(SHTF
Plan) - Economists will often argue that booms and busts are cyclical.
Every depression or recession we’ve ever experienced in America has, usually
within just a few years, been followed by booming periods of growth.
But, as the best and brightest of
the financial world like to say, past performance is not a guarantee of future
results.
According to a demographic study
from economists at Cornell University and the Congressional Joint Committee on
Taxation, the recovery that many Americans believe is taking hold right now may
not actually be happening. In fact, it could take another 30 years or more…
Keep in mind that the study takes into account only the
demographic factors over the next several decades and does not include
additional government taxation, currency devaluation, and overall global
economic supply & demand factors.
The next
few decades could be uncharacteristically bleak, according to a new study
Demographic factors — which have
largely aided the U.S. economy in the past — could end up pushing incomes down
for the next 30 years or more. If other factors don’t force incomes up, we
may be at the beginning of the longest period of economic decline in American
history
These trends alone could reduce the
median income by 0.43 percentage points per year between now and 2020, 0.52
points per year between 2020 and 2030, and 0.2 points per year between 2030 and
2040.
Those
numbers might sound small, but over time they would add up to a
significant loss of purchasing power for the typical American and a long
era of decline for the nation as a whole.
A typical worker earning $50,000
today would earn only about $48,400 by 2020 if his or her income fell by the
amounts projected in the study. The worker’s income would fall to about $45,900
in 2030, $45,000 in 2040 and to less than $44,000 in 2050. In a society built
upon consumer power and the idea that succeeding generations leap ahead of
preceding ones—rather than fall behind them—four decades of falling incomes
could be catastrophic.
The study only makes income
projections relating to demographic changes.
Other changes could either offset
those income declines, or exacerbate them. Future tax hikes or cutbacks in
Social Security—some combination of which seems likely, to deal with mounting
government debt—would reduce income even more, for instance.
It’s no secret that the middle class is dying a slow and horrible death, which willultimately lead to
impoverishment of the majority of our
population. As of right now100 million Americans are already living at or near poverty – and this is
supposed to be an economic recovery!
The study notes that if you’re
making $50,000 today, you’d be making $45,000 by 2040. And again, this analysis
is based strictly on demographic changes.
Now take into account the continued
and inevitable destruction of the US dollar. Over the last hundred years, since
the establishment of the Federal Reserve, the US dollar has lost over 95% of
its value. In another 30 years we can expect a further devaluation, if not an
all out collapse. That reduces your purchasing power another 30% or so. In the
future, you’ll be paying $10 for a gallon of gas or milk, but making less
money.
And that purchasing power decrease
doesn’t even take into account the increased demand on global resources for
economies like China, India, Russia, and Brazil, which are adding more strain
on supplies of oil and food commodities. Supply and demand alone will drive
prices higher.
Finally, as the government (local,
state, and federal) goes deeper into the hole, we can fully expect a number of
austerity measures that will include increased taxation on individuals (think
Obamacare, which has been officially labeled a tax by the U.S. Supreme Court),
cuts in benefits like social security & disability, and increased
regulatory fees and burdensome mandates on businesses.
Everything that is being done right
now is working against us, on almost every level.
While there may be positive swings
in economic growth, wages or real estate prices throughout the next thirty
years, the reality is that Americans will continue to get poorer, until there
is no middle class left.
We often look to the third-world for
an idea of what real poverty looks like, but we don’t have to do that anymore.
This trend is now taking shape in
the United States, and we’ll soon see slums like those in Detroit springing up
all over the country to house the tens of millions of people who will be
affected by this collapse over coming years.If we can weather the storm without riots, rebellion and bloodshed it’ll be a miracle.
Source:
Tea Party.org, Hattip Be Informed http://www.shtfplan.com/headline-news/study-beginning-of-the-longest-period-of-economic-decline-in-american-history_09052013
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