Skip to comments.A long, steep drop for Americans' standard of living
Posted on 10/19/2011 1:04:41 PM PDT by traumer
Not since at least 1960 has the US standard of living fallen so fast for so long. The average American has $1,315 less in annual disposable income now than at the onset of the Great Recession.
Think life is not as good as it used to be, at least in terms of your wallet? You'd be right about that. The standard of living for Americans has fallen longer and more steeply over the past three years than at any time since the US government began recording it five decades ago.
Economic Issues Economic Crisis Financial Markets Cost of Living Recessions and Depressions Financial Planning Personal Finance Bottom line: The average individual now has $1,315 less in disposable income than he or she did three years ago at the onset of the Great Recession even though the recession ended, technically speaking, in mid-2009. That means less money to spend at the spa or the movies, less for vacations, new carpeting for the house, or dinner at a restaurant.
In short, it means a less vibrant economy, with more Americans spending primarily on necessities. The diminished standard of living, moreover, is squeezing the middle class, whose restlessness and discontent are evident in grass-roots movements such as the tea party and "Occupy Wall Street" and who may take out their frustrations on incumbent politicians in next year's election.
(Excerpt) Read more at csmonitor.com ...
...unless you work for the government and live in D.C.; a/k/a - BOOM TOWN, USA.
End the FED, and give us sound money, NOT debt backed money that is destroying this nation.
Want limited government? Get rid of fiat money.
The BIG government crowd LOVES fiat, it allows for BIG government. Without it, their wouldn’t BE big government.
My gross pay has gone up. I watch my expenses so inflation doesn't impact me much.
I think there are two main factors impacting consumer spending - unemployment and the fact that homeowner's can't borrow against their bubble equity the way they used to.
We are in uncharted territory.
Carville is right.
Baraq’s toast in 2012.
(if we can make it a 2-way election)
Just think how bad it would be if Obama had not made all the right choices.
Yeah, the dollar didn’t even go up with the market going down today.
The dollar is dying, and our government is burring itself in debt. And the FED policy of low interest rates going back to Greedspan, encouraged the people of this nation to be as in much debt as the government. And the last leg is the education bubble.
It’s frightening because the causes in the Great Depression were because of things beyond just living in debt beyond your means. In the past if your fortunes collapsed, you alone went down and if it was your business, your business went down. Now it’s all so interconnected that there is no way to avoid being taken down if someone else ruins their life.
This has occurred during a period of unprecedented government spending and borrowing. The Federal Government is spending about $4 trillion dollars per year and borrowing roughly 40% of that. Yet with the government spending almost $40,000 per household and borrowing about $15,000 per household average household income is still dropping dramatically. This is unprecedented in U.S. economic history.
What this means is the rest of the economy is being destroyed. It also means that if other countries refuse to lend money to the U.S. the economy will suffer dramatic contraction.
In short, the productive part of the economy is being decimated. Only irresponsible, unsustainable levels of government spending and government borrowing are keeping the decline as moderate as it is. When we lose ability to spend money we don't have, the economic collapse will be devastating.
The unicorn skittle market is the place to be. Right behind black boots and long laces.
“I think there are two main factors impacting consumer spending - unemployment and the fact that homeowner’s can’t borrow against their bubble equity the way they used to. “
[But based on the debate last night, if taxes were not so complicated everyone would be working and all these problems would go away - wanna buy a bridge?]
It depends on your situation. If you’re retired, as I am, then you’re lucky to get half the income from your investments as you did earlier. And Obama has not raised social security for two years, on the excuse that there is “no inflation.” Yeah, sure. Except for food, fuel, heat, electricity, and all the other basics.
One of the many disadvantages of socialism spreading the misery.
Wattenburg has assured us of this. He can’t possibly be wrong. He has repeatedly said that Immigration is a huge plus.
And Obama has not raised social security for two years, on the excuse that there is no inflation. Yeah, sure. Except for food, fuel, heat, electricity, and all the other basics.
The fed policy would make more sense if they took the time to pull their collective heads out of the sand. The banks are not lending. Reality.
A nation cannot continue to export wealth at the rate that the US has over the last 20 years and not suffer for it.
Economists keep telling us otherwise, but then economists never seem to suffer for the absurdity of their predictions. They’re typically academics, immune to unemployment unless they’re caught with a live boy or a dead girl in their beds.
The problem for the Republican Party is that none of their top-tier candidates have a clue what to do about it.
Oh, all the talk of cutting regulation and taxes are nice... but that won’t re-start the economy.
The simple, stark fact now staring us in the face is that productive capital is fleeing the US. The example from the UK is that once, gone, it won’t come back. We have a generation of workers in the workplace who are largely useless to creating tangible wealth and scant prospects for replacing those who are about to retire.
Houston, we have a problem.
Of course the banks are not lending now.
But the bubble blowing of Greedspan and Bernank, well, they blew those bubbles with too low interest rates.
It appears that they are trying to devalue the dollar while trying the keep the insovlent banking system from implosion.
The dollar will strengthen here and there, but for how long nobody knows. It will at least be devalued by one half, maybe more.
“Rejoice and be exceeding glad” for you may get an increase of 3.5% for 2012. :)
The way things are these days, the boy would probably have to be dead as well to have any kind of negative effect.
Well, yes, I suppose you’re right.
Rejoice? That money will be wiped out by the increase in Medicare Part B.
They give with one hand an take with the other - at least you will break even - I hope.
Factors in this for most households:
* Health insurance premiums rising 5-15% per year, while income is flat.
* Food and fuel are up from 3 years ago. Percentages vary, but up.
* Incomes dropped, due to unemployment and wage deflation.
* Childcare up, because of minimum wage increases.
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