As the mainstream media continues to talk about the economy, one fact cannot be disputed: Disposable income for the middle-class American family is becoming a thing of the past. The news continues to tell a story of how the housing market is recovering and fewer Americans are filing for bankruptcy, hence a recovery. This is just a bunch of nonsense. All you have to do is ask your friends, family and neighbors how they are doing financially and they will all complain about the tax increases and the cost of food at the grocery store. That doesn’t even increase gas prices. The government would like you to believe that gasoline prices go up and down based on what is happening in the Middle East.
That’s only part of the equation and the truth of the matter is that gas prices are going up, the dollar is going down in value. Every week is something new, a kidnapping, a fiscal cliff or some financial disaster that if they don’t intervene and fix it by bailing out a group of their donors, the economy would collapse. Most economists argued that it would have been better to let the big banks fail again in 2008 and that we would already be seeing some kind of recovery for the middle class. Today the list of billionaires was published and while I was going through it, I found something interesting. The rich are getting richer through this economic crisis. Many of them increased their net worth by as much as 50%. Just look at your bank statement and see how much interest they are giving you. It’s probably next to nothing, but they are making billions in short positions and manipulating the markets.
A recent study said that the average American is three weeks away from filing for bankruptcy. Some people have a hard time believing it, but it’s actually close to the truth. The truth of the matter is that most Americans live from paycheck to paycheck, and thanks to rising payroll taxes, gas prices, and food prices, those salaries are worth less and less. Most American families have reached the point where they have no disposable income to eat out or entertain themselves as it is unnecessary.
I have put together some posters that show the middle class is running out of money and on the verge of filing for bankruptcy.
- This week, Subway restaurant reported that recent tax increases have had a notable impact on its business. They are estimating a 2% drop in sales since the tax increase earlier in the year. Subway is not the only restaurant that is struggling, many other large chains are complaining about the decline in business.
- An article came out last week showing that many of America’s largest retail chain stores will close hundreds of stores in 2013. The list included Sears, Best Buy, JC Penney, Office Depot, Barnes & Noble, GameStop and OfficeMax. The economy must be worse than expected for these retail giants to start cutting the fat.
- According to the New York Federal Reserve, student loan debt has tripled in the last 10 years. This has resulted in most young adults having no disposable income to get out because they are drowning in student loan debt. Student loan debt has exceeded a trillion dollars.
- A study published today indicated that 24% of all Americans have more credit card debt than money in the bank. This is nothing more than a cocktail for these individuals to end up filing for bankruptcy as the only alternative. Today, credit card debt is one of the main causes that push people to file for bankruptcy.
- Over the past four years, the median income in the United States has decreased by $ 4000. Added to the United States Census Bureau, the middle class is taking a smaller share of the general income of the United States than ever before in the history.
As the Dow continues to set new records, the media chants that happy days are here again, Americans must take an honest look at their own personal situation. They must keep it real and they must declare bankruptcy; they should contact a bankruptcy attorney and discuss their situation. The media as responsible for paying the bills of these people and people must wake up and take responsibility for their personal situation before it is too late.