Those left behind in The Recovery

When I heard President Obama's recent statement that "America is pretty darn great right now," I'm sure I wasn't alone in asking, "What the Hell is he talking about?"
He might have been talking about unemployment claims hitting 42-year lows. But that's just a number that hides more information than it tells.

For example, in the most recent month, just under 2.2 million people were collecting benefits out of 7.9 million unemployed, which means that 29.1 percent of the unemployed were collected benefits. If we go back to November of 1973 (42 years ago), 1.7 million people were getting benefits out of unemployed population of 4.3 million, for a ratio of 39.5 percent.

To put it another way, much fewer unemployed people are filing unemployment claims than ever before. That doesn't make them any less unemployed.
Why is this happening? In America today, 40% of workers have contingent jobs, up from 30% in 2005. Thus more people are usually ineligible to file an unemployment claim.
This isn't a conspiracy to cover up the truth about the state of the labor market. It only means our traditional ways of measuring the labor market are becoming obsolete.

One number that the news media used to think important was the poverty rate. You don't here about it much anymore because the poverty data increasingly doesn't reflect the recovery meme.
poverty.png

This is a big deal.
Conservatives have tried to argue away the poverty rate numbers because poor people have color TVs, or some such nonsense. But the poverty rate is closely reflected by another official number - food stamps.
Food-Stamps-Percent.jpg

Something is going on here. Something is being missed.
Many people that are positive on the economy like to point to the impressively low unemployment number, and I must admit it is impressive.
Yet there is this.
medianincome.png

The news media is full of talk about Full Employment, and yet there is no wage inflation.
Maybe you recall that just a few years ago the economists promised us rising wages once we reached Full Employment.
So what went wrong?
Why aren't wages rising? Why isn't poverty falling? What got missed?
weekly earnings_0.jpg

How it got missed is that some people are getting ahead. Just not most people. The GINI index is the commonly way used to measure this.
gini.png

Like the poverty rate, the Gini index was once a number that the news media cared about, but now gets ignored because it doesn't fit into the Recovery meme.
How did it get missed? Because the news media doesn't even deal with the 90% of the population known as the working class.

On March 28th fellow Timesman Nicholas Kristof, famous for taking young men and women to Third World nations devastated by U.S. foreign policy (though I doubt he tells them why those dumps look so dumpy), went even further, in a piece titled “My Shared Shame: The Media Helped Make Trump.”
We were largely oblivious to the pain among working-class Americans and thus didn’t appreciate how much his message resonated,” Kristof wrote.
Most Americans are working-class. In other words, Kristof and his colleagues admit they don’t cover the problems that affect most Americans.

A huge percentage of Americans have seen nothing but pain during this Recovery, and it seems that many don't want to see it.

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Comments

Cassiodorus's picture

you mean like the bottom 93%?

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“One of the things I love about the American people is that we can hold many thoughts at once” - Kamala Harris

detroitmechworks's picture

A color TV costs a little over a Hundred Dollars.

Assuming 2 meals a day at five bucks each, that's 140 bucks a week. (And that's eating CHEAP, I might add)

Which means that TV that Conservatives are so fond of pointing out means no poverty, is actually cheaper than daily bread.

Considering most poor can get one at a second hand store for much cheaper than that...

The inability of conservatives to do basic research always astounds me.

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I do not pretend I know what I do not know.

2 meals/day at $5 each is $70 a week, not $140. But we get your point. Smile

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detroitmechworks's picture

Because the kid needs to eat to. Smile

Family of four, 280, assuming 2 working adults, comes out to 140 a week per adult.

Typed fast and failed to properly edit. My bad.

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I do not pretend I know what I do not know.

thrownstone's picture

off the curb in any rich neighborhood.

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“Those who can make you believe absurdities, can make you commit atrocities.” Voltaire

Pariah Dog's picture

Back in the early seventies (Dicky Nixon's wonderous eekonomy) curb shopping was a popular thing where I lived. I knew people who could furnish an entire room going to the right places.

Then the new transplants from the city started bitching about all the riff raff rummaging through their throwaways. They could be casing the house! They see what we're tossing, they're going to start wondering what's inside! We're afraid!

Next they started calling the cops who were all too happy to come and run people off. Better it end up in a dump than let someone who could use it take it home.

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Meddle not in the affairs of Dragons - For thou art crunchy and good with ketchup

ppnortney's picture

not too long ago about poor people owning - GASP! - refrigerators?

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The smaller the mind the greater the conceit. --Aesop

lotlizard's picture

with an old-fashioned icebox.

In fact, my parents never called their refrigerator a “fridge” — they continued to call it an “icebox” until the end of their lives, well into the 21st century.

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Daenerys's picture

'Oh, you have at tv, refrigerator, microwave and internet? You're better off than most of the people on the planet!' Like who the hell cares, the US IS NOT A THIRD WORLD COUNTRY!! Talk about apples and oranges.

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This shit is bananas.

mimi's picture

and homeless. People try to hide their homelessness as best as they can. They have their pride. And homelessness takes that pride away and breaks it. You will never be able to get "exact" data. If you want to know what's going on, just don't look away when you see people sleeping in tents, in their cars, or on park banks or under the bridges of highways. And don't say they are all "mentally not stable", "alcoholics", "don't want to live any other way" or "drug addicted". When they are, it's the society's laws that creates those conditions.

That's why I don't read that much essays with those statistics. Being poor and being homeless and sleeping in the streets are too different pair of shoes as well. Even getting food stamps and being poor are different things. There are many people who get food stamps, but are not homeless or really, really poor. Somehow they can play the system. I don't know how, but they do.

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detroitmechworks's picture

I get 300 bucks a month in food.

I receive a pension of 1465 a month.

My rent portion is 600 a month. Bills, etc add up to another 130 a month. After all bills are paid, I have about 730 dollars a month to pay all other expenses.

With two growing kids, I'm usually looking at 2-3 hundred more than food stamps provide, so that drops me down to about 400 per month.

Any emergencies, clothing, etc has to come out of that. If I have a real emergency I may have to float a bill or two for a month which costs me the NEXT month.

So, altogether I've been ending the months with about 20-30 dollars in the bank. Overall just squeaking by, and I wouldn't if it weren't for home forward which pays half my rent, or food stamps.

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I do not pretend I know what I do not know.

Deja's picture

They consider gross income - you get punished for paying taxes and paying for health insurance.

$16/mo is so laughable, I won't bother to renew them. The $200/mo we got while I was a full-time student helped a great deal. Could've gotten more had I been paid minimum wage for the 20-30 hrs of work I was doing for my landlord in exchange for rent and electricity, except I couldn't have afforded my rent or electricity on minimum wage.

Luckily, my son is a vegetarian, and tofu is cheaper than meat; although vegetables are seriously expensive unless you eat them out of cans which is bad for you.

Hopefully, I'll be comfortable before I die. And I'd prefer to do it on my own, but am grateful that there is SOME sort of safety net to be used if necessary.

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gulfgal98's picture

have increasingly put a terrible strain on local food banks. The local food bank here serves as much as 1/4 of the population, most of which have at least one adult who is working. The government cuts back on food stamps and that does not solve the problem. It just pushes it down on the local food banks such as the one here which is run by a consortium of local churches with mostly volunteer help. Fortunately, this community is very supportive of the local food banks, but this is not the solution to the problem of hunger in this country.

Purchasing power is down while the prices of nearly everything continues to skyrocket and wages are stagnant and even decreasing, all of which is happening in the richest country the world has ever known. This country and its PTB should be ashamed of this situation which is worsening every day.

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

mimi's picture

the only one who has no kids and partner to live together with. There are among his co-workers many younger ones with kids and married and if they hadn't family on the Hawaiian islands, they ALL would be without a home. Some are homeless and live on the beaches, hidden away from the police. Because you know it's a crime to be homeless and get caught sleeping somewhere at most public places. You get fined, ticketed and called to the courts, or if you are a threat to others, thrown into prison.

That alone is to me a crime of inhumanity. These people WORK. And they are NO drug addicts. (Of course some are, but that's another issue). They would never be able to find a rental unit for themselves. Many prefer to not share with others, of whom you do not know their mental and emotional balance. It's now for the third time that my son had a house sharing situation, where one person became a danger to himself and to others. There are amazingly high numbers of suicides. Often not brought into relation of having no job, no safe place for them alone, and no family support.

Not only are "browner" people fired the first, they are also the last to get trusted by landlords to be their tenants. They literally can't find a rental unit all by themselves, despite having a job and despite being stable emotionally. They need a "whiter" person to negotiate the contracts to have a chance.

I really don't know how people with kids and no family support (which of course grown men and women do not want to accept easily) can make it.

It seems to me that it's the real estate rental market and the lack of job security and the absence or way too high health insurance costs (if you have some through your job) together with all fixed costs like electricity and gasoline (and frigging internet access costs) gone through the roof that makes a decent survival possible.

ALL of those problems you are NOT having in Germany or France. If you have a job, you don't have to be homeless and sleep in your car or tent. You may have to rent in the so-called sub-urban apartment complexes, which I think are called "public housing projects" in the US, but so far there have been enough for a cheap enough price that you DO NOT have to live in a tent or a car.

You are health insured, premiums adjusted to your income or jobless situation. You can't be thrown out of your rental place as a tenant they way landlords can do it here. Food stamps are unknown. We had them after wwII. My mother got them. I think for two years after the war, she got them. Currency Reform in 1948 and after that from one day to the next the situation changed completely. Food supply reappeared in the stores and you could buy with the new currency enough to not go hungry any longer. Before that people WERE HUNGRY in Berlin and COLD (like my elderly grand parents). You know that the US were "humane" in their actions back then with their The Berlin Airlift, 1948–1949 Until 1947 my whole family on the mother's side survived because of that help by the US, especially for coal to heat and food.

I wonder where the same compassion has gone in America for their own people and their own poor. American Indians need fundraisers to get enough heating fuel. Shame on the other non Indian Americans, who can't solve that situation politically. People in Russia and cold Eastern European countries usually didn't have that problem, afaik. If your country didn't get destroyed by bombs and war, you had at least a roof over your head and something to keep you warm and eat, may be very little, but enough to survive and not get homeless.

So, whatever, it's your laws. You have live with what you create. As Sanders supporters rightfully say: "Fuck that shit".

Here for example is one sort of shit people do:
New city ordinance forces family to destroy their vegetable garden. Really smart city ordinance, right? How often do I drive through my neighborhood and see yuge areas with lawns that all could be used for vegetable production to sustain citizens who live there. Oh and developers also cut out and flatten areas of all valuable trees, like mango, advocado, macademia nut trees to build houses on those lots. You would think they could manage to build something without destroying valuable food producing plants. But no, that would be too much hassle and costly, I guess. If corporations are people, then I say I have never seen more dumbfucking people than them.

Forget about it.

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Aardvark's picture

forgive me if you are already aware of this, but in Berlin, Germany, homelessness and a shortage of affordable housing are problems. Furthermore, these problems existed before the "refugee crisis."
The German Federal Government does not keep statistics concerning homeless persons. This organization attempts to do so, among many other activities:

http://bagw.de/de/themen/zahl_der_wohnungslosen/

In Berlin there is an interesting organization which attempts to draw attention to homelessness in the city:

http://querstadtein.org/en/

The number of persons who qualify for subsidized housing in Berlin is some 50% of the population. At any given time, roughly seven percent of the available apartments in the city qualify for this.

http://www.spiegel.de/wirtschaft/service/mieten-in-sozialwohnungen-kaum-...

Berlin has an affordable housing crunch, and there is little which the city government is doing too little about it. Germany since the 1980s but especially under the Schroeder government has fallen far from its constitutional definition of a "social state" (Article 20 Section 1).

This is a direct effect of global capital, the attendant corruption it creates, the influx of money from other regions in Germany and from abroad investing in real estate in Berlin, which traditionally in the German mindset is the most secure form of investment. For example, into the 1990s, Kreuzberg had many run-down buildings. It was cheaper to let them crumble than to tear them down. Today, Kreuzberg is largely unaffordable for families: the buildings were finally demolished and money flowed in to build luxury apartments. Students looking for housing in Berlin also have a hard time.

The previous mayor of Berlin, Klaus Wowereit (SPD, the so-called "Socialist" Party of Germany), one of the most corrupted individuals in German politics, attempted to convert much of the Tempelhof Airfield into luxury apartments. The city mobilized against this, and it was resoundingly defeated by some 60%. Wowereit resigned his position shortly thereafter - this debacle and the shambles that is the new Berlin-Brandenburg airport carbonated his political goose.

Please correct me or add to this comment if it is deficient.

Peace be with you, reader.

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mimi's picture

me that I am still living in the sixties and seventies when it comes to Germany. I have lived since 1980 outside of Germany and have only once back to Berlin after the Wall came down. So, you are very right, I am completely out of date. I had hoped that there are still affordable "Altbau-Wohnungen" in Berlin, the way I remember them from the seventies. I lived in Berlin as a student and then some more years as working in my profession for 12 years. I had no difficulties finding student housing and also most of my student friends all found ways to find living space in those old buildings, Kreutzberg, Tempelhof, Wedding, Charlottenburg etc. Well I am sometimes homesick to those old buildings. ... Smile

So, sorry, that I ranted about the US conditions (those I see in front of me) and comparing them unfairly to conditions in Germany that were correct some fourty years ago.

For example, into the 1990s, Kreuzberg had many run-down buildings. It was cheaper to let them crumble than to tear them down. Today, Kreuzberg is largely unaffordable for families: the buildings were finally demolished and money flowed in to build luxury apartments. Students looking for housing in Berlin also have a hard time.

What a shame. I couldn't follow those details in Germany from the US at the time they happened. Even much later it was very hard for me to "get the real picture" of what was going on in Germany in the nineties to 2010+ years.

Well, I feel like someone my father described. My father made a trip to the US (his only one after wwII) in 1966. In the bus tour driving through the US and visiting the typical tourist locations those trips cover, he met an elderly Jewish man, who entertained the whole bus reciting German poems he learned during the nineteen twenties in his school in Germany. He knew so many German poetry my father was totally lost. That man lived in his past and for him Germany was the Germany of the 1920ies while living in the 1960ies. I guess that's what happens to "expats" or refugees or immigrants after a while. You lose to relate to the realities of your current times in your old home country and relive the past over and over. I saw the same happening to African expats in Europe or in the US. After a while being out of their home countries they lose connections to the realities in their home countries.

Thanks Aardvark, I really appreciate your comment and all the info in it. It's really fun to have people from all over the world here correcting some misconception one might have. Glad you have done so and are here. Smile

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gendjinn's picture

We chose to create a society that allows this. The structure of our society is completely within our control. It is a moral obscenity that we allow a system we own and control utterly to allow human beings to suffer in poverty. There is no reason anyone has to experience this.

We have more than enough money to solve this problem today and forever. It is simply a matter of the correct priorities.

I think Alan Bleasdale's Boys from the Blackstuff should be required viewing.

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I make $16/hr, full-time. Minimal taxes. About $2,400 after tax a month. $1,200/month goes to rent, $150 to electric, a whopping $350 to health care (don't qualify for any better healthcare sadly), $60 for gas and tolls to get to work, $300 a month for food for my family of four, and then of course there's diapers and copays for if the kids get sick and phone bills and Internet which I need to go to school and my husband's student loans--after all of these expenses I'm often unable to pay on one bill or another. We don't qualify for help and it sucks. This whole country needs a raise, desperately.

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SnappleBC's picture

This isn't a conspiracy to cover up the truth about the state of the labor market. It only means our traditional ways of measuring the labor market are becoming obsolete.

In order for me to believe this I would need to believe that Obama and all of his economic advisers are completely stupid. I don't happen to believe that which makes Obama's statements about how cool the economy is just more propaganda. Let's remember that Obama is "Mr. TPP". He's no friend of the working class.

Obama has been making similarly rosy statements about the economy his entire tenure and they have all been utter lies. It's part of the reason I call him our "Liar in Chief".

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A lot of wanderers in the U.S. political desert recognize that all the duopoly has to offer is a choice of mirages. Come, let us trudge towards empty expanse of sand #1, littered with the bleached bones of Deaniacs and Hope and Changers.
-- lotlizard

RantingRooster's picture

Bill Clinton changed the way the government calculates the CPI, which had, and still does have, a negative impact on social safety net programs, including social security. A big part of the "reform welfare as we know it" mantra.

While many new jobs have been created, most of them are service sector jobs, which do not pay enough to live on. Survive on, yes, but live on, not so much.

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C99, my refuge from an insane world. #ForceTheVote

GreyWolf's picture

.. and will stay there because that provides a large pool of wage-slaves for the capitalists and keeps those with jobs docile and fearful of losing their jobs. Wage inflation will not occur until there is competition for jobs, which will not occur.

The U6 unemployment rate counts not only people without work seeking full-time employment (the more familiar U-3 rate), but also counts "marginally attached workers and those working part-time for economic reasons." Note that some of these part-time workers counted as employed by U-3 could be working as little as an hour a week. And the "marginally attached workers" include those who have gotten discouraged and stopped looking, but still want to work.

http://portalseven.com/employment/unemployment_rate_u6.jsp

00 - U6 chart.jpg

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gendjinn's picture

We should also be reporting the number of employed, the distributions of annual incomes and how many want/need a job.

I remember Gingrich and the GOP freaking out because we dipped below 5% unemployment. You'd think the tiniest upward pressure on wages was the second coming of Hitler the way they overreacted.

A decent bit of inflation (3.5%) is the best friend of the working human. It depreciates debt & mortgages quite nicely, forces upward pressure on wages and eats into the assets of the 1%.

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thrownstone's picture

that when Ronnie Raygun got p.o.'ed with the unemployment rate in 1983(?) he re-zeroed it to 4% because he reasoned that "4% unemployment is acceptable as it is built into the economy". Don't know if they corrected it when he left. If they didn't, then the unemployment rate has been understated by 4% ever since. And Ronnie got to say "unemployment went down during my first term." Which, of course, he did.

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“Those who can make you believe absurdities, can make you commit atrocities.” Voltaire

Lookout's picture

Screen Shot 2013-03-08 at 11.36.19 AM.png

To the top. Loan them money at 0%. Let 'em buy their own companies stock, increasing the value and the ensuing bonuses flow like water while the masses struggle.

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“Until justice rolls down like water and righteousness like a mighty stream.”

k9disc's picture

You are missing the fact that big corporate & the oligarchs are running the joint. "Business friendly" conservative policy is all we're offered by both parties.

It's natural that the people suffer when they become nothing more than numbers on a spreadsheet. There are too many of us already.

In terms of supply and demand, the supposed key element of markets, there are just too many people. With this many people, people are worth less.

Market based freedom is where we're going, and I don't think it's a pretty place.

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“Tactics without strategy is the noise before defeat.” ~ Sun Tzu

ngant17's picture

and drones controlled in usa target and destroy specific persons in sw asia and middle east any given day. by simple logic, very precise numbers on current us employment should be easily determined with same existing information/technology.

but the priority is having a global war machine firing on all cylinders 24/7, running secret gov w/black ops, maintaining false flags and terror threats.

poor us citizens dying homeless every day. that's not the problem for homeland security.

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divineorder's picture

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A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.

And it's why I got fed the fvck up with TOP.

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******************************

Muerte al fascismo. Muerte a la tiranía. colapso total de los que promueven tampoco. A la pared con el unico porciento%

When I was growing up, we were very poor. Two adults and three young children, but my mom was the only one working. Even then, we probably qualified for SNAP and other programs, but my mom just didn't consider it. I've asked her about it (she's very political like me so we talk about this stuff a lot) and she said it just never occurred to her to look for public assistance. She just struggled to do the best she could because she thought that was how we would get ahead. For eight long years she worked third shift in a data center, running a mainframe and then would come home to care for us kids during the day. She doesn't remember when she slept, and she can't remember things like my little brother's first word, when he first walked, etc., because she was so tired (my dad was useless, but that's another story). Mom said she did use WIC when she was pregnant, but her obgyn basically demanded she do that. So when we each aged out of WIC after we were born, she just didn't use any assistance. I do think part of it was pride, but also empathy - she had a full time job, why should she take food stamps away from people who were out of work entirely?

Back in 2011 I suffered a head injury at my then part time job on the weekends (which was just for some extra pocket change, really) and as a result was fired from my full time job. I had to apply for food stamps because while I still had my part time job, they couldn't give me a bunch more hours than what I already had on the weekends. It was really frustrating to lose a job through no fault of your own, and still have a job, and still be unable to pay bills. My mom helped me out at the time and three months later I had a new full time job that, while it paid crap and was a long distance away from home, paid enough that I could get by. Admittedly I didn't eat a lot then, or do anything other than go to work. I've rambled a bit, but anyway, when I went to apply for food stamps it was a very humbling experience (perhaps humiliating even for those of us who feel we are perfectly capable of caring for ourselves and yet failing to do so), so I can definitely see how people don't even apply for certain types of assistance.

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Deja's picture

You didn't ramble. I felt it from your heart.

I haven't ever talked to him about it, but I noticed my son standing very close to the card swipe machine, blocking the view of the next customer in line. He also whispered that I please not use a certain checker line because the checker went to his school.

There's pride like you describe, and shame, like my son felt. Both break my heart.

I hope you're doing better now. We are, slightly.

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Thank you Deja. Yes, fortunately I am in a much better state now - I have a good job as a public servant making sure all the servers are up and running that power my state. Wink So I am far more fortunate than I once was, but I know what the struggle feels like. I hope I never forget, or I'll lose the empathy that I think someone requires to do good in this world.

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OLinda's picture

What is the dollar figure they use for poverty level? I'm guessing it's ridiculous whatever it is. People making over that number would be living in poverty as well although not counted.

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mouselander's picture

the economy is great for Obama, and soon will be even greater still. I'm sure he's already thinking about the $15 million advance he'll be getting for his memoirs, and the $350k speaking fees he'll undoubtedly start collecting in the early months of 2017.

Yep, the economy is pretty damn good for Barry O and his fellow one percenters. And did he ever happen to mention that he doesn't give a rat's ass about all the losers who can't even measure their net worth in the low seven figures? Well, thankfully when Hillary gets in, she's sure to change all that.

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CalvinV's picture

I read in the news a few days ago that Maryland was the state with highest median household income. I was a little surprised that California, with all the hi-tech jobs and sky-rocketing home prices, is not so I looked that up and found these data

https://en.wikipedia.org/wiki/List_of_U.S._states_by_income

So the median household income for a median CA household dropped from 91K to 67K between 2007 and 2014. There's no entries in that table for the year 2008 which would essentially mark the end of the Bush years but from a separate set of data, median household income in CA dropped around 1.5K in 2008, adjusting that to 2014 dollars and making it roughly 2K then after these glorious Obama years, median household income in CA has dropped from 89K to 67K, roughly 25% less. It might be even worse if you account for a much bigger percentage of incomes used to pay for rents than what the government think they pay.

Thomas Frank is right when he observes that the Democratic party, after Bill Clinton, is no longer the party representing the working class, only the professional class. What Obama brags about is only true for the class he represents: those in the top 10%, or even 5%. He just can't see the rest.

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Deja's picture

I could actually afford to pay back my student loans on $67k, but not in CA!

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