25 Horrible Statistics About The U.S. Economy That Barack Obama Does Not Want You To Know
Apr 23 2012
The human capacity for self-delusion truly is remarkable. Most people out there end up believing exactly what they want to believe even when the truth is staring them right in the face. Take the U.S. economy for example. Barack Obama wants to believe that his policies have worked and that the U.S. economy is improving. So that is what he is telling the American people. The mainstream media wants to believe that Barack Obama is a good president and that his policies make sense and so they are reporting that we are experiencing an economic recovery. A very large segment of the U.S. population still fully supports Barack Obama and they want to believe that the economy is getting better so they are buying the propaganda that the mainstream media is feeding them. But is the U.S. economy really improving? The truth is that it is not. The rate of employment among working age Americans is exactly where it was two years ago and household incomes have actually gone down while Obama has been president. Home ownership levels and home prices continue to decline. Meanwhile, food and gasoline continue to become even more expensive. The percentage of Americans that are dependent on the government is at an all-time record high and the U.S. national debt has risen by more than 5 trillion dollars under Obama. We simply have not seen the type of economic recovery that we have seen after every other economic recession since World War II.
The horrible statistics about the U.S. economy that you are about to read are not talked about much by the mainstream media. They would rather be “positive” and “upbeat” about the direction that things are headed.
But lying to the American people is not going to help them. If you are speeding in a car toward a 500 foot cliff, you don’t need someone to cheer you on. Instead, you need someone to slam on the brakes.
The cold, hard reality of the matter is that the U.S. economy is in far worse shape than it was four or five years ago.
We have never come close to recovering from the last recession and another one will be here soon.
The following are 25 horrible statistics about the U.S. economy that Barack Obama does not want you to know….
#1 The percentage of Americans that own homes is dropping rapidly. According to Gallup, the current level of homeownership in the United States is the lowest that Gallup has ever measured.
#2 Home prices in the U.S. continue to fall like a rock as well. They have declined for six months in a row and are now down a total of 35 percent from the peak of the housing bubble. The last time that home prices in the United States were this low was back in 2002.
#4 Back in 2007, about 10 percent of all unemployed Americans had been out of work for 52 weeks or longer. Today, that number is above 30 percent.
#5 When Barack Obama first became president, the number of “long-term unemployed workers” in the United States was 2.6 million. Today, it is 5.3 million.
#6 The average duration of unemployment in the United States is about three times as long as it was back in the year 2000.
#7 Despite what the mainstream media would have us to believe, the truth is that the percentage of working age Americans that are employed is not increasing. Back in March 2010, 58.5 percent of all working age Americans were employed. In March 2011, 58.5 percent of all working age Americans were employed. In March 2012, 58.5 percent of all working age Americans were employed. So how can Barack Obama and the mainstream media claim that the employment situation in the United States is getting better? The employment rate is still essentially exactly where it was when the last recession supposedly ended.
#9 In 1962, 28 percent of all jobs in America were manufacturing jobs. In 2011, only 9 percent of all jobs in America were manufacturing jobs.
#10 In some areas of Detroit, Michigan you can buy a three bedroom home for just $500.
#11 According to one recent survey, approximately one-third of all Americans are not paying their bills on time at this point.
#12 Since Barack Obama entered the White House, the price of gasoline has risen by more than 100 percent.
#13 The student loan debt bubble continues to expand at a very frightening pace. Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark.
#14 Incredibly, one out of every four jobs in the United States pays $10 an hour or less at this point.
#15 Household incomes all over the United States continue to fall. After adjusting for inflation, median household income in America has declined by 7.8 percent since December 2007.
#16 Over the past several decades, government dependence has risen to unprecedented heights in the United States. The following is how I described the explosive growth of social welfare benefits in one recent article….
Back in 1960, social welfare benefits made up approximately 10 percent of all salaries and wages. In the year 2000, social welfare benefits made up approximately 21 percent of all salaries and wages. Today, social welfare benefits make up approximately 35 percent of all salaries and wages.
#17 In November 2008, 30.8 million Americans were on food stamps. Today, more than 46 million Americans are on food stamps.
#18 Right now, more than 25 percent of all American children are on food stamps.
#19 According to the U.S. Census Bureau, today 49 percent of all Americans live in a home that receives some form of benefits from the federal government.
#20 Over the next 75 years, Medicare is facing unfunded liabilities of more than 38 trillion dollars. That comes to $328,404 for each and every household in the United States.
#21 During the first quarter of 2012, U.S. public debt rose by 359.1 billion dollars. U.S. GDP only rose by 142.4 billion dollars.
#22 At this point, the U.S. national debt is rising by more than 2 million dollars every single minute.
#23 The U.S. national debt has risen by more than 5 trillion dollars since the day that Barack Obama first took office. In a little more than 3 years Obama has added more to the national debt than the first 41 presidents combined.
#24 The Federal Reserve bought up approximately 61 percent of all government debt issued by the U.S. Treasury Department during 2011.
But the horrible economic statistics only tell part of the story.
In communities all over America there is a feeling that something fundamental has changed. Businesses that have been around for generations are shutting their doors and there is a lot of fear in the air. The following is a brief excerpt from a recent interview with Richard Yamarone, the senior economist at Bloomberg Brief….
You have to listen to what the small businesses are telling you and right now they are telling you, ‘Hey, I’m the head of a 3rd or 4th generation, 75 or 100 year old business, and I’ve got to shut the doors’ or ‘I’ve got to let people go. And if I’m hiring anybody back, it’s only on a temporary basis.’
Sometimes they do this through a hiring firm so that they can sidestep paying unemployment benefit insurance. So that’s what’s really going on at the grassroots level of the economy. Very, very, grossly different from what you’re seeing in some of these numbers coming out in earnings releases.”
All over the country, millions of hard working Americans are desperately looking for work. They have been told that “the recession is over”, but they are still finding it incredibly difficult to find anyone that will hire them. The following example is from a recent CNN article….
Joann Cotton, a 54-year-old Columbus, Mississippi, resident, was one of those faces of poverty we met on the tour. Unemployed for three years, Joann has gone from making “$60,000 a year to less than $15,000 overnight.” Her husband is disabled and dependent on medicines the couple can no longer afford. They rely on food stamps, which, Joann says, “is depressing as hell.”
Receiving government aid, however, has not been as depressing as her job search. Joann says she has applied for at least 300 jobs. Even though she can barely afford gas, she drives to the interviews only to learn that the employers want to hire younger candidates at low wages.
The experiences have taken a toll: “I’ve aged 10 years in the three years that I’ve been looking for a job,” Joann told us. “I want to get a job so I can just relax and exhale … but I can’t. After a while you just give up.”
Meanwhile, Barack Obama and his family continue to live the high life at the expense of the U.S. taxpayer.
Even many Democrats are starting to get very upset about this. The following is from a recent article by Paul Bedard….
lue collar Democratic voters, stuck taking depressing “staycations” because they can’t afford gas and hotels, are resentful of the first family’s 17 lavish vacations around the world and don’t want their tax dollars paying for the Obamas’ holidays, according to a new analysis of swing voters.
It simply is not appropriate for the Obamas to be spending millions upon millions upon millions of U.S. taxpayer dollars on luxury vacations when so many Americans are deeply suffering.
But Barack Obama does not want you to know about any of this stuff.
He just wants you to buy his empty propaganda one more time so that he can continue to occupy the White House for another four years.
53 Percent Of All Young College Graduates In America Are Either Unemployed Or Underemployed
If you are in college right now, you will most likely either be unemployed or working a job that only requires a high school degree when you graduate. The truth is that the U.S. economy is not coming anywhere close to producing enough jobs for the hordes of new college graduates that are entering the workforce every year. In 2011, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed. Millions upon millions of young college graduates feel like the system has totally failed them. They worked hard in school all their lives, they went into huge amounts of debt in order to get the college education that they were told they “must have” in order to get a good job, but after graduation they found that there were only a handful of good jobs for the huge waves of college graduates that were entering the “real world”. All over America, college graduates can be found waiting tables, flipping burgers and working behind the register at retail stores. Unfortunately, the employment picture in America is not going to get significantly better any time soon.
All over the United States, “middle class jobs” are being replaced by “low income jobs” and young college graduates are being hurt by this transition more than almost anyone else. Massive numbers of young college graduates are now working jobs that do not even require a high school degree. Some of the statistics about young college graduates are absolutely astounding. The following is from a recent CNBC article….
In the last year, they were more likely to be employed as waiters, waitresses, bartenders and food-service helpers than as engineers, physicists, chemists and mathematicians combined (100,000 versus 90,000). There were more working in office-related jobs such as receptionist or payroll clerk than in all computer professional jobs (163,000 versus 100,000). More also were employed as cashiers, retail clerks and customer representatives than engineers (125,000 versus 80,000).
Can you imagine working really hard all throughout high school and college and always getting good grades and then ending up as a bartender?
Sadly, many hard working college graduates cannot seem to find a decent job no matter how hard they try. The following is one example from the CNBC article mentioned above….
“I don’t even know what I’m looking for,” says Michael Bledsoe, who described months of fruitless job searches as he served customers at a Seattle coffeehouse. The 23-year-old graduated in 2010 with a creative writing degree.
Initially hopeful that his college education would create opportunities, Bledsoe languished for three months before finally taking a job as a barista, a position he has held for the last two years. In the beginning he sent three or four resumes day. But, Bledsoe said, employers questioned his lack of experience or the practical worth of his major. Now he sends a resume once every two weeks or so.
Have you ever been there?
Have you ever sent out resumes week after week, month after month, only to get absolutely nowhere?
Many recent college graduates are being advised by “career counselors” that they should go back and “get more education”.
But is that really the answer? The truth is that there are lots and lots of unemployed and underemployed Americans with advanced degrees too. For example, a recent Business Insider article profiled a law school graduate named Erin that is actually on food stamps….
She remains on food stamps so her social life suffers. She can’t afford a car, so she has to rely on the bus to get around Austin, Texas, where she lives. And currently unable to pay back her growing pile of law school debt, Gilmer says she wonders if she will ever be able to pay it back.
“That has been really hard for me,” she says. “I have absolutely no credit anymore. I haven’t been able to pay loans. It’s scary, and it’s a hard thing to think you’re a lawyer but you’re impoverished. People don’t understand that most lawyers actually aren’t making the big money.”
But what “more education” will do is that it will get you into even more debt. Student loan debt can be one of the cruelest forms of debt, because it cannot be discharged in bankruptcy.
As I wrote about a few days ago, total student loan debt in the United States recently surpassed the one trillion dollar mark. Students keep on racking up student loan debt in the hope that they will find “the American Dream” at the end of the rainbow.
Sadly, many students do everything “right” and still end up in the middle of a nightmare.
But it is not just young college graduates that are suffering in this economy.
As I wrote about a while back, the U.S. economy is not producing enough jobs for anyone at this point.
The mainstream media keeps telling us that unemployment is going down, but the truth is that the percentage of working age Americans that are employed is not increasing. In March 2010, 58.5 percent of all working age Americans had a job. In March 2012, 58.5 percent of all working age Americans had a job.
Does that sounds like improvement?
Of course not.
Unlike what we have seen after every other recession in the post-World War II era, the employment to population ratio is not bouncing back, and that is really bad news.
The main reason for this is because of the bad economy, but also it is important to understand that we are transitioning away from an “employment economy”.
Today, most large corporations view employees as very expensive “liabilities”. The goal for most large corporations is to minimize those “liabilities” as much as possible. In fact, these days some large corporations lay off huge numbers of workers even while they are making huge profits at the same time.
Once upon a time, Henry Ford made a conscious decision to pay his workers enough money so that they could afford to buy the cars that they were making.
Today, most corporations simply do not care about the living standards of their workers. They simply want to maximize profits to the fullest extent possible.
Many small businesses would like to hire more workers, but the federal government has made hiring workers so complicated and so expensive that
it has become exceedingly difficult to make a profit on a worker. Most of the time it is simply easier to try to do more with what you already have.
The number of Americans that can work a job (“just over broke”) and still live “the American Dream” is steadily shrinking. Increasingly, the financial rewards in our economy are being funneled to the very top of organizations and workers are finding that their living standards continue to slowly go down.
At corporations that belong to the Standard & Poor’s 500 stock index, CEOs earn 380 times what the average worker makes at those companies. In 1980, CEOs only earned 42 times what the average worker made at those companies.
A fundamental shift is happening in our economy and it is not going to be reversed any time soon. Workers are not valued at most companies anymore. No matter how much of yourself you give to your company, when the day comes that you become “disposable”, you will be cast aside as so much rubbish.
That is why I try to encourage people to start their own businesses and to be their own bosses. There is no job security anymore. The job that you have today could be gone tomorrow.
While the president has been urging “insourcing,” the government has been sending money to the Philippines to train foreign workers for jobs in English-speaking call centers.
According to New York Democratic Rep. Tim Bishop and North Carolina Republican Rep. Walter Jones, this is unacceptable and “shocking.”
The pair are calling on the United States Agency for International Development (USAID) to immediately suspend what is known as the Job Enabling English Proficiency (JEEP) program.
Can you believe that?
Over and over again, our politicians talk about the need to keep jobs in the United States and then they go out and do things that have the exact opposite effect.
It is truly maddening.
So what are the hordes of American workers that cannot find jobs supposed to do?
Well, one thing we are definitely seeing is a huge rise in the number of Americans that are dependent on the government.
For example, at the end of the Reagan administration the ratio of workers on Social Security disability to active workers was about 2 percent.
Today, it is over 6 percent.
Another federal program that is experiencing explosive growth is food stamps.
It is so sad to see what is happening to America. Our economy is being dismantled all around us and the future looks incredibly bleak.
Right now there are millions upon millions of Americans that are sitting at home wallowing in despair. They don’t understand why nobody will hire them and they are rapidly running out of options.
The following is a comment that a reader left on one of my recent articles about the middle class….
I cannot believe my present situation…
I worked hard in school and college so that I could escape the low income uneducated mess I grew up in.
I made all the correct decisions with my career, finances, etc. I cannot figure out how I got to where I am at now.
In late 2008 I was laid off in the IT field. I was a go-getter, and I didn’t let anyone tell me the economy would make it difficult to find a job. I had another within 4 weeks.
Was laid off from that job last year. I qualified for unemployment, but then my employer decides to bring a bunch of lawyers and fight my eligibility. After I won again, they appealed again. I finally couldn’t afford to keep paying attorney fees. I finally lost the appeal. I had to pay all that money back.
I’m still trying to find a job in my field. Being the go-getting I am, I immediately took a job waiting tables which amounted to a 75% pay-cut.
I had saved 6 months of expenses and that is completely dry. I have completely drained my retirement and savings. Still cannot find a livable wage job after almost a decade in my field.
Things are slowly going into default and it feels utterly hopeless and stressful. My pristine credit rating is gone, my savings and everything I worked for is gone. I haven’t missed a payment on my mortgage, but it is coming. I can’t cut anything more than I already have.
I just can’t figure out how this could have happened to me. I played by the rules and made all the right choices. I skipped vacations and time off to prove I was a good worker and had what it took to be a valuable employee.
I really am just at a loss at this point. I’m single and have no family. This is really make-or-break for me. I have no fallback plan. The feeling of failure is just gut-wrenching.
Please say a prayer for that reader and for all of the other hard working Americans out there that are desperate to find a job.
If you are at the end of your rope, please do not give up. Even in the darkest moments, there is always a way to turn things around if you will just keep on fighting.
Sadly, way too many people are giving up on life because of the economy. In Europe, economic conditions have deteriorated so badly that there has been a dramatic increase in suicides. The following is from a recent article in the New York Times….
The economic downturn that has shaken Europe for the last three years has also swept away the foundations of once-sturdy lives, leading to an alarming spike in suicide rates. Especially in the most fragile nations like Greece, Ireland and Italy, small-business owners and entrepreneurs are increasingly taking their own lives in a phenomenon some European newspapers have started calling “suicide by economic crisis.”
When the next major economic downturn happens in the United States, we will probably see a similar thing happen here too.
But people need to realize that our lives are not about how much stuff we own.
Even if every single thing is taken away from you and you are left with nothing that does not mean that your life is over.
Even if you have not been able to find a job for years, that does not mean that you should give up.
In life, everyone gets knocked down.
But unless you are dead, there is always a way to get things turned around in a more positive direction.
One thing that I have learned in life is that you must never, ever, ever, ever give up.
The years ahead are going to be really hard for the global economy, but that doesn’t mean that they have to be horrible years for you.
The years ahead can be the very best years of your entire life, but that will never happen if you decide to simply give up.
After a bargain? Own a three bedroom home in Detroit for JUST $500…as the city is revealed to have the cheapest housing in the U.S
In cities such as New York and San Francisco $500 might cover your monthly rent whereas in Detroit the same amount can buy you a detached three bedroom house.
New research has revealed the drastic differences in costs of buying property in different cities in the country – and shown that Michigan’s largest city has the most affordable homes by a considerable margin.
Detroit, famed as a one-time industrial city, has the lowest real estate prices per square foot in the U.S while San Francisco has the highest.
Bargain: This two bedroom, one bathroom home in Detroit is on the market for $500
In Detroit one square foot of property will set the buyer back by $62.45 whereas in San Francisco the average cost per square foot is $420.99.
Struggling for decades Michigan’s largest city was hit hard by the recession which caused housing prices to plummet by 54.9 per cent.
America’s fifth largest city just 50 years ago with 1.85 million people but now Detroit ranks as the eleventh with a population of approximately 700,000 people.
Boarded up: Detroit has the most affordable homes in the country – this three bedroom house is on sale for $3,000
However, incredibly cheap housing prices could attract people to the Motor City as a study by Realtor.com showed that of 146 cities only Chicago has more searches for property than Detroit, according to Wall Street 24/7.
The median list price for a property in Detroit was $84,900 – $13,000 less than any other city in America.
In its glory days the Michigan city was the centre of America’s booming car industry but has been stuck in decline for decades.
Unsurprisingly, in the cities with lowest costs per square foot, which also include other former industrial cities Toledo and Wichita, residents have lower average incomes.
The two cities with the next most affordable property were Fort Wayne in Indianapolis and Toledo in Ohio.
Property costs in Fort Wayne are the second lowest at $66.03 per square foot while in Toledo, where poverty and unemployment are incredibly high, they are $67.02.
On the other end of the spectrum the least affordable homes are found in San Francisco where the median list price is a staggering $611,700, after increasing by 3.77 per cent between January and February, the data found.
Property is similarly expensive in the Hawaiian capital of Honolulu where the price per square foot is $381.03 and in Washington, D.C where the figure is £372.11.
Last month foreclosures throughout the country fell to their lowest levels in five years however the number of homes that received foreclosure notices for the first time rose by seven per cent from February.
SALES OF NEW HOMES DROPPED TO LOWEST IN MORE THAN A YEAR IN MARCH
The Commerce Department said Tuesday that sales dropped 7.1 percent in March to a seasonally adjusted annual rate of 328,000 units. That followed a 7.3 percent increase in sales in February. This figu
re was revised up from an initial estimate that February sales had fallen 1.6 percent.
The weakness in March could reflect that a warmer-than-normal winter caused sales that normally occur at the start of the spring sales season in March to occur in February instead.
The median sales price was $234,500 in March, down 1 percent from the February price.
Sales of new homes stand at just about half the roughly 700,000-a-year pace that analysts consider evidence of a healthy market.
The supply of unsold new homes fell to just 144,000 in March – the fewest on records dating to 1963. The supply has been falling over the past two years as builders have cut back on construction.
Michael Gapen, an economist at Barclays Research, said the low inventory level should trigger a moderate pickup in housing construction in coming months and provide some support to the economy.
Last week, the National Association of Realtors reported that sales of previously owned homes fell 2.6 percent in March to a seasonally adjusted annual rate of 4.48 million units. For previously owned homes, economists consider a healthy annual sales rate to be roughly 6 million.
The sales declines in March were led by a 27 percent drop in the West. Sales in the Midwest fell 20 percent. New-home sales rose 7.7 percent in the Northeast and 3.1 percent in the South.
A separate report on home prices showed that home prices dropped in February in most major U.S. cities for a sixth straight month. The Standard & Poor’s/Case-Shiller home-price index shows that prices dropped in February from January in 16 of the 20 cities it tracks.
Though new homes represent less than 10 percent of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to statistics compiled by the Realtors.
A key reason for weak sales in the new-home market is that builders must compete with foreclosures and short sales. (Short sales occur when lenders allow homes to be sold for less than what’s owed on the mortgage.)
About half of the states reported sharp increases in foreclosure activity in February. The pace of foreclosures is rising now that states have reached settlements with the nation’s five biggest mortgage lenders over foreclosure abuses.
Builders have stopped working on many projects because it’s been hard to get financing and to compete with cheaper resale homes.
Average (Mean) Duration of Unemployment (UEMPMEAN)
2012-03: 39.4 Weeks Last 5 Observations
Monthly, Seasonally Adjusted, Updated: 2012-04-06 8:53 AM CDT
Databases, Tables & Calculators by Subject
Data extracted on: April 30, 2012 (7:10:16 AM)
Labor Force Statistics from the Current Population Survey
Series Id: LNS12300000
Series title: (Seas) Employment-Population Ratio
Labor force status: Employment-population ratio
Type of data: Percent or rate
Age: 16 years and overDownload: