American middle class continues to vanish at astonishing speed. At least according to the new study published by Russell Sage foundation For most families, wealth has vanished
The study, which measures the average wealth of U.S. households by income level, reveals a startling decline in wealth nationwide. The median household in 2013 had a net worth of just $56,335 — 43% lower than the median wealth level right before the recession began in 2007, and 36% lower than a decade ago. “There are very few signs of significant recovery from the losses in wealth suffered by American families during the Great Recession,” the study concludes.
I have covered the subject matter in my previous posts titled Guillotine Sales About To Surge. Make no mistake, the American middle class, and not the rich, is the driving force behind America’s success. I continue to believe that by decimating the middle class the US Government has undermined the very foundation of America’s future.
In other words, what the FED did over the last 20 years is nothing short of criminal. By concentrating of bubble blowing, asset appreciation and capital misallocation, the US Government and the FED have, for the most part, benefited only the rich. The problem is, no economy can function like this over an extended period of time. Rich or not, an economy with no middle class eventually collapses and becomes a banana republic. Unfortunately, we are approaching that threshold at breathtaking speed.
