Friday, October 16, 2020

Goodbye Middle Class: Half Of All American Workers Made Less Than $34,248.45 Last Year

That seems very low.

As noted in the introduction to yesterday's "Cazoo, the UK used car sales platform, raises another $311M, now valued at over $2.5B":

1) Used vehicles seem to be a good business now and for the foreseeable future as the middle-class disappears.

2) These European equity rounds are getting bigger, we've seen at least a half-dozen mid-eight to nine figure fund-raisings in just the last month.

And the headline story from ZeroHedge:

Authored by Michael Snyder via The Economic Collapse blog,

If you are making less than $3,000 a month, you have plenty of company, because about half of the country is in the exact same boat.  The Social Security Administration just released new wage statistics for 2019, and they are pretty startling.  To me, the most alarming thing in the entire report is the fact that the median yearly wage was just $34,248.45 last year.  In other words, half of all American workers made less than $34,248.45 in 2019, and half of all American workers made more than $34,248.45.  That isn’t a whole lot of money.  In fact, when you divide $34,248.45 by 12 you get just $2,854.05. 

Needless to say, it is not easy to survive in America today on just $2,854.05 a month, and this may help to explain why we have been seeing so many people fall out of the middle class in recent years.

And of course all of the figures that I am sharing with you in this article are just for 2019.  This year, we have seen more than 63 million Americans file new claims for unemployment benefits as the U.S. economy has imploded during this pandemic, and so the final wage numbers for 2020 could be quite a bit worse than the numbers for 2019 were.  Please keep that in mind as you go through the rest of this article.

Once upon a time in America, a single income could easily support a middle class household in most cases, but those days are long gone.

The cost of living has been rising far faster than our paychecks have, and as a result many Americans have been working themselves to the bone just to survive financially from month to month.

To give you an idea of just how bad things have gotten, I would like to share with you some key numbers from the report that the Social Security Administration just released

  • 32.26 percent of American workers made less than $20,000 last year.

  • 44.79 percent of American workers made less than $30,000 last year.

  • 56.46 percent of American workers made less than $40,000 last year.

  • 65.91 percent of American workers made less than $50,000 last year.

Today, the poverty level for a household of five in the United States is $30,680.

That means that close to half of all workers in this country do not even make enough to get a family of five above the poverty level.



Why do I get that image of a duck swimming, apparently placid but paddling like mad under the surface?