No inflation they say: Increases from 2007 include rent going up by 27 percent, food increasing 12 percent, health insurance 42 percent.
Inflation has a slow methodical pattern of crushing every little dollar you have in your wallet. Even a moderate level of inflation is an enormous change when incomes go stagnant. There is talk about how spending this year isn’t all that great. This is a big deal considering that our economy runs on non-stop spending […]
What happens when 100 million Americans are not in the labor force? More pressure is being added on the one-third of working Americans supporting two-thirds of the population.
It is hard to believe but we have over 92 million Americans not in the labor force. I’ve paid close attention as to how the media presents this group and they usually attribute it to older Americans retiring. The problem with this narrative is that it gives the impression that many have the means to […]
Economic goals of young and old pulling in diverging directions: times will only get tougher for young Americans.
Older Americans tend to vote in larger numbers and are more interested in politics than younger Americans. In the past the older voting cohort was not as large so politicians were cautious about deviating too far for one group alone. Today, we are having a large number of older Americans living longer into old age. […]
Multi-generational living is here to stay in a low wage economy: Over 57 million Americans live in multi-generational households.
The Great Recession might be officially over on paper, but the social impact continues to be felt today. The structural changes are deep and profound and have caused a major rise in multi-generational households. Many young Americans burdened by low wage jobs and college debt may have no other option but to move back home […]
Low wage jobs dominate as waiters and bartenders will soon outnumber manufacturing jobs: Latest jobs report highlights continuing trend in low wage employment.
The trend to low wage employment continues as the latest jobs report shows that wages are being eroded by inflation. Of course, the public is told that inflation is muted but simply looking at your paycheck versus housing costs, healthcare costs, and food would tell you a different story. Americans went to vote with economic […]
The government is already in a soft default and is addicted to low interest rates: Government expenses at $3.87 trillion while receipts enter at $3.29 trillion.
The term default has varying definitions depending on whether you are an individual, a big bank, or the government. For you as an individual, default will occur when you are unable to pay your debts with the income you are generating. You are constrained by your income. As we saw with the housing crisis, when […]
The oxymoron of the labor force when labor means not working: 92 million Americans are not in the labor force with 12 million of those being added only in the last 4 years.
This week we will be getting the employment numbers. The unemployment rate is expected to stay steady or even drop which is comical given that we have 92 million Americans not working today and another 19 million that are fully unemployed. Those not in the labor force continues to grow beyond the basic changes in […]