Posted on 04/09/2015 6:04:35 AM PDT by HomerBohn
It is clear that the economic realities falling upon the masses in America are driving us towards a crisis point.
Even with substantial government subsidies, the bottom 10% of Americans are beyond struggling, spending more than 60% of their meager incomes on the bare essentials. According to the latest official numbers, the poorest in the United States are spending 42% of their income on housing and another 17% on food, statistics that are unsustainable for individuals and families.
The Wall Street Journal reported:
For many Americans, the rise in food and housing prices is a tough squeeze. That’s because—even in an era with low overall inflation—low-income Americans spend a disproportionate share of their money on food and housing.
New data from the Labor Department show the extent of the discrepancy. The bottom 10% of Americans, by income, devote 42% of their spending to housing and an additional 17% to food–nearly 60% of their total spending, according to the Consumer Expenditures Survey. By contrast, the wealthiest 10% of Americans dedicate only 31% of their spending to housing and 11% to food–closer to 40% of total spending.
"Contrary to perception, not all food and housing is covered by the welfare state, with many lower class Americans paying out all their wages just to get by with the basics – leaving scant to nothing for everything else.
Take a look at this chart based on Labor Dept. statistics:
The richest spend less, proportionally, on food and housing, as do the upper half of Americans, who average less than a third of income on homes and only about 11-13% on food.
By contrast, the world’s poorest billions, who often live on less than a dollar a day, typically spend 50% of their money alone on food for sustenance, putting prosperity even beneath the dream level. Not surprisingly, most of these people live in unstable, chaotic and often war-torn regions.
The difference in theses percentages are huge in much more than just disposable income. It is the deciding factor in terms of the ability to save money, secure retirement and education, pay off debts and especially to deal with a crisis.
Far too many Americans are already teetering on the edge, and emergencies of any kind – including personal, family illness/injuries, economic or natural disasters and much more – are enough to drive most to either capitulation at the hands of government assistance or worse – desperation.
David Quintieri, commentator and author of The Money GPS, is warning that this kind of extreme economic pressure is likely to trigger civil unrest and riots.
(Watch video at link)
With the past many years yielding no real signs of opportunity or enthusiasm for average Americans, there is plenty of reason to think that other echelons of society are following suit, where a slide to poverty becomes a collapse.
The worry is that these numbers only signal a slide in that direction for the rest of the nation’s poor – who are also economically strapped – and behind them the quickly disappearing Middle Class, with many already treading water to make ends meet and carrying significant debt loads.
When desperation sets in, order goes swiftly with it. After that, riots, unrest and martial law. We all know the pattern.
Worse, we all know the system – propped up by a swelling nanny state giving out freebies and handouts to a disturbingly dependent class of masses – cannot last and is doomed by design to collapse.
How long until we see riots in America – not just over media-driven issues as in Ferguson – but over sustained, untenable economic desperation from the bottom up?
The hour is getting late. It really may not be long…
Yea, I’m sure everyone remembers Hillary Clinton telling us how she was just “getting by”. It’s rough out there - but it’s hardest on the honest, hard working that are trying to be independent.
Price don’t matter if you steal them, or steal the money to get them.
My wife and I do a lot of local volunteer work in lieu of giving money to charities. The one event we will not volunteer time for is a food pantry. The people are rude, demanding and unreasonable and in return, I get politically incorrect and in a few cases have hurled profane invectives which tends to make the Pastor uneasy!
There are people who travel the entire county following a scheduled route to all the food pantries each week. They get angry and boisterous if there are only canned vegetables and no kraft mac and cheese. They complain if there is 80/20 ground beef and no 93/7. The sense of entitlement is maddening and more that I can take. Most offer absolutely no thanks.
We have found a few humble folks who are truly needy and we give to them directly (and discreetly by leaving food on their porch.) We also derive a lot of pleasure from preparing and taking hot meals to families at the local children’s hospital.
So true. Those in this country we call poor are better off than 99% of people around the world.
Many of our poor spend their money on tats, manicures, hair extensions, and other luxuries. The charts don’t show a category for money made illegally and not declared.
A true gallery of rogues!
Two things...1) I’ve traveled in Africa several times...most recently last year.At least two thirds of Africans would sell their souls to live like our “poor” live....2) can we assume that the other 40% is spent on crack?
The last time I traveled throughout South Africa Apartheid was in force, but one could see little evidence of it excepting in Soweto. This shantytown was inhabited by many who were not South Africans, rather they were from the north looking for the better opportunity that was indeed in this once thriving nation. Unfortunately, SA could not support the entire continent. The railways throughout the ‘Dark Continent’ belonged to South Africans and they brought such goods to the rest of the continent that otherwise would be unavailable.
United States’ politicians proved their dishonestly by signing on to a boycott in order to bring the nation to its knees. Apparently in their stupor they believed that rule by a USSR sponsored rag-tag party was much better.
Today, South Africa is on the verge of becoming a basket case, as is the United States. Now there is indeed a similarity between the two nations: they’re headed up by an African communist.
...”The sense of entitlement is maddening and more that I can take. Most offer absolutely no thanks”....
They do not know the sense of ‘contentment’ or gratitude in want ‘OR’ plenty for that reason.....for those of that mindset “enough” will never be enough regardless of what they have or been given....they will not be satisfied.
God says...”You have not because you ask not”.
BKMK FOR TODAY
I came by that while searching for particular photos......Visual does seem to enlarge the truths of what we might think or say...and sometimes what we can’t say.
I have been many times angered with Obama....but he’s really doing what he said he was going to do....they won unfortunately and that is that. My greater grief is Congress has completely broken as far as representing the people....it serves it’s own purposes and “kind” ...a greedy and corrupt bunch!...”They strut their evil before you”...so imagine what they do we son’t see?
And those LEAST able to afford it are buying the $400 sneakers.
Some people are poor for a reason. It’s not just a static “status.”
You aren’t kiddin’ about the hospitals.
My son is a medical courier in Ohio. I almost fell over when he told me that the county hospital is a party on the weekends. He is chummy with the security guards at all of “his” facilities. At the biggest one in the state, the security guard is a middle-aged black gentleman, who is in a slow boil by the time my son gets there. What is this fella ranting & raving about?
“All these people, not intending to pay one cent to this hospital...are having pizzas delivered. Pizzas! They are having pizza delivered into the ER waiting area. High fiving each other like long lost friends and this is some reunion or something. Dressed like they’re going to a party and they are making fools of us. And they’re having pizzas delivered into the ER!”
My son went out and had a cigarette with this guy, he was so mad. And my son doesn’t smoke.
I must not be clear on the concept. Assuming that the poor don’t pay income tax, once their bare essentials of food and shelter are paid for, what important needs are not met by the remaining 40%?
I’m not saying there aren’t important needs above the bare essentials, but these needs should be itemized and ranked by whether they are absolutely necessary (transportation—whether public or private)—or elective such as the mythological $200 sneakers.
Excellent analysis of the tax realities.
Taxes were worse during the Clintoon years. In the mid 1990’s, I got an excellent early retirement. Our CPA advised me not to work the first year due to inability to shelter basically our income besides my wife’s maxed out 401 k and our little IRAs.
We still got hammered with taxes.
The next year I got a good paying consulting gig. My wife had gotten nice raises due to merit bowing out of her company health care cost as she was covered by retirement plan.
That was the good news. The bad news was the tax bites. Our
CPA advised us to deposit every other consulting check into a savings escrow to pay quarterly FICA both sides for me, fed and state taxes + property taxes. My wife had zero withholding deductions.
In spite of this we still owed some taxes at the end of the year.
When, I turned 62, my company’s retirement check deducted the estimated monthly FICA check, so I started drawing FICA.
Due to the tax penalties re limits of non fica income per year before penalties, my CPA advised me to retire totally and learn how to manage our IRAs and 401 Is.
I’ve paid over $100, but those are for New Balances that were made in America and are orthopedically correct. If they are the imported NBs, it’s much less than $100.
I do some volunteering for my parish’s little food pantry. My involvement is putting away the food, but my deacon makes the call on who gets to “shop” there. I trust his judgment.
I see a lot of “perverse incentives” in there, Dave...
Basically, due to the taxing structure, your accountant advised you to stop using your experience, talents and abilities to serve your fellow man because the taxation would be prohibitive.
Sad.
Proof we have a one party two name system.
If you’ve got 40% left over after bare essentials you ain’t that poor.
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