One Third Of U.S. Households Can’t Afford Core Necessities: Food, Rent And Transportation

ONE THIRD OF U.S. HOUSEHOLDS CAN'T AFFORD CORE NECESSITIES:  FOOD, RENT AND TRANSPORTATION


The shocking truth is that approximately one third of American households are no longer able to cover basic living expenses such as food, housing and transportation. This has nothing to do with huge salaries of CEO’s, though the administration will focus on that in order to distract from the real issues.  It has to do with rising costs for basic necessities, which leave almost nothing for middle income families after covering standard living costs.

While the 'Fed' has long been focusing on the revenue part of the household income statement (which unfortunately has not been rising nearly fast enough to stimulate benign inflation in the form of nominal wages rising at the Fed’s preferred clip of 3.5% or higher), one largely ignored aspect of said balance sheet has been the expense side: after all, for any money to be left over and saved, income has to surpass expenses. However, according to a striking new Pew study while household spending has returned to pre-recession levels (the average household spent $36,800 in 2014) incomes have not. 

Specifically, while the median income had fallen by 13% from 2004 levels over the next decade, expenditures had increased by nearly 14%. But nobody was more impacted than the one-third of households which the study defines as “low- income.” Pew finds that while all households had less slack in their budgets in 2014 than in 2004, lower-income households went into the red by over $2,300.

 

The problem is that incomes have not kept up: from 2004 to 2008, median household income grew by only 1.5 percent, while median expenditures increased by about 11 percent. During that period, the expenditure-to-income ratio (the percentage of a household’s budget used for spending) jumped by 9 percent. As the 'recovery' began, median household expenditures returned to pre-crisis levels, but median household income continued to contract. 

By 2014, median income had fallen by 13 percent from 2004 levels, while expenditures had increased by nearly 14 percent. This change in the expenditure-to-income ratio in the years following the financial crisis is a clear indication of why and how households feel financially strained.  

Worse, as the chart below shows, in 2004, typical households at the bottom had $1,500 of income left over after expenses. By 2014, this figure had decreased by $3,800, putting them $2,300 in the red. As Pew notes, “the lack of financial flexibility threatens low-income households’ financial security in the short term and their economic mobility in the long term” and, as we would add, this makes them effective wards of the state to be manipulated by demagogue politicians with promises of free handouts.  (The 'plan' was DESIGNED to put these people in the most critical category of all: to be eliminated as 'useless eaters', even though many if not most are educated hard working Americans with lots to contribute to society, but no jobs and no income to support themselves. This is all by design of the plan to reduce the middle class to a lower class, and the entire nation to a less than a third world nation for takeover by the New World Order and a massive toll of genocide on America.)
 
But perhaps worst of all is that typical U.S. households in the center of the income distribution range, aka America’s true middle class, have seen their income after meeting all expenses (aka leftover savings) plunge from $17,000 in real terms a decade ago to a paltry $6,000 as of 2014, a plunge of 65%! (NOW even less! The 'plan' is to completely ELIMINATE the MIDDLE CLASS. HOW is this to be accomplished? By bringing in by the thousands/millions the illegals, the 'immigrants' and the 'refugees' - most ALL being muslims. WHY the muslims?  To bring division in this nation, to create CIVIL WAR, and to use the muslims for the GENOCIDE against Americans. Your phony CONgress, traitorous 'executive administration' aka criminal cabal corporation posing as your 'government', and U.S.A. military are GUILTY of carrying out this CFR / Bilderberger 'plan.')

What was the reason for this big drop in residual income and jump in expenses? According to Erin Currier, project director at Pew Charitable Trusts, “over time, [lower-income groups] consistently spend more on transportation and considerably more on housing.” 

However, the biggest culprit by far, are soaring rental costs: “Lower income renters are spending nearly half their income on rent, while upper-income groups spend about 15% on rent. The disparity really shows that lower income families don’t have much slack in their budgets for mobility-enhancing investments like savings and wealth building.”

The amount of slack that families had in their budgets declined for all income groups between 2004 and 2014. This means households had less income to devote to wealth-building investments, such as short and long term savings, education, and life insurance. 

In 2004, the typical household in the lower third had a little less than $1,500 left over after accounting for annual outlays. Just 10 years later, this amount had fallen to negative $2,300, a $3,800 decline. These households may have had to use savings, get help from family and friends, or use credit to meet regular annual household expenditures.  

The typical household in the middle third saw its slack drop from $17,000 in 2004 to $6,000 in 2014. Of note, because income is measured before taxes, some families will have had even less slack in their budgets than this figure implies.

There are many reasons for the deterioration of the housing industry and building and the American economy. Although not all of the problems can be laid at the feet of the president, he has done little or nothing to exacerbate the issues,  and he has definitely implemented programs and policies such as environmental and energy regulations that have significantly worsened the situation. It remains to be seen if the next president can improve the outlook for the nation, but they surely can do no worse than Barack Obama has done.

Source: zerohedge.com

http://www.truthandaction.org/one-third-u-s-households-cant-afford-core-necessities-food-rent-transportation/

The 'plan' is in process. It is working.  And YOU are its victims UNLESS you UNITE and put a STOP to it!