Thursday, March 24, 2022

"Shocking Signs That Show That The Middle Class In The U.S. Is Being Systematically Destroyed"

Full screen recommended.
"Shocking Signs That Show That The Middle Class
 In The U.S. Is Being Systematically Destroyed"
by Epic Economist

"Lots of people don’t understand completely why inflation is so bad for the economy. And although there are many reasons we could mention, some of the main ones are because it systematically destroys the middle class and it collapses consumers’ buying power. Inflation is pushing prices to rise much faster than most of our paychecks, and this is making everyday Americans struggle to get by in today’s economic environment. At the same time, it also deteriorates our standard of living since we must spend a larger share of our incomes to afford essentials such as housing, energy, food, and gasoline, which leaves us with a lot less money for other things.

A new report published earlier this week by Oxfam America found that nearly 52 million U.S. workers – or about 35% of the nation’s entire workforce – earn less than $15 an hour. Ten years ago, $15 an hour would be a really good wage. But thanks to today’s inflation, a middle-class lifestyle can no longer be supported by $15 hourly earnings. On top of that, the latest data reported by The Social Security Administration revealed that the median yearly wage in the U.S. is just $34,612.04. Not very long ago, Americans still had prospects to own a nice and comfortable home, but now housing prices are skyrocketing and reaching extreme levels. A couple of days ago, the U.S. Census Bureau informed that the average price of a new home in the United States climbed above $500,000 for the first time in history.

And the costs and financial hurdles of purchasing a home are not the only things that have been rapidly rising lately. Rents have exploded in recent months, with the Zillow Observed Rent index soaring 14.9 compared to a year ago, as the average price for rent jumped to $1,904. Adding fuel to the fire, the price of food and the price of gasoline have been on a meteoric rise this year. But instead of tackling the root of the problem, our leaders in Washington are planning to send another round of stimulus checks.

At a first glance, these measures may seem helpful, but at the end of the day, it will only collapse the purchasing power of the middle-class even further. To keep flooding the system with more cash whenever a problem emerges, it’s not a good strategy. Instead of pumping more artificial money into the economy and debasing our currency, policymakers should find ways to lower the price of essentials, including food and gas. They could protect consumers the same way they protect investors from price swings. There are many things they can do, but unfortunately, they will keep making the same mistakes.

Inflation is always going to be destructive. It only makes the cost of everything even more expensive in the long run. The only possible result from this is the fast destruction of the middle-class, and the debasement of the reserve currency of the world. This sort of recklessness is pushing America to the edge of a financial cliff, and we really don’t want to know what it's like to be down there. Our population needs to wake up before it’s too late. We used to have the largest and most prosperous middle class in the entire world. But now, the middle class is dying right in front of our eyes, and our so-called leaders seem determined to speed up that process."

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