Posted on 04/09/2015 6:04:35 AM PDT by HomerBohn
It is clear that the economic realities falling upon the masses in America are driving us towards a crisis point.
Even with substantial government subsidies, the bottom 10% of Americans are beyond struggling, spending more than 60% of their meager incomes on the bare essentials. According to the latest official numbers, the poorest in the United States are spending 42% of their income on housing and another 17% on food, statistics that are unsustainable for individuals and families.
The Wall Street Journal reported:
For many Americans, the rise in food and housing prices is a tough squeeze. That’s because—even in an era with low overall inflation—low-income Americans spend a disproportionate share of their money on food and housing.
New data from the Labor Department show the extent of the discrepancy. The bottom 10% of Americans, by income, devote 42% of their spending to housing and an additional 17% to food–nearly 60% of their total spending, according to the Consumer Expenditures Survey. By contrast, the wealthiest 10% of Americans dedicate only 31% of their spending to housing and 11% to food–closer to 40% of total spending.
"Contrary to perception, not all food and housing is covered by the welfare state, with many lower class Americans paying out all their wages just to get by with the basics – leaving scant to nothing for everything else.
Take a look at this chart based on Labor Dept. statistics:
The richest spend less, proportionally, on food and housing, as do the upper half of Americans, who average less than a third of income on homes and only about 11-13% on food.
By contrast, the world’s poorest billions, who often live on less than a dollar a day, typically spend 50% of their money alone on food for sustenance, putting prosperity even beneath the dream level. Not surprisingly, most of these people live in unstable, chaotic and often war-torn regions.
The difference in theses percentages are huge in much more than just disposable income. It is the deciding factor in terms of the ability to save money, secure retirement and education, pay off debts and especially to deal with a crisis.
Far too many Americans are already teetering on the edge, and emergencies of any kind – including personal, family illness/injuries, economic or natural disasters and much more – are enough to drive most to either capitulation at the hands of government assistance or worse – desperation.
David Quintieri, commentator and author of The Money GPS, is warning that this kind of extreme economic pressure is likely to trigger civil unrest and riots.
(Watch video at link)
With the past many years yielding no real signs of opportunity or enthusiasm for average Americans, there is plenty of reason to think that other echelons of society are following suit, where a slide to poverty becomes a collapse.
The worry is that these numbers only signal a slide in that direction for the rest of the nation’s poor – who are also economically strapped – and behind them the quickly disappearing Middle Class, with many already treading water to make ends meet and carrying significant debt loads.
When desperation sets in, order goes swiftly with it. After that, riots, unrest and martial law. We all know the pattern.
Worse, we all know the system – propped up by a swelling nanny state giving out freebies and handouts to a disturbingly dependent class of masses – cannot last and is doomed by design to collapse.
How long until we see riots in America – not just over media-driven issues as in Ferguson – but over sustained, untenable economic desperation from the bottom up?
The hour is getting late. It really may not be long…
Bare essentials like cigarettes and booze and lottery tickets.
There was a thread around here a number of years back where some here were discussing having a toe removed for the "privilege" of paying $5000 to wear an unusually narrow shoe.
Its not just ridiculous, I truly believe it is a mental health problem and it doesn't just effect the "poor".
>> The bottom 10% of Americans, by income, devote ...an additional 17% to food<<
Because they don’t know how to, or don’t simply care to, shop smart on a budget. When your food is ‘free’, courtesy of Taxpayer-funded Food Stamps, grocery shopping at the convenience store is easier than making a list, comparing prices, and driving to the discount grocers.
Excellent statement!
You are correct.
My wife and I were rewarded for being hardworking parents, who raised successful children with a tax system that left us with about 40% of what we earned after taxes.
Then. living in Californicator land, we paid sales tax on everything but food in the grocery stores after that.
Next, there were the so called hidden taxes known as fees for our vehicles and other things.
So our so called being rich, 6 figure income was whacked down to not that great of a 5 figure income. Also, due to the Fica penalties, I stopped paying into the system. As and independent contractor, I was paying double Fica taxes. So the system due to its penalties lost any more contributions/taxes from me.
bump
They are fooling nobody, everyone knows prices on food and stuff has been rising quickly
Many of them will blame capitalism and Republicans though
Yep. How much is the average west European spending on housing and food? Japan? South Korea?
When you buy an item from the grocery store, like a can of soda or loaf of bread, ever thought about how much of the price (not sales tax) is built-in taxes that the companies paid?
True, but that wasn’t dude’s point....I don’t have a point, but $400 sneaks are beyond the pale. The only ones wearing them (that you see) are the ones who killed for them, stole them or were given to them for pushing drugs for other people.
Agreed, and maybe a few very spoiled rich brats among the group. :)
We are all being squeezed. Have you seen the price of ammo lately?
Agreed, in Haiti these people would be considered Upper Class.
"Food pantries"/"food banks" are how people can be on food stamps, and be buying steak and lobster. They get their staples from the food pantry, leaving most of their food-stamp allotment to spend on what you and I consider luxuries.
The USDA 2014 budget is $146 billion, with 72% allocated towards "food assistance" programs. Then there's the state and local programs.
"Means-tested" programs are like an iceberg -- 90% is hidden under the surface. If you are a regular person down on his luck, you are not likely to find out about all these programs. But if you are an urban underclass Dem voter, your Democrat Party block-captain will know ALL about the various programs and sources of goodies, and will help you with the paperwork, PROVIDED you show up on election day.
I care about the working class...the middle class....their the ones struggling to pay the taxes and the bills....
seriously, my mother would buy us “sneakers” from the discount cart at the A&P....
don’t forget the tattoos..they all have tattoos and/or piercings...
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