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Personal Economics Nonesense. Why we struggle so much.

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posted on Mar, 1 2012 @ 02:12 PM
I spent the morning looking up statistics, census information, financial gibberish and analysis that the government uses to see if economical growth is on track.

I Have this feeling that they have their heads shoved so far down their ice fishing holes that they can't connect the dots and are sitting at their desks, flabbergasted, wondering why people are pissed off at the economical situation.

What I have come up with is three graphs of statistics from 1974 up to 2009. All the information for the first two is readily available with a little research.

In this first graph, you see that the median income is increasing steadily over time. It does make sense that inflation causes a higher demand on people to ask for a higher income. or is it the other way around? I believe that individual greed causes inflation, but that is a whole other thread.

In this second graph, you can see the cumulative inflation. You can see how it mirrors the income increase of individuals. Which follows the other, I cannot say. It is the egg-chicken-egg syndrome. Nonetheless, it seems that everything is on par.

By looking at those two graphs, it makes one wonder "why are we in such a damn pickle?". Here is the reason why. This last graph demonstrates how much your EFFORTS are worth over time. The value attributed is calculated based on income earners per household, man hours per week worked, inflation and other amusing statistics.

What else does this chart tell you? It is an indication of your standard of living going downhill. the decline from 1974 to 2009 is 5/9. In other word, your efforts are worth today, about half what they were worth in 1974.

At present, this is somewhat transparent to many. Why? Simple, the standard of living gap has been filled over time. First, by spending life savings, inheritances, etc. Then with easy credit, easy loans, easy rentals and things like that. Around this neck of the woods, car dealers are almost paying you to buy their cars. We perceive that our standard of living is what it may have been 40 years ago or better, and we just want to keep it that way, no matter if it is causing a personal financial blowback situation.

Only one thing can come out of this. the easy "bubble" will implode and cause a financial crisis and mass bankruptcies or the likes of it.

The only way to prolong the agony and maintain our quality of living with this trend would be to increase the amount of earners per households(increasing pay rates only results in increasing expenses/debt). By that I mean, send the kids to work and provide for the family to ensure survival.

IT WILL COLLAPSE...two questions remain. When? and what will be the consequence.

Will it collapse on its own or will we be forced to end the insanity?

We are letting this happen to us, but we are letting WHO, do this to us?

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