17 Facts That Prove That The Average American Family Is Getting Absolutely Pulverized

hvactec

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How in the world does the average American family survive in this economy? The median household income is a little bit less than $50,000 a year right now. So let's call that about $4000 a month. But before any of that money gets spent, you have to take out at least $1000 in taxes. That leaves about $3000 a month to pay all the bills with. With that $3000 you have to pay the mortgage (or rent), make the car payments, make the student loan payments, pay for power and water, pay for health insurance, pay for home insurance, pay for car insurance, pay the phone bill, pay the Internet bill and pay the cable bill.

On top of all that, every member of the family needs three meals a day and the cars need to be filled up with gasoline or they won't go anywhere. Of course I haven't even mentioned expenses that don't happen every month such as car repairs or new shoes. No wonder so many families are feeling so financially stressed!

The truth is that American families are getting squeezed harder than they have been in ages. The number of good jobs is declining, incomes are going down, and the cost of living just keeps going up.

The following are 17 facts that prove that the average American family is getting absolutely pulverized by this economy....

#1 The cost of a health insurance policy for the average American family rose by a whopping 9 percent last year. According to a report put out by the Kaiser Family Foundation and the Health Research and Educational Trust, the average family health insurance policy now costs over $15,000 a year.

How in the world can most families afford that? Yes, in many cases employers are paying for at least a portion of that, but still that seems absolutely outrageous.

#2 Due to rising costs, a lot of employers are completely getting rid of health plans for their employees. In fact, the percentage of Americans covered by employer-based health plans has fallen for 11 years in a row.

#3 The number of uninsured Americans continues to rise. Things have gotten so bad that an all-time record 49.9 million Americans do not have any health insurance at all.

#4 At this point, most American families are tapped out financially. According to the U.S. Labor Department, incomes and spending were both down for the second straight year in 2010.

#5 At the same time, the employment picture continues to look worse with each passing month. According to the U.S. Bureau of Labor Statistics, the number of layoffs in the United States was up 14 percent in August.

#6 Even if you do have a job that doesn't mean that you are doing much more than surviving. According to Paul Osterman, a professor of economics at MIT, approximately 20 percent of all employed Americans are making $10.65 an hour or less.

#7 The amount of debt that the average American family has piled up is absolutely staggering. The median yearly wage in the United States is just $26,261, but the average American household is carrying $75,600 in debt.

#8 Consumer confidence is extremely low right now. If the U.S. economy was in good shape, the Consumer Confidence Index would be up around 90. Instead, it is sitting at 45.4.

#9 Nearly every recent survey shows that the American people are feeling really depressed about the economy right now. In fact, one poll found that 80 percent of them believe that we are actually in a recession right now.

#10 Many consumers are seriously starting to cut back on spending again, and that is not a good sign for the U.S. economy. According to one recent study, 40 percent of all Americans have cut back on their spending within the last 60 days.

#11 It certainly does not help that millions of good jobs have been shipped out of the country. Sadly, the trend of offshoring our jobs is going to continue to accelerate if something is not done. According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades.

#12 There is a lot of fear in the workforce right now. According to Gallup, 30 percent of all employed Americans are worried that they will be laid off soon.

#13 Today, there are 5.9 million Americans between the ages of 25 and 34 that are living with their parents. That is putting an even greater strain on the budgets of many families.

#14 American families have gotten very accustomed to using plastic to pay for things. Today, the average U.S. household has 13 different credit cards.

#15 Many American families are not making it at all in this economy. Last year, 2.6 million more Americans dropped into poverty. That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

#16 For many American families, living on food stamps has become a way of life. Today, there are more than 45 million Americans on food stamps and we keep setting a brand new record almost every single month.

#17 Things have gotten so bad that many American families are selling off whatever they can in order to survive. For example, down in Florida hundreds of people have been selling off their burial plots in an attempt to raise cash. The following is an excerpt from a local news report about this new trend....

Sellers are posting online, using burial plot brokers, and also funeral homes to market the real estate. Some of those advertisements show single plots starting at about $1,000, while family plots can go for up to $50,000.

Most American families are living in a state of almost constant financial stress. Way too many parents are spending way too many sleepless nights wondering how in the world they will be able to keep their heads above water for another month.

read more 17 Facts That Prove That The Average American Family Is Getting Absolutely Pulverized By This Economy | Politics and Economics Right Side News
 

alan1

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So let's call that about $4000 a month. But before any of that money gets spent, you have to take out at least $1000 in taxes.
Yep, they are getting pulverized, and it's the taxman doing the pummeling.
 

expat_panama

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The idea may be well motivated, but this piece is so poorly written and packed with so much nonsense that it gives conservatives a bad name.
 

driveby

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Raising taxes on the rich will cure all of these woes......
 

PixieStix

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The idea may be well motivated, but this piece is so poorly written and packed with so much nonsense that it gives conservatives a bad name.
How is it nonsense? When It is true.
 

Jackson

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How much further do we go before they call it a depression? Guess we have to double those figures. We have to his majesty out of office, NOW.
 
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C_Clayton_Jones

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17 Facts That Prove That The Average American Family Is Getting Absolutely Pulverized
This isn’t at issue – no ‘facts’ are needed.

The only issue is how to best address the problem and the fact that the problem is being made a political football by the right.
So let's call that about $4000 a month. But before any of that money gets spent, you have to take out at least $1000 in taxes.
Yep, they are getting pulverized, and it's the taxman doing the pummeling.
And if you were to add that $1000 back into the paycheck it would have to go into a savings or retirement account, as there would be no Social Security or Medicare. And state and local governments would be forced to increase fees and sales taxes and the like to address the loss to pay for roads, schools, water and sewage, the taxpayer would end up paying more.

Given all the taxpayer receives – from Social Security/Medicare to state and local services – that $1000 is an outstanding bargain.
 

alan1

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A few more thoughts on the article.

I hear people complain about the cost of their cable/satellite TV bill, but those same people don't turn their TV off. TV is not a necessity, it is $100 monthly bill that could easily be eliminated.

I hear people complain about the cost of their cell phone bill. Then they buy a premium plan that includes unlimited texting, unlimited data downloads and unlimited calling. Those are not necessities, one can use the phone for occasional phone calls.

I hear people complain about their credit card payments, but, as the article points out, most people have multiple credit cards. They charge stuff then complain that they actually have to pay for it at an increased cost because somebody loaned them the money to purchase something they couldn't afford. Maybe they should quit charging stuff.

I hear people complain about the high cost of their mortgage. Most of them live in a huge house instead of living in a 1400 sq ft home with a single bathroom and small bedrooms. Just because a banker says you can afford a $300,000 house doesn't mean you should buy one that expensive.

I hear people complain about the cost of their car payment, then they go out and finance a new car every 3 or 4 years. Today's cars last 10 years or more. It's also more expensive to insure a new car than it is to insure one that is aged.

Consumers are cutting back on new spending because they are finally realizing that it's time to pay off their debt for their previous frivolous spending of borrowed monies.
I am solidly middle-class (it took me a while to get here). The only debt I have is my modest house mortgage. 5 of the last 6 cars i have purchased were paid for in cash (2 of which belong to my adult children, all of which were purchased used). I've never charged a single dime for a vacation expense. I haven't had a credit card for over 10 years. I've never borrowed from the equity in my home and I never will.

Were I to become unemployed or completely disabled I wouldn't lose my house, my car or my ability to feed myself because I haven't put myself into a debt situation that puts those things at risk. This may sound cold-hearted, but people that put themselves into that position are not part of my pity.
 

alan1

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17 Facts That Prove That The Average American Family Is Getting Absolutely Pulverized
This isn’t at issue – no ‘facts’ are needed.

The only issue is how to best address the problem and the fact that the problem is being made a political football by the right.
So let's call that about $4000 a month. But before any of that money gets spent, you have to take out at least $1000 in taxes.
Yep, they are getting pulverized, and it's the taxman doing the pummeling.
And if you were to add that $1000 back into the paycheck it would have to go into a savings or retirement account, as there would be no Social Security or Medicare. And state and local governments would be forced to increase fees and sales taxes and the like to address the loss to pay for roads, schools, water and sewage, the taxpayer would end up paying more.

Given all the taxpayer receives – from Social Security/Medicare to state and local services – that $1000 is an outstanding bargain.
Got it.
You seem to believe that anybody that is middle class income should give 25% of their income to the government right off the top. Add sales tax, fuel tax, etc.
Do you really believe that the common person should give an entire 25% of their labor results to the government? That they should spend 1/4 of their labor in support of federal government?
 

expat_panama

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...How is it nonsense? When It is true.
Don't get me wrong, much (if not most) really is true and needs repeating, but the problem is that it's so badly laced with garbage. For instance like what it said about health insurance payments at $15K --

...in many cases employers are paying for at least a portion of that...
Every penny of the $15K is paid by labor. Employers are not welfare philanthropists, they make that generous donation of insurance as payment for labor along with cash as part of a total compensation package.
...most American families are tapped out financially. According to the U.S. Labor Department, incomes and spending were both down...
In the first place the writer needs to either talk about 'most Americans' or the 'average American'. Different Americans with different situations. Second, the BLS doesn't do incomes and spending, the BEA does. Third, average real 2010 income is up from 2009 and within a third of a percent of 2008, the year of average real income's all time high.
...millions of good jobs have been shipped out of the country. Sadly, the trend of offshoring our jobs is going to continue to accelerate if something is not done...
What 'something' do they have in mind? Check all the docks in US ports by opening up shipping containers to find the job smugglers? Maybe they could just cut the import tariffs on job imports so we could start importing jobs? That's flippin' CRAZY! People have got to realize that the every time some foreigner starts up a business at the moment an American quits, that this is not some magical job teleportation.

It goes on and on...
 

Paulie

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Raising taxes on the rich will cure all of these woes......
I can't speak for anyone else, but I'm not going to hire anyone until the government raises my taxes.
 

expat_panama

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PoliticalChic

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How in the world does the average American family survive in this economy? The median household income is a little bit less than $50,000 a year right now. So let's call that about $4000 a month. But before any of that money gets spent, you have to take out at least $1000 in taxes. That leaves about $3000 a month to pay all the bills with. With that $3000 you have to pay the mortgage (or rent), make the car payments, make the student loan payments, pay for power and water, pay for health insurance, pay for home insurance, pay for car insurance, pay the phone bill, pay the Internet bill and pay the cable bill.

On top of all that, every member of the family needs three meals a day and the cars need to be filled up with gasoline or they won't go anywhere. Of course I haven't even mentioned expenses that don't happen every month such as car repairs or new shoes. No wonder so many families are feeling so financially stressed!

The truth is that American families are getting squeezed harder than they have been in ages. The number of good jobs is declining, incomes are going down, and the cost of living just keeps going up.

The following are 17 facts that prove that the average American family is getting absolutely pulverized by this economy....

#1 The cost of a health insurance policy for the average American family rose by a whopping 9 percent last year. According to a report put out by the Kaiser Family Foundation and the Health Research and Educational Trust, the average family health insurance policy now costs over $15,000 a year.

How in the world can most families afford that? Yes, in many cases employers are paying for at least a portion of that, but still that seems absolutely outrageous.

#2 Due to rising costs, a lot of employers are completely getting rid of health plans for their employees. In fact, the percentage of Americans covered by employer-based health plans has fallen for 11 years in a row.

#3 The number of uninsured Americans continues to rise. Things have gotten so bad that an all-time record 49.9 million Americans do not have any health insurance at all.

#4 At this point, most American families are tapped out financially. According to the U.S. Labor Department, incomes and spending were both down for the second straight year in 2010.

#5 At the same time, the employment picture continues to look worse with each passing month. According to the U.S. Bureau of Labor Statistics, the number of layoffs in the United States was up 14 percent in August.

#6 Even if you do have a job that doesn't mean that you are doing much more than surviving. According to Paul Osterman, a professor of economics at MIT, approximately 20 percent of all employed Americans are making $10.65 an hour or less.

#7 The amount of debt that the average American family has piled up is absolutely staggering. The median yearly wage in the United States is just $26,261, but the average American household is carrying $75,600 in debt.

#8 Consumer confidence is extremely low right now. If the U.S. economy was in good shape, the Consumer Confidence Index would be up around 90. Instead, it is sitting at 45.4.

#9 Nearly every recent survey shows that the American people are feeling really depressed about the economy right now. In fact, one poll found that 80 percent of them believe that we are actually in a recession right now.

#10 Many consumers are seriously starting to cut back on spending again, and that is not a good sign for the U.S. economy. According to one recent study, 40 percent of all Americans have cut back on their spending within the last 60 days.

#11 It certainly does not help that millions of good jobs have been shipped out of the country. Sadly, the trend of offshoring our jobs is going to continue to accelerate if something is not done. According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades.

#12 There is a lot of fear in the workforce right now. According to Gallup, 30 percent of all employed Americans are worried that they will be laid off soon.

#13 Today, there are 5.9 million Americans between the ages of 25 and 34 that are living with their parents. That is putting an even greater strain on the budgets of many families.

#14 American families have gotten very accustomed to using plastic to pay for things. Today, the average U.S. household has 13 different credit cards.

#15 Many American families are not making it at all in this economy. Last year, 2.6 million more Americans dropped into poverty. That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

#16 For many American families, living on food stamps has become a way of life. Today, there are more than 45 million Americans on food stamps and we keep setting a brand new record almost every single month.

#17 Things have gotten so bad that many American families are selling off whatever they can in order to survive. For example, down in Florida hundreds of people have been selling off their burial plots in an attempt to raise cash. The following is an excerpt from a local news report about this new trend....

Sellers are posting online, using burial plot brokers, and also funeral homes to market the real estate. Some of those advertisements show single plots starting at about $1,000, while family plots can go for up to $50,000.

Most American families are living in a state of almost constant financial stress. Way too many parents are spending way too many sleepless nights wondering how in the world they will be able to keep their heads above water for another month.

read more 17 Facts That Prove That The Average American Family Is Getting Absolutely Pulverized By This Economy | Politics and Economics Right Side News
If the average family were actually 'getting pulverized,' it would seem that they would hardlly be in a position to buy lots of stuff....right?

Let’s be clear: the broadest and most accurate measure of living standard is real per capita consumption. That measure soared by 74% from 1980 to 2004. U.S. Department of Commerce. Bureau of Economic Analysis

a. A study of table 7.1 would show that between 1973 and 2004, it doubled. And between 1929 and 2004, real per capita consumption by American workers increased five fold.
The fastest growth periods were 1983-1990 and 1992-2004, known as the Reagan boom.
 

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Not enough money trying to pay down too much debt.

That debt was taken on when people had more money, but in order for debts to be paid by debtors, new debts must infuse our system with still more money

This is the SYSTEMIC problem that is killing our American and European economies.

It is a somewhat unsustainable system IF the middle class all decide to pay down their debts at the same time.

Which is what IS happening, right now.

When million of Americans woke up to the fact that their homes' equity was falling, they stopped spending.


SOMEBODY or something has got to infuse cash back into the system.

The people cannot do it because they are broke.

Businesses won't do it because the economy is faltering

Who (or what part of society) is left that CAN solve the problem?
 
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tonystewart1

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Maybe its just where I live but if you can not live on 3000 dollars a month you need to check you spending habits.

I could live quite well on 3000 a month.
 

Paulie

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Maybe its just where I live but if you can not live on 3000 dollars a month you need to check you spending habits.

I could live quite well on 3000 a month.
It would depend on location. That's a killing in most locations inland from the coasts besides metropolitan areas, but somewhere like SoCal you'd be having trouble.

It's also probably not going to get you much house if you wanted to be a homeowner and not be broke every month after bills, but you could find a nice place to rent for around 1k/mo and live nicely.
 

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