Best of the Week
Most Popular
1.Putin’s World: Why Russia’s Showdown with the West Will Worsen - John_Mauldin
2. Stocks Bull Market Grinds Bears into Dust, Is Santa Rally Sustainable? - Nadeem_Walayat
3. Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM - Austin_Galt
4.Gold Price Golden Bottom? - Toby_Connor
5.Gold Price and Miners Soar on Huge Volume - P_Radomski_CFA
6.Stock Market and the Jaws of Life or Death? - Rambus_Chartology
7.Gold Price 2015 - EWI
8.Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - Nadeem_Walayat
9.Gold, Silver, Crude and S&P Ending Wedge Patterns - DeviantInvestor
10.Is the Gold And Silver Golden Rule Broken? - Michael_Noonan
Last 5 days
Ruble Takedown Exposes Cracks in Putin’s Defense - 20th Dec 14
Oil Drilling Our Way Into Oblivion - 20th Dec 14
Stocks Bull Market Resumes - 20th Dec 14
Gold And Silver Nothing Is Ever As It Seems And No Respite For PMs - 20th Dec 14
What Are Technical Indicators Saying About the Stock Market? - 20th Dec 14
Here’s How You Can Still Make 27% With Apple Even if You Buy Now - 20th Dec 14
Gold Stocks to Shine in 2015 - 19th Dec 14
Why Alibaba Stock Shares Are a Screaming Buy - 19th Dec 14
China, Dollar, Japan, Europe Burning Questions for 2015 - 19th Dec 14
U.S. Economy is in a Sweet Spot! - 19th Dec 14
US Dollar and the Gold Fairy Tale - 19th Dec 14
Show Me The Money (Flow)! Tracking Money-Flow Through Value Shifts In Stock Markets - 19th Dec 14
The Commodities Market Is Not Dying, It’s Just Hibernating - 19th Dec 14
The Price Of Gold And The Art Of War - 18th Dec 14
Euro Succumbs to ECB QE Expectations and FOMC - 18th Dec 14
John Williams: A Downhill Run for the U.S. Dollar in 2015 - 18th Dec 14
Outrage at Taliban Islamic Fundamentalists Massacre of 132 Pakistani School Children in the Name of God - 18th Dec 14
How Inflation Changes Retirement Benefit Choices - 17th Dec 14
The Real Reason It's Tough to Beat the Stock Market - 17th Dec 14
Russian Currency Crisis and Debt Defaults Could Create Contagion in West - 17th Dec 14
How to Profit From Russia's Stock Market Crash - 17th Dec 14
Russia Crisis - If You Put Your Money in the Bank Will You Get it Back? - 17th Dec 14
Crude Oil Price Crash, U.S. Employment and Economic Growth - 17th Dec 14
Opposing Forces At Play In Gold and Silver Precious Metals Complex - 17th Dec 14
Wall Street Will Always Find An Excuse For Not Raising U.S. Interest Rates - 17th Dec 14
Torture, Terror And Elite Schizophrenia In The UK - 16th Dec 14
Eurozone Conflict Will Bring a Major Stocks Buying Opportunity - 16th Dec 14
Viewing Russia From the Inside - 16th Dec 14
Gold and Silver Stocks Bottom - Are We There Yet? - 16th Dec 14
The Financial Industry Pigmen Win Again - 16th Dec 14
Crude Oil Price Epic Blowout - 16th Dec 14
Asian Stocks Markets: Sand In The Gears Of The Bull Market - 16th Dec 14
U.S. Dollar Trend Forecast 2015 - Video - 16th Dec 14
Silver Price Bottom? - 15th Dec 14
Gold Price Base Building Bullish Pattern - 15th Dec 14
Stock Market Probable Pop-n-Crash Today - 15th Dec 14
Stock Market Time for a Bounce - 15th Dec 14
Stock Market Euphoria: The Mother of All Ponzi Schemes - 15th Dec 14
Gold - The Weight of Time as Trend - 15th Dec 14
U.S. Dollar Collapse? USD Index Trend Forecast 2015 - 14th Dec 14
The Rushing Stocks Bear Market and How to Prepare - 14th Dec 14
Gold and Silver Dreaming of a White Christmas - 14th Dec 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Dramatic Stock Market Selloff

America's Suffering Middle Class, Still Worse Off than 2008

Politics / Social Issues Feb 13, 2013 - 02:37 PM GMT

By: Money_Morning

Politics

David Zeiler writes: The government's numbers - primarily the monthly data on unemployment and inflation - tell the story of a slow but gradual recovery by the U.S. economy.

But the experience of millions of Americans tells a far different story.

According to a new national survey conducted by the John J. Heldrich Center for Workforce Development at Rutgers University, many Americans continue to suffer from the impact of the Great Recession.


What's more, more than half of those surveyed believe the U.S. economy will not fully recover for another six years, and nearly one-third said the U.S. economy will never fully recover.

"Millions of households were affected to some extent by the layoffs that occurred four years ago," Mark Szeltner, the lead researcher for the Rutgers survey, told The Daily Ticker.

The Rutgers survey backs up what some other surveys have said.

Last August, in a Pew Research survey of middle-class Americans, 42% said they were worse off than they were in 2008.

A Rasmussen survey taken earlier this month showed that only 39% believed the U.S. economy would be stronger in five years - the first time, Rasmussen said, that figure had ever dipped below 40%.

U.S. Economy 2013: Rhetoric and Realities
The survey results contradict the sunny rhetoric from the party in power in Washington.

For the past couple of years, Democratic lawmakers and U.S. President Barack Obama have pointed to a slowly dropping unemployment rate and gradually improving housing data as evidence the U.S. economy was on the mend, if not back to its pre-2008 form.

"Our economy right now is headed in the right direction and it will stay that way as long as there aren't any more self-inflicted wounds coming out of Washington," President Obama told reporters last week as he urged Congress to act to avoid the economically damaging budget cuts set to hit March 1.

And just going by the government data, the U.S. economy is better off than it was in 2009.

Unemployment is at 7.9%, down from its peak of 10%. The gross domestic product (GDP) grew 2.1% in 2012, while it shrank 3.5% in 2009.

Unfortunately, the improving government data hasn't done much to help many middle-class Americans recover from the worst setback to the U.S. economy since the Great Depression.

The Rutgers survey of nearly 1,100 Americans showed just how deeply felt the Great Recession has been.

Nearly a quarter, 23%, said they lost their job as a result of the recession. Nearly three in four - 73% -- said they had either lost a job themselves, had a family member lose a job or had a close friend lose a job.

While most of those who were laid off said they had found new jobs, only a minority found jobs comparable to the ones they lost.

More than half (54%) said their new job paid less than their old one, and in many cases the pay cuts were steep. More than a quarter (26%) of those who took pay cuts lost between 31% and 50% and 18% lost between 21% and 30% of their former salaries.

"[That] can be a huge hit for middle-class Americans," Szeltner said.

Equally demoralizing is that many of the "recovery jobs" carried a lower status. Almost half (48%) said their new job was a "step down" for them.

And people are pessimistic about any real improvement to the unemployment picture, mirroring how they feel about the U.S. economy in general.

An astonishing 90% said they were either "somewhat concerned" or "very concerned" about the job market for those now looking for work, and 85% said were somewhat concerned or very concerned about their own job security.

And the survey showed many feel this is the new normal; 60% said the changes to the U.S. economy are permanent.

Large numbers said they believed many things are gone for good: workers feeling secure in their jobs (43%); the availability of good jobs at good pay for those who want to work (34%); and a lower unemployment rate (29%).

Great Recession Impact on U.S. Families
The survey also revealed some of the hardships suffered by U.S. families in the wake of the Great Recession.

More than one-third (35%) said the recession has had a "major" impact on their family; only 14% said it has had no impact.

Some of the ways diminished economic circumstances have affected Americans, especially those who lost their jobs, include:

■66% dipped into savings set aside for other things;
■57% cut back on doctor's visits or medical treatment;
■40% borrowed money from friends or family;
■37% increased credit card debt.

Most of those who were laid off - 61% - believe their finances will never recover.

"I think the data speaks to the scope, the magnitude and the persistence of the recession," Szeltner said. "It's a really depressing image of what's happening right now to many Americans."

How about you? Do you think the official U.S. government statistics are masking serious issues with the U.S. economy? Tell us what you think in the comments section below.

Source :http://moneymorning.com/2013/02/12/u-s-economy-recovery-doesnt-fool-struggling-americans/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014