The middle class has been steadily shrinking, but most Americans still believe that they are a part of it. Perhaps this is due at least in part to the egalitarian values which have been pounded into our heads for most of our lives. Very few Americans would have the gall to define themselves as “upper class”, and I have never met anyone that would describe themselves as “lower class”. In place of “lower class”, many politicians now like to use the much more politically correct term “working class”, but a more apt description might be “the working poor”. Today, half of all American workers make less than $30,533 a year, and you certainly cannot support a middle class lifestyle for a family with children on that kind of income.
Real estate, oil and the employment numbers are all telling us the same thing, and that is really bad news for the U.S. economy. It really does appear that economic activity is starting to slow down significantly, but just like in 2008 those that are running things don’t want to admit the reality of what we are facing. Back then, Fed Chair Ben Bernanke insisted that the U.S. economy was not heading into a recession, and we later learned that a recession had already begun when he made that statement. And as you will see at the end of this article, current Fed Chair Jerome Powell says that he is “very happy” with how the U.S. economy is performing, but he shouldn’t be so thrilled. Signs of trouble are everywhere, and we just got several more pieces of troubling news.
A lot of people are shocked by how rapidly things are beginning to move. The U.S. economy is slowing down at a pace that we haven’t seen since the last recession, and this is something that I have been tracking extensively. But now the slowdown is so obvious that even some of the biggest names in the mainstream media are talking about it. For example, just take a look at what Jim Cramer of CNBC is saying. For a long time, he was touting how well the U.S. economy was doing, but now his tune has completely changed. According to Cramer, a lot of corporate executives have “told me about how quickly things have cooled”, and he says that many of them are shocked because this “wasn’t supposed to occur so soon”…
The pace at which things are changing is shocking the experts. Just a few months ago, many of the experts were still talking about how the U.S. economy was “booming”, but since then a major shift has taken place. Most of the headlines have been about the huge stock market declines that we have been witnessing, but things have not been going well for the real economy either. Home sales are way down, auto sales are plummeting, the retail apocalypse is escalating, the middle class continues to shrink and economic optimism is rapidly evaporating. We haven’t seen anything like this since 2008, and many believe that the economic downturn that is now upon us will ultimately be even worse than what we experienced a decade ago. The following are 11 signs that the U.S. economy is starting to slow down dramatically…
We just got more evidence that the middle class in America is rapidly disappearing. According to a shocking new study that was just released, 62 percent of all jobs in the United States do not pay enough to support a middle class life. That means that “the American Dream” is truly out of reach for most of the country at this point. Today, Americans are working harder than ever but the cost of living continues to rise much faster than our paychecks are increasing. Earlier this month, I went and looked at the latest numbers from the Social Security Administration, and I discovered that 50 percent of all American workers make less than $30,533 a year. But that is just above poverty level. In fact, the federal poverty level for a family of five is currently $29,420. Most families are just barely scraping by from month to month, and most U.S. workers are just one major setback away from falling out of the middle class.
As the middle class disintegrates and poverty grows, more Americans than ever are becoming dependent on the government just to survive. Today, we live in a country where most workers do not earn enough to support a middle class family, and we are seeing the homelessness crisis spiral out of control in major cities on both coasts. During this election cycle, many conservatives have been freaking out that an increasing number of Democrats are openly embracing socialism, but the truth is that we are already most of the way to becoming a socialist country. In fact, as you will see below, more than half of all Americans currently receive more money from the government than they pay in taxes. We have become absolutely addicted to government money, and this is one of the major trends that is eating away at our nation like cancer.
The middle class in America has been declining for decades, and we continue to get even more evidence of the catastrophic damage that has already been done. According to the Social Security Administration, the median yearly wage in the United States is just $30,533 at this point. That means 50 percent of all American workers make at least that much per year, but that also means that 50 percent of all American workers make that much or less per year. When you divide $30,533 by 12, you get a median monthly wage of just over $2,500. But of course nobody can provide a middle class standard of living for a family of four for just $2,500 a month, and we will discuss this further below. So in most households at least two people are working, and in many cases multiple jobs are being taken on by a single individual in a desperate attempt to make ends meet. The American people are working harder than ever, and yet the middle class just continues to erode.
We have repeatedly been told that the U.S. economy is “booming”, but meanwhile the middle class in the United States continues to be hollowed out. The financial bubbles that the Federal Reserve has created have been a great blessing for those at the very top of the economic pyramid, but most of the country is still deeply struggling. According to one survey, 78 percent of all full-time workers in the U.S. live paycheck to paycheck, and that doesn’t even include part-time workers or those that are unemployed. We have also been told that unemployment is “low”, but the real numbers tell us that there are more working age Americans without a job in 2018 than there was at any point during the last recession. Most of the people that my wife and I know are struggling, and I continually get emails from readers all over the country that are struggling. The sad truth is that the middle class is slowly but surely dying, and more people are falling into poverty with each passing day.
The mood of the mainstream media is really starting to shift dramatically. At one time they seemed determined to convince all of us that happy days were here again for the U.S. economy, but now some mainstream news outlets are openly warning that the next recession will be “worse than the Great Depression”. Do they really believe that this is true, or is there some other purpose behind their bold headlines? Of course it isn’t exactly difficult to predict that another recession is coming, because the U.S. economy has experienced recession after recession ever since the Federal Reserve was first established in 1913. But the phrase “worse than the Great Depression” implies that what we will soon be facing will be the worst economic downturn in all of U.S. history. That is a very bold statement to make, and it should not be done lightly.
The middle class in America is being systematically eviscerated right in front of our eyes. I don’t normally do this, but today I want to share with you an email that was recently sent to me by a reader. I asked for permission to share her story with all of you, because I think that it will be encouraging for a lot of people out there to understand that they aren’t alone. In this supposedly “booming” economy, millions upon millions of American families are barely making it from month to month even though they are working as hard as they possibly can. But because the mainstream media has been endlessly touting “good economic news” for the last several years, many of those that are struggling end up believing that something must be wrong with them since they aren’t participating in all of the “prosperity”. But of course the truth is that almost all of the economic rewards have been going to the very top of the economic pyramid. Meanwhile, the middle class continues to shrink and more families fall into poverty with each passing month.