30 Years Ago Today: The Day the Middle Class Died ...a letter from Michael Moore
Friday, August 5th, 2011
Friends,
From time to time, someone under 30 will ask me, "When did this all begin, America's downward slide?" They say they've heard of a time when working people could raise a family and send the kids to college on just one parent's income (and that college in states like California and New York was almost free). That anyone who wanted a decent paying job could get one. That people only worked five days a week, eight hours a day, got the whole weekend off and had a paid vacation every summer. That many jobs were union jobs, from baggers at the grocery store to the guy painting your house, and this meant that no matter how "lowly" your job was you had guarantees of a pension, occasional raises, health insurance and someone to stick up for you if you were unfairly treated.
Young people have heard of this mythical time -- but it was no myth, it was real. And when they ask, "When did this all end?", I say, "It ended on this day: August 5th, 1981."
Beginning on this date, 30 years ago, Big Business and the Right Wing decided to "go for it" -- to see if they could actually destroy the middle class so that they could become richer themselves.
And they've succeeded.
On August 5, 1981, President Ronald Reagan fired every member of the air traffic controllers union (PATCO) who'd defied his order to return to work and declared their union illegal. They had been on strike for just two days.
It was a bold and brash move. No one had ever tried it. What made it even bolder was that PATCO was one of only three unions that had endorsed Reagan for president! It sent a shock wave through workers across the country. If he would do this to the people who were with him, what would he do to us?
Reagan had been backed by Wall Street in his run for the White House and they, along with right-wing Christians, wanted to restructure America and turn back the tide that President Franklin D. Roosevelt started -- a tide that was intended to make life better for the average working person. The rich hated paying better wages and providing benefits. They hated paying taxes even more. And they despised unions. The right-wing Christians hated anything that sounded like socialism or holding out a helping hand to minorities or women.
Reagan promised to end all that. So when the air traffic controllers went on strike, he seized the moment. In getting rid of every single last one of them and outlawing their union, he sent a clear and strong message: The days of everyone having a comfortable middle class life were over. America, from now on, would be run this way:
* The super-rich will make more, much much more, and the rest of you will scramble for the crumbs that are left.
* Everyone must work! Mom, Dad, the teenagers in the house! Dad, you work a second job! Kids, here's your latch-key! Your parents might be home in time to put you to bed.
* 50 million of you must go without health insurance! And health insurance companies: you go ahead and decide who you want to help -- or not.
* Unions are evil! You will not belong to a union! You do not need an advocate! Shut up and get back to work! No, you can't leave now, we're not done. Your kids can make their own dinner.
* You want to go to college? No problem -- just sign here and be in hock to a bank for the next 20 years!
* What's "a raise"? Get back to work and shut up!
And so it went. But Reagan could not have pulled this off by himself in 1981. He had some big help:
The AFL-CIO.
The biggest organization of unions in America told its members to cross the picket lines of the air traffic controllers and go to work. And that's just what these union members did. Union pilots, flight attendants, delivery truck drivers, baggage handlers -- they all crossed the line and helped to break the strike. And union members of all stripes crossed the picket lines and continued to fly.
Reagan and Wall Street could not believe their eyes! Hundreds of thousands of working people and union members endorsing the firing of fellow union members. It was Christmas in August for Corporate America.
And that was the beginning of the end. Reagan and the Republicans knew they could get away with anything -- and they did. They slashed taxes on the rich. They made it harder for you to start a union at your workplace. They eliminated safety regulations on the job. They ignored the monopoly laws and allowed thousands of companies to merge or be bought out and closed down. Corporations froze wages and threatened to move overseas if the workers didn't accept lower pay and less benefits. And when the workers agreed to work for less, they moved the jobs overseas anyway.
And at every step along the way, the majority of Americans went along with this. There was little opposition or fight-back. The "masses" did not rise up and protect their jobs, their homes, their schools (which used to be the best in the world). They just accepted their fate and took the beating.
I have often wondered what would have happened had we all just stopped flying, period, back in 1981. What if all the unions had said to Reagan, "Give those controllers their jobs back or we're shutting the country down!"? You know what would have happened. The corporate elite and their boy Reagan would have buckled.
But we didn't do it. And so, bit by bit, piece by piece, in the ensuing 30 years, those in power have destroyed the middle class of our country and, in turn, have wrecked the future for our young people. Wages have remained stagnant for 30 years. Take a look at the statistics and you can see that every decline we're now suffering with had its beginning in 1981 (here's a little scene to illustrate that from my last movie).
It all began on this day, 30 years ago. One of the darkest days in American history. And we let it happen to us. Yes, they had the money, and the media and the cops. But we had 200 million of us. Ever wonder what it would look like if 200 million got truly upset and wanted their country, their life, their job, their weekend, their time with their kids back?
Have we all just given up? What are we waiting for? Forget about the 20% who support the Tea Party -- we are the other 80%! This decline will only end when we demand it. And not through an online petition or a tweet. We are going to have to turn the TV and the computer and the video games off and get out in the streets (like they've done in Wisconsin). Some of you need to run for local office next year. We need to demand that the Democrats either get a spine and stop taking corporate money -- or step aside.
When is enough, enough? The middle class dream will not just magically reappear. Wall Street's plan is clear: America is to be a nation of Haves and Have Nothings. Is that OK for you?
Why not use today to pause and think about the little steps you can take to turn this around in your neighborhood, at your workplace, in your school? Is there any better day to start than today?
Yours,
Michael Moore
MMFlint@aol.com
MichaelMoore.com
P.S. Here are a few places you can connect with to get the ball rolling:
Showdown in America
Democracy Convention
Occupy Wall Street
October 2011
How to Join a Union, from the AFL-CIO (They've learned their lesson and have a good president now) or UE
Change to Win
MoveOn
High School Newspaper (Just because you're under 18 doesn't mean you can't do anything!)
Monday, August 08, 2011
Wednesday, July 27, 2011
Continued failed economy ....
The economy will never improve as long as housing prices are out of reach by the majority of the people. If the people are paying 50% and higher of their income for housing, which has been the trend happening for the past 30 years, starting in New York City and flooding across the country to Los Angeles; they have no disposable income to stimulate the economy. 25% needs to be the norm for the cost of housing. The homeless population has increased drastically in the past 30 years, coinciding with the increase in the cost of housing. People have had to "double up", "triple up" and move back in with parents. This trend still continues today as most people cannot afford the high price of housing even though it has "fallen" to 2003 levels, for example, as housing in 2003 was too expensive for most to afford. Therefore,the continued growth of the homeless is with us now. The consumer has lost sight of the power they have to control the high cost of necessities, such as housing. Just don't pay it and they can't charge it. Always bargain the cost of housing, whether rental or buying.
Sunday, July 17, 2011
Thursday, July 07, 2011
Thursday, June 16, 2011
The Truth About the Economy in 2 Minutes
If people are paying more than 25% of their income for housing then they have no disposable income to stimulate economic growth. Even though home prices have fallen the cost is still beyond the reach of most and if they are in housing, they are paying too much.... most spend over 50% of their income for a place to live.
Hence the homeless population continues to grow and become a subculture of the U.S. Housing prices still need to fall more to become affordable for all. Housing is not an investment, it's a necessity. Now add food and medical costs and you have an economy that will never be healthy again.
http://lillianabel.blogspot.com/ (Necessities are Luxuries)
http://front.moveon.org/scribbling-sharpie-illustrates-the-truth-about-our-economy/#.TfpTppY6Uog;facebook
Hence the homeless population continues to grow and become a subculture of the U.S. Housing prices still need to fall more to become affordable for all. Housing is not an investment, it's a necessity. Now add food and medical costs and you have an economy that will never be healthy again.
http://lillianabel.blogspot.com/ (Necessities are Luxuries)
http://front.moveon.org/scribbling-sharpie-illustrates-the-truth-about-our-economy/#.TfpTppY6Uog;facebook
Sunday, June 05, 2011
The economy will never improve until any kind of housing is more affordable for all. There is no disposable income among the majority of the people as they spend 50 to 70% if their income for housing even though housing has dropped to 2002 levels in most areas, it is still too high. So goods can't be bought, causing job loses. Only the top 1% have disposable income. They have been expected to create jobs and they have not created that many jobs. Trickle Down has not worked.
Tuesday, December 07, 2010
"House of Cards"
Honorable President Obama and Honorable Congressman Boehner, I am calling on you and your fellow Republicans and Democrats to end the Bush Tax Cuts for the wealthy.
Where are all the jobs the rich are and have been supposedly creating with their tax breaks? They’ve had these Tax Cuts a very long time now. The “Trickle Down” mentality has been going on for too long. Our economy has been a “House of Cards” and Tax Breaks for the rich have only succeeded in making the rich "richer".
Due to easy credit, the majority of the population has been living on credit with no real money. The Credit hemorrhage has been happening since the late 60's when credit became readily available and has been on going for four decades. (The crash of '29 is also linked to living on too much credit, albeit only one of the variables.) Inflation of products and Necessities began in the late 70’s. The norm became overspending on consumer products, while also paying too much for housing, food, insurance and medicine. If credit was not easily available prices could not go so high as “what the traffic will bear” would have been in place. These “Necessities” have also been charged on credit and even the poor have had credit cards.
The rich have grown richer and the poor grew poorer in the past 30 years due to people spending money they don't have. This has given the “Producers of Products” wealth and the majority of the people a false belief that they are rich due to their spending ability and accumulation of "possessions" (while ignoring their debt). It became natural to live in debt so one could live well (beyond their means). There continues to be many Middle Class people who are living on their credit cards every month to make ends meet just for Necessities and eventually they will become the "New Poor". Necessities just cost too much and have been luxuries for too long.
How can you fix this economy that has come to this current state? Currently, the majority of the people can only pay for bare necessities and cannot buy products or even food: The food stamp numbers have had a tremendous rise as well as the poverty and homelessness populations risen over the past 30 years. It does not help the economy to make the Middle Class the Poor Class and the Poor Class, Homeless.
The Middle Class is living from Paycheck to Paycheck. In fact a lot of Middle Class Retirees have moved to Mexico over the past 15 years because they can't afford the basic necessities on their Social Security Benefits and Savings. And, what do you think of the American Migrant Working Class whose homes are Vans? That's another population that continues to rapidly grow. All "The empirical evidence" that I've read and seen (with my own eyes) is that trickle down doesn't work. I believe my own observations and research before I believe a lot of twisted and slanted propaganda.
How do you propose that we extend and pay for unemployment benefits so the 2 million unemployed don't become homeless in three months? To the 7 million who would have lost benefits before the end of next year? This is the "let them eat cake philosophy" and “charge it” mentality that has helped increase the National Debt over the years. There are 34 million people out of work due to the global recession. 60 million people are now in poverty worldwide. Proposing deep cuts to public services, reducing global assistance will continue to make it all much worse.
What is the reason the working people have to bear the brunt, rather than the wealthy? The government employees have taken a pay cut and an example of one dangerous job are those who track illegals crossing the borders at night. It’s been said there is waste in government, but there is also waste on the other side. What is the reasoning that a corporation needs five private jets and why does the CEO need six houses, a yacht and several cars? There is too much waste and everything is out of balance, including nature due to excessive pollution.
I ask again, where are all those jobs the wealthy tax cuts have generated?
This economy is not going to be “repaired” in a year when we will face these issues again. And in 2012 this economy might (hopefully) improve somewhat, however it will take many more years to become stable. I can’t see improvement happening when the majority pays too much for necessities and is unable to purchase much else. In the meantime the National Debt is on the back burner and will increase. We’re losing time and revenue that is desperately needed for public services for the people.
Where are all the jobs the rich are and have been supposedly creating with their tax breaks? They’ve had these Tax Cuts a very long time now. The “Trickle Down” mentality has been going on for too long. Our economy has been a “House of Cards” and Tax Breaks for the rich have only succeeded in making the rich "richer".
Due to easy credit, the majority of the population has been living on credit with no real money. The Credit hemorrhage has been happening since the late 60's when credit became readily available and has been on going for four decades. (The crash of '29 is also linked to living on too much credit, albeit only one of the variables.) Inflation of products and Necessities began in the late 70’s. The norm became overspending on consumer products, while also paying too much for housing, food, insurance and medicine. If credit was not easily available prices could not go so high as “what the traffic will bear” would have been in place. These “Necessities” have also been charged on credit and even the poor have had credit cards.
The rich have grown richer and the poor grew poorer in the past 30 years due to people spending money they don't have. This has given the “Producers of Products” wealth and the majority of the people a false belief that they are rich due to their spending ability and accumulation of "possessions" (while ignoring their debt). It became natural to live in debt so one could live well (beyond their means). There continues to be many Middle Class people who are living on their credit cards every month to make ends meet just for Necessities and eventually they will become the "New Poor". Necessities just cost too much and have been luxuries for too long.
How can you fix this economy that has come to this current state? Currently, the majority of the people can only pay for bare necessities and cannot buy products or even food: The food stamp numbers have had a tremendous rise as well as the poverty and homelessness populations risen over the past 30 years. It does not help the economy to make the Middle Class the Poor Class and the Poor Class, Homeless.
The Middle Class is living from Paycheck to Paycheck. In fact a lot of Middle Class Retirees have moved to Mexico over the past 15 years because they can't afford the basic necessities on their Social Security Benefits and Savings. And, what do you think of the American Migrant Working Class whose homes are Vans? That's another population that continues to rapidly grow. All "The empirical evidence" that I've read and seen (with my own eyes) is that trickle down doesn't work. I believe my own observations and research before I believe a lot of twisted and slanted propaganda.
How do you propose that we extend and pay for unemployment benefits so the 2 million unemployed don't become homeless in three months? To the 7 million who would have lost benefits before the end of next year? This is the "let them eat cake philosophy" and “charge it” mentality that has helped increase the National Debt over the years. There are 34 million people out of work due to the global recession. 60 million people are now in poverty worldwide. Proposing deep cuts to public services, reducing global assistance will continue to make it all much worse.
What is the reason the working people have to bear the brunt, rather than the wealthy? The government employees have taken a pay cut and an example of one dangerous job are those who track illegals crossing the borders at night. It’s been said there is waste in government, but there is also waste on the other side. What is the reasoning that a corporation needs five private jets and why does the CEO need six houses, a yacht and several cars? There is too much waste and everything is out of balance, including nature due to excessive pollution.
I ask again, where are all those jobs the wealthy tax cuts have generated?
This economy is not going to be “repaired” in a year when we will face these issues again. And in 2012 this economy might (hopefully) improve somewhat, however it will take many more years to become stable. I can’t see improvement happening when the majority pays too much for necessities and is unable to purchase much else. In the meantime the National Debt is on the back burner and will increase. We’re losing time and revenue that is desperately needed for public services for the people.
Saturday, September 18, 2010
Interesting predictions by "Peter Schiff" 2006 - 2007
It's interesting to watch this video : Peter was right.
http://www.youtube.com/watch?v=2I0QN-FYkpw
http://www.youtube.com/watch?v=2I0QN-FYkpw
Sunday, September 05, 2010
I'm not advocating the total elimination of credit. People used to use "lay-a-way" to buy and bought houses they could afford, lived within their means and we had a very healthy economy in the 50's, 60's and maybe even the 70's. Credit was gradually getting out of control in the late 60's. i was offered a credit card in college!!!! So it took awhile, however, the "advantage' of credit in our society has finally caused the bubble to burst and no one can afford to help the economy as they are all in debt to their Credit Cards .... even the employed are too busy paying of debts in a panic to buy anything and the Middle Class has borne the brunt of all of the "easy" credit in housing, consumer credit, insurance, etc., etc., etc. etc., etc.
There could be a good balance between capitalism and socialism. Neither system works and too many people have suffered and are suffering as a result of this.
There could be a good balance between capitalism and socialism. Neither system works and too many people have suffered and are suffering as a result of this.
The Problem with Credit
Cash only was a better system. Prices have risen too high as a result of credit, creating a society that lives beyond its means and requires living constantly in debt for necessities such as housing, insurance and medical. If people use credit then prices rise too high (don't have the cash, just charge it). If it was a cash only society the prices would match the salaries of the majority in order to sustain a healthy economy. For a very long time the rich have been the only real consumers who could afford what they buy. For the past 30 years everything has been "unaffordable" for the Middle Class, thus credit has been abused and "what the market will bear" has been out of proportion to the reality of what is. No credit would also eliminate Greed.
Wednesday, August 25, 2010
Housing Market, Article by Michael Snyder
15 Signs The U.S. Housing Market Is Headed For Complete And Total Collapse
Michael Snyder, The Economic Collapse | Aug. 20, 2010
Read more: http://www.businessinsider.com/15-signs-that-the-us-housing-market-is-headed-for-complete-and-total-collapse-2010-8#ixzz0xehK5xBj
The U.S. housing market is dying. You will only hear hints of this on the mainstream news and from the politicians in Washington D.C., but as statistic after statistic continues to roll in, the reality of what is happening is becoming very difficult to deny.
Up until the end of April, the giant tax credit that the U.S. government was bribing home buyers with helped stabilize the real estate market, but now that the tax credit has expired the decline of the U.S. housing market has resumed. Mortgage defaults continue to set new records. Foreclosures continue to set new records. Home repossessions by banks continue to set new records. The number of homes being constructed and the number of Americans applying for home loans is at stunningly low levels.
The truth is that this is not a short-term downturn in the housing market. During the past two decades, an insane amount of debt fueled an artificial housing bubble that drove home prices to ridiculous levels. Now the U.S. housing market is trying to correct itself, and no matter how many trillions of dollars the U.S. government throws at the problem the fundamentals of the marketplace are still going to have their way eventually.
The U.S. economy is in decline. The employment situation is going to go from bad to worse. Americans without jobs are Americans that cannot buy homes. Millions of Americans who are employed are finding it increasingly difficult to make it from month to month. The truth is that there is no way that Americans can afford the ridiculously inflated home prices that we have seen over the past decade any longer.
So, yes, the U.S. housing market is headed for a complete and total nightmare.
* Home Sales Drop 27 Percent In July And Things Are Only Going To Get Worse For The U.S. Housing Industry
* Bancor: The Name Of The Global Currency That A Shocking IMF Report Is Proposing
* This Economy Is Ripping The Dignity Of Millions Of Unemployed Americans To Shreds
So exactly how bad are things out there right now?
The following are 15 signs that the U.S. housing market is headed for a complete and total nightmare....
Read more: http://www.businessinsider.com/15-signs-that-the-us-housing-market-is-headed-for-complete-and-total-collapse-2010-8#ixzz0xecOnNks
Michael Snyder, The Economic Collapse | Aug. 20, 2010
Read more: http://www.businessinsider.com/15-signs-that-the-us-housing-market-is-headed-for-complete-and-total-collapse-2010-8#ixzz0xehK5xBj
The U.S. housing market is dying. You will only hear hints of this on the mainstream news and from the politicians in Washington D.C., but as statistic after statistic continues to roll in, the reality of what is happening is becoming very difficult to deny.
Up until the end of April, the giant tax credit that the U.S. government was bribing home buyers with helped stabilize the real estate market, but now that the tax credit has expired the decline of the U.S. housing market has resumed. Mortgage defaults continue to set new records. Foreclosures continue to set new records. Home repossessions by banks continue to set new records. The number of homes being constructed and the number of Americans applying for home loans is at stunningly low levels.
The truth is that this is not a short-term downturn in the housing market. During the past two decades, an insane amount of debt fueled an artificial housing bubble that drove home prices to ridiculous levels. Now the U.S. housing market is trying to correct itself, and no matter how many trillions of dollars the U.S. government throws at the problem the fundamentals of the marketplace are still going to have their way eventually.
The U.S. economy is in decline. The employment situation is going to go from bad to worse. Americans without jobs are Americans that cannot buy homes. Millions of Americans who are employed are finding it increasingly difficult to make it from month to month. The truth is that there is no way that Americans can afford the ridiculously inflated home prices that we have seen over the past decade any longer.
So, yes, the U.S. housing market is headed for a complete and total nightmare.
* Home Sales Drop 27 Percent In July And Things Are Only Going To Get Worse For The U.S. Housing Industry
* Bancor: The Name Of The Global Currency That A Shocking IMF Report Is Proposing
* This Economy Is Ripping The Dignity Of Millions Of Unemployed Americans To Shreds
So exactly how bad are things out there right now?
The following are 15 signs that the U.S. housing market is headed for a complete and total nightmare....
Read more: http://www.businessinsider.com/15-signs-that-the-us-housing-market-is-headed-for-complete-and-total-collapse-2010-8#ixzz0xecOnNks
Wednesday, August 18, 2010
Commen Sense Investment
If a home cost half million there are only a few people who could afford to keep up the payments on such a house. If a person who buys a house for say even 350,000. What happens if they loose their job? Do they have enough savings to cover the high payments every month until they're employed again? What happens if they don't get all the "raises" they expect over the next 10 to 20 years? Will they still like living from paycheck to paycheck and putting all their money in the house? What happens if the value of the house goes down and not up due to ability to pay by most of the population? Housing is not a good investment when it's high priced.
Paying 350,000. for housing for a person who lives from paycheck to paycheck is insane. All they need to do is loose their income and they loose everything. If a person pays 80,000 for a house then they most likely will survive on savings they have until they are employed again. Also, that half million dollar home may go down in value if the wages of people are still below the cost of housing. No one will be able to buy it at that price. This is happening now to people who paid over 500,000 for their home. They can't sell it. It's only going to get worse not better. Housing prices have not hit bottom yet.
Paying 350,000. for housing for a person who lives from paycheck to paycheck is insane. All they need to do is loose their income and they loose everything. If a person pays 80,000 for a house then they most likely will survive on savings they have until they are employed again. Also, that half million dollar home may go down in value if the wages of people are still below the cost of housing. No one will be able to buy it at that price. This is happening now to people who paid over 500,000 for their home. They can't sell it. It's only going to get worse not better. Housing prices have not hit bottom yet.
Tuesday, August 17, 2010
The Economy; It's broke
The cost of housing is still too much to pay for a necessity. People are paying 50 to 75% of their income for housing. There's a continuing growing population of homeless who can't afford housing at all. Children are living with their parents and more than one roommate are needed to afford one apartment. We're making a whole subculture of homeless in an "affluent society". That's just plain horrible.
The government will never be able to "fix" an economy where everyone whose employed is over their heads in debt and most of the population can't afford a roof over their heads. The flow of buying and spending will come to a compete stop. It's doing so already .... the brakes just aren't completely floored yet so the worst is yet to come, unless the high price of necessities stops cold.
The government will never be able to "fix" an economy where everyone whose employed is over their heads in debt and most of the population can't afford a roof over their heads. The flow of buying and spending will come to a compete stop. It's doing so already .... the brakes just aren't completely floored yet so the worst is yet to come, unless the high price of necessities stops cold.
Monday, August 09, 2010
Still too high
The astronomical cost of housing, still far over what the majority can afford without having disposable income to stimulate the economy is one of the major reasons for unemployment.
"Investors" turned to real estate many years ago instead of the Stock Market. This is one of the major reasons for over inflated housing costs. The average consumer then got involved and jumped in buying homes they really could not afford. Still today there are many people out there who now think housing is an "investment" which it is not. It is a long term investment, which in 30 years will increase somewhat in value (economic history of real estate) , however, not the enormous profits which people expect to acquire immediately. It is true that many became very rich when they sold the homes and buildings that they paid 30,000.00 for half a million up to a million. Houses are not worth that much and the consumer needs to wake up and say NO! to ridiculous prices. I've also read several articles recently that people who are millionaires and live well pay low prices for their homes (as low as 30,000).
"Investors" turned to real estate many years ago instead of the Stock Market. This is one of the major reasons for over inflated housing costs. The average consumer then got involved and jumped in buying homes they really could not afford. Still today there are many people out there who now think housing is an "investment" which it is not. It is a long term investment, which in 30 years will increase somewhat in value (economic history of real estate) , however, not the enormous profits which people expect to acquire immediately. It is true that many became very rich when they sold the homes and buildings that they paid 30,000.00 for half a million up to a million. Houses are not worth that much and the consumer needs to wake up and say NO! to ridiculous prices. I've also read several articles recently that people who are millionaires and live well pay low prices for their homes (as low as 30,000).
Monday, July 26, 2010
Finally someone gets it !!
Deflation Would Be a "Good Thing": Peter Schiff's Plan to Help Struggling American
Posted Jul 23, 2010 07:30am EDT by Aaron Task in Investing, Recession
'The idea deflation would be a "good thing" certainly puts Schiff at odds with most mainstream economists. Then again, that's where he's most comfortable.
And given his view the dollar is a "bottomless pit," it's not surprising Schiff believes inflation is a much greater threat than deflation.
"The real evidence of inflation is that the Fed is creating too much money," he says. "Interest rates are at zero, the Fed's balance sheet ballooned and now they're talking about cranking up the purchases [of mortgage-backed securities and agency debt] again. That's more monetization -- more money printing. That is the very definition of inflation."
As a result, Schiff believes Americans are soon going to be paying more - much more - for food, clothing, energy, healthcare and even consumer electronics. But prices of financial assets and real estate? They're not going anywhere but down in real (i.e. inflation-adjusted) terms, according to Schiff.'
Deflation Would Be a "Good Thing": Peter Schiff's Plan to Help Struggling Americans
Posted Jul 23, 2010 07:30am EDT by Aaron Task in Investing, Recession
'The idea deflation would be a "good thing" certainly puts Schiff at odds with most mainstream economists. Then again, that's where he's most comfortable.
And given his view the dollar is a "bottomless pit," it's not surprising Schiff believes inflation is a much greater threat than deflation.
"The real evidence of inflation is that the Fed is creating too much money," he says. "Interest rates are at zero, the Fed's balance sheet ballooned and now they're talking about cranking up the purchases [of mortgage-backed securities and agency debt] again. That's more monetization -- more money printing. That is the very definition of inflation."
As a result, Schiff believes Americans are soon going to be paying more - much more - for food, clothing, energy, healthcare and even consumer electronics. But prices of financial assets and real estate? They're not going anywhere but down in real (i.e. inflation-adjusted) terms, according to Schiff.'
Deflation Would Be a "Good Thing": Peter Schiff's Plan to Help Struggling Americans
Interesting statistics from Michael Snyder, "The Business Insider"
The Middle Class in America Is Radically Shrinking. Here Are the Stats to Prove it
http://finance.yahoo.com/tech-ticker/the-u.s.-middle-class-is-being-wiped-out-here's-the-stats-to-prove-it-520657.html
Posted Jul 15, 2010 02:25pm EDT by Michael Snyder
From The Business Insider
Editor's note: Michael Snyder is editor of theeconomiccollapseblog.com
• 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 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.
• 36 percent of Americans say that they don't contribute anything to retirement savings.
• A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
• 24 percent of American workers say that they have postponed their planned retirement age in the past year.
• Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
• 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.
• In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
• As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
• The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
• Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.
• In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
• The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.
• In America today, the average time needed to find a job has risen to a record 35.2 weeks.
• More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.
• or 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.
• This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
• Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.
• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
• The top 10 percent of Americans now earn around 50 percent of our national income.
http://finance.yahoo.com/tech-ticker/the-u.s.-middle-class-is-being-wiped-out-here's-the-stats-to-prove-it-520657.html
Posted Jul 15, 2010 02:25pm EDT by Michael Snyder
From The Business Insider
Editor's note: Michael Snyder is editor of theeconomiccollapseblog.com
• 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 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.
• 36 percent of Americans say that they don't contribute anything to retirement savings.
• A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
• 24 percent of American workers say that they have postponed their planned retirement age in the past year.
• Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
• 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.
• In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
• As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
• The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
• Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.
• In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
• The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.
• In America today, the average time needed to find a job has risen to a record 35.2 weeks.
• More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.
• or 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.
• This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
• Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.
• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
• The top 10 percent of Americans now earn around 50 percent of our national income.
Friday, July 23, 2010
Continuing Housing Crisis
Housing is still unaffordable for most of the population. The Crisis will not be over until people can pay 25% of their income for housing. Now they are paying as much as 70% just for housing. How can the economy improve if people don't have money for anything else except their housing?
See following interview:
http://finance.yahoo.com/tech-ticker/hope-you-enjoyed-the-housing-recovery-...-because-it%27s-history-says-suttmeier-482467.html?tickers=FNM,FRE,XLF,XHB%20,HD,LOW,WFC
See following interview:
http://finance.yahoo.com/tech-ticker/hope-you-enjoyed-the-housing-recovery-...-because-it%27s-history-says-suttmeier-482467.html?tickers=FNM,FRE,XLF,XHB%20,HD,LOW,WFC
Wednesday, March 10, 2010
Greed in America
There has been little regard of how a lopsided economic society is destroying America from the bottom up. The high cost of living with the people paying as much as 75% of their income for housing due to this necessity becoming an "investment" has contributed to the Great Recession. It has taken awhile for the burden of the high cost of necessities to manifest within the middle class of America. However, it manifested itself 30 years ago when housing prices went through the roof and caused thousands of low-income people to become homeless. America turned a blind eye to the homeless crisis, which has continued to grow as a blight on this land of "prosperity". And now it's obvious that the people are paying too much for basic necessities as the Middle Class are being crushed under the burden of paying for basics. I am surprised it took so long for the public to just stop buying and charging and living beyond their means. This, of course, contributes to unemployment. How can unemployment be eradicated when no one can or should "buy stuff" and more importantly, pay for the necessities (housing, insurance, health care, food) that we've grown accustomed to, such as affordabale housing.
The Rich will always be rich and the poor will get poorer. I would like to include opinions on the "feeding" of the rich and the neglect of the average person in this country, as well as the poor.
Bob Herbert wrote in 2007 in his NY Times column: “Even as the Wall Streeters are high-fiving and ordering up record shipments of Champagne and caviar, the American dream is on life support.” We would all later learn that this time was the start of the Great Recession.
The following is an excerpt from the New York Times October, 2009 article by Bob Herbert
"We’ve spent the last few decades shoveling money at the rich like there was no tomorrow. We abandoned the poor, put an economic stranglehold on the middle class and all but bankrupted the federal government — while giving the banks and megacorporations and the rest of the swells at the top of the economic pyramid just about everything they’ve wanted.
And we still don’t seem to have learned the proper lessons. We’ve allowed so many people to fall into the terrible abyss of unemployment that no one — not the Obama administration, not the labor unions and most certainly no one in the Republican Party — has a clue about how to put them back to work.
Meanwhile, Wall Street is living it up. I’m amazed at how passive the population has remained in the face of this sustained outrage.
Even as tens of millions of working Americans are struggling to hang onto their jobs and keep a roof over their families’ heads, the wise guys of Wall Street are licking their fat-cat chops over yet another round of obscene multibillion-dollar bonuses — this time thanks to the bailout billions that were sent their way by Uncle Sam, with very little in the way of strings attached."
"Safety Nets for the Rich" by Bob Herbert, New York Times, Oct. 19, 2009
The Rich will always be rich and the poor will get poorer. I would like to include opinions on the "feeding" of the rich and the neglect of the average person in this country, as well as the poor.
Bob Herbert wrote in 2007 in his NY Times column: “Even as the Wall Streeters are high-fiving and ordering up record shipments of Champagne and caviar, the American dream is on life support.” We would all later learn that this time was the start of the Great Recession.
The following is an excerpt from the New York Times October, 2009 article by Bob Herbert
"We’ve spent the last few decades shoveling money at the rich like there was no tomorrow. We abandoned the poor, put an economic stranglehold on the middle class and all but bankrupted the federal government — while giving the banks and megacorporations and the rest of the swells at the top of the economic pyramid just about everything they’ve wanted.
And we still don’t seem to have learned the proper lessons. We’ve allowed so many people to fall into the terrible abyss of unemployment that no one — not the Obama administration, not the labor unions and most certainly no one in the Republican Party — has a clue about how to put them back to work.
Meanwhile, Wall Street is living it up. I’m amazed at how passive the population has remained in the face of this sustained outrage.
Even as tens of millions of working Americans are struggling to hang onto their jobs and keep a roof over their families’ heads, the wise guys of Wall Street are licking their fat-cat chops over yet another round of obscene multibillion-dollar bonuses — this time thanks to the bailout billions that were sent their way by Uncle Sam, with very little in the way of strings attached."
"Safety Nets for the Rich" by Bob Herbert, New York Times, Oct. 19, 2009
Friday, March 05, 2010
The high cost of Greed
It's all about greed for power and money with the Republicans. I find it amazing that more people can't see through their double speak. It's never going to get better in this country until people start doing "the right thing" for the entire community. It's not about "I" anymore. It's got to turn to "we". The moral measure of this country is it's awareness of the suffering greed has caused on all levels as a result of the high cost of necessities; housing, insurance, medical care and recently food has been added to the mix.
The economy cannot recover until these high cost are addressed; The Middle class and the poor are now one in this country. The economy is fueled from the bottom up and not the top down.
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