I usually look askance at articles like this, because a lot of them either rely on tinfoil hat theories or are ultimately trying to sell you something, but this one was pretty compelling:
United Way has done a study on a group of Americans they call ALICE: Asset Limited, Income Constrained, Employed. The study found that this group does not make the money needed “to survive in the modern economy.”
Between families living below the poverty line due to unemployment or disability and ALICEs, the study discovered that 43% of Americans were struggling to cover basic necessities like rent and food
Some states have more families living in ALICE levels than others. The 3 states with the most families barely surviving paycheck to paycheck are California, New Mexico, and Hawaii. Each of these states saw 49% of families struggling. North Dakota had the lowest ALICE percentage with 32%. You can check how your state fares right here. Despite the lowest unemployment rate since 2000, families all over the country are barely getting by.
This is just the beginning of a looming collapse in America.
Remember back when Greece began to collapse? It was the same thing – no one could afford the basics and things went downhill pretty quickly from there. It really hit the papers when a strict austerity program was instituted and culminated when a “bank holiday” shut down the financial system for an entire week.
There are similar stories in the UK (where the taxpayers can still fund a 45 million dollar wedding but poor families can’t afford to eat every day), Argentina, and Cyprus.
Jose wrote for us about the warning signs that the collapse of Venezuela was approaching and they’re eerily familiar. Food rationing began, the cost of medical care became prohibitive, the health insurance system began to fail, and people began to make difficult choices about rent versus food.
I don’t know how it could be any more clear than the fact that nearly half of the American population is also making that decision each month.
My take: I live in one of the states he lists (New Mexico). I don’t doubt him for a minute based on what I’ve seen.
I’m a millennial, who has tried to buy a car on multiple occasions, I cannot get approved to save my life. Despite a good income, and the up until recently no dept or other bills, yet I had no problem buying a new house at 2% fixed interest.
I also have never been able to get a credit card.
It’s hard for us, most my friends are in the same spot, we make our money and no one’s willing to help us out so I see a lot of my friends go out and do dumb shit with their cash because they can’t invest it where it counts.
And yet, here in CA, I see both sides. Families that can’t make it, and at the same time young folks all sporting signs of wealth… fancy vacations and cars and eating out all the time. My wife and I who do well can’t afford much of what we see… just don’t understand.
Anyway, to the point of the OP, no. We’re not that close yet. On our way however, yes. We’ll be behind Europe in that collapse. Watch them first.
I work in the construction industry, and we are facing a labor shortage, there is more work than people to perform it which is driving up costs. It makes me think that people are either unmotivated, unskilled, or both. At a minimum, people make bad decisions, and go to school to get stupid degrees that aren’t worth the debt they accrue to obtain them. I got a BS degree in construction management 12 years ago and have never been unemployed, I guess it also helps that CO has a strong economy right now.
I think the problem is more social than economic but I’m no expert…
And when interest rates rise and debt coverage gets more expensive and housing prices get under pressure. We don’t have the same problems as Greece, but when interest rates go up, servicing all the debt is going to squeeze things hard in the budget.
I try to live in my means, but the other side looks at all the idiots- too many idiots- and the whole thing is going to tumble at some point because of too many bad choices. Why should I keep capital when it will be taxed or taken, while all the idiots spent theirs.
We need capital to take less and employment income to take more of the economic pie. The money changers take far too much.
Comes down to where you live. In NYC or Center City Philly you’re probably better off using Uber. Philly not as much as NYC but still. A few years ago I made the mistake of driving my grandma to NYC to see her dying sister. It was surprisingly ok on the way there. However, on the way back I sat in traffic for 3hrs 1.3 miles away from the Holland tunnel. That’s all I had left to go to get out of NY and into NJ and on to the turnpike. I’ve been there too many times and should have known better than to drive. Should have taken the train.
And every time I have to drive someone to JFK international airport. I just feel like saying F this and walking out into traffic. Between 678, 495 and the belt parkway…I’d rather have my teeth pulled without novacaine
This. I’m industrial. We have two open positions, got about 50 resumes, 24 call backs, 6 showed up for competence testing and 4 passed. People just dont want jobs in this area- or they are “too good” for a certain wage. I hear that often from my fellow millenials.
How old are you? Millenial is a huge range, but ive had zero issues. Im 30 and had a cc since i was 18 or so. Have you tried a devit card to start?
The reality is that our economy is a house of cards. As you said, we have too many folks making money by moving the idea of money around. People such as us, who save and invest, often in mutual funds, enable the system to continue. At some point it is going to come tumbling down.
I’m a Christian. I believe the God who created the Earth, and Man, ensures that the Earth provides the abundance to support us all, if we practice good stewardship.
Even if you don’t believe as I do, the reality is that the world’s agricultural output is sufficient to feed us all. Yet we have folks starving, in all parts of the world, while wheat lays on the ground in Kansas.
Why is that? Simple answer, greed. Got to have more.
MANY years ago…around about 1976 or so, I was introduced to the idea of SHTF, survivalism & economic collapse via reading articles in several publications, & by a man named Al Mar, of knifemaking fame. Al was a survivalist and I clearly remember when I first heard of, and realized something like this was even a possibility, well it set me off on a lifelong path of firearms, hunting, fishing, trapping, learning the “old ways”…FOXFIRE books were and are a treasure…and was a huge factor in my joining the Marine Corps infantry in '83. There has NEVER been a time since, where the Wolf wasnt at the door, where people werent trying to ban guns, hunting, the 2A and so forth.
NEVER been a time where the American economy, much less the world’s, couldnt collapse OVERNIGHT given the right set of events or circumstances.
I truly, truly believe that at one time…70’s & 80’s and back…that a handful of people ran the worlds economies. Now, I think its so many, none of whom are on the same page, that they will bump heads soon enough. I see countries like Iran & N. Korea & Syria who back then didnt even have modern conveniences, who were still almost medieval, who now daily give the finger to America and its ally’s. There were JOKES back then. They AINT NOW. They were allowed to become what they are now,thru passing the buck.
Gents- for those of you who are young…who dont know history, who havent been around to LIVE THROUGH all the shit thats happened in the past 30 years or so…you dont know how things were, and how bad theyve gotten. I got out of high school in '83…this world…this country…is UNRECOGNIZABLE to me from what it was then. Far too much to explain here & now. You older gents know EXACTLY what Im talking about.
So, I say all this…to say this: YES, THE WOLF !!IS!! AT THE DOOR- ALWAYS HAS BEEN, ALWAYS WILL BE. PREPARE, NOW. STAY THAT WAY. But the single, solitary thing…if I had to pick just ONE THING I ever did to prepare for…whatever comes…is I took JESUS CHRIST as my personal Lord & Savior.
Now, …I couldnt care less whats coming, because I KNOW HE is in command…and I KNOW what happens to me when I punch out.
That MY view, & you can do with it what you will.
I read this the other day. IMO, Brill is a good researcher and puts together good stuff for the common man, although he is a little left leaning his facts are, IMO straight.
I imagine this will get some of your pants in a wad. I’d always thought this was what McCain-Feingold was trying to prevent and what Citizens United actually accomplished.
At the end of the day, it doesn’t matter which tribe you ID with, if you aint rich enough, your f@cked.
I’m a Millenial, though part of the earlier “Oregon Trail” generation. Likewise, never had issue with credit. Have bought two houses and a few cars, never an issue with getting a card.
Regarding the part I bolded, about the types of jobs and pay people are willing to take. I think it’s a combination of both. No skills, don’t want something that lacks prestige, or the pay isn’t enough to cover the debt on their useless degree (so their parents will keep paying the loan until a “real job” comes along)
We as a country are in debt about $22 trillion. I don’t know the extent to which economic collapse is happening at present, but given the lack of restraint in government spending and increasing world tensions, it’s certainly obvious that economic collapse is inevitable.
Every economy is basically being artificially propped up at this point so that every last cent of wealth that can be stolen from folks in first world countries can be chiseled at and ground down before the inevitable total crash.
The only reason it hasn’t all fallen apart is because there is still more wealth to milk and too many privately owned arms here in the USA.
The writing has been on the wall for quite some time.