Going Broke on $50,000: The Story of the Struggling American Middle Class. The $50,000 Median Household Budget.
The recent recession is exposing how many American families have been treading on the edge. Problems were already in the system before the recession began but the downturn in the economy was the ultimate catalyst. Many families were using credit cards as a means of supplementing a decade of stagnant wages. The median household income […]
Demand Destruction Price Deflation: Earnings up when you Fire Employees. California Lowering Tax Brackets. Social Security no Cost of Living Adjustments.
The Consumer Price Index has shown a year over year decline for the first time since the 1950s. This in itself has added fuel to the growing flame of the menace of deflation. Yet what we are seeing in the psychical world in the form of price declines is directly linked to demand destruction and […]
Why Budget Deficits Matter: Government at a $1.26 Trillion Budget Deficit for the 2009 Fiscal Year. Three Times as Large as Last Year and we still have Two More Months of Data.
The notion that deficits do not matter is a widely held and deeply ingrained economic philosophy. This line of thought took a stronghold in the 1980s and has seemed to stick to our ever-growing dismay. Yet budget deficits do matter if we are looking at an economic horizon that is longer than one fiscal year. […]
Financial Brinkmanship: Forcing Americans to Spend and Discouraging Savings. Americans Decide to Save Forced by a New Austerity. Banks Offering Zero Percent on Your Savings Account.
Spending more than you earn is a financially devastating recipe for individuals and nations. I’ve read countless pop financial books on how to gain and sustain wealth and those that have any substance always emphasize saving your money, spending less than you earn, and being prudent with your funds. In no book did I ever […]