Although numerous claims to the contrary, the current United States presidential administration is burying the middle class and hurting them with each new passing legislation and executive order. Whether it’s monetary, economic or social policy, the American middle class is being wiped out in the Obama economy.
High unemployment, record levels of both public and private debt and a low wages because of government legislation are just some of the common day experiences for the average U.S. household. In many ways, the Obama economy is even worse than his predecessor’s. It’s not surprising considering his approval rating is standing at around the mid-40s.
Unfortunately, it doesn’t seem like it’ll get any better considering that the president still has another few years in office and that his successor will likely be Hillary Clinton, who is just as much as a statist and proponent of big government.
If you still think the economy is getting better then here are 21 ways the middle class is suffering in the Obama economy:
1. The middle class will bear a significant burden of the $211 trillion long-term unfunded liabilities.
2. Various tax credits that middle class households rely on will likely vanish as the national debt skyrockets, interest rates rise and debt payments will account for a significant percentage of the budget.
3. Businesses are cutting back on their workforce: slashing hours, reducing staffing levels and foregoing expansion plans because of Obamacare.
4. The labor force participation rate is at the lowest level since the Carter administration at 63.5 percent.
5. Homeownership is at its lowest level in nearly two decades.
6. Close to one-quarter of households do not have a single member that is employed.
7. One-quarter of Americans has absolutely nothing in their savings accounts.
8. Approximately 38 million American households are living paycheck to paycheck.
9. Research has shown that middle class and affluent households hold most of their wealth in illiquid assets, such as homes, vehicles and retirement investments, rather than liquid assets, like cash, precious metals and savings.
10. An estimated 100 million Americans rely on some sort of federal assistance.
11. There are 27 million more Americans that are unemployed than in the year 2000.
12. Corporate earnings have been falling over the past year, while real estate sales have been plummeting (new-home sales declined nearly five percent in April compared to the same time a year earlier).
13. Manufacturing job openings have declined four consecutive months in the U.S.
14. Price inflation remains to be an important issue for households: meat prices are soaring this year, postage stamps have increased 50 percent in the past decade, a gallon of gasoline has risen by close to 200 percent in the last 14 years and food price inflation continues to be higher than overall price inflation.
15. Half of college graduates are relying on their parents for financial assistance because their debt is described to be as “overwhelming.”
16. The median wealth of families was $77,300 in 2010, a nearly 40 percent decline from 2007.
17. Households are inundated with debt: average credit card debt is $15,191, average mortgage debt is $154,365 and average student loan debt is $33,607. In total, consumers owe $11.68 trillion in debt.
18. Income inequality is worse under the Obama administration than during the Bush years.
19. Jumping real estate prices and rising interest rates have made homes unaffordable for new homebuyers. The average 30-year mortgage rate inched higher to 4.20 percent.
20. A new report found that middle class Americans are ranking low among major industrialized countries in terms of overall wealth.
21. The 401(k) system will become cash-flow negative in two years.