Tuesday, June 12, 2012

Dying American Middle Class


For anyone doubting the American middle class is dying, please read this newly issued report by the Federal Reserve Board of Governors entitled "Changes in U.S. Family Finances from 2007 to 2010: Evidence from the Survey of Consumer Finances."

The media has given this report a great deal of play on the 40% figure.




The average American middle class family since 2007 has lost 40% of its net worth, much (but not all) due to the housing bubble popping and the recession.

But the report goes far further.  Income is falling, savings are non-existent, and much more.

Please explain to me how "average" and "normal" middle class people will ever think of home ownership as part of the American Dream again.

It is now increasingly out of reach.  Even full-time employment with benefits is a fantasy for many.

Policymakers who ignore this report and fail to act on its conclusions doom the American middle class.

The United States used to have a bulging middle class with small pockets of rich and poor at the top and bottom.  Economically, the country looked like this.

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Now, the nation is growing more at both ends and shrinking in the middle.

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This is a recipe for social disorder and chaos, even in a city like Seattle where I live which is increasingly becoming richer at the expense of its suburbs.  When an average city worker like a cop, fireman, or teacher can no longer afford to live where they work, society has a problem.  So do real estate developers but let's not be picky.

READ THE FED REPORT.  Learn the type of country your children will grow up in a decade from now.  And then vote accordingly in November.

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