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Nearly Every State is RED

Red in this case, is red ink.  Loss of income at the lower and entry level.  Check out the carnage we’ve seen since 2009 (after the financial crisis “blew” over):

wages

This chart is a big part of why the Federal Reserve is in its sixth year of pedal to the metal stimulus.

A stimulus made ineffective due to fundamental changes in the US (and soon global) economic system that is destroying work faster than we create it.

The fact that these changes are impacting the lowest income segments shouldn’t be any source of consolation.  You are NOT safe from this erosion, even with an education or a protected profession.

This change is destroying work from the bottom up.  Eating it whole.

By the time it starts to hit the upper segments of the income ladder, reductions will be inevitable.  There won’t be any customers to pay for the services offered.  90% of the economy will be completely on the dole and the government won’t have the funds to pay for it.

JR

PS: the only increase in income is due to the bubble in natural gas.

Join the movement to restore America's prosperity

Discussion — 4 Responses

  • Edward Mulder February 19, 2014 on 1:16 pm

    I can’t wait for the book John. What you are laying out here is really different, and I think very close to the reality. Apocalyptic and hopeful at once.
    Technology seems to be compressing history. Where in the past history seemed to trend in one direction or the other, it now seems to trend in every direction at once. For example, the collapse of Rome, the “dark ages,” and the Renaissance were spread out over a thousand years. We seem to be in the beginning stages of experiencing a collapse, a dark age, and a Renaissance simultaneously.

    Reply
    • John Robb Edward Mulder February 19, 2014 on 1:36 pm

      Thanks Edward. JR

      Reply
  • Benign February 26, 2014 on 4:57 pm

    John,
    What is destroying the wages of the lower classes is the greed of the upper classes. National income has increased; the share going to labor has decreased more than proportionately. The social conscience that said it is right to pay labor fairly (Henry Ford et al.) has given was to “greed is good.” It really is as simple as that. What we need are “collectivist” policies such as those that have been very successful in the Europe that put a collar on income multiples from top to bottom, in corporations and in society (throught taxation). Unfortunately, the “greed is good” meme seems to be winning out globally. It may take collapse to bring people together in a cooperative spirit again, because it ain’t happenin’ now.
    Following Wilkinson and the early Americans, the dream was and is to live in a society where everyone is more or less equal, where there is not an obscene gap between those better off and the those at the bottom.
    cheers,
    benign

    Reply
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