Ben Bernake
2014-02-07 05:35:33 UTC
#1 You don't have to ask major U.S. corporations if the middle class is
dying. This fact is showing up plain as day in their sales numbers.
The following is from a recent New York Times article entitled "The
Middle Class Is Steadily Eroding. Just Ask the Business World"...
===============
http://www.nytimes.com/2014/02/03/business/the-middle-class-is-steadily-eroding-just-ask-the-business-world.html
In Manhattan, the upscale clothing retailer Barneys will replace the
bankrupt discounter Loehmanns, whose Chelsea store closes in a few
weeks. Across the country, Olive Garden and Red Lobster restaurants are
struggling, while fine-dining chains like Capital Grille are thriving.
And at General Electric, the increase in demand for high-end dishwashers
and refrigerators dwarfs sales growth of mass-market models.
As politicians and pundits in Washington continue to spar over whether
economic inequality is in fact deepening, in corporate America there
really is no debate at all. The post-recession reality is that the
customer base for businesses that appeal to the middle class is
shrinking as the top tier pulls even further away.
=================
#2 Some of the largest retailers in the United States that once thrived
by serving the middle class are now steadily dying. Sears and J.C.
Penney are both on the verge of bankruptcy, and now we have learned that
Radio Shack may be shutting down another 500 stores this year.
#3 Real disposable income in the United States just experienced the
largest year over year drop that we have seen since 1974.
#4 Median household income in the United States has fallen for five
years in a row.
#5 The rate of homeownership in the United States has fallen for eight
years in a row.
#6 In 2008, 53 percent of all Americans considered themselves to be
"middle class". In 2014, only 44 percent of all Americans consider
themselves to be "middle class".
#7 In 2008, 25 percent of all Americans in the 18 to 29-year-old age
bracket considered themselves to be "lower class". In 2014, an
astounding 49 percent of them do.
#8 Incredibly, 56 percent of all Americans now have "subprime credit".
#9 Total consumer credit has risen by a whopping 22 percent over the
past three years.
#10 The average credit card debt in the United States is $15,279.
#11 The average student loan debt in the United States is $32,250.
#12 The average mortgage debt in the United States is $149,925.
#13 Overall, U.S. consumers are $11,360,000,000,000 in debt.
#14 The U.S. national debt is currently sitting at
$17,263,040,455,036.20, and it is being reported that is has grown by
$6.666 trillion during the Obama years so far. Most of the burden of
servicing that debt is going to fall on the middle class (if the middle
class is able to survive that long).
#15 According to the Congressional Budget Office, interest payments on
the national debt will nearly quadruple over the next ten years.
#16 Back in 1999, 64.1 percent of all Americans were covered by
employment-based health insurance. Today, 54.9 percent of all Americans
are covered by employment-based health insurance.
#17 More Americans than ever find themselves forced to turn to the
government for help with health care. At this point, 82.4 million
Americans live in a home where at least one person is enrolled in the
Medicaid program.
#18 There are 46.5 million Americans that are living in poverty, and the
poverty rate in America has been at 15 percent or above for 3
consecutive years. That is the first time that has happened since 1965.
#19 While Barack Obama has been in the White House, the number of
Americans on food stamps has gone from 32 million to 47 million.
#20 While Barack Obama has been in the White House, the percentage of
working age Americans that are actually working has declined from 60.6
percent to 58.6 percent.
#21 While Barack Obama has been in the White House, the average duration
of unemployment in the United States has risen from 19.8 weeks to 37.1
weeks.
#22 Middle-wage jobs accounted for 60 percent of the jobs lost during
the last recession, but they have accounted for only 22 percent of the
jobs created since then.
#23 It is hard to believe, but an astounding 53 percent of all American
workers make less than $30,000 a year in wages.
#24 Approximately one out of every four part-time workers in America is
living below the poverty line.
#25 According to the most recent numbers from the U.S. Census Bureau, an
all-time record 49.2 percent of all Americans are receiving benefits
from at least one government program each month.
#26 The U.S. government has spent an astounding 3.7 trillion dollars on
welfare programs over the past five years.
#27 Only 35 percent of all Americans say that they are better off
financially than they were a year ago.
#28 Only 19 percent of all Americans believe that the job market is
better than it was a year ago.
As if the middle class didn't have enough to deal with, now here comes
Obamacare.
As I have written about previously, Obamacare is going to mean higher
taxes and much higher health insurance premiums for middle class
Americans.
Not only that, but millions of hard working Americans are going to end
up losing their jobs or having their hours cut back thanks to
Obamacare. For example, a fry cook named Darnell Summers recently told
Barack Obama directly that he and his fellow workers "were broken down
to part time to avoid paying health insurance"...
And the Congressional Budget Office now says that Obamacare could result
in the loss of 2.3 million full-time jobs by 2021.
Several million people will reduce their hours on the job or leave the
workforce entirely because of incentives built into President Barack
Obamas health care overhaul, the Congressional Budget Office said
Tuesday.
That would mean job losses equal to 2.3 million full-time jobs by 2021,
in large part because people would opt to keep their income low to stay
eligible for federal health care subsidies or Medicaid, the agency said.
It had estimated previously that the law would lead to 800,000 fewer
jobs by that year.
But even if we got rid of Obamacare tomorrow that would not solve the
problems of the middle class.
The middle class has been shrinking for a very long time, and something
dramatic desperately needs to be done.
The numbers that I shared above simply cannot convey the level of
suffering that is going on out there on the streets of America today.
That is why I also like to share personal stories when I can. Below, I
have posted an excerpt from an open letter to Barack Obama that a woman
with a Master's degree and 30 years of work experience recently
submitted to the Huffington Post. What this formerly middle class lady
is having to endure because of this horrible economy is absolutely
tragic...
===============
Dear Mr. President,
I write to you today because I have nowhere else to turn. I lost my full
time job in September 2012. I have only been able to find part-time
employment -- 16 hours each week at $12 per hour -- but I don't work
that every week. For the month of December, my net pay was $365. My
husband and I now live in an RV at a campground because of my job loss.
Our monthly rent is $455 and that doesn't include utilities. We were
given this 27-ft. 1983 RV when I lost my job.
This is America today. We have no running water; we use a hose to fill
jugs. We have no shower but the campground does. We have a toilet but it
only works when the sewer line doesn't freeze -- if it freezes, we use
the campground's restrooms. At night, in my bed, when it's cold out, my
blanket can freeze to the wall of the RV.
We don't have a stove or an oven, just a microwave, so regular-food
cooking is out. Recently we found a small toaster oven on sale so we can
bake a little now because eating only microwaved food just wasn't
working for us. We don't have a refrigerator, just an icebox (a block of
ice cost about $1.89). It keeps things relatively cold. If it's freezing
outside, we just put things on the picnic table.
================
You can read the rest of her incredibly heartbreaking letter right here.
http://www.huffingtonpost.com/paula-e-bray/working-poor-america_b_4690675.html
This is not the America that I remember.
What in the world is happening to us?
http://www.zerohedge.com/news/2014-02-06/28-signs-middle-class-heading-towards-extinction
dying. This fact is showing up plain as day in their sales numbers.
The following is from a recent New York Times article entitled "The
Middle Class Is Steadily Eroding. Just Ask the Business World"...
===============
http://www.nytimes.com/2014/02/03/business/the-middle-class-is-steadily-eroding-just-ask-the-business-world.html
In Manhattan, the upscale clothing retailer Barneys will replace the
bankrupt discounter Loehmanns, whose Chelsea store closes in a few
weeks. Across the country, Olive Garden and Red Lobster restaurants are
struggling, while fine-dining chains like Capital Grille are thriving.
And at General Electric, the increase in demand for high-end dishwashers
and refrigerators dwarfs sales growth of mass-market models.
As politicians and pundits in Washington continue to spar over whether
economic inequality is in fact deepening, in corporate America there
really is no debate at all. The post-recession reality is that the
customer base for businesses that appeal to the middle class is
shrinking as the top tier pulls even further away.
=================
#2 Some of the largest retailers in the United States that once thrived
by serving the middle class are now steadily dying. Sears and J.C.
Penney are both on the verge of bankruptcy, and now we have learned that
Radio Shack may be shutting down another 500 stores this year.
#3 Real disposable income in the United States just experienced the
largest year over year drop that we have seen since 1974.
#4 Median household income in the United States has fallen for five
years in a row.
#5 The rate of homeownership in the United States has fallen for eight
years in a row.
#6 In 2008, 53 percent of all Americans considered themselves to be
"middle class". In 2014, only 44 percent of all Americans consider
themselves to be "middle class".
#7 In 2008, 25 percent of all Americans in the 18 to 29-year-old age
bracket considered themselves to be "lower class". In 2014, an
astounding 49 percent of them do.
#8 Incredibly, 56 percent of all Americans now have "subprime credit".
#9 Total consumer credit has risen by a whopping 22 percent over the
past three years.
#10 The average credit card debt in the United States is $15,279.
#11 The average student loan debt in the United States is $32,250.
#12 The average mortgage debt in the United States is $149,925.
#13 Overall, U.S. consumers are $11,360,000,000,000 in debt.
#14 The U.S. national debt is currently sitting at
$17,263,040,455,036.20, and it is being reported that is has grown by
$6.666 trillion during the Obama years so far. Most of the burden of
servicing that debt is going to fall on the middle class (if the middle
class is able to survive that long).
#15 According to the Congressional Budget Office, interest payments on
the national debt will nearly quadruple over the next ten years.
#16 Back in 1999, 64.1 percent of all Americans were covered by
employment-based health insurance. Today, 54.9 percent of all Americans
are covered by employment-based health insurance.
#17 More Americans than ever find themselves forced to turn to the
government for help with health care. At this point, 82.4 million
Americans live in a home where at least one person is enrolled in the
Medicaid program.
#18 There are 46.5 million Americans that are living in poverty, and the
poverty rate in America has been at 15 percent or above for 3
consecutive years. That is the first time that has happened since 1965.
#19 While Barack Obama has been in the White House, the number of
Americans on food stamps has gone from 32 million to 47 million.
#20 While Barack Obama has been in the White House, the percentage of
working age Americans that are actually working has declined from 60.6
percent to 58.6 percent.
#21 While Barack Obama has been in the White House, the average duration
of unemployment in the United States has risen from 19.8 weeks to 37.1
weeks.
#22 Middle-wage jobs accounted for 60 percent of the jobs lost during
the last recession, but they have accounted for only 22 percent of the
jobs created since then.
#23 It is hard to believe, but an astounding 53 percent of all American
workers make less than $30,000 a year in wages.
#24 Approximately one out of every four part-time workers in America is
living below the poverty line.
#25 According to the most recent numbers from the U.S. Census Bureau, an
all-time record 49.2 percent of all Americans are receiving benefits
from at least one government program each month.
#26 The U.S. government has spent an astounding 3.7 trillion dollars on
welfare programs over the past five years.
#27 Only 35 percent of all Americans say that they are better off
financially than they were a year ago.
#28 Only 19 percent of all Americans believe that the job market is
better than it was a year ago.
As if the middle class didn't have enough to deal with, now here comes
Obamacare.
As I have written about previously, Obamacare is going to mean higher
taxes and much higher health insurance premiums for middle class
Americans.
Not only that, but millions of hard working Americans are going to end
up losing their jobs or having their hours cut back thanks to
Obamacare. For example, a fry cook named Darnell Summers recently told
Barack Obama directly that he and his fellow workers "were broken down
to part time to avoid paying health insurance"...
And the Congressional Budget Office now says that Obamacare could result
in the loss of 2.3 million full-time jobs by 2021.
Several million people will reduce their hours on the job or leave the
workforce entirely because of incentives built into President Barack
Obamas health care overhaul, the Congressional Budget Office said
Tuesday.
That would mean job losses equal to 2.3 million full-time jobs by 2021,
in large part because people would opt to keep their income low to stay
eligible for federal health care subsidies or Medicaid, the agency said.
It had estimated previously that the law would lead to 800,000 fewer
jobs by that year.
But even if we got rid of Obamacare tomorrow that would not solve the
problems of the middle class.
The middle class has been shrinking for a very long time, and something
dramatic desperately needs to be done.
The numbers that I shared above simply cannot convey the level of
suffering that is going on out there on the streets of America today.
That is why I also like to share personal stories when I can. Below, I
have posted an excerpt from an open letter to Barack Obama that a woman
with a Master's degree and 30 years of work experience recently
submitted to the Huffington Post. What this formerly middle class lady
is having to endure because of this horrible economy is absolutely
tragic...
===============
Dear Mr. President,
I write to you today because I have nowhere else to turn. I lost my full
time job in September 2012. I have only been able to find part-time
employment -- 16 hours each week at $12 per hour -- but I don't work
that every week. For the month of December, my net pay was $365. My
husband and I now live in an RV at a campground because of my job loss.
Our monthly rent is $455 and that doesn't include utilities. We were
given this 27-ft. 1983 RV when I lost my job.
This is America today. We have no running water; we use a hose to fill
jugs. We have no shower but the campground does. We have a toilet but it
only works when the sewer line doesn't freeze -- if it freezes, we use
the campground's restrooms. At night, in my bed, when it's cold out, my
blanket can freeze to the wall of the RV.
We don't have a stove or an oven, just a microwave, so regular-food
cooking is out. Recently we found a small toaster oven on sale so we can
bake a little now because eating only microwaved food just wasn't
working for us. We don't have a refrigerator, just an icebox (a block of
ice cost about $1.89). It keeps things relatively cold. If it's freezing
outside, we just put things on the picnic table.
================
You can read the rest of her incredibly heartbreaking letter right here.
http://www.huffingtonpost.com/paula-e-bray/working-poor-america_b_4690675.html
This is not the America that I remember.
What in the world is happening to us?
http://www.zerohedge.com/news/2014-02-06/28-signs-middle-class-heading-towards-extinction