http://www.theatlantic.com/business/archive/2012/10/the-hideous-inequality-exposed-by-hurricane-sandy/264337/#.UJQ2jY2Fbn9.facebook / .................. This 30 year trend will take a long time to reverse. It's amazing that so many can't see that the high cost of living (i.e., Necessities: housing, medical, insurance and food) is what is killing the economy. Prices go up and salaries stay down or go down. No disposable income for the majority = economic disaster. "New census data shows that the city is the most economically divided it has been in a decade, according to the New York Times. As has occurred across the country, the rich are getting richer and the poor are getting poorer. Twenty-one percent of the city is in poverty, and the median household income decreased by $821 annually. Per the Times: "Median income for the lowest fifth was $8,844, down $463 from 2010. For the highest, it was $223,285, up $1,919."

Family

     >>>>>>>>>>>> The bottom line is no one has disposable income when they are paying all their income for Housing, Insurance, Medical Care and recently, food. The housing market did go south, however, is still unaffordable for many. Hence the Middle Class is the New Poor and the Homeless are a new culture in America. The homeless population exploded in the 80's and continued it's growth to families with children for the past 30 years (before Obama). In the past Middle Class families contributed to the economy by buying food and clothing, household items, cars and little luxuries. Now they are now using food banks and food stamps. The lower income people are now homeless or living in vans or cars and don't buy anything, except gas (even if they are working). The Middle Class and the poor were major contributors to a healthy economy. The economy can't and will never improve if small businesses and big businesses have lost business from the majority of the population. Jobs cannot be created unless people have more disposable income to buy goods and services.

Obama's Accomplishments... The only one who will lead us out of the 30 year fall in America.

I'm really amazed that people are so impatient and expect an overnight recovery of the economy. I can't believe people don't know that it's going to take at least ten years to get out of the hole the Republicans put us in simply because and bottom line is no one has disposable income when they are paying all their income for Housing, Insurance, Medical Care and recently, food. The housing market did go south, however, is still unaffordable for many. Hence the Middle Class is the New Poor and the Homeless are a new culture in America. The homeless population exploded in the 80's and continued it's growth to families with children for the past 30 years (before Obama). How blind people are in this country, however, they are waking up and looking at the real picture of Greed in this country.

Obama's done so much!!
Thank you Ayenne Applebaum, for listing Obama's accomplishments:
"Recovery Act, Affordable Care Act, Wall St Reform( granted w/no prosecutions), Ending Combat Operations in Iraq, Lilly Ledbetter Fair Pay Act, Repealing Don't Ask Don't Tell, Reforming Student lending- the Student Aid and Fiscal Responsibility Act, Credit card Reform- the Credit Card Accountability, Responsibility andDisclosure Act- oh yeah and NuclearArms Control, Ahh- Ending all combat operations in Iraq & Bringing home nearly 100,000 troops- and where is Osama bin Laden????? 3 count them 3 women on the Supreme Ct- more than in its history- so if this is "caving" I should be such a pushover!
You have to lay the foundation before you can build the walls!"

2012

No person with brains is going to run for President in the current state of America, which is total impatience with anyone who is President. This economy ..... 30 years in the making, will not be healed in a year, two years or even three years. The economy needs "buyers" and the majority of the Middle Class and Poor have been removed from that equation permanently due to the cost of necessities rising higher than income. Republican or Democrat. Obama is our best hope, he has the brains and the courage.

Letter from Michael Moore

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!)

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.

Robert Reich

http://www.youtube.com/watch?v=JTzMqm2TwgE&feature=player_embedded

KCET Invites You to Share Your Compassion for Homeless Men, Women, and Children in a Fundraiser for The Midnight Mission

KCET Invites You to Share Your Compassion for Homeless Men, Women, and Children in a Fundraiser for The Midnight Mission

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

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.

"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.

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

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.

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.

Lillian Abel: Housing Market, Article by Michael Snyder

Lillian Abel: Housing Market, Article by Michael Snyder

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

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.

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.

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).

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