I don’t go digging up these little facts and figures on the U.S Economy myself, as the following “quote” was cute/paste/borrowed from our dear friend Dr Paul Roberts:
“””According to the official wage statistics for 2012, forty percent of the US work force earned less than $20,000, fifty-three percent earned less than $30,000, and seventy-three percent earned less than $50,000. The median wage or salary was $27,519. The amounts are in current dollars and they are compensation amounts subject to state and federal income taxes and to Social Security and Medicare payroll taxes. In other words, the take home pay is less.
To put these incomes into some perspective, the poverty threshold for a family of four in 2013 was $23,550.
In recent years, the only incomes that have been growing in real terms are those few at the top of the income distribution. Those at the top have benefitted from “performance bonuses,” often acquired by laying off workers or by replacing US workers with cheaper foreign labor, and from the rise in stock and bond prices caused by the Federal Reserve’s policy of quantitative easing. Everyone else has experienced a decline in real income and wealth.
As only slightly more than one percent of Americans make more than $200,000 annually and less than four-tenths of one percent make $1,000,000 or more annually, there are not enough people with discretionary income to drive the economy with consumer spending.”””
The question begs to be asked: With this many Americans, making so little money – how can you honestly believe they can buy stocks? Let alone support a “consumer recovery”?
The U.S stock/bond market is nothing more than a Fed manipulated/fabricated “scam” put forth in attempt to mask the true state of affairs, and to bolster global confidence for as long as possible before this thing goes off the rails completely.