The American dream has given hope to many that they could one day rise up the economic ladder, hard work dedication and a little luck would see them living a better more prosperous life. Now according to a recent study those already in financially-stable circumstances should fear falling down a few rungs of the economic ladder. This study found that nearly a third of Americans who were part of the middle class as teenagers in the 1970s have fallen out of it as adults.
America’s politics are in full swing all the major topics are on the table except one–it is the single biggest issue facing the country at this present time, the destruction of the American middle class.
America is splitting into a society of haves and have-nots, the rich continue to grow richer the poor poorer and those in the middle will fall into one of these camps. If they are lucky they see their wealth increase dramatically and are propelled to levels of the higher echelon but sadly the opposite is more common.
There was a story which appeared in the Wall Street Journal. The story covered a new marketing strategy and takes a look at how the giant firm Procter & Gamble markets its household goods to customers. The picture that emerged was terrifying. P&G, it transpired, has been cutting back on marketing to the middle classes indicating a class that is disappearing, they have instead been selling more and more to either high-income or low-income customers and abandoning the middle class consumers, they can see where the money lies. Heinz along with other big firms, are following suit. The piece revealed they even have a word for this strategy, helpfully coined for them by Citibank: the Consumer Hourglass Theory –this image denotes a society that bulges at the top and bottom and is pinched in the middle.
Included in this story were scary figures, the fact that the net worth of the middle fifth of American households has plunged by 26% and that the income of the median American family, adjusted for inflation, is lower now than in 1998.
Another story featured in the New York Times. Showed starkly how life for the American working person has worsened. jobs that once provided a secure grasp on middle class aims (a house, college education for the children, a retirement) have changed to become low-wage. The article features the situation of some of Detroit’s auto-workers, it highlighted that new employees can find themselves working opposite long-term colleagues they both do similar jobs yet long term employees earn twice as much. This is called a “two tier” wage structure. This may be okay as a temporary measure in tougher times, it looks a lot like the Hourglass Theory, this situation looks like the permanent shape of things to come.
US Census Bureau released a survey showing that one in six Americans now live in poverty, the highest number ever reported by the organization. It also highlighted that median household incomes had dropped from the previous year, this reflecting the decline of the middle class. However, the richest 20% of the US population now controls 84% of the wealth. So staggeringly unbalanced has the American economy become, the richest 400 American families have the same net worth as the bottom 50% of the entire nation.
So is this by design or just the outcome from many ridiculous and bad economical moves and policies in the US?
We can see that in these so called economic experts have, instead of creating an overarching institution to protect debtors, backed the IMF or S&P creating an order to protect the creditors. They have essentially declared (against all traditional economic logic) that no debtor should be allowed to default. We see the result of this and it is truly catastrophic to those who fall into the middle class.
Banks continue to receive full government support and are bailed out with billions of dollars; people starve on the streets, homeless figures continue to rise. They have traded the dream for a nightmare; US citizens have been sold into debt slavery. Now we see a convergence of many factors, these come together to create a perfect storm.
(Inequality = Debt = Austerity = Civil Unrest = Inflation + Deflation = Stagflation)
The theories on Agenda 21 and depopulation do not seem so farfetched these days. Plans of condensing the population into super cities and returning much of the planet back to nature have been on the books for a while. Just as with war with nations, we often see a country’s economy attacked first the same could be said for the population. Once we have no money and become completely dependent on the state we are theirs to do with as they please.
All is not lost, self-sufficiency and independence from the systems they have in place is the key to survival.
The Economic Devastation is almost complete. Maybe the World Wild life Fund should be contacted and warned that they need to add yet another endangered species to the list “the middle class American”.