|
Home / Finance
The Shift In The Economy
By:J Schipper
Many of the jobs in President Bush's "recovery" are low-wage, low-benefit service and retail jobs. The overall growth in jobs masks a harsher reality for families trying to maintain or build a middle class standard of living.
Key among them: debt coupled with paycheck paralysis.
Most people coming out of college with or without a degree are starting life off with about $20,000 in debt trying to get a degree.
Then they try to support themselves on low wages after getting out of school.
A generation ago finishing high school was what was needed to get a job and to have a reasonable amount of security.
Now what is needed is a university degree and not just any degree, look at all people working in low class jobs with an arts degree.
In the last 30 years compensation for somebody with a university degree has actually decreased when adjusted for inflation.
Personal bankruptcy filings nationwide last year exceeded 2 million, the highest annual level on record.
There were significant increases in consumer bankruptcy filings in every region. The total of 2,043,535 was up 32 percent over the 1,552,967 filed in 2004. That translates to one in every 53 households filing bankruptcy petitions.
So are these 2 million people Scofflaws?
Credit counselors say the debtors coming to their offices can’t afford to pay basic living expenses or make even minimal payments toward their debts.
Corporate profits have reached record highs.
People are working longer for the same or a lesser amount of money.
During the period from November 2003 to March 2004 - when job growth was increasing - average hourly real wages actually fell by 1 percent.
Companies are reducing health care benefits and are declaring bankruptcy to get rid of pension liabilities to their employees.
Yes, but there are Tax Cuts.
Tax Cuts have to be paid for by somebody at some point in time.
If the tax cuts were financed largely or entirely through spending cuts or: if the tax cuts were financed through a combination of spending cuts and progressive tax increases this is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent of households, financed by net tax increases or benefit reductions for the remaining 75-80 percent of the population.
So 75% to 80 % of Taxpayers are going to be worse off with tax cuts.
The "losers" are going to be low- and middle-income wage earners.
The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.
At some point in time these foreigners are going to want their money back.
Then what?
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: economy, bankruptcies
Article Source: http://www.articles2k.com
About the economy by J Schipper
About bankruptcies by J Schipper
|
|
| Top Finance Articles |
- 1). Locate And Find Debtors With A Credit Collection Agency By : Stu Pearson
It can be a frustrating experience trying to collect a debt from a customer who just seems unwilling to pay. Letters sent to their address go ignored, and phone calls are answered with empty promises of payment. While this is certainly a bad scenario, what if a customer who owes you money just disappears? It is possible to locate and find debtors with a credit collection agency, and in this article we’ll explain to you the methods behind their tracking.
|
|
|
|
|
- 4). Who Is Responsible For Closing Costs By : Raynor
Buying or selling a home is a euphoric experience for both of the parties involved. This euphoria can cool when you learn which party is responsible for the closing costs.
Who Is Responsible For Closing Costs
When looking to buy or sell a home, every person eventually arrives at the question of funding closing costs on the transaction. To put it simply, both buyers and sellers typically are responsible for some of the closing costs.
|
- 5). Family Finance By : Joseph Kenny
One of the hardest things that young couples report during their first year of marriage is getting to grips with joint finances. While most are willing to share what they have with their partner, they are not sure on the best way to bring this sharing into effect so that they can share with their new partner, but at the same time maintain financial security and a degree of independence.
|
- 6). Preparing Your Finances For A Bird Flu Pandemic By : Pandemic Zone
If you have been paying attention to the news lately you may of heard of the threat of bird flu and a world pandemic. What would this mean and how would it affect your financial holdings. The World Bank, which has estimated that a bird flu pandemic lasting a year could, cost the global economy up to $800 billion dollars. The economic toll on the world economy will be catastrophic.
|
|
|
- 8). High Gas Prices and Ways to Save By : essmeier
With Memorial Day around the corner, the great American travel season is here. During the summer, most Americans take at least one extended vacation, and four fifths take that trip by automobile. Unfortunately, this year, the price of gas is at record highs, and no one likes to spend their vacation money on gasoline. While there is little to be done about the price of gas itself, there are some things the average vacationer can do to help ease the costs of auto travel.
|
|
|
|
|
| New Finance Articles |
- 1). How To Earn Money Online In Five Easy Steps By : John Morris
Living in Los Angeles, Greg realized that there are a lot of people who work from home rather than the office. One reason is that many of these executives are writers and producers of films and television shows...
|
- 2). You Can Stick to Your Budget By : Jonathon Hardcastle
Recent studies have shown that Americans are spending less money on necessities than ever before. Yet, more Americans are also in debt. The unspoken fact that makes both those statements true is that Americans are spending more and more money on luxury items.
|
- 3). Technical Analysis Of Stock Data By : John Morris
To perform a technical analysis is simply examining stock chart data in order to make predictions about the future of that stock. Investors who use this style of analysis are often unconcerned about the nature or value of the companies they trade stocks in...
|
- 4). Getting The Most Money Out Of Selling Your House By : John Morris
It is easier said than done to make a profit in the real estate market nowadays. Those that manage to consistently turn a profit on real estate investments have been working in that field for years and are using proven strategies in order to minimize risk...
|
|
|
|
|
|
|
|
|
|
|
- 10). How Can I Be Approved For A Low Rate Credit Card? By : Mike Singh
When applying for a credit card you may come upon what is called a low rate credit card, what is this exactly and how can it help you? First of all you should know that a low rate credit card is usually an excellent way to go when applying for a credit card. Find out more...
|
|
|
