Report: U.S. Standard Of Living In Deep Decline
Legislative Session Coverage
MIAMI (CBSMiami.com) – The toll the Great Recession has taken on America has been shown through jobless numbers, excessive CEO pay, and other methods. But, it’s taking a growing toll on the standard of living in the United States.
According to the Christian Science Monitor, the average American now has $1,315 less in disposable income than they did at the beginning of the Great Recession.
This is especially damaging in the context of the overall economy. The American economy, being consumer driven, can’t function and grow properly if disposable income isn’t available for Americans to buy goods and services.
The drop in standard of living has been the most dramatic drop in the U.S. since 1960, according to the CS Monitor.
In addition to the collapsing disposable income, median incomes have dropped 9.8 percent since the start of the recession; net worth is also declining.
All of that is happening while consumer prices keep rising which is damaging buying power by 3.25 percent, according to the Monitor.
The Monitor found that the misery index, which combines the unemployment rate and inflation is now at its highest point since 1983.
So just how much has Americans’ net worth fallen during the Great Recession? The Monitor found net worth dropped by $5.5 trillion, or roughly 8.6 percent. Most of that drop came from the implosion of the real estate bubble that cost Americans $4.7 trillion.
But, while the middle class is quickly being squeezed out of existence; the wealthy and the super-wealthy continue to grow in America.
According to a Credit Suisse report, the overall numbers of millionaires and billionaires have rapidly increased in recent years and the U.S. claimed the title for the greatest number of richest citizens, with 35,400.
This is all contrasted against a completely paralyzed Capitol Hill where both Republicans and Democrats are entrenched in ideological warfare.
Republicans refuse to even consider raising taxes on the wealthy in America, while Democrats flatly refuse to consider any changes to Social Security and Medicare.
Plus, Republicans and some Democrats quickly derailed President Barack Obama’s jobs bill which was set to create millions of jobs in America, according to the majority of economists.
It’s all left citizens clamoring for any type of solution that can finally get the country back on the right track, no matter what the cost.