As the stock market today continues to show breakdowns all across Wall Street, Main Street has been in a continuous decline since the Credit Crash of 2008. And although the fake unemployment numbers that are reported by the government are painted to be around 5.3%, the sad reality in this new waiter vs. manufacturing ‘recovery’ is that thanks to inflated prices in the housing and rental markets, the average American can no longer afford to live in even the most inexpensive of cities.
Low-income workers and their families do not earn enough to live in even the least expensive metropolitan American communities, according to a new analysis of families’ living costs published Wednesday.
The analysis, released by the left-leaning Economic Policy Institute, is an annual update of the think tank’s Family Budget Calculator that reflects new 2014 data. The Family Budget Calculator is a formula designed to determine the income “required for families to attain a secure yet modest standard of living” in 618 different communities across the country that the U.S. Census Bureau defines as metropolitan areas. The formula uses data collected by the government and some nonprofit groups to measure costs of housing, food, child care, transportation, health care, “other necessities” like clothing, and taxes for families of 10 different compositions in these specific locales. – Huffington Post
Low incomes families are ones that make around $24,000 or below, which when multiplied out to the minimum wage is almost $10,000 more than the earnings of someone who has gotten a job in the Obama recovery. And with prices skyrocketing as inflation trickles down at a faster rate into the general economy, very soon American cities will look alot like Tokyo, London, and Moscow, having only the upper income earners able to live in urban areas.
When looked at from an objective and honest perspective, the economy has never gotten out of the recessionary period that occurred shortly after the financial crisis of 2008. And all that has really happened is that the government, Fed, and Wall Street have changed the parameters for how indicators and data are measured. But for the man on the street, and by this we mean Main Street, the declines and crashes taking place in the paper markets of Wall Street are what most Americans have experienced for more than seven years now, and that austerity is in part to why we are seeing uprisings taking place in locations around the world such as in Athens, Cairo, Yemen, and Baltimore.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.