Posted By thestatedtruth.com on December 12, 2010

 “The top 1 percent of wage earners in America earned more than the bottom 48 percent of Americans. 

Source:  Social Security

Substantial income inequality is not the path to a strong and vibrant middle class.  17 percent of Americans are either unemployed or underemployed so the lower end of the curve is dragging more people lower.  Yet the top end remains rather strong.  Some will argue that the very wealthy have also been hit.  This is true and we have seen this in the top wage categories.  But this is the difference between earning $50 million and $40 million.  The marginal impact on lifestyle is minimal.  Losing your income when you have a household making $50,000 combined and suddenly a $25,000 wage earner is gone can throw things into a tailspin.

What happens if the car breaks down?  What happens if you get a cavity?  What happens if you lose your job?  You can see how tight the budget is above and we are keeping it basic.  Many are told by financial planners to sock away 9 months of emergency funds.  It will take years for the average American to put away $22,500.  Is it any wonder why millions of Americans rely on Social Security as their main source of income?  Millions of Americans are still on verge of losing their unemployment insurance and are basically one check away from being on the streets conjuring up visions of soup lines of the Great Depression.  The average income doesn’t even come close to paving a way to a middle class lifestyle.  What you have is a shrinking middle class where people are working harder and harder yet being thrown off the treadmill one by one.

More at: http://www.mybudget360.com/

Categories: Commentary, Economy, National News, Personal Net Worth, Wall Street, World News
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