The numbers are in, the economic depression (I call it D2) that started in 2007 is still here and it’s getting worse.
This week’s numbers from the US Census Bureau show that the median household income slid another 1.5% in 2011.
That means that household incomes are 4.1% below what they were when the “recession” officially ended and 8.1% below what they were in 2007.
The news is actually worse than that. Median household wealth has dropped a massive 39% since 2007 and it’s showing no signs of recovery (see the chart below). In fact, household wealth today is so low, it’s 10% less than it was in 1983!
In short, any way you look at it, we are in a real, honest-to-goodness, economic depression.
An economic depression where almost everyone has suffered a significant drop in their standard of living. A standard of living that is still contracting despite claims to the contrary. At this rate of decline, the next big financial failure will take us all the way back to the living standards of post WW2 America.
So, the BIG question is: what are you going to do about it?
What are you going to do before the zombie banks, companies and sovereigns of this depression eat your job, your wealth and your home?
There is only one answer. Become resilient. Help your community to become resilient. Prosper together, no matter what happens to the global economic system.
So, stay with me folks.
Things are about to get really interesting and being cognizant of what needs to be done will be the difference between success and abject failure.
Your Guide to a Prosperous Life,
JOHN ROBB
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Future of America as I see it:
1) Huge energy boom – US will be the largest producer of oil and natural gas. Thanks to Fracking and vertical drilling technologies.
2) Echo boomers (aka millennium, or Gen Y) – 88 million of them ages around 16 -28 all wanting crap houses, cars, families, etc – pent up demand is huge (Baby-boomers are only 78 million – think about that) .
3) Gen Alpha those after
Gen Z is expected to be over 100 million.
4) Technology advancements producing lower cost energy, food, transportation, everything. (if they pass along the savings) – We need to stop paying a premium for stuff – we need to go back to a supply and demand model.
5) Global demand huge – developing Nations have a huge middle class boom. They want crap. Let’s build it, make it and sell it to them.
6) With the right Government policies and regulations, fixing the broken TAX code (we are taxed way too much), smaller but smarter government, National Debt reduction, less handouts, adhere to the Constitution, we can be a great nation again.
So how are you going to be a part of this next chapter is our history? We need to think positive, push forward, fire those that do not get it, fire those that are for the status quo, stop the war machine, invest in the future, retire the old bastards that stand in the way of progress and get to work.
Think about it – do it – live it. The future is what we all make of it. Let’s make it a good one for all of us.
THINK POSITIVE – all this negative crap is getting old, really old.
Practical optimism is my motto. I can see the future at work at the local level. I can’t see it at the global with the industrial and bureaucratic systems we currently have in place. In fact, every indictor points to reset of the these overly complex systems. However, That’s not a bad thing if we reconfigure in a new way (post industrial decentralization). It’s actually a great thing for you personally if you have a resilient community to live in. JR
I’m optimistic. I’m optimistic that after an economic reset people will change their habits and the economy will grow in a new more sustainable direction. If humanity plans on moving forward, it will need a large dynamic pool of productive entrepreneurs not burdened by central authorities.
Sorry, but whenever I see “grow” and “sustainable” in the same sentence, I cringe — then laugh, then shake my head in dismay.
Coupled with language like “humanity moving forward” makes me think you’re one of those, “more of the same, only greener” people.
“More of the same” isn’t going to work any more. A reversion to the mean is inevitable. The only question is: do we manage this energy descent as best we can — through resilience, for example — or do we just let it happen?
So far, business, government, and the media seem to be banking on “just let it happen.”
Hmmm. I’m pretty sure I didn’t mention: grow/sustainable/humanity moving forward.
No, John. Not you — I was replying to Dustin’s comment.
She was replying to Justin.
At the risk of sounding like a know it all (I’m not – wouldn’t be reading this blog otherwise) there is always more than one answer and there are usually better questions to ask also.
For starters lets look at the big picture first. For every American middle class dream that’s being being squeezed and tightened there are a hundred others being fulfilled all over the World.
Yes, mercantile export economies have been doing well selling to the west. That’s over. If history serves as a guide, these mercantile economies are going to get hammered harder than the debtor economies as this progresses. JR
“An economic depression where almost everyone has suffered a significant drop in their standard of living.”
Woa there, Rob. You’d better define “standard of living” first.
I’m making 10% of what I was making 17 years ago, but I’d say my “standard of living” is way better.
I have a sneaking suspicion that amid the statistics, many people are finding fulfilment beyond a paycheque.
Jan, You are making the point I’m making in the post. You’ve created a new life, beyond dependence. JR
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