Posted on 10/25/2014 6:11:19 AM PDT by SeekAndFind
The Social Security Administration has just released wage statistics for 2013, and the numbers are startling. Last year, 50 percent of all American workers made less than $28,031, and 39 percent of all American workers made less than $20,000. If you worked a full-time job at $10 an hour all year long with two weeks off, you would make $20,000. So the fact that 39 percent of all workers made less than that amount is rather telling. This is more evidence of the declining quality of the jobs in this country. In many homes in America today, both parents are working multiple jobs in a desperate attempt to make ends meet. Our paychecks are stagnant while the cost of living just continues to soar. And the jobs that are being added to the economy pay a lot less than the jobs lost in the last recession. In fact, it has been estimated that the jobs that have been created since the last recession pay an average of 23 percent less than the jobs that were lost. We are witnessing the slow-motion destruction of the middle class, and very few of our leaders seem to care.
The "average" yearly wage in America last year was just $43,041. But after accounting for inflation, that was actually worse than the year before...
American paychecks shrank last year, just-released data show, further eroding the public’s purchasing power, which is so vital to economic growth.
Average pay for 2013 was $43,041 — down $79 from the previous year when measured in 2013 dollars. Worse, average pay fell $508 below the 2007 level, my analysis of the new Social Security Administration data shows.
Flat or declining average pay is a major reason so many Americans feel that the Great Recession never ended for them. A severe job shortage compounds that misery not just for workers but also for businesses trying to profit from selling goods and services.
Average pay declined in 59 of the 60 levels of worker pay the government reports each October.
And please keep in mind that "average pay" is really skewed by the millionaires and billionaires at the top end of the spectrum.
Median pay in 2013 was just $28,031.02. That means that 50 percent of American workers made less than that number, and 50 percent of American workers made more than that number.
Here are some more numbers from the report that the Social Security Administration just released...
-39 percent of American workers made less than $20,000 last year.
-52 percent of American workers made less than $30,000 last year.
-63 percent of American workers made less than $40,000 last year.
-72 percent of American workers made less than $50,000 last year.
I don't know about you, but those numbers are deeply troubling to me.
It has been estimated that it takes approximately $50,000 a year to support a middle class lifestyle for a family of four, and so the fact that 72 percent of all workers make less than that amount shows how difficult it is for families that try to get by with just a single breadwinner.
The way that our economy is structured now, both parents usually have to work as hard as they can just to pay the bills.
But there was one group of Americans that did see their incomes actually increase last year.
Those making over 50 million dollars had their pay increase by an average of $12.8 million in 2013.
For everyone else, the news was not good.
And of course this is a trend that has been going on for a long time.
Posted below is a chart that comes from the Federal Reserve. It shows how real median household income in the United States has declined since the year 2000...
Meanwhile, the cost of living has continued to rise at a steady pace.
Needless to say, this is putting a tremendous squeeze on the middle class. With each passing day, more Americans are losing their spots in the middle class and this has pushed government dependence to an all-time high. According to the U.S. Census Bureau, 49 percent of all Americans now live in a home that receives money from the government each month. This is completely and totally unsustainable, but our long-term economic problems just keep getting worse.
Our politicians have stood by as millions upon millions of good paying jobs have been shipped out of the country. Millions of other middle class jobs have been lost to technology. This has resulted in intense competition for the middle class jobs that remain.
And at this point we are even losing lots of lower paying retail jobs. For example, it is being reported that Sears plans to close 110 more stores and lay off more than 6,000 workers. Sears says that the report "isn't accurate", but it isn't denying that stores will be closed either...
In an email to USA Today, Sears spokesman Howard Riefs said the store count and closures "isn't accurate,'' but did not provide store closures or layoff numbers.
"As we stated in our (second quarter earnings report), we disclosed that we would be closing unprofitable stores as leases expire and in some cases will accelerate closings when it is economically prudent. And that we would consider closing additional stores during the remainder of the year,'' Riefs said. "Make no mistake, we believe the store will continue to play an integral role in our transformation, however, if a store is not generating a profit, it is straightforward that the store should be considered for closure."
No matter how many stores Sears does end up closing over the next few months, the truth is that our economy is a complete and total mess at this point.
Our politicians and the mainstream media are trying to put a happy face on everything, but the cold, hard numbers prove that we are not anywhere close to where we were prior to the last recession.
Because it is so difficult to find a good job in America today, I often recommend to people that they should consider starting their own businesses.
But thanks to the bureaucratic control freaks in the Obama administration and in our state governments, small business ownership in America today is at an all-time low. It is almost as if they don't want the "little guy" to win. Every avenue of prosperity for the middle class is under assault, and there does not appear to be much hope that this will change any time soon.
And the truly frightening thing is that this is about as good as things are going to get for the middle class. We are rapidly approaching the next major wave of our long-term economic decline, but that is a topic for a future article.
There aren't enough jobs to get a lot of people a first job...That's really, unrealistic...
I certainly don't mean to be snarky here, but I pay more than you make in taxes. I'm lucky to keep 47-48 cents of every dollar I make because the bastards from the Federal, State, County, Township and local municipality and school districts all have their hands in my pocket.
The only thing I have "going for me" at this point is my home is long paid for, I have $0 car payments (my vehicle is 12 years old, wife's is 6 yers old) and all I "owe" are my monthly expenses.
One would think with the taxes I pay and how much the Government takes out of my pocket my oldest son would get SOMETHING for financial aid to go to college -- NOPE. Every college he's applied to wants to charge us FULL FREIGHT for tuition and boarding. Funny how they all look at "how much you make" and never at "how much you KEEP" in making their financial aid decisions.
I understand what your point was, but I just added to it.
Liberals try to sell the idea that their education proves how smart they are, that is a myth. Most of them have a fluff degree anyway.
Right. Because second jobs are so plentiful and really, who needs sleep anyway after working 60-65 hours a week at their first job?
Wow! According to this article we are friggen rich......and I thought we were a nice modest middle income couple. We are also both retired...early, but still retired.
That is just it, ain’t it. LOL.
I network with colleagues in my industry and ponder how they can afford to hire? One colleague actually admitted to taking 50% pay cut just so he could hire a back-up person. I finally pushed and questioned a little more and found out his wife got out of the business (baby) too. So really, it wasn’t just a 50% cut...it was much more than that.
Not surprised at all if you live in one of those high tax areas. Of course, my take home is also reduced by what I am shocking away in my 401k, something most of us HAVE to do because we don’t have one of those defined AFSME or SEIU pensions subsidized by the taxpayers.
Bottom line is that I am about an average of a peasant as you can get.
So if you pay $800.00 a month for Obamacare with a $4-$5,000.00 deductible, that leaves you around $10-$13,000.00 to live on a year. Yeah, that will work.
You're right: I live in one of the highest taxed states in the country: The People's Fucked Up Socialist Republic of Illinois.
I only have 2 years, 7 months to go in this shithole. then I quit my job, move to a low tax state (Texas is looking really good right now ..) and become a big pain in the ass to this Government. They won't get a single tax dollar out of me then.
The real comparison should be with the median wages of all government employees.
All of government is a net income transfer from people with relatively less money to people with relatively more money.
Maybe I misstated it, what I was saying is the lower incomes do not include the bennies and entitlements. With them their actual “income” would be higher and in some cases probably exceed those whose incomes alone are in a higher strata.
The point is, we are approaching a narrow playing field where what you do, how hard your work, how well you do your job, how prepared you are for you career has little financial meaning.
Texas is a fine state with a lot of good qualities, but one startling thing there would be the property taxes. Better take a long hard look at that before you make your decision. Taxes are not as low there as you think.
My Salary is being reduced as a result, but I have no choice, I have too much work to go on by myself, Last year almost killed me, and I am getting too old to work 14-16 hours a day, 7 days a week. Fortunately I knew it was coming and am well prepared, No Debt at all and 3 paid for houses, All the toys I will ever need. So reducing my Taxable Income is a good thing, mainly because I am sick and damned tired of feeding the WELFARE STATE.
Last year I reduced my Taxable income by half, and this year I will reduce it even more. With any luck I will qualify for an EBT Card.
Any youngsters reading this should know that I am a High School DROPOUT. And I haven’t earned less than $100K in over 20 years. The last 10 were $150K +.
I have a Marketable SKILLED TRADE.
Starve the Beast and Go Galt as much as possible.
How is this even possible?
They definitely cluster to the logic-lite majors.
The UN -Affordable Care Act hit all those above poverty level with a big pay cut.
It is important for young people to look at the field they plan to work in and determine what the upper earning people make in that field before starting to make a career in it.
Factory work, food service, education and other areas can be real dead ends.
Fileds like construction, mining, sales, investment and finance have non-ownership workers that make very high incomes. Many of those fields you can start low and work your way to high income. I was blessed to do so and did it after being a 60s era college drop-out.
There is no substitute for a willingness to work hard and put in a lot of hours and do the inconvenient tasks that others won’t do such as travel.
Education is important but self education must continue whatever the case as every field has many aspects where the observed mastery of skill sets will get you to the next rung. For example, the legal and accounting aspects of any business field are not closed access to only those with law and accounting degrees. Just learn and master the principles.
Around here (near-Cleveland) it's enough to live on, but without anything for extras.
Totally agree. Even making over $100k isn’t what people think, they don’t understand that things aren’t linear. If they’re making $50k they assume you bring home twice what they do, which isn’t the case at all. Between tax brackets and other tax breaks, pro-rated assistance for many things (education, ACA) etc...the final standard of living has been flattened.
This graph does not represent this. There’s an increasing level of disincentives to do well, which is not in anyone’s best interests in the long run...eventually you’ll run out of other peoples money.
Not much different than in recent decades. There is a slow ratcheting downward of the median to the average.
http://www.ssa.gov/oact/cola/central.html
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