Category: ECONOMY

Where in the world do Americans spend their money? Taking a look at where incomes go each month

MB 360–I remember the first budget I put together.  It left me feeling depressed and feeling as if I had been punched in the gut.  The practice was done largely out of necessity but there was something that jumped out at me.  Housing consumes a good portion of net income.  For most Americans this is the reality.  When we look at spending habits we realize that half of this country is living paycheck to paycheck.  A budget is a basic necessity even if you do it just once to understand where your money is flowing.  Yet most people spend money as quickly as it comes in like sand flowing through your fingers. I wanted to look at the latest spending breakdown of Americans to see where most of our money is going.

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More Americans would rather not work than take jobs for stingy wages

In the early years of the Obama administration, as new taxes on upper-income Americans were enacted as part of Obamacare and the expiry of the Bush tax cut loomed, it was common to hear libertarian types warn that businesspeople and entrepreneurs might just Go Galt.

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Social Security requires a bailout that’s 60x greater than the 2008 emergency bank bailout

A few weeks ago the Board of Trustees of Social Security sent a formal letter to the United States Senate and House of Representatives to issue a dire warning: Social Security is running out of money.

Given that tens of millions of Americans depend on this public pension program as their sole source of retirement income, you’d think this would have been front page news…

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The Dollar Store Economy: Dollar General Openings Account for 80% of new Stores in the US

MB 360–The death of retail is a very real thing.  Amazon and other online retailers are simply shifting the way people shop in dramatic fashion.  Yet you have to realize that Amazon does have a minimum buy for free shipping and not everything is rock bottom cheap.  Also, food is still marked up on Amazon so if you are on a tight budget this will not work.  So what are Americans to do?  Many are opting to shop at rock bottom priced stores like Dollar General.  Really cheap items and food.  The basics.  What is telling is that Dollar General, the king of dollar stores accounted for a stunning 80 percent of new store openings in the US.  While other retail outlets are dropping like flies Dollar General is growing to fit a new niche:  the millions of broke Americans that still need food and need cheap goods.

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The four horsemen of inflation nightmare: College tuition, medical care, housing, and stagnant wages

MB 360–Inflation has a slow destructive impact on your purchasing power.  Most people don’t think twice about inflation.  They just assume that the price of goods will go up because that is the way it has always been.  Yet that is not true.  The type of inflation we are seeing is debt supported inflation which has made the cost of normally affordable goods inaccessible for most Americans.  It has also been a big reason for why retail is getting severely hit.  Yet where does most of your money go?  For most households it is housing and most Americans are too broke to afford a home.  For younger Americans the biggest expense is college tuition.  And inflation in tuition has gone completely out of control because debt has been disconnect from ability to pay (does this bring back memories of the housing bubble?).  There is an inflation nightmare going on and you only have to look back to 2000.

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