Understanding the Middle Class Squeeze

I keep hearing people talk about the good times are over, the American dream. They have for the first time in history there is a "middle class" in America is a call to float 50. However, it was only temporary, and if you look at history, we turn to the only stable and controlled social development. The best part is that this is the greatest opportunity for those who have eyes to see. It had to happen if you saw the signs and understand their meaning.
As the middle class is growing in population, the feeling of security of a safe working with him. Therefore, not mass dove head first earned money mortgages on homes, cars, leisure, holidays and all I wanted. People were able to keep the credit card debt to income, life style, but I had to burst. We have a nation of credit cards, and the consequences. Rising inflation and falling wages, it is difficult for people to find a real job, some are the expected increase in poverty over the next few years, depressed and quit smoking completely, but it is certainly a solution that we can learn from history .
While squeezing the middle class, middle class and not able to become the lifestyle that was once a time. While people in the upper class almost intact and the experience of most of the growth of the value of their assets. Since wages and inflation remains low, it will destroy the middle class families can not adapt to the changing global economy, while the rich are adequately protected against inflation. Studies indicate that the increase in average personal income of less than 1% of individuals as well as winning, there was a 42%, while those who won in the category of below 90% only 4.7%.
The main causes of the contraction
The Housing Bubble
Many people who have been affected by the bubble, even if it is the best opportunity for those who have sufficient resources and strategies to take advantage of the real estate market changes, most people do not know the capital or resources to properly use these opportunities .
Social security
Since the increase in public debt and reducing the population of retired workers, it is no secret that this Government Ponzi scheme could not last forever. Many learned the hard way that you can not rely on others to manage their retirement.
MedicateThe numbers around you, how much people pay for health insurance and health care to listen is impressive, and growing. At the same time, the satisfaction and confidence of the major hospitals are declining.
Retractable 401K
This is more problematic, because 60% of wealth is now kept in the generation of baby boomers. In this generation of retirement and 401k retirement accounts. Most have had great success in retirement accounts, up to 40-80% in recent years. Because these accounts have to liquidate their shares in the payment schedule imposed by the withdrawal of the state and stock prices are a rage at the output of all baby boomers looking to get their money quickly to prevent the tests, can.
Other challenges
Energy
The energy produced by electricity, fuel and others have seen a significant price increase since 2000. The direct and indirect costs associated with energy prices, a lot of pressure on the people of the middle class have created. In 2006, families $ 155 more for energy products in 2000 were compared. This expenditure has increased today due to inflation.
Education
Middle-class families have instilled the importance of training, and although the idea and intention behind it is the ideal training to go to a traditional school and college in those days is not enough. This was a study that total loans to students in the United States, now more than ready for the U. S. Small Business. It is even more depressing than 60% of graduates find their major or degree in practice, or even beneficial to the labor needs of today.
Changes in disposable incomeToday, people are laid off, wage cuts and changes in payment structure changes for the worse. In addition, the effects of inflation on prices so high that even a significant amount of salary increase that leaves a person with insufficient income.
Increased debtCredit cards and other lines of easy credit has allowed people to live completely outside of their options without understanding the consequences of their actions.
Job insecurityIn 2003, most people who have filed for bankruptcy a lifestyle of the middle class. The myth of job security has been broken. Employees are always faithful and experienced new life, you only pay half the replacement. Reduce wages, hours, increased to reduce the benefits that came to light the reality of a job.