FAST FIVE: Middle Class Death-Spiral: Consumers Have Never Been Deeper In Debt, And Bankruptcies Are Surging
Authored by Michael Snyder via The Economic Collapse blog, This wasn't supposed to happen. During the relative economic stability of the past few years, the middle class was supposed to experience a resurgence, but instead it has just continued to be hollowed out. The cost of living has risen much faster than wages have, and as a result hard working families all over America are being stretched financially like never before. Even though most of us are working, 59 percent of all Americans are currently living paycheck to paycheck, and almost 50 million Americans are living in poverty. In a desperate attempt to continue their middle class lifestyles, many Americans have been piling up mountains of debt, and it has gotten to the point where we have a major crisis on our hands.
According to the New York Post, the total amount of debt that US households have accumulated is about to cross the 14 trillion dollar mark for the first time ever- Meanwhile, record American household debt, near $14 trillion including mortgages and student loans, is some $1 trillion higher than during the Great Recession of 2008.
“We are seeing people using consumer debt as a way to make ends meet when they come here,” he added, citing the pressures his nonprofit faces to keep up the distribution of food and meals at no cost to some 1.5 million New Yorkers.
If 1.5 million people in New York are being fed by food banks now while things are still relatively stable, how bad will things be when the economy really starts to tank.
The New Jersey-based party supplies company said it was looking to close 55 stores throughout the year, up 10 from the May estimate of 45 stores.