The Phaserl


This Is About As Good As Things Are Going To Get For The Middle Class – And It’s Not That Good

by Michael Snyder, The Economic Collapse Blog:

The U.S. economy has had six full years to bounce back since the financial collapse of 2008, and it simply has not happened.  Median household income has declined substantially since then, total household wealth for middle class families is way down, the percentage of the population that is employed is still about where it was at the end of the last recession, and the number of Americans that are dependent on the government has absolutely exploded.  Even those that claim that the economy is “recovering” admit that we are not even close to where we used to be economically.  Many hope that someday we will eventually get back to that level, but the truth is that this is about as good as things are ever going to get for the middle class.  And we should enjoy this period of relative stability while we still can, because when the next great financial crisis strikes things are going to fall apart very rapidly.

The U.S. Census Bureau has just released some brand new numbers, and they are quite sobering.  For example, after accounting for inflation median household income in the United States has declined a total of 8 percent from where it was back in 2007.

That means that middle class families have significantly less purchasing power than they did just prior to the last major financial crisis.

And one research firm is projecting that it is going to take until 2019 for median household income to return to the level that we witnessed in 2007…

For everybody wondering why the economic recovery feels like a recession, here’s the answer: We’re still at least five years away from regaining everything lost during the 2007-2009 downturn.

Forecasting firm IHS Global Insight predicts that real median household income — perhaps the best proxy for middle-class living standards — won’t reach the prior peak from 2007 until 2019. Since the numbers are adjusted for inflation, that means the typical family will wait 12 years until their purchasing power is as strong as it was before the recession. That would be the longest period of stagnation, by far, since the Great Depression of the 1930s.

Of course that projection assumes that the economy will continue to “recover”, which is a very questionable assumption at best.

Meanwhile, total household wealth has been declining for middle class families as well.

According to the New York Times, the “typical American household” is now worth 36 percent less than it was worth a decade ago.

That is a pretty substantial drop.  But you never hear our politicians (especially the Democrats) bring up numbers like that because they want us to feel good about things.

So why is all of this happening?

The biggest reason why the middle class is struggling so much is the lack of good jobs.

As the chart posted below demonstrates, the percentage of the working age population that is actually employed is still way, way below where it was prior to the last recession…

Employment Population Ratio

The “employment recovery” (the tiny little bump at the end of the chart) has been so miniscule that it is hardly even worth mentioning.

At the moment, we still have 1.4 million fewer full-time jobs than we did in 2008 even though more than 100,000 people are added to the U.S. population each month.

And a lot of the workers that have lost jobs since the start of the last recession have never been able to find a new one.

According to a brand new survey conducted by Rutgers University, more than 20 percent of all workers that have been laid off in the past five years still have not found a new job.

Meanwhile, the control freak bureaucrats that run this country continue to kill off small businesses.

In recent years we have seen large numbers of small businesses fail, and at this point the rate of small business ownership in the United States is at an all-time low.

As a result of everything that you have just read, the middle class is shrinking and dependence on the government is soaring.

Today, there are 49 million Americans that are dealing with food insecurity, and Americans received more than 2 trillion dollars in benefits from the federal government last year alone.

For many more statistics just like this, please see my previous article entitled “30 stats to show to anyone that does not believe the middle class is being destroyed“.

Without a doubt, things are not that good for the middle class in America these days.

Unfortunately, the next great wave of financial trouble is rapidly approaching, and once it strikes things are going to get substantially worse for the middle class.

Read More @

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

10 comments to This Is About As Good As Things Are Going To Get For The Middle Class – And It’s Not That Good

  • rich

    How Goldman Controls The New York Fed: 47.5 Hours Of “The Secret Goldman Sachs Tapes” Explain

    One has to either laugh, or weep, because that statement alone merely confirmed what we said a year ago when we said that “the judicial branch is also under the control of the two abovementioned entities”, namely the NY Fed and Goldman.

    In any event, the Segarra case disappeared from the public eye, and was promptly forgotten by the just as corrupted media and the public.

    At least until this morning, when ProPublica’s Jake Bernstein revealed something quite stunning: “Segarra had made 46 hours of secret audio recordings to bolster her case about what was happening at Goldman and with her bosses.

    In a partnership with This American Life, Bernstein dissects the tapes, which portray a New York Fed that is at times reluctant to push hard against Goldman and struggling to define its authority. For example, in a meeting recorded the week before she was fired, Segarra’s boss asks her at least seven times to change her finding that Goldman was missing a policy to handle conflicts of interest, saying, “Why do you have to do this?”

    The full ProPublica story can be found here.

    And for those who are time-constrained, and would rather just read the Cliff Notes (the ending should be known to everyone by now), here is Michael Lewis with an op-ed in Bloomberg summarizing the banker-controlled farce the entire US system has devolved to:

    “The Secret Goldman Sachs Tapes”

  • glitter 1

    “And we should enjoy this period of relative stability while we still can, because when the next great financial crisis strikes things are going to fall apart very rapidly.”

    During 2008 when the Stock Market was melting down,Trillions of Dollars were extracted from the Long side of the Stock Market(SM) and transferred to the Short Side of the SM. When value(Dollars)leave the SM during a sell off it doesn’t just disappear into the Cosmos,it is transferred to the Short Sellers(who are well positioned due to insider tip-offs).Those SS represent the insiders aka The Banks and all their insider crony’s, like John Corzine,who was the Head of Goldman Sachs at the time.How do you think he made/got his estimated 500 million in personal wealth.

    When the next market crises happens and it will happen,all of the remaining wealth of the middle class will be wiped out.All that generational wealth from several generations(Boomers,Parents and Grandparents) will be gone!And it is/has been planned to take place.To break the back of America for good,never to return since they have moved all of the wealth generating industry off-shore.America is to be reduce to a Totalitarian Socialised Poverty Strickened Third World Hell Hole.Then they will take it to war,not necessarily in that order.
    This current Stock Market Rally is working to draw/suck in all of the remaining wealth of America and the World only to be siphoned off when it all comes crashing down. The Fed is creating Billions and Billions out of thin air and giving it to the Banks,who are buying/bidding up The Stock Market and all of the Mortgage Debt;then at a time that will be made known ahead of time,all of the crony insiders will go Short and siphon all remaining wealth unto themselves.They will effectively own everything,all the Mortages/Debt and will represent all of the Principle Majority Stock Owners of the S&P 500/Dow Indusrials.The World/America wil be once again reduced to Serfdom,only much worse than during the Middle Ages.

    “Those that do not learn from history are condemed to repeat history”

    If our Grandparents(who liver throught the Great Depression) were still alive they would be screaming at the top of their lungs to wake up since this is just another replay of what the Bankers have done in the past.One of the last great voices of wisdom crying in the wilderness is Richard Russell.

    Exit debt as much as possible and stack physical Gold/Silver bars and coins held out of the banking system.

    • Ed_B

      Back in the 1930s, it was VERY common for US citizens to highly distrust the banks and those who owned or ran them. We don’t see a lot of that today because the banks are not monolithic. People only really see their local bank. It is staffed with friendly local people who are honestly trying to help those in their community with the financial services they offer. They do not see the BIG predator banks that roam the financial seas like big sharks, feeding on all they come across. What we do see is a dumbed down collection of self-absorbed children who think that the world owes them something. The next time the world owes anyone anything will be the first time.

      As others on here have done, I have paid off the mortgage and am converting fiat into phyzz. I am also prepping because I see what many others here see… a social / economic train-wreck that is visible to me and others here but apparently not visible to a lot of our fellow citizens who do not see it because it makes them uncomfortable to see it. Well, when it arrives, which it will, it will make those who are not prepared for it a damn site more uncomfortable than merely talking about it or recognizing it does. I am doing this over time because what we see happening is not an event, it is a process… and a process of this magnitude does not happen over-night. It happens slowly, over decades. It happens via MANY small events and not 1 or 2 huge ones. Such is the way of history. Read it. Study it. Learn from it.

      Our science and technology are WAY beyond anything the ancient Greeks or Romans could have imagined. We take things as commonplace that they would have seen as magic or godly. Yet, it is not. It is science and technology that are highly developed and capable of doing great things, both for good and for ill. But there IS something that is not significantly different today than it was 2,000+ years ago… and that is the human being. We are essentially the same today as we were then. I mention this because it is humanity that is the same today as it has been for millennia and will be for millennia to come. Because of this, many things that are happening today are happening for the very same reasons that they have always happened. In most cases it is because of greed, hatred, corruption, envy, and a few other human weaknesses. These have not gone away and are still around to cause us the same kinds of problems they always have.

      • glitter 1

        I concur! My Great Aunt & Uncle,who owned and ran a Trailer Park used to stash all their cash under/in their mattress because they didn’t trust the banks.They’ve been gone almost thirty years now.

      • Angel

        I learned from both my grandmothers NOT to trust the banks.

        When one of my grandmothers was moved out of her home into and into a nursing home back in the 70’s, a couple hundred grand was found stashed in the wall. It may have been even more than we know, as it was actually found and reported by a work crew. More than likely, something was siphoned off the top before her children took possession.

        My other grandmother instilled in me the value of gold and silver. As a boy, I would come to inherit her varied but modest coin collection, including her collection of Morgan and Peace dollars, as well as the 90% that she wisely picked from her change and put aside when the metal transition was instituted.

        The things we speak of today, she spoke of yesterday. It was not uncommon, not was it radical. It was a rational mindset, developed through personal experience of having lived through the depression and also having been aware of other major events of this nature, i.e., Wiemar.

        Thank God I listened and thank God I took an interest in numismatics, as that was the catalyst that allowed me to pursue this interest further in later years, both as a hobby and as a form of wealth preservation.

        I’m afraid many of us here are dinosaurs when compared to the masses, most of whom are not only unprepared in the most basic of ways, but have no idea what awaits them. Financial hard times are the new normal after all, and with the various safety nets that have been thoroughly and unknowingly pillaged over the years, a horrid false sense of security is now the rule across the board, even with those who are rather well off and educated.

        It’s been my experience that the average American isn’t even aware that there was a serious economic crisis in 2008, this due to the fact that the MSM did their utmost to shroud and sugarcoat the harsh reality of what was ACTUALLY occurring. Of course, once the band-aid was applied, it was quickly back to business as usual. Subsequently, revisionist history would become all the more blatant in order that “Hope and Change” become the believable mantra. And it worked.

        Fast forward to today…

        • glitter 1

          My wife tells me the story of when she was a teen living/growing up in Bayone NJ, her Father,who worked as a design engineer at the Bayone Naval Yard, told her to save all of the 90% silver she could since it will be gone soon.This was prior to the turning in of silver pre-1965.She listened and has a small junk silver stash.He was a smart and talented man.He personally built their house in Bayone and one of his projects/designs he worked on at the Naval Yard was those little reflectors,you know those little round colored reflectors that were attacted to signs.Unfortunately I never met the man,he died at age 51 when my wife was 16 as was I.We didn’t know each other at the time.

  • andrew james

    There’s still stuff that isn’t nailed down.

  • This peak oil thingy (2005) is a bitch, ain’t it?
    Energy makes money. You can throw all the money you like at an economy (QE) but, it will never make energy.

  • Gnostic

    “American Middle Class suffers from a sexually transmitted disease, they were F@#ked by the banksters”

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>