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A New Type Of Poverty Is Crushing The Middle Class

By Feux Follets following x   2018 Apr 30, 1:50am 831 views   30 comments   watch   sfw   quote     share    


As if the current global monetary system didn’t put the middle-class at a structural disadvantage versus the wealthy, by taxing them disproportionately with inflation, encouraging dissaving and taxing labor (ordinary income) much higher than capital (long-term gains), we now find out that the middle class has a new reason they’re being pushed into poverty: banks are willingly trying to put them there.

In a report by the Sydney Morning Herald, the newspaper notes that more middle-class Australians are being pushed into poverty.

The simple explanation why this is happening: Australian banks are trying to figure out exactly how much they can charge customers before pushing them into poverty; to do this they are using a formula which incorporates a poverty index to calculate the last marginal dollar of disposable income that the middle class has for fees and charges.

Here’s more: http://uschnews.com/a-new-type-of-poverty-is-crushing-the-middle-class/



Also At: https://www.zerohedge.com/news/2018-04-30/new-type-poverty-crushing-middle-class

This leaves the obvious question: if taxpayers are blanketed with regulation that benefits banks at the expense of the middle class, just why did taxpayers (i.e. the middle class) bail out the world’s banks ten years ago?

#Poverty #Debt #MiddleClass #Banks #Bailout


1   Quigley   ignore (0)   2018 Apr 30, 5:44am   ↑ like (2)   ↓ dislike (0)   quote        

More immigration would solve this!
/snicker
2   Tenpoundbass   ignore (10)   2018 Apr 30, 5:49am   ↑ like (2)   ↓ dislike (1)   quote        

Is it time to rehash income equality and play dress up with words again?


Funny Obama's 8 whole years were all about "Income Inequality" and not once did he champion Adult size Jobs.
Income inequity for them was.

"Look we've got you by the balls! You can't compete with all of our money so fucking just give up and go to the welfare line. Get Foodstamps and your Democrat voter's registration at the same time."
3   Feux Follets   ignore (1)   2018 Apr 30, 6:09am   ↑ like (0)   ↓ dislike (1)   quote        

Quigley says
More immigration would solve this!
/snicker


Australia doesn't have an immigration problem.
/snicker
4   HeadSet   ignore (1)   2018 Apr 30, 6:39am   ↑ like (3)   ↓ dislike (0)   quote        

If you read the article you see that the "middle class poverty" comes from the middle class over-borrowing and the banks allowing it.

Here's the solution - no government backups of mortgages. Everyone will pay lots less bank fees and interest when they put 20% down on all home purchases. This would also stop the over consumption (better for environment) and would allow more people able to pay down the loans to be mortgage free.
5   Feux Follets   ignore (1)   2018 Apr 30, 6:58am   ↑ like (1)   ↓ dislike (0)   quote        

@HeadSet - thank you for actually reading the link instead of firing off a reply based on God knows what.
6   BlueSardine   ignore (1)   2018 Apr 30, 7:05am   ↑ like (0)   ↓ dislike (0)   quote        

We have to post it so we can see what's in it..
HeadSet says
If you read the article
7   HEYYOU   ignore (13)   2018 Apr 30, 9:46am   ↑ like (0)   ↓ dislike (0)   quote        

Poverty-result of voting Republican & Democrat?
How many in poverty voted against their best interest thinking that their elected officials making $174,000/ year or more + benefits are going to work their fingers to the bone trying to help their constitutes?
The elected never get any benefits after leaving office from just being in D.C. You poor fucks,do you get a better job after you are laid off.
So how are you rust belters,coal miners,flyover sod busters doing? Got that 6 figure MAGA job yet?
One might say:"It's a sad state of affairs."

Obama & Clinton aren't President.
Republicans don't know who is.
8   Hassan_Rouhani   ignore (2)   2018 Apr 30, 10:51am   ↑ like (0)   ↓ dislike (0)   quote        

Quigley says
More immigration would solve this!
/snicker


Australia needs to build a bridge to Indochina! And make sure it's not guarded.
9   TrumpingTits   ignore (0)   2018 Apr 30, 11:16am   ↑ like (1)   ↓ dislike (0)   quote        

Um, the solution is not to tax capital as much as income. The solution is to tax consumption instead of income or at least tax consumption instead of capital.

The Europeans figured this out...but not before punitive tax rates on capital started to bankrupt their economies first. Hence was born the VAT.
10   FortWayne   ignore (1)   2018 Apr 30, 12:56pm   ↑ like (0)   ↓ dislike (0)   quote        

Liberals do defend Mexican servants working in America.
11   Strategist   ignore (1)   2018 Apr 30, 1:06pm   ↑ like (1)   ↓ dislike (0)   quote        

Feux Follets says


How about going on a diet. He seems over fed as it is.
12   Nobody   ignore (0)   2018 Apr 30, 1:25pm   ↑ like (0)   ↓ dislike (0)   quote        

When you give the tax breaks to the rich, this was bound to happen. The trickle down theory was based on fantasy and never happened.
The rich hoarded the money or invested the money to squeeze more money from the middle income.

The kids who live in a rich neighborhood get everything from the music hall to the state of the art auditorium. Look at the
Saratoga High School. They have two music halls. One brand new one with at least 10 rehearsal rooms etc. Tell me if these
kids have the advantage over the kids at San Jose High School. By the way, San Jose High School's API is 690. Oh,
Saratoga High Schoo's API? It is 938 in 2013. The difference seems ridiculous. So the kids in Saratoga are almost 40%
smarter? San Jose High School kids are idiots?

And many parents at Saratoga High School are executives at high tech companies. So naturally they get more opportunity and donations
while San Jose High School gets a little donation. So this is where the money they saved on the tax is going. So their
kids are naturally bound to do better than you kid in the regular public school. It is evident with the API.
13   Quigley   ignore (0)   2018 Apr 30, 1:42pm   ↑ like (0)   ↓ dislike (0)   quote        

Parents of rich kids pay much more in taxes on their homes in the rich kid districts. So the schools there are awash in money they don’t even need, but need to spend somehow or they’ll have to cut taxes! So they build ridiculous stuff that’s way over the top better than the poorer districts can afford.
All to avoid cutting taxes.
14   HeadSet   ignore (1)   2018 Apr 30, 1:46pm   ↑ like (1)   ↓ dislike (0)   quote        

The difference seems ridiculous. So the kids in Saratoga are almost 40%
smarter? San Jose High School kids are idiots?


Of course not. The difference is the attitude of the students, which is related to how much the parents value education. Granted, the parents in the ghetto areas have to overcome the kid's peer pressure that academic excellence is "acting white."
15   Heraclitusstudent   ignore (1)   2018 Apr 30, 2:30pm   ↑ like (1)   ↓ dislike (0)   quote        

Feux Follets says
Australian banks are trying to figure out exactly how much they can charge customers before pushing them into poverty

A good parasite has to limit what it takes so as not to kill the host.
17   Strategist   ignore (1)   2018 Apr 30, 4:19pm   ↑ like (0)   ↓ dislike (0)   quote        

Nobody says
The kids who live in a rich neighborhood get everything from the music hall to the state of the art auditorium. Look at the
Saratoga High School. They have two music halls. One brand new one with at least 10 rehearsal rooms etc. Tell me if these
kids have the advantage over the kids at San Jose High School. By the way, San Jose High School's API is 690. Oh,
Saratoga High Schoo's API? It is 938 in 2013. The difference seems ridiculous. So the kids in Saratoga are almost 40%
smarter? San Jose High School kids are idiots?

And many parents at Saratoga High School are executives at high tech companies. So naturally they get more opportunity and donations
while San Jose High School gets a little donation. So this is where the money they saved on the tax is going. So their
kids are naturally bound to do better than you kid in the regular public school. It is evident with the API.


I agree with your numbers, but not your implications. Should we do what is possible to lower the API score of Saratoga to 690?. Or should the tax payer spend $30K per student in an attempt to increase the San Jose school to 938?
The Saratoga kids save us money by not going to a public school. They really pay twice for their kids education by paying for the public school through taxes, and again for the private school.
If we want better public schools. lets kick out the unions, rotten teachers, and the inefficient bureaucrats.
18   Hassan_Rouhani   ignore (2)   2018 Apr 30, 6:01pm   ↑ like (0)   ↓ dislike (0)   quote        

Strategist says
The Saratoga kids save us money by not going to a public school.


Saratoga High is public.
19   Hassan_Rouhani   ignore (2)   2018 Apr 30, 6:04pm   ↑ like (0)   ↓ dislike (0)   quote        

Nobody says
By the way, San Jose High School's API is 690. Oh,
Saratoga High Schoo's API? It is 938 in 2013. The difference seems ridiculous. So the kids in Saratoga are almost 40%
smarter? San Jose High School kids are idiots?


Well, judging by the test scores it appears so. Got any better measure?
20   Strategist   ignore (1)   2018 Apr 30, 6:28pm   ↑ like (0)   ↓ dislike (0)   quote        

Satoshi_Nakamoto says
Strategist says
The Saratoga kids save us money by not going to a public school.


Saratoga High is public.


OK. So it's just like awesome Irvine high schools compared to rotten Santa Ana schools.
It's the students who are motivated by their well educated parents that make a difference.
21   MoneySheep   ignore (0)   2018 Apr 30, 8:35pm   ↑ like (2)   ↓ dislike (0)   quote        

Guys, guys, haven't you already learned, the rich and and their pals, the government, rule the world? The middle class and the poor are just products. The rich have landed, they live on land. The middle class swim below the surface of water, like fish and squid. The rich throw leftover regularly (=regular steady wages) into the water to fatten products, so they can harvest the products for a feast. It is impossible to describe to a fish, or a squid, what it is like to walk.
22   Patrick   ignore (0)   2018 May 1, 7:45pm   ↑ like (1)   ↓ dislike (0)   quote        

Great quote from the article:

middle income people are the cohort in greatest financial risk. they are highly leveraged: they spend more of their income on loan repayments than do people with higher incomes.

second, their assets are undiversified: they own labour market skills, some home equity and some superannuation.

third, these assets are illiquid (not easily sold): you can’t transfer your skills to another, houses are costly to sell and superannuation is generally inaccessible. by contrast, people at the top of the income distribution also hold more debt, but their assets are more diversified and liquid, and many generate income streams. conversely, low income people hold proportionately less debt and are more diversified than the middle: they don’t have their (more meagre) assets tied up in housing.
23   APOCALYPSEFUCKisShostikovitch   ignore (30)   2018 May 1, 8:14pm   ↑ like (1)   ↓ dislike (0)   quote        

IF you're not fucking AMERICA! in the ass and profiting from it, you're deservedly DOOMED!
24   lahossain   ignore (0)   2018 May 2, 12:07pm   ↑ like (2)   ↓ dislike (0)   quote        

I don't think that the taxpayers bailed out the banks willfully. It was forced down out throats by the donor class and Henry Paulson in a closed door negotiation. The taxpayers should claw it back if they had a choice--which of course, I acknowledge, they/we don't. Taxpayers that supported it felt backed into a corner that either the bailout or see their home equity/401ks get wiped out and/or their jobs put in jeopardy by an economic shock. The impression that we were given was bailout or financial Armageddon. Pure and simple fear mongering when their true intent was bailout and then feed off the depressed assets.

The financial industry always loves a crisis. So that being the case you'd have to believe they love to start them too.
25   Feux Follets   ignore (1)   2018 May 9, 2:14pm   ↑ like (0)   ↓ dislike (0)   quote        

How America Broke Its Economy.

Unemployment is at a 15-year low, so why aren't wages surging? Because the old rules no longer apply.

The April jobs report, released on Friday, brought more incrementally good news for the economy: The unemployment rate fell to 3.9 percent, the lowest it’s been since late 2000. “The big thing to me was cracking 4,” President Donald Trump told reporters. “That hasn’t been done in a long time.... We’re doing great.”

But the report also contained a now-familiar disappointment: wages remain stagnant. Average hourly earnings rose by 4 cents over March, bringing the total increase over the past year to just 67 cents, or 2.6 percent. Factoring in consumer inflation, the real increase is close to zero.

This is not how the economy is supposed to work. Pay is supposed to increase during periods of low unemployment, because workers have more power to demand raises from their current employer, or else leave for a better-paying job, while employers have to pay more to retain employees and to compete for new ones. That’s what happened during the jobs boom of the late 1990s, when wages jumped as high as 5 percent annually.

But that hasn’t happened to a meaningful degree today, defying expectations and confounding economists. It’s intuitive that employers don’t like increasing wages, because that leaves fewer profits for them. But economic dynamics like low unemployment are supposed to force their hand. So why have workers not seen the benefits in their paychecks from one of the longest periods of economic and employment growth in history?

It could be due to a variety of factors, but they all point to the same basic idea: Capitalism, as it’s practiced in the United States, has broken economics. Employers have been allowed, through laissez-faire policies, to build up enough power that they’ve become impervious to how economic models dictate they should react.

Unionization is at some of the lowest levels in generations, and collective bargaining has been effectively made illegal in many states. Workers are more atomized than ever. Some are stranded in gig-economy jobs, as independent contractors and “1099” freelance employees. It’s much harder to bid up wages as an independent worker than to get a raise as a salaried employee.

Thirty million workers toil in industries dominated by non-compete clauses, which bar them from moving to work for a competing business. This breaks whatever leverage for wage increases workers might otherwise have, since they cannot shift within the same industry. Employers coordinate with rivals on massive job history databases that, among other things, pinpoint wages, giving management an information advantage to keep salaries down.

Creeping monopolization throughout many sectors of the economy over the past 40 years has exacted a high toll. Recent research from economist Simcha Barkai shows that rising corporate power robs workers of roughly $14,000 in income per year. Monopolized industries capture profits by cornering markets, without needing to share those profits with workers. They don’t have to invest in equipment or jobs to dominate industries where they already have firm control. And they can squeeze workers to accept lower wages, because they have no competition to bid them up. A recent study using data from CareerBuilder.com correlated labor market concentration with a 17 percent decline in posted wages.

Finally, economists may underestimate the role of anxiety in modern working life. Wages have been stagnant for so long that average workers have seen significant hits to their living standards. Relatively low minimum wages and easily gamed rules for overtime put low-wage workers in a deeper hole. Retirements are incredibly insecure. Skyrocketing housing and health care costs exacerbate these problems. Many subsist on often predatory debt to cover basic expenses.

America, through explicit policies bolstering corporate power and degrading worker power, has gradually altered how the economy behaves, such that even the good times aren’t that good for a majority of people. This is reversible; the policy prescriptions are out there. But it would require nothing less than a revolution in economic policymaking, one that puts workers at the center of the story, rather than adrift on the edges.

More: https://newrepublic.com/article/148329/america-broke-economy?utm_source=fark&utm_medium=website&utm_content=link&ICID=ref_fark
26   APOCALYPSEFUCKisShostikovitch   ignore (30)   2018 May 9, 3:23pm   ↑ like (0)   ↓ dislike (0)   quote        

Crushing taxes and out of control unions and marxist laws and regulations like the 13th Amendment have destroyed AMERICA!

Everyone knows that.
27   mell   ignore (1)   2018 May 9, 3:25pm   ↑ like (0)   ↓ dislike (0)   quote        

lahossain says
I don't think that the taxpayers bailed out the banks willfully. It was forced down out throats by the donor class and Henry Paulson in a closed door negotiation. The taxpayers should claw it back if they had a choice--which of course, I acknowledge, they/we don't. Taxpayers that supported it felt backed into a corner that either the bailout or see their home equity/401ks get wiped out and/or their jobs put in jeopardy by an economic shock. The impression that we were given was bailout or financial Armageddon. Pure and simple fear mongering when their true intent was bailout and then feed off the depressed assets.

The financial industry always loves a crisis. So that being the case you'd have to believe they love to start them too.


100% agreed. The main reason for growing inequality were the Boosh/Obummer reigns, esp. the unconstitutional theft from the taxpayers to bail out the banks. Trump is doing quite well so far compared to the 2 morons before him.
28   lahossain   ignore (0)   2018 May 9, 3:55pm   ↑ like (0)   ↓ dislike (0)   quote        

Just to be clear, I think Trump is an unmitigated disaster. I would NEVER give him credit for ameliorating the wealth divide. His cultivated image of being anti-establishment is an utter con just like everything else in his life.
29   Quigley   ignore (0)   2018 May 9, 4:13pm   ↑ like (1)   ↓ dislike (0)   quote        

lahossain says
NEVER give him credit for ameliorating the wealth divide.


Why would you assume that the wealth should be equally divided? Every single time this has been attempted in the past hundred years, it’s led to totalitarian government, crushing poverty, and suffering on a scale that was previously unknown.

People need to work toward goals as a society, and any time they do, a hierarchy will naturally develop. This is a law of life, not a meditated act of fraud. Some people will be better at working toward the goal than others and will be/should be unequally compensated!
The best society is one with a plethora of goals, where a person can find a niche to be rewarded well for good service to the community at large. That’s kind of what we have here in the USA.
30   Quigley   ignore (0)   2018 May 9, 4:16pm   ↑ like (1)   ↓ dislike (0)   quote        

lahossain says
His cultivated image of being anti-establishment is an utter con just like everything else in his life.


When the establishment is dedicated to promoting lies and ruin, telling the truth about it is a radical act! I’d rather be a traitor to a cult of liars than a totalitarian toady.




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