In the discussion of debt and the stagnant economy, the politicians and the pundits are missing one huge factor that may not be apparent to those who earn the big bucks and like to lecture the rest of us. The American middle class is not spending. If we were, I submit the economy would perk up and companies might begin hiring to meet higher demand for goods and services.
While corporate profits are up 50% and C-E-O pay is up 25%, the folks who do the work are getting next to nothing. The Associated Press reports the average worker’s hourly wage is 1.6% lower than last year!
At the same time, many Americans have cut their credit card spending and they’re paying off balances. Take-home pay shrinks with higher health care insurance premiums, deductibles, and co-pays.
The answer to the bad economy is simple, yet difficult. We need to get more money into the hands of more people. The “how” of my solution has our politicians and business experts completely buffaloed!
Our thought for today is from George Bernard Shaw:
“Lack of money is the root of all evil.”