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Eleven Reasons Why You and your Family are Poor–and likely to stay Poor

08 May

[courtesy Google Images]

[courtesy Google Images]

The Wall Street Journal reports in “Five Reasons Why You are Poor” that, according to the Federal Reserve, household net worth rose to $80.6 trillion in the fourth quarter of 2013, up from $70.83 trillion for the same period in 2013–an increase of nearly $10 trillion over the last four quarters–thanks to rising values of homes and U.S. stocks.

Maybe so, but those numbers don’t make sense to me.

There are about 120 million households in the US.  If their total net worth is $80 trillion, their average net worth is about $670,000.  I don’t know how the Federal Reserve computes average household net worth, but I don’t know very many people whose average household net worth is anywhere close to $670,000.  If America’s average household net worth were really $670,000–and if that wealth were distributed on a bell curve basis–I can’t imagine that we’d have any economic problems at all in this country. There’s something wrong and fundamentally misleading about the $80 trillion number the Fed used to describe American total household net worth. . . .

The Wall Street Journal continued to report that “But . . . employee pay as a share of national income has fallen to its lowest levels since 1951.

“Here are five reasons Americans still feel poor:”

 

  1. “Childcare costs surge

“Childcare payments for families with employed mothers rose 50% from 2002 to 2011 and 250% over the last three decades, according to the U.S. Census Bureau. . . .  Family income after taxes and other deductions, meanwhile, rose by just 0.6%, and the overall cost of living grew by 1.6% over the same period.”

I don’t know where they come up with these numbers.  The cost of living rose by just “1.6%” over thirty years?  That must be a gross mistake.

 2. “Rent-to-income ratio

“Many young Americans can’t afford to save for the down payment for a home, partly because a large portion of their income is being eaten up by rent.  50% of U.S. renters spent more than 30% of their gross income on rent  in 2010, up a record 12% from the 38% of households grappling with such high rent-to-income ratio a decade prior.”

  1. “Student loans

“The average cost of tuition and fees at public four-year colleges jumped 27% from 2008 to 2013— and with it, the amount of debt students face. According to a February report from the Federal Reserve Bank of New York, student loan debt increased $114 billion in 2013 alone to $1.08 trillion. The average college graduate’s debt load was $29,400, up roughly 6% a year since 2008.

“However, many students can’t pay: 11.5% of student loan balances are more than 90 days delinquent (this is the highest rate of delinquency among credit cards, mortgages, auto loans and home-equity loans), according to the Federal Reserve Bank of New York.

  1. “Savings

“Top-tier interest rates on savings have fallen from 5.3% in October, 2007 to around 1% today. . . . For those on a fixed income, including many retirees who rely on CDs and other fixed-income investments, this is bad news since low interest rates dramatically reduces their purchasing power. For all Americans, these low interest rates will not outpace inflation.

5. “Wages

“A study by the Economic Policy Institute published last year found that the median worker saw wage growth of just 5% between 1979 [!!!; the dollar became a pure fiat currency in A.D. 1971] and 2012, despite productivity growth of 74.5%. ‘The vast majority of U.S. workers—including white-collar and blue-collar workers and those with and without a college degree—have endured more than a decade of wage stagnation.’ The Census Bureau found similar wage stagnation with the real median income of $51,017 being virtually unchanged from the late 70s and early 80s.

“Meanwhile, prices on some key items have jumped. Fuel prices, for example, have risen to more than $4 a gallon, up from around $2.50 in 2007, and food prices, thanks in part to the drought in California, have climbed steadily just this year alone.”

 

And I’ll offer six more reasons of my own as to why some of your are poor and you and your children are likely to stay poor:

6.   We have a fiat monetary system that is unconstitutional and sure to eat away at any paper savings that you or your employers might otherwise acquire.

7.  Big government has imposed a mass of regulations on American businesses that cost each household at least $15,000 per year.

8.  Big government, in its infinite wisdom, shipped many American industries and their jobs to third world countries, leaving you with less opportunity to get a good job and a higher probability of becoming a McDonald’s hamburger-flipper or a welfare dependent.

9.  Government has encouraged the invasion of millions of illegal aliens to take some our remaining jobs, and also depress our wages towards a minimum wage level.

10.  Overall tax rates (local, state, federal and hidden) have risen from 15% in A.D. 1950 to 60% today.

11.  Most Americans are still dumb enough to trust big government.

 

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14 responses to “Eleven Reasons Why You and your Family are Poor–and likely to stay Poor

  1. prayerwarriorpsychicnot

    May 8, 2014 at 1:51 PM

    Reblogged this on Citizens, not serfs.

     
  2. henry

    May 8, 2014 at 2:51 PM

    Years ago I heard of young actors emancipating themselves from their parent. I can’t recall any names but if they could do it from their natural parent couldn’t the people that the United States government treats like children do it to Uncle Sam? A bad parent spends your money and is not looking after your interests. Does anyone know the procedure?

     
  3. Toland

    May 8, 2014 at 3:22 PM

    “8. Big government, in its infinite wisdom, shipped many American industries and their jobs to third world countries…”

    Which American industries are those?

    As I recall it at the time, American industries claimed to be going overseas by their own choice, proudly proclaiming the move a sound business decision on all the financial shows.

    Was this a lie?

     
    • Adask

      May 8, 2014 at 5:09 PM

      The government figuratively “shipped” jobs overseas by reducing American tariffs. The tariff reduction caused some businessmen to make a logical choice: They could move their factories (and jobs) to 3rd World countries like China where they could take advantage of dirt-cheap labor, but still sell the products in the US for high dollars. Their profit margin would be hugely increased. The temptation created by lowered tariffs proved irresistible.

      As Ross Perot warned back about A.D. 1992, if the government passed NAFTA (tariff reductions), there’d be a “giant sucking sound” as jobs disappeared from the US and moved to central and South America. Perot was right that jobs would disappear. He was wrong about the “giant sucking sound”. The jobs flowed out of the US and almost no one heard, noticed or cared.

      Truly, government has not “forced” and American industries to relocate to foreign countries. But government knew damned well that they would relocate if the tariffs were reduced. Government created circumstances that all but compelled some industries to leave the US and take their jobs with them.

      As for the industries that “proudly proclaimed” that moving to foreign countries was a “sound business decision,” they were absolutely telling the truth. Once the tariffs fell, the financial logic (more profits) of relocating some industries and jobs to foreign countries became irresistible.

      As for naming the industries/companies that moved offshore, just look at the list of companies you already seem to know when you mentioned as “proudly proclaiming” their “sound business decisions”.

       
      • Toland

        May 8, 2014 at 6:24 PM

        Oh I see. The government “figuratively” shipped jobs overseas.

        I thought you meant the government literally shipped jobs overseas. Of course the off-shoring companies themselves take the blame for that, after they lobbied for the “free trade” policies to make it possible.

        Funny how in one of the few areas where government has an important role to play, it’s absent. Yet everywhere the government shouldn’t be, there it is.

         
    • Henry

      May 8, 2014 at 9:32 PM

      Yeah, I also recall when American companies were proudly proclaiming the sound business decision to move production overseas.

      It really took off in the 1990s. One after another, a smiling CEO would pop up on CNBC saying what a great thing “labor arbitrage” was for the corporate bottom line. Then their share price would promptly rise.

      When asked what jobs would remain for the American people, the CEOs often said a New Economy was coming where everyone in this country would re-train and get rich working in high technology. We’ve seen how accurate a prediction that was.

       
  4. commonlawman

    May 8, 2014 at 3:30 PM

    Deregulation is why all the jobs have gone overseas. There is a tax incentive to do so. An example of small government, yes?

     
  5. EarlatOregon storehouseministry

    May 8, 2014 at 6:52 PM

    That Sucking Sound,
    is your Boys and Girls Crying so Much,
    because they are So Hungry,
    that the Hard Crying, causes a Sucking Sound.

    So Sad.

    Coming to a Family near you,
    and if you Listen closely,
    you can Hear it,
    Tonight.

     
  6. MPK

    May 8, 2014 at 9:12 PM

    You have to face the truth there is no other reason for inflation but for GREED of everyone, face it, if your in business your main concern is profit, and all down the supply line at some point some one wants more than its fair to inflate some where in the middle to the top GREED is pushed to the max that the consumers can afford to pay or must pay to survive, and not just to live fairly, Business, corporations and banks by their greed to own more’ need to charge more’ and you get less and pay more in the end.

    When corporations merge then the competition that is left agree to price rises knowing full well that the poor will suffer, and the Government and its leaders are supported by business and corporations not the people at large, the people have been fooled, raped, and pillaged by big business and corporations and the banks are always the winner in the end.

    Its a real game of monopoly who will win everything and its the central banking system, who has been the enemy of every nation, owner of every political party in every nation except Russia and China, and few others that are not worth it yet to the central bank to take.

    You see there is no way to stop them, no matter what, they own already everything, even you though the criminal system of banking and your puppet government, and they have security forces, police and the military forces at there command against the people of any nation that goes against them just like Russia is doing to Ukraine, even America will do the same to its own people when the time comes to eliminate all oppositions.

    Your constitution is not worth the paper its written on, it has no power, and no force to back it up. While your puppet run Government has all the power it needs to crush, separate, and kill who will oppose it.

    If you stand you will be cut down like the weeds that the élites see you all as, you the radicals and the right chess with or with out a gun in your hand and will be slaughter as enemies of the Nation, of the elected Government, and they will even say of the people. You have been in satin’s hands, moulded into what he wants.

    Your here now to serve them in what ever way they deem fit, and if there is too many they need to cull the sheep as they only waste resources that they see must be secured for there future existence and rule.

    You the people were totally deluded, by lairs, criminals, traitors, placed into power for a few to control.

    You were all warned, and you did nothing. Now you pay the pied piper for your own self made, and willing ignorance to the truth and the sins of your fathers, fathers, fathers,,,,,,,

    There is no hell, but the one that is made on earth for everyone to endure until the end, this is Satan’s vengeance against GODs remnant, and even the people who are deluded, ignorant, atheists, he hates everyone you who has not sold his soul unto him, then he will have you killed by his puppets the ones of greed, and though his power he has risen them to rule over you all.

    The lesson is not yet over for man and to this evil, evil last generation that you all have become.

    Then there is my God the father vengeance far greater then anything Satan can ever do, but fear not for the remnant, God’s church will be safe, which one? it is for you to find, to pray for guidance, repent, open your heart, and for the comforter to show you that Jesus Lord of Lord, King of Kings has sent.

    That whore on the 7 hills, I know thee well, and drunk with the blood of my saints are upon your hands, that you can never wash off, you I shall destroy crushed under my foot and the deceiving lies that you have spoken and the twisted truth you have fed my sheep. your time will come and you shall be know more.

    Or you can just ignore this message. For the wicked will laugh, and the ignorant will stay ignorant and not understand, as even I make it so plain to know unto all that read.

    Can you not hear the four horses, even now they are thundering closer, as the white horse with rider with bow in his hands has been conquering all the while that you all have been asleep.
    My farther does not lie, nor shall I, but weep for all that are lost, fathers, brothers, sons, daughters, children all of GOD.

    All these truths are well known by a few, and why it will come to pass as it was written, but still the message is still sent out, calling to the children to come out, and partake not in the crimes that are committed, and there will come a time to flee, and you will know as was what has been written to do so, heed the signs of the times for they now encompass you all.

    MPK

     
  7. cynthia

    May 9, 2014 at 7:15 AM

    What is sad and amazing to me is that ‘we’ in fact ‘eat our own’ by engaging in Wall Street in the first place, in addition to ignorantly consenting to ‘being eaten’ by accepting as pay and using said in fact ‘non pay’ PRIVATE DEBT FEDERAL RESERVE NOTE – If one was to research they would find that technically a PRIVATE NOTE can be used instead that is NOT to be securitized but instead “discharged” with U.S. Treasury. This has been done in a for profit private “COURT” in front of a judge that accepted it as ‘pay-ment’ (mind pay) here on MARYLAND INC. Separately but of equal importance folks need to WAKE UP to fact that all mind control (govern+ment) is in fact PRIVATE CORPORATION – AND – study Clearfield Doctrine. Also study “administrative process” and lawful vs legal for which “original money” was in fact any ‘thing’ NOT just gold\silver for which typically was from nature without harming environment and\or was made by hand. Check new television show “Dickering” but leave out the USD\FRN factor.

     
  8. EarlatOregon

    May 9, 2014 at 4:48 PM

    Taking a While to Find a Job?
    Its Not you.

    Alternate Unemployment Charts
    The seasonally-adjusted SGS Alternate Unemployment Rate
    reflects current unemployment reporting methodology
    adjusted for SGS-estimated long-term discouraged workers,
    who were defined out of official existence in 1994.

    That estimate is added to the BLS estimate of U-6 unemployment,
    which includes short-term discouraged workers.
    The U-3 unemployment rate is the monthly headline number.

    The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure,
    including short-term discouraged and other marginally-attached workers
    as well as those forced to work part-time
    because they cannot find full-time employment.

    U3=6.3%
    U6=12.3
    Unemployment using 1994 methods

    23.5%

    23.5%

    See the Chart here:

    http://www.shadowstats.com/alternate_data/unemployment-charts
    .
    .
    .
    .
    .
    .

     
  9. Cody

    May 12, 2014 at 1:56 AM

    This should be first and last…
    “11. Most Americans are still dumb enough to trust big government.”

     

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