Who is this economy working for...?

Question

Stagnant wages
Increased food and energy costs
Much lowered savings rate
College costs... beyond the beyond

Answer 1

It works great for me. I never went to college, I work hard and save my money, I bought 2 houses before the boom, I invested in the stock market, I have owned exxon mobil since before oil started hitting the 60s and 70s per barrel. And I turn 30yrs old in 2 weeks.

People who save and invest will rise to the top. The morons who cause our NEGATIVE savings rate in the US and live off of credit cards will drown. The average american consumer spends $1700.00 more per year than they earn. I spend about 1/2 of what I earn and invest the other half so I will wind up having more to spend later. It is about controlling your urges and buyng assets before you allow yourself to buy liabilities.
My Grandma told me many years ago before she died "you never buy anything you dont have the money for". I agree with her except with my own amendment that I do buy houses that I can't afford but............... I get renters to pay for them for me.
IN CONCLUSION THIS WONDERFUL AMERICAN ECONOMY WITH ITS OPPORTUNITIES WORKS FOR ME

Answer 2

This is a great question. Obviously the ultra-wealthy are doign fine and increasing the gap between them and the poor at an excellent rate. This is not a political issue because John Edwards, Hillary Clinton, Al Gore and the likes care just as much about the poor as do the republicans... not at all. I mean sure the poor make you feel bad when you have to drive through their neighborhoods in your limo or hummer but if you drive fast enough it only hurts for a minute or however long it takes you to gaze upon your rolex.

The average 30 year old is worse off than their parents financially however due to the cult of American entitlement and dis-satisfaction they are spending far more. If you parents had a house you need a mansion. It's the way American's feel good about themselves, they buy a lifestyle.

This economy works fine for most people who are living within their means but for those on the fringe or over the edge it is perfect. The problem occurs when this train ride stops and becomes a roller coaster on a downhill. At that point everyone over the edge with spending is getting thrown off the ride, people at the edge will be right behind them and wealthy might be awakened from their naps listening to the neighbors crying over bankruptcy which is the penalty for living beyond your means for too long.

The current corrupt government is set up for the rich who can afford lobbyists and to make big campaign contributions which gets them paid back later. The tariffs keep bad inefficient companies in business and subsidies paid to companies keep their hands stuffing the politicians wallets. Just look at who benefits from illegal workers... business owners, who gets stuck... the poor who are booted for someone cheaper. How many H1-B visas annually? 65,000 how many illegals 12 millionish.... any questions?

Thanks for highlighting the plight of the common man/woman who is sitting on the train tracks and doesn't know that the light isn't the end of the tunnel but the train.

Answer 3

This is a hard question, but don't just let it reduce to "only the rich!" because it is much more complicated than that.

Yes there are a lot of problems, which you listed in your question. And they had led in recent years to a significant increase in income inequality. But that does not mean that the economy is not working for everyone. We are far from the worse off country in the world and could be doing worse than we are.

This is by no means an excuse for many of the polices that have been enacted during the current administration, I am not a fan of theirs, but it also does not mean they have done nothing right (or that every success is to their credit). We had a recession not to long ago, and we are still recovering from it. Yes, it has been the slowest/weakest recovery since WW2, and I believe many current policies help to stunt that, but it doesn't mean that we are doing all that horribly.

In the end this may all seem like nothing (excuses this way, and explanations that way), but this is all a very tricky game - economics, that is. It is easy to say the economy works for the super-rich (as the 01 and 03 tax cuts sure did), but then again, look at who this country elected. Are you really surprised?

Answer 4

College costs - Those with a college education earn far more and have less unemployment that those without. The benefits of becoming college educated far outweigh the costs. More and more people realize this along with financial aid has driven up demand for college education, which tends to increase the price.

Low savings rate - This is a personal decision, is it not? The economy doesn't force you to not save. We all have to learn to make tough choices. I know those on a low income who manage to save because they make it a priority. Besides, the savings rate ignores gains in net worth due to capital appreciation. The stock market has been doing very well. Perhaps people are spending some of those gains, which isn't a bad thing.

Increased food and energy costs - Food costs are increasing due to the increased demand for corn to make ethanol. Again, higher demand drives up prices. Energy costs are up because supply is resricted while demand is increasing. High energy costs aren't a bad thing. It makes alternative energy much more attractive. Who's going to switch away from oil if gas sells for $1/gal?

Stagnant wages - I don't believe the wage data includes non-cash benefits, which has been increasing. In terms of supply and demand, the increase in labor supply with illegal immigration eases pressure on the price of labor. However, college educated folks see less of this impact .

Focus on some of the good news.
Unemployment is low
Stock market participation is high
Home ownership is high
Judging from the amount of commercial development and home building I've seen in my area over the past several years, it'd be tough for me to believe that the enocomy isn't doing well. These changes have improved my life by giving me many more options for employment, purchasing, entertainment, comfort and convenience.

This economy is working for most people, but it's unfortunate that many of those people aren't capable of recognizing it. They seem to think that if they aren't driving luxury cars and eating caviar, then the economy is leaving them behind.

My advice to them:
Take responsibility - don't wait for someone to come along and fulfill your desires.
Learn some basic financial skills - like how to spend less than you make and how to invest the difference.
Invest in yourself - learn skills that other people value enough to pay you for it. That's how you get ahead in this market of voluntary transactions. In order to get someone to voluntarily buy what you're selling, you have to have some worth buying. And, if you have something worth buying then you are helping your fellow man.

That's what most of those whom you envy did.

Answer 5

The economy is working for rich Republicans, that's for sure. They had on the news the other day that they are spending up to $35K for a birthday party for their 3 year old little girl, while we have American workers starving in the streets.

Answer 6

With the Dow pushing 14000 this week, who do you think.

You have these Hedge Fund managers in Wall street making hundreds of millions (in BONUSES).

With it hitting 14000, did it impact you one bit? NO - it only impacted the super rich!

Of course Georgie was quick to point out that we are in a "strong" economy.

Really?

Answer 7

You don't say what country you are complaining about. The economy in the US is the best in the world. Maybe you should relocate.

Answer 8

It is working for the extremely wealthy. This is not a democracy it is a socio-economic heirarchy.

Answer 9

For WHOM is the economy working?

It's working for EVERYONE who is willing to participate.

Well, then THAT depends on your definition of "participate" too.

Answer 10

well, there is the notion of a nation who has people on welfare and subsidation...

Is that an issue?