The Shift In The Economy

The Shift In The Economy



The Shift in​ the​ Economy
Many of​ the​ jobs in​ President Bushs recovery are lowwage, lowbenefit 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 2025 percent of​ households, financed by net tax increases or​ benefit reductions for​ the​ remaining 7580 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​ middleincome wage earners.
The trade deficit for​ last year is​ estimated to​ have swollen to​ another record high, above $700 billion, increasing Americas indebtedness to​ foreigners.
At some point in​ time these foreigners are going to​ want their money back.
Then what?




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