The Crash Of The Middle Class

The life of living off of debt is at its end and our previous lifestyles are catching up with us. The keeping up with the Jones’ lifestyles are over and leaving the economy in shambles after a decade of artificial debt backed spending not supported by current income levels. Now as commodities rise and incomes stay the same or decrease the middle class is dissolving quickly into the new poor. The Federal Reserve has bailed out the banks fraudulent activity at the expense of the standard of living of the middle class. Now the federal debt is so large it will never be able to be paid back, aside from a miracle. Printing more money and devaluing the dollar seems to be the only escape, but at what price? Devaluing the dollar simply shifts the fraudulent bail out on society causing the largest wealth transfer in history by depleting the middle class wealth.

Credit card debt has gone from approximately $50 billion dollars to close to a trillion dollars over the last 30 years because of this lifestyle, peaking in 2008, and now down back close to $800 billion. Meanwhile manufacturing jobs are depleting and financial services companies are constantly hiring because the credit card companies need to hire more people to collect the interest and manage the massive debt load. Many Americans are simply declaring bankruptcy which is one of the major reasons the debt load is actually reducing. The scary part is that because of the massive debt and hiring in the financial sector, the current economy is built on credit cards, mortgages, student loans and auto debt. This entire segment of the economy is around to do nothing but suck the wealth from the middle class.

The wealth inequality is staggering where the top 1% have over 42% of the wealth. Much of this is due to the wealthy educating themselves about tax loopholes and finding strategic ways of reducing taxes which is the middle classes largest expense. On top of that we are seeing gas, food, college and many more costs soar yet so are the banks profits, increasing the top 1%’s wealth even more dramatically. The Wall Street banks continue to rob the public blind by devaluing the U.S. dollar and surgically sucking the wealth out of the middle class. Unless things change the middle class will be gone within a decade.

The true key to solving these problems on an individual level comes with financial education. The more people learn about reducing taxes, reducing expenses, learning how to invest correctly and finding additional passive income sources the more financially stable you will be. It’s going to be a challenging road ahead, but will be much easier for those who develop a strategic financial plan and actually pay attention to their financial position, income sources and expenses on a DAILY basis. Hope is not lost if you set up a financial pla
NOW.