U.S. Household Savings Has Declined Along With Wages While Prices Have Gone Through The Roof = Inflation has eroded our purchasing power and put us in poverty

Zero Hedge

For a country in which the consumer is responsible for 70% of GDP, one wonders: without savings and without wages where will this “recovery” we hear so much propaganda about and which every investment bank this week went all in on (just like they did in the end of 2010 only to admit their error 4 months later) come from? Because every now and then it helps to step back from the trees and observe the forest. Behold: the forest.

Oh wait, we know where growth will come from: inventories

Source: Bloomberg Brief

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Dylan Eleven | Truth11.com

A comparison of how we are doing today compared to the year I was born 1972 shows us that the average wage compared to what we can do with that wage has changed dramatically.  And not in our favour.

For most people, looking at this information on a graph, the message is lost.  Lets look at some specific differences to illustrate how we are doing compared to 38 years ago.   These numbers are extremely dependant on location, countries, currency differences, etc.  This article is just to simply show an average, a general trend.  And is not exact for exact comparisons. For a specific analysis we would have to refine our data to be more accurate based upon a singular location and brand etc.  We have endeavoured to do this however this is more of a general comparison.

In 1972 the average wage was $11,800, today the average I am using is $45,000.  Which is statistically close according to government numbers. However this is a very generous number. This does not take into consideration the masses unemployed or under employed not included in that number. Something we have covered in various articles on truth11. See that category.

So what is the relation in real terms. What does this actually mean to us today.  What can we do with our annual salaries compared to 38 years ago?.

With your annual salary in 1972 you could have purchased 983 pairs of wrangler jeans at $12.oo per pair. Today you can purchase 1125 pairs at $40.00 per pair. So in relation cheap jeans are still cheap. Probably due to an entire Chinese population wearing denim uniforms.

Ok so cheap clothing is a wash, what about housing.   The average cost of a  new home in 1972 was $27, 550.  That means you could buy a house outright with 2.33 years salary.  Today the average home is $400,00. That means 10 times the average annual salary, not 2.33 times.  Rent average in 1972 was $165 compared to $1200. Or 14% of your anuall income compared to 26% today.

A movie was $1.30 compared to $14.40  So we could have seen 9076 movies compared to 3214 today.

The list goes on.  Food, shelter, cars, entertainment etc.  At the end of the day the average average standard of living for a fully employed worker in 2011 is lower than 1972. In addition the percentage working is less and the number below the poverty level is greater. Yet the war bound, oil hungry financial dictators make record profits. This madness must end.

We have less, and those who have any is less. We work harder for less fun, less holidays, less movies.  Fewer chances for shelter and prosperity.

This is how the few keep us in poverty. The few have increased our poverty to keep us suppressed.  To the point now the math makes no sense. The masses must revolt. But we cannot let them replace the current ponzi scheme with another.

We must reject the system.

Economics is slavery.

Financial manipulation of interest rates in the name of inflation is the tool of the few to enslave us all.

 


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