Dec 4, 2009
For decades, middleclass America has been the bastion of economic growth and activity. Today, the United States might be witnessing the fall of this segment as their debts shoot through the roof. The financial crisis has definitely hit ordinary Americans the hardest. But before you blame everything on the bankers, it should also be noted that over 100,000 middle-class families filed for bankruptcy every month since 2007.
Statistics shows that one in five Americans today is either unemployed or underemployed. One in eight is in foreclosure or default. And one in nine can’t pay the minimum repayment required on their credit cards. People who are about to retire are also facing incredible challenges because the crisis has just wiped out more than $5 trillion on their wealth (savings and pensions). The list of blogs below highlights other developments that might signal the end of middleclass Americans.
The Rebel News, in the post “US Middle Class Hit Hard by Current Economic Vows”, summarizes key findings that show the vulnerability of ordinary Americans. It also stated that classic lifesavers such as real estate ownership and higher education have lost its powers in the current condition. It has, in fact, become liabilities to the financial system.
Ronni @ Time Goes By wrote a post titled “Imagining Life without a Middle Class”. He gives readers the big picture and the small picture. In the latter, he recounted that most people are spending most of their income on necessities. If this trend goes on, there will not be enough disposable income for any other activity.
Elizabeth Warren @ Huffington Posts compiled research statistics in the post “America without a Middle Class” that demonstrate the fall of the United State’s middle market. Among the key figures that were showed include the comparison between productivity & compensation, income growth during boom times, and the median income of households.
- Obama Middle-Income Plans: Where Do You Fit In?
- Assessing the Middle Class
- Income Gap Shrinks Between the Rich and Poor in the US
- The New American Poor
- More Taxes in the Pipeline
- Hello World!
- When To Quit Your Job – How Much Money Do You Need?
- Is There a Way Out of Your Financial Troubles?
- China Pressures Washington
- Tighter Credit for American Business Owner