andyetf

Thoughts On An Economic Recovery

In Uncategorized on September 15, 2010 at 3:02 pm

Is the economy going to recover anytime soon? Don’t look to the middle class to help. In a word, people are tapped out. Consider the following: since the 1970’s, income for the average worker has not kept up with inflation. That means sons are earning less than their fathers. Meanwhile, he costs for necessities like health care, energy, and education continue to rise. If you are struggling to keep your head above water, this is probably the reason.

The growth in earnings went mainly to those at the top. In the 70’s, the top 1% of earners had an 8% share of the nations income. Today 23% of the nation’s income goes to the top 1%.

So don’t look to the middle class for increased spending to fuel an economic recovery. They have their hands full just paying the bills.

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