muses of the moment

September 12, 2013

The Failing Middle Class

Here is an excellent article on the failing middle class. The widening gap between rich and poor will continue for years to come. It will be the driving factor of the depression.

Side musing: the failing of the middle class would happen anyway, regardless of a global derivatives collapse, and then banking collapse. The move of baby boomers from working to retirement (in every first-world country) means their standard of living drops in the best of economies. The loss of their equity in their homes (in the US) due to the long-term decline is the housing cycle compounds the problem. And the student loan burden coupled with low youth (good and full-time) employment, guarantees that those under 25 will not be able to take over the middle class spending habits (such as buying a home) of those retiring.

So, demographics has foreseen this decline of the middle class for years, but the financial derivative and banking crisis will just make the global depression worse and/or longer. There are many other major issues impacted by this demographic move, such as social security bankruptcy, pension fund bankruptcy, medicare, etc. This issue is not being addressed by government nor is it being prepared for on an individual level. It will not end well. When people are panicked, they do not make good decisions.

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