what americans want and need?

Question

Why can't people in the U.S have everything they want or need since were such a rich country?

Answer 1

The number one reason that people in the United States are not becoming richer all the time has little to do with inflation, or with some master plan of the rich to oppress the poor, but with the ready and easy ability of consumer credit.

When one considers the real cost of the goods people purchase to live, a consumers spending power has increased dramatically, thanks in part to inflation, but also to modernization, and industrialization. "How can this be so?" you cry. "Prices were much cheaper in the past." you say. But this ignores a very important point. Let's take data from http://www.chipublib.org/004chicago/1900/fam.html, which discusses the cost of living, and living conditions in 1900 Chicago.

According to historical records, the average working man brought home $620.19 a year. In order to earn this, Joe Working Man had to work 60 hours a week. That's 3,120 hours a year spent at work. That means that he earned about $0.20 an hour. Depending on the danger of the work, and amount of labor involved, he might earn more, so, let's give him an hourly wage of $0.25/hr.

In 1900's Chicago, a 1 lb. loaf of bread would cost you $0.05 cents. So it cost Joe Working Man 20 minutes to earn that loaf of bread. Now, a quick check at my local Bi-Lo shows that a loaf of bread can be had for $1.19 a loaf (and is actually on sale for Buy One, Get One Free, but that's neither here nor there). The current (2003) minimum wage is $5.15/hour, but since we let 1900's Joe Working Man have a pay raise, we'll figure 2003 Joe Working Man's had one too, to say $6.00/hour. Not a stellar wage, and I certainly wouldn't want to go back on that wage, but you figure, he's only got to work 12 minutes for that bread. Not an amazing increase, and yes I'm figuring in pre-tax dollars, but stay with me. I could have used the Census figures which state that in 2001, the average income was around $20/hour! That makes that loaf of bread cost a whopping 4 minutes to earn.

So where is all the money going? What's happening? People have turned their increased spending power not to investing and growing wealth, but to purchashing beyond their own means through consumer credit. Want that new TV? Finance it! Lease that fancy Lexus. Get a loan for that new Dell Computer, and so on. Banks are only too willing to lend the money, as long as people request it, and seem able to pay it back. It's not the bank's fault. People make their own choices, and if a person's choice is not to elevate their station in life, but to purchase goods on credit, that's their choice. I've made that choice in my past, and now I'm trying to correct it.

Let's look at the figures: According to the Census, and figures available in a good concise form here (http://www.mbaa.org/present/2003/duncan_0226.pdf) show that since 1960, the debt to income ratio per household has increased to almost 0.95, with the average household debt standing at a staggering $61,500. If the working people of this country have anyone to point the finger at for their inability to be rich, it is themselves, and their spending decisions. And yes, I include myself in that.

Answer 2

Because the govt. is set up to keep the rich, rich and the poor, poor. Not to mention every time a non bias president is in office he is ridiculed while others destroy the country as we sit by idly and say support the president. If this country loved it's people the way it's portrayed, it would spend more time trying to get our homeless of the streets and provide proper housing and jobs for those in need instead of running to the aid of other countries when we are in need ourselves.

Answer 3

If you don't have the money now it's possible you may never see that kind of money. The rich is getting richer and the poor is getting more poor.
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To make matters worst the majority of college kids are already in debt when they finish college. *** backwards country. The question should be why can't the people take over the government?

Answer 4

People usually want more so the want part can never be accomplished. every ones needs is possible but as long as we have selfishness and a government spending 9 trillion in debt and also giving billions away to other countries there will always be the haves and haves nots. Unfortunately

Answer 5

As long as we have NEEDS,we can't be truly rich.As for wanting,we want many things but when it comes to a crunch,we either change our tack or would want some thing one or two up.Incidentally,there is significant amount of poverty in parts and pockets of America as well though it's level is a few notches higher than else where.I don't think any country can ever reach a level of prosperity as wished by you.

Answer 6

We used to be the richest country in the world, now we are 16th. We used to be the biggest lending nation in the world, now we are the biggest borrowing nation in the world. We used to have a budget surplus (under Clinton) now we are running the biggest defecates in our history. All the results of ReaGUNomics, and the Republican's tax cuts to the rich. A pity.

Answer 7

Because the Government spends all the money on War and supporting other Countrys. We're taxed to death so we can feed everyone else.

Answer 8

just because we are a rich country...does not mean all of us have money...the people who come here from a different country has much more money then i do.that's why they are taking over our gas stations...we have rich people and poor people here..

Answer 9

Now that is a very good question! Now you see how democratic government works! For themselves, the rich and wealthy!!!!! Have a great day.

Answer 10

need lower prices for gasoline and heating oil