Almost a third of Americans, including many earning six-figure incomes, run out of money between paychecks “always” or “most of the time,” according to a Salary Finance survey of more than 2,700 adults working at medium-size or large companies.
The smaller the paycheck, the more common the problem: 40 percent of people earning under $25,000 suffer the fate. But so do 27 percent making $55,000 to $70,000; 28 percent making $70,000 to $85,000; a third of people earning $130,000 to $160,000; and 32 percent of those raking in more than $200,000 a year.
For most of these households, the shortfall doesn’t mean going out to eat less often or skipping a vacation. It means postponing medical appointments or shopping at thrift stores for bargains.
The problem isn’t caused by careless spending but by two factors squeezing U.S. households.
The cost of living rose 2.3 percent in 2019, according to the U.S. Consumer Price Index. Housing costs edged up 3.2 percent, food costs grew by 1.8 percent, and the cost of medical care jumped 4.6 percent, the largest annual increase since 2007.
At the same time, U.S. wages grew only 0.2 percent in 2019. According to Payscale, adjusted for inflation, Americans’ earnings have actually shrunk 9 percent since 2006.
The survey found that those under financial stress are six times more likely to suffer from persistent anxiety and seven times more prone to depression.
PUBLISHER’S NOTE: While we report the “official” numbers on inflation, wage growth, and unemployment, we are fully aware how they have been distorted, rigged, and fixed over the years to boost Washington’s needs at the expense of the workers.
The Rich Getting Richer=
In September 2019, Goldman Sachs reports that the richest 1 percent of Americans held 56 percent of the value of the equities owned by all of the country’s households. The value of the 1 percent’s holdings was about $21.4 trillion at the time, including exchange-traded stocks and shares in private companies.
At the same time, the bottom 90 percent held 12 percent of share values, or about $4.6 trillion.
In 1990, the 1 percent’s share was 46 percent.
During the 30 years since, the top percent has bought $1.2 trillion in stocks while the rest of the population sold about $1 trillion worth.
PUBLISHER’S NOTE: The wealthy continue to strengthen their grip on corporate America at a time when credit card debt for the rest of the population has swelled to a record $930 billion, and consumer debt has reached $14.2 trillion.
The White House reportedly is considering a plan to use tax incentives to motivate Americans to buy stocks. Yet, the people who can buy stocks are doing so already, and the tax breaks would be useless to people living paycheck to paycheck.
The plan would lure more money into the market just before it heads into recession and then the “Greatest Depression.”
Meanwhile, the bottom 90 percent are left to be Plantation Workers of Slavelandia for multinational corporations. The days of the mom-and-pop stores are long gone – ancient history to young millennials and the Generation Z – who never knew the days of drug stores, stationary stores, hardware stores, etc., before anti-trust laws were scrapped and CVS, Staples, Home Depots, etc., took control the market share.
Throughout history, rising economic inequality has fomented social instability and political revolutions.
An early indicator: labor unrest in the U.S. is the rise. In 2018, there were 20 major strikes and work stoppages, more than at any time since 1986, with teachers, hotel workers, and other groups striking in multiple states. Last year, the number rose to 25.
TREND FORECAST: Workers’ rising wage discontent will force businesses to increase pay and push politicians to support minimum-wage increases. When the “Greatest Depression” hits in 2021, however, poverty and income inequality will greatly increase and political flashpoints will ignite uprisings and revolts over the next decade.
