goods, he was (directly or indirectly) paying his fellow citizens for what he consumed, and they were paying him. So wages were higher and there was no need to inflate asset prices to support massive amounts of debt.

[tomandlu]

There was no middle class at that time.

Read any Checkov lately?

[Jack's Creation]

not sure about the numbers but in 1917 in Tsar Russia you were either aristocracy on nobody. There was no middle class at that time. ...but, are you suggesting USA could go RED?

Kulaks

[non frog]

There is no such thing as middle-class. It is an illusion created by debt and advertising.

....

Its a "movable term". Go back to basics - Marx or similar and you see most people are working class (there were few working class in the time of Marx - most were peasants). The definition being access to or ownership of the means of production.

Marketing (my profession) grades people as A,B,C1,C2,D and E with A,B,C1 being what we would generally call "middle class"

Most people define themselves as "middle class" by their house/car/job/salary

In truth they are all working class as they work for a living.

Personally I prefer the definition of being an employer. Others work to enrich you. (As opposed to being merely a manager - or working class - your staff enrich your employer)

Upper, or ruling class is where your too rich to need either a business or a job but can exist on your wealth at an intergenerational level.

Anyway that's just by 2 cents - what is happening is that the better-off working class and small business owners are getting hammered so yes the report looks about right to me.

[Guest UK Debt Slave]

The destruction of the middle class in America is deliberate.

Everything from the monetary system to healthcare to Wall Street is designed to impoverish the middle class

The elites have hated the freedom and prosperity of America ever since it was founded.

[workhou]

Define middle class and define working class. The old 'classifications' don't apply anymore Neoliberalism seen to that.

Makes you wonder what the aspirations of the next generation of so called 'middle class' Americans will be?

'Gee.. I really want that checkout job in Walmart. Maybe one day make manager!'

So much for every generation getting a little richer. And we are getting it worse.

[PopGun]

There is no such thing as middle-class. It is an illusion created by debt and advertising.

In real-terms we are all getting poorer.

How come a single man could get married at 20-21, have 2 kids afford a home and his wife could stay at home in the 60s ? Yet now, a couple can both work, not be able to afford kids or a home ?

Yet according to the media, politicians and the nefarious GDP measure we're richer ?

Where is all the money going ?

Answer that question and you start to see where the problem lies. We're not richer, we're just more in debt.

I can never understand how anyone can suggest our life styles have improved from the sixties/seventies. Trivialities aside, all indicators points to a poorer society in real terms.

An ipod is no compensation for the removal of ‘free’ education, jobs for life and low cost housing/shelter.

[workhou]

I can never understand how anyone can suggest our life styles have improved from the sixties/seventies. Trivialities aside, all indicators points to a poorer society in real terms.

An ipod is no compensation for the removal of ‘free’ education, jobs for life and low cost housing/shelter.

Absolutely. Wages stopped going up in the 1970s. Working people became reliant on credit.

[Stars]

Absolutely. Wages stopped going up in the 1970s. Working people became reliant on credit.

The middle class as an instution relies more on the value of real estate (a coercion) than the value of the work of the middle class

If you dance with the devil, don't expect the evening to end well for you.

Edited July 16, 2010 by Stars

[non frog]

I can never understand how anyone can suggest our life styles have improved from the sixties/seventies. Trivialities aside, all indicators points to a poorer society in real terms.

An ipod is no compensation for the removal of ‘free’ education, jobs for life and low cost housing/shelter.

That is generational. For many life has improved beyond their wildest dreams. A wealthy retirement, low cost travel, world class free healthcare, wealth from housing that was just plain good luck, kids went to free Uni - all doing well, all have 2 houses. This from a boring industrial job that paid 3 quid an hour and a Mk3 Cortina that broke down weekly on the HP.

[Zngland]

The destruction of the middle class in America is deliberate.

Everything from the monetary system to healthcare to Wall Street is designed to impoverish the middle class

The elites have hated the freedom and prosperity of America ever since it was founded.

The thing that bugs most about the decimation of the middle class , aside from incompetently short sighted politics/govt.

Is that the middle class is what makes the present western world what it is ie consumer based, production inovative , geared towards servicing this group.

This is what it is , without this majority it'll be a 3rd world type system.

The story of the' frog & scorpion' springs to mind.

[workhou]

The thing that bugs most about the decimation of the middle class , aside from incompetently short sighted politics/govt.

Is that the middle class is what makes the present western world what it is ie consumer based, production inovative , geared towards servicing this group.

This is what it is , without this majority it'll be a 3rd world type system.

The story of the' frog & scorpion' springs to mind.

Take away the middle classes credit and the life run on credit and what do you have?

Previous posts talked about this issue essentially employers don't pay a living wage anymore. Many don't even offer full-time work! Without the credit or the charade of housing wealth yet to materialize (for many who bought into the system,) your left with nothing despite your illusion of wealth. Interesting times..

[Guest UK Debt Slave]

The thing that bugs most about the decimation of the middle class , aside from incompetently short sighted politics/govt.

Is that the middle class is what makes the present western world what it is ie consumer based, production inovative , geared towards servicing this group.

This is what it is , without this majority it'll be a 3rd world type system.

The story of the' frog & scorpion' springs to mind.

It isn't incompetence

It's the delibertate and planned destruction of western civilization

What do the elite powers care? They are asset rich and they control everything.........

They've only got away with it because of peoples' missplaced trust in statism, politics and they believe the fairy tales printed in the paper every day and TV fantasy world.

It's going to be very interesting to see what happens if people actually wake the fekk up and realize their entire belief systems are founded on fantasy

[Stars]

The thing that bugs most about the decimation of the middle class , aside from incompetently short sighted politics/govt.

Is that the middle class is what makes the present western world what it is ie consumer based, production inovative , geared towards servicing this group.

This is what it is , without this majority it'll be a 3rd world type system.

The story of the' frog & scorpion' springs to mind.

Not the whole story

The middle class has been doing a lot free riding on real estate price speculation - the free rides can't be afforded anymore

[Blue Peter]

If you dance with the devil, don't expect the evening to end well for you.

Very nice, I must remember that.

Though, generally, is the property speculation bit true. Weren't the original middle class the professionals (before that term became cheapened), and the merchant class, who therefore relied more upon their education or business sense than upon property?

Peter.

[PopGun]

Very nice, I must remember that.

Though, generally, is the property speculation bit true. Weren't the original middle class the professionals (before that term became cheapened), and the merchant class, who therefore relied more upon their education or business sense than upon property?

Peter.

Yes

Not every social/economic ill leads to real estate, just most of them.

[non frog]

.....

It's going to be very interesting to see what happens if people actually wake the fekk up and realize their entire belief systems are founded on fantasy

Don't hold your breath.