Middle Class Income Shrinking and Financially Getting Killed?
Coming out of World War II, America prided itself on creating a strong middle class. Sadly today, it is dying.
Check out this video published by AJ+.
Middle Class is getting financially killed by the following points:
- Middle Class income today is between $40,000-$123,000. You’re not poor, nor are you rich. You’re barely getting by. One emergency happens if your life and you are financially set back for a month, or longer.
- Middle Class median income in 2013 was $51,939. Yet if you compare it to what it was in 1989 (in today’s dollars, mostly accounting for inflation), that same median income is $52,432. You ready correctly, it is LESS than what is was 24 years ago! And you wonder why living paycheck-to-paycheck has become the norm? There it is.
- Union memberships have declined from 32-25% in the 1950s to 6.6% in 2014
- Federal Minimum Wage has declined from $9.49 (in today’s dollars) in 1980 to just $7.25 in 2014.
- NAFTA (North American Fair Trade Agreement) signed in 1994 helped Canada and Mexico yet hurt the back of American middle class workers as they saw their jobs lost as companies moved abroad.
- Between 2001 to 2006, 1.8 million jobs where lost after NAFTA was signed plus America decided to import cheaper goods.
- Over $2.6 billion dollars are spent on lobbyists helping things go the way of big business in Congress through special interest groups.
- Corporations have kept their profits, off-shore, with domiciled corporations set up in foreign countries while they profit from the American consumer. Between 1960 and 2004, taxes of the .1% have seen their taxes drop from 60% to 33.6%.
Last part of this video suggests that “rising tides lift all boats”. That if the rich make more money it will benefit everyone else. Overall the economy is doing better since the Great Recession.
However it seems as if the richer are getting richer and the majority of Americans…keep getting poorer.
How the Middle Class Can Help Itself
There is no politician out there that can help you. And even if there was, by the time they get certain laws passed in your favor it will take years to become law. Meanwhile, the Middle Class has to pay their bills today, fund and finance their retirement and possibly help their kids get through college.
Entrepreneurship, for some, must be taken into serious consideration. While you are at your jobs, one must find a way to increase their cash flow just to make ends meet. I know, some people say, “I’m comfortable” or “I’m good”. Seriously, stop lying to yourself because “making it” it in the USA, assuming a family of four, one’s income must be above $300k per year.
Plus many of those excuses NOT to consider entrepreneurship or steps to own your own business may come from fear, not knowing where to start, thinking that you need lots of money to begin or simply lacking the skills that will give you a renewed financial confidence.
Well, what are your options besides becoming an entrepreneur? Ask your boss for a significant raise or go back to school. Either of those options not only will take years to realize a benefit but it is also not under your control.
If you would like to seriously considering owning a business and/or starting one part-time, please drop your info below and we’ll see if you qualify to attend our next event in your local area. If not, we have resources to definitely point you in the right direction!