Friday, October 14, 2016

Eroding the Middle Class, Enslaving the Millenials

The share of Americans who own their homes was 62.9 percent in the second quarter, the lowest since 1965. The U.S. homeownership rate fell to the lowest in more than 50 years as rising prices put buying out of reach for many renters. The homeownership rate for the millennials (ages 18-34) fell to 34.1 percent from 34.8 percent a year earlier.
 

The millennials have two problems: They’re bogged down in student loans, the result of rapacious price increases in higher education. The New York Fed estimates that total student debt from federal and private lenders has reached a record $1.3 trillion. An increasingly large part of that debt sits on top of millennials, turning them into debt slaves. They’re facing confiscatory rents and home prices in many cities, thanks to Fed’s effort to inflate the greatest asset bubbles the US has ever seen, though few millennials make that connection. Two decades ago, a little more than 34% of all new entrepreneurs in the U.S. were younger than 34 years old. Today it’s just 25%. 

According to Jim Clifton, Chairman and CEO at Gallup, the percentage of Americans who say they are in the middle or upper-middle class has fallen 10 percentage points, from a 61% average between 2000 and 2008 to 51% today. Ten percent of 250 million adults in the U.S. is 25 million people whose economic lives have crashed. What the media is missing is that these 25 million people are invisible in the widely reported 4.9% official U.S. unemployment rate. Let's say someone has a good middle-class job that pays $65,000 a year. That job goes away in a changing, disrupted world, and his new full-time job pays $14 per hour - or about $28,000 per year. That devastated American remains counted as "full-time employed" because he still has full-time work - although with drastically reduced pay and benefits. He has fallen out of the middle class and is invisible in current reporting. More HERE