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It Is Not Just Your Imagination - American Families ARE Getting Poorer
The Economic Collapse Blog ^ | 08/31/2012 | Michael Snyder

Posted on 09/02/2012 6:37:41 AM PDT by SeekAndFind

Did you know that median household income in the United States is lower today than it was when the last recession supposedly ended? If we are in the middle of an "economic recovery", how can this possibly be happening? Stunning new statistics compiled by Sentier Research show that the U.S. economy is not nearly as healthy as we have been led to believe. According to the study that Sentier Research has just released, median household income in the United States was sitting at $55,470 back in January 2000. In December 2007, when the recession began, it was sitting at $54,916. In June 2009, when the recession supposedly ended, it was sitting at $53,508. Today, it is sitting at $50,964. This is a long-term trend that is definitely going in the wrong direction. The fact that median household income in the U.S. is now 4.8 percent lower than it was when the last recession ended is incredibly disturbing, especially since all of the things that we buy on a regular basis just keep going up in price. Food, gas, electricity, car insurance and health insurance all cost a whole lot more today than they did back in the year 2000, and yet median household income has dropped 8.1 percent since that time. So what does all of this mean? It means that American families ARE getting poorer.

Yes, the stock market has been soaring, corporate profits have set all-time records in recent years and the big Wall Street banks that were showered with bailout money are absolutely thriving.

But there has been no economic recovery on "Main Street".

According to the Sentier Research report mentioned above, incomes have been declining in all geographic regions of the country and in all sectors of the economy....

-Median household income for the self-employed has fallen 9.4 percent since June 2009.

-Median household income for private sector employees has fallen 4.5 percent since June 2009.

-Median household income for government workers has fallen 3.5 percent since June 2009.

-Median household income for Americans living in the West has fallen 8.5 percent since June 2009.

-Median household income for Americans living in the Northeast has fallen 4.9 percent since June 2009.

-Median household income for Americans living in the South has also fallen 4.9 percent since June 2009.

-Median household income for Americans living in the Midwest has fallen 1.1 percent since June 2009.

Remember, the recession supposedly ended in June 2009.

Since that time we have supposedly been in a "recovery".

So if it has seemed to you that American families have been getting poorer it has not just been your imagination.

In a previous article, I detailed 84 statistics that prove that the middle class in America is being systematically destroyed. If you have not read it yet, I encourage you to go check it out. At this point it is absolutely undeniable that the middle class in America is declining. The following are just a couple of the numbers from my recent article....

1. According to the Pew Research Center, 61 percent of all Americans were "middle income" back in 1971. Today, only 51 percent of all Americans are.

2. The Pew Research Center has also found that 85 percent of middle class Americans say that it is harder to maintain a middle class standard of living today compared with 10 years ago.

3. 62 percent of middle class Americans say that they have had to reduce household spending over the past year.

4. The average net worth of a middle class family in America was $129,582 in 2001. By 2010 that figure had dropped to $93,150.

5. According to the Federal Reserve, the median net worth of all families in the United States declined "from $126,400 in 2007 to $77,300 in 2010".

You can find 79 more statistics just like this right here.

At the same time that our incomes are going down, the cost of living just continues to rise steadily.

Thanks Ben Bernanke.

American families are being increasingly stretched financially, and if major changes are not made this is going to get even worse in the years ahead.

Another thing that we aren't being told on the nightly news is that the percentage of working age Americans that have jobs is lower today than when the last recession ended.

So let's summarize....

-A smaller percentage of Americans have jobs today compared to June 2009.

-Median household income has declined by 4.8 percent since June 2009.

-American families are far less wealthy than they were just a few years ago.

Are we sure that we are in an economic recovery?

Just look at what is happening to our cities.

The rest of the world once looked at Detroit in awe.

Now it is a global joke.

You can see some incredible photographs of the devastation in Detroit right here.

This kind of thing is happening on the east coast as well. I have written many times about how horrible life has become in places such as Camden, New Jersey.

Well, now the entire Camden police force is being disbanded, and the policing of the city is going to be turned over to the county.

We are a mess, and it is time to admit that.

Sadly, most Americans simply have no idea how close our economic system really is to total system failure.

Only 24.6 percent of the jobs in this country are "good jobs" at this point, the velocity of money in our economy has plunged to a post-World War II low, unemployment is rampant, more than half of all Americans are at least partially financially dependent on the government and our national debt is crossing the 16 trillion dollar mark.

We don't need someone to come in and "tweak" the economy.

We need radical reconstructive surgery.

But most Americans do not understand this.

Most Americans do not seem to grasp these things until economic hardship touches them personally.

After all, if you still have a good job and the mainstream media is telling you that everything is going to be okay it is really easy to pretend that we aren't heading for an economic disaster of unimaginable proportions.

A massive problem that we are facing right now is something known as "normalcy bias". This is how Wikipedia defines "normalcy bias"....

The normalcy bias, or normality bias, refers to a mental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster occurring and its possible effects. This often results in situations where people fail to adequately prepare for a disaster, and on a larger scale, the failure of governments to include the populace in its disaster preparations. The assumption that is made in the case of the normalcy bias is that since a disaster never has occurred then it never will occur. It also results in the inability of people to cope with a disaster once it occurs. People with a normalcy bias have difficulties reacting to something they have not experienced before. People also tend to interpret warnings in the most optimistic way possible, seizing on any ambiguities to infer a less serious situation.

Doesn't that sound exactly like the vast majority of Americans right now?

Most Americans just assume that since we have always recovered from every other economic downturn in the past that we will always be able to easily handle whatever the future throws at us.

If only that was true.

We are heading into a time that will be unlike anything any of us have ever experienced before, and many people that have blind faith in the system are going to be absolutely devastated when this coming crisis blindsides them.

Our economy has been collapsing, it is continuing to collapse, and the collapse is going to accelerate dramatically in the coming years.

You can have blind faith in the system, or you can get prepared for what is coming.

The choice is up to you.



TOPICS: Business/Economy; Society
KEYWORDS: economy; poverty; wealth

1 posted on 09/02/2012 6:37:45 AM PDT by SeekAndFind
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To: SeekAndFind
Our economy has been collapsing, it is continuing to collapse, and the collapse is going to accelerate dramatically in the coming years.

The one and only reason Romney has my vote...

Unless we fix our economy, the conservative movement is a moot point...

Romney is a RINO with social issues, which are very important in normal times when considering who to vote for...these are not normal times...

Romney and Ryan are fiscal conservatives...and between him and Ryan we may have a chance to right the ship...

2 posted on 09/02/2012 6:54:49 AM PDT by Popman (In a place you only dream of Where your soul is always free)
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To: SeekAndFind

Theses are the numbers that really count, not those that are read about in the news. These are the numbers every family can feel. I wonder how many parents have had a teen-age/ college age kid home all summer , unemployed, and reflect on how his older sibling had a summer job paying the old minimum; how they celebrated hearing the minimum would go up; and now find the job that was there at the old min is no longer there. And there’s a lot of your $4000 family income loss.


3 posted on 09/02/2012 7:10:56 AM PDT by gusopol3
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To: Popman
Romney and Ryan are fiscal conservatives...and between him and Ryan we may have a chance to right the ship...

Considering that our next President will either be Romney or Obama, I'll go with R&R.

4 posted on 09/02/2012 7:16:23 AM PDT by TwelveOfTwenty (Ho, ho, hey, hey, I'm BUYcotting Chick-Fil-A)
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To: SeekAndFind
it's MUCH worst then you think. it's all been a shell game, as they dilute the dollar and loot our wealth

to see the real numbers, think of them in terms of buying power... which can be calculated by converting dollars to ounces of gold

year median income($) avg gold $/oz median income (gold oz)
Jan 2000 55,470.00 284.00 195
Dec 2007 54,916.00 810.00 68
Jun 2009 53,508.00 950.00 56
Aug 2012 50,964.00 1630.00 31

so you see... the average American family's wealth hasn't stayed the same...

it's been reduced by 84%

5 posted on 09/02/2012 7:27:10 AM PDT by sten (fighting tyranny never goes out of style)
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To: gusopol3

I do


6 posted on 09/02/2012 7:27:40 AM PDT by Greg223
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To: SeekAndFind

* The ten poorest cities and percentage of population below the poverty level:
1. Detroit , MI 32.5%
2. Buffalo , NY 29.9%
3. Cincinnati , OH 27.8%
4. Cleveland , OH 27.0%
5. Miami , FL 26.9%
6. St. Louis , MO 26.8%
7. Chicago, Ill. 26.4%
8. Milwaukee , WI 26.2%
9. Philadelphia , PA 25.1%
10. Newark , NJ 24.2%
U.S. Census Bureau, 2010
What are the common threads? Democrats and unions
Detroit, MI (1st on the poverty rate list) hasn’t elected a Republican mayor since 1961.
Buffalo, NY (2nd) hasn’t elected a Republican mayor since 1954.
Cincinnati , OH (3rd) hasn’t elected a Republican mayor since 1984.
Cleveland , OH (4th) hasn’t elected a Republican mayor since 1989.
Miami, FL (5th) has never had a Republican mayor until now and he was recalled
St. Louis , MO (6th) hasn’t elected a Republican mayor since 1949.
Chicago, Ill (7th) has never had a Republican mayor.
Milwaukee , WI (8th) hasn’t elected a Republican mayor since 1908.
Philadelphia , PA (9th) hasn’t elected a Republican mayor since 1952.
Newark , NJ (10th) hasn’t elected a Republican mayor since 1907.
* In the history of our federal government:
5 Representatives have been expelled. All 5 were Democrats.
14 Senators have been expelled. All 14 were Democrats.
21 Representatives censured. 16 Democrats, 5 Republicans.
7 Senators have been censured. 4 were Democrats, 3 were Republican.
2 Presidents have been impeached. Both were Democrats.
The troubling facts: 80% Democrat offenders, 20% Republican
A ten year old child can look at the facts above and see the common threads.
The nation is next if this insanity is not stopped, now and forever


7 posted on 09/02/2012 7:36:58 AM PDT by IC Ken
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To: SeekAndFind
Income amounts in this report are before-tax money income

Huh, this is the gross income or what?

Either way, we're way under that and things are getting tighter every day. House insurance just went up, health insurance is going up again next month, gas is going up every day, groceries and everything else is also going up, up, up.

8 posted on 09/02/2012 7:54:22 AM PDT by bgill
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To: SeekAndFind
Only 24.6 percent of the jobs in this country are "good jobs" at this point

That's because businesses have learned that they don't have to pay benefits if they don't hire full time employees.

9 posted on 09/02/2012 7:59:34 AM PDT by bgill
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To: SeekAndFind

One thing that most average folks fail to realize, is that the only reason the economy is this good is because we are spending $1.40 for every $1.00 of income.

The 99ers, EBTers, TANFers, Medicaiders, Section 8ers, SSIers etc are really living off fake money.

Take that away and a significant portion of America approaches third world poverty levels.


10 posted on 09/02/2012 8:00:51 AM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: SeekAndFind
You can see some incredible photographs of the devastation in Detroit right here.

In their day, those were some very nice looking homes. Too bad they've been left to fall down but who wants to live in Detroit these days.

11 posted on 09/02/2012 8:02:21 AM PDT by bgill
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To: bgill

In the meanwhile, years and years of EVERYONE’S home equity has been eroded. With the markets continued malaise and high unemployment, expectations of the hope and change program are not that great. You can hope all you want.


12 posted on 09/02/2012 9:45:57 AM PDT by himno hero (hadnuff)
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To: SeekAndFind

I, for one, during this “recession” consider my family to be one that began and lower middle class and have fallen to poverty level. during the middle class years we were able to buy property, build a small home, build equity, have children, raise them in a normal manner, had health insurance, a good job or a small business, a small 401k , took a family vacation every year and had little to no credit card debt and never had to seek help from a government agency or program. savings were almost non exsistant but we were living the american dream.

since the recession we have lost all our equity and may be underwater with our home, credit card debt galore due to lost job. struggle to maintain used cars and pay bills, no vacations, 401k long since cashed in. no health insurance, limit health care to “only if your near death”. Lost ten years of money earning years that we can never get back. lost business, lost pride. etc...

in my family and in my opinion this has been a depression , not a recession. romney and ryan speak to me. I may be poor but i am a republican because i don’t WANT a handout or a freebie, i want the opportunity to work for and earn enough money to provide a decent life for my family myself. I want the hope that i won’t have to eat cat food in my old age!


13 posted on 09/02/2012 12:31:05 PM PDT by annelizly
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To: IC Ken
The democrat party is and has been a criminal enterprise, not unlike La Costra Nostra, the Mexican Cartels, the National Socialist (NAZI’s) of 1935-1945, the communists of Russia and China.

Just my humble opinion. But, with research, I am sure it is verifiable.

14 posted on 09/02/2012 3:02:50 PM PDT by Tahoe3002
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To: Popman

Romney and Ryan can’t help us.

We’re painted into a corner. A significant portion of the GDP is government spending, which, as we all know, is funded by trillion dollar deficits as far as the eye can see.

Option 1. Continue with trillion dollar deficits and spending as normal with some GOP leaning tweaks. Result: some sort of hyperinflation, dollar crash, TEOTWAWKI event, experts differ on exactly how it plays, but end result, it’s not good.

Option 2. Cut the deficit immediately with the result of crashing the US GDP by 30% or MORE. Result: Political oblivion.

Option 2 is off the table since we’re in a democracy. No politician can suggest it and survive. Question is do we want Romney or Obama in office when the funding “event” happens?


15 posted on 09/02/2012 4:33:17 PM PDT by delapaz
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To: delapaz
Romney and Ryan can’t help us.

Of course they can...

I look at like this: We are a B52 flying at 20,000 ft.

In our present course we run out of fuel, tailspin and crater into the earth... crash and burn...

or...R/R can take control of the B52...understand the options available, attempt an hard landing...

At least get us on the ground... probably quite rough landing but still intact...

16 posted on 09/03/2012 6:14:08 AM PDT by Popman (In a place you only dream of Where your soul is always free)
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To: Popman

RR are not going to do the soft landing option, they are going to do the “business as normal” option.

They are not going to cut 1 trillion out of the budget next year, since that would mean one or two entitlement programs and political oblivion. And that’s the “soft” landing!

Which means that it doesn’t matter who wins in November, we’re going to crash hard, and it’s probably better that a Democrat is president at the time.

Which is the reason I am not voting for Romney. Well that and he’s a pandering weasel.


17 posted on 09/03/2012 5:52:42 PM PDT by delapaz
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