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Home / US / No cushion for the trump recession: Why this one could be worse than 2008

No cushion for the trump recession: Why this one could be worse than 2008



It is telling you all you need to know about the predatory nature of late-stage vulture capitalism, over which Donald Trump presides as its orange mascot. Joe Biden wants to take a victory lap.

Lost ground

The big reality is that in the last decade or so the rich have got richer as the rest of the country has sunk deeper and deeper into debt, with little to show for it except rent receipts.

As we head into the next downturn, whenever it happens, millions of American families are hanging out on the edge of economic oblivion.

The $ 20 trillion in the United States has come of age that linger and still define many lives today.

The Federal Reserve Board's latest " Report on the Economic Well-Being of United States Households ," released in May, surveyed 1

1,000 adults. $ 400 expense, 39 percent of those polled would have to borrow or sell something to come up with the cash.

In the real world

Many years into this "amazing recovery," the Federal Reserve found that "across the country, many families continue to experience financial distress and struggle to save on retirement."

Three in ten adults in one month. One in ten struggled to pay their bills at one point in the year because of monthly Changes in income Financial support from family to friends among young adults.

The annual survey found that "many adults were struggling to save for retirement" with one in four "no retirement savings or pension whatsoever. "

Can not imagine why.

In the years since the Great Recession, student debt has exploded from $ 500 billion to $ 1.57 trillion elated debt was $ 2.65 trillion in 2008. By the second quarter of this year it had surpassed $ 4 trillion.

Dude, where's my car?

And, in the midst of Trump's ranting in February, about his wall with Mexico, seven million Americans, a record number, fell into that 90-day abyss of being late with their car payment .

See a pattern here?

Now we are struggling to hold on to our family car, the same way we were clawing to hold on to our home just a few weeks ago. President Obama's fateful decision not to provide the child of backstop for homeowners that Franklin D. Roosevelt did in the 1930's may have plumped up Wall Street.

These scars are still living in our landscape in places like Flint, Michigan, and Newark, New Jersey, and where they are located

The millions of foreclosures that devastated neighborhoods of color represent a massive transfer of wealth from working to homeowners have to deal with the prospect.

Historically, homeownership could not provide stability to an extended family by providing stopgap shelter for a family member of their own fortune or a college graduate jammed up by student debt.

Remember equity?

Homeownership also offered potential lifeline of capital reali As the Pew Center reports, more Americans are living in a rented housing

In 2006 the proportion of households renting was 31.2 percent, according to Pew. By 2016 it had been spiked to 36.6 percent, which exceeded "the recent high of 36.2 percent set in 1986 and 1988 and approaches the rate of 37.0 percent in 1965."

Certain demographic groups – such as young adults, nonwhites and the lesser educated – have historically been more likely to retire, and have made a difference among these groups over the past decade. less probably to rent, including whites and middle-aged adults.

The Joint Center for Housing Studies of Harvard University found that a lack of four times faster than the rate of inflation. "The US Consumer Price Index for rent at a rate of 3.8 percent annual rate through April, far exceeding the 0.9 percent inflation rate for non-housing-related goods," the analysis found.

A half-century of betrayal

Since the 1970s, when wages flatlined as productivity spiked and unions began to shrink, American corporations have been running things by paying off both political parties.

In the last few years, as a consequence of this collusion of the comfortable, the economic circumstances of our elected representatives has continued to be vastly out of what has happened for everyone else. They appear ready for whatever capitalism has in store for us.

As Roll Call The "cumulative net worth of Senators and House members jumped by one-fifth in the two years before the start of this Congress, outperforming the typical American's improved

The disparity becomes clear after examining the most recent financial disclosures of virtually every current lawmaker. Capitol Hill remains in record territory and sentiment remains strong in Washington, DC.

Can not be helped

One essential element of keeping the lid of America's collective agreement on declining wages, disappearing benefits and actual decline in our average lifespan, is to cover the ups and downs of the economy meteorological phenomenon.

But the kinds of market gyrations that promote dislocation and misery for the masses are not the result of gravity or barometric pressure. Scarcity is the only way to make a living.


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