Best of the Week
Most Popular
1.China Crash, Greece Collapse, Harbingers of Stock Market Apocalypse Forecast 2015? - Nadeem_Walayat
2.Gold Price Awaiting Outcome of Greece Crisis - Clive_Maund
3.Gold Price Peculiar 6 Month Cycles - Rambus_Chartology
4.Gold Price Just a Little Bit More - Bob_Loukas
5.8 Unprecedented Extremes Indicate a Stock Market Bubble in Trouble - EWI
6.Gold And Silver – Without Either, You Will Be Greeced - Michael_Noonan
7.Lies, Damned Lies and Statistics - James_Quinn
8.China Crash, Greece Crisis Harbingers of Stocks Bear Market? Video - Nadeem_Walayat
9.Gold and Silver Record Shorting - Zeal_LLC
10.Markets Big Deflationary Downwave Quick Reference Guide... - Clive_Maund
Last 5 days
Greece- What Happens When Economists Talk Politics - 29th July 15
The Gold - U.S. House Prices Ratio As A Valuation Indicator - 29th July 15
Will Crude Oil Price Decline Continue? -Video - 28th July 15
Gold & Silver Money Has Devolved Into Debt and Plastic - 28th July 15
Buy and "Own Gold Krugerrands" Says Money Expert Jim Grant, Very Bullish on Gold - 28th July 15
How to Protect Yourself from China's Crashing Stock Market - 28th July 15
Quantum Geopolitics - 28th July 15
Gold Mining Stocks to Weather the Storm - 28th July 15
Stock Market Bulls Beware! - 28th July 15
Will Chinese Stock Market Crash Affect the US? - 27th July 15
Crude Oil Price Under $48! - 27th July 15
Are We Seeing a Trend Reversal with U.S. Interest Rates? - 27th July 15
How to Know When the Gold Bear Market is Over - 27th July 15
Gold Bear Market Phase III - 27th July 15
Silver Bull Hammer Buy Signal - 27th July 15
Gold Cracks Support and Plunges to New Lows - How Low Will Price Go? - 27th July 15
Commodity Markets Breakdown Of 2015 Is Now A Fact - 26th July 15
Gold Price at a Five-Year Low: Here’s What to Do - 26th July 15
Stock Market Primary III Inflection Point - 26th July 15
Central Banks and Our Dysfunctional Gold Markets - 25th July 15
Gold And Silver - The US Dollar Does Not Exist, Part II - 25th July 15
How Wall Street Put Apple Stock in Animal House - 25th July 15
How to Trade Markets Using the Stochastic Oscillator - Video - 24th July 15
A Bond Market Crisis Is Coming... Here's What to Do - 24th July 15
Why There's Resistance to the Iran Nuclear Deal - 24th July 15
Absurd Gold Stock Levels - 24th July 15
Gold Mining Stocks Nearing Rebound - 24th July 15
Misperceptions Create Significant Bond Market Value - 24th July 15
Commodities Distressed Investing - 24th July 15
OPEC Shorts Are Driving Down the Crude Oil Price - 24th July 15
USD Index Rebounds - 24th July 15
If You’re Worried About a Tech Bubble, You’re Focusing on the Wrong Thing - 24th July 15
Gold Stocks Bear Market Bottom Buying Opportunity? - Video
The Stealth War on the United States - 23rd July 15
Commodity Prices, Gold and Silver Stocks Next Leg Down - 23rd July 15
The ‘Real’ Reason the Fed Wants to Raise Interest Rates - 23rd July 15
Crude Oil Price Slump is a Once in a Decade Opportunity to Make Money, Guaranteed - 23rd July 15
Gold Price Hits a 5-Year Low: How to Time the Next MAJOR Bottom - 22nd July 15
Silver and the Deflation Thesis - 22nd July 15
Gold Price Crash - Trend Forecast 2015, Gold Stocks Buying Opportunity? - 22nd July 15
The Three Reasons Behind Iran’s Resistance to the Nuclear Deal - 22nd July 15
Winning the Hunger Games - How to Choose Successful Agriculture Investments - 22nd July 15
Are Free Markets The Solution? - 22nd July 15
Gold Hammered “Unprecedented Attack” - 21st July 15
The Turkish Enigma - 21st July 15
Gold and Silver: The Final Capitulation Commences - 21st July 15
Greater Israel Setback from Iranian Nuclear Agreement - 21st July 15
U.S. Housing Market: Is the Roof About to Cave In (Again)? - 21st July 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stock Market Bubble in Trouble

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

© 2005-2015 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

Biggest Debt Bomb in History