Most Americans are so far in debt that a missed paycheck would produce a family crisis in a one-paycheck family. Three in a row would produce a disaster.
Families in this situation will use credit cards to draw out the inevitable. This digs the hole deeper.
The job market is slowly getting better, but for almost 13 million Americans out of work, this does little good.
Millions of other families are trying to get by on the incomes they pull in from part-time jobs. According to Gallup, the percentage of Americans that are working part-time jobs but that would like full-time jobs is now higher than it has been at any other time in the last two years. The number of the “working poor” just continues to increase, but most Americans don’t have much sympathy for them because they “have jobs”.
Well, when you are making 8 bucks an hour it can be incredibly tough to make it from month to month.
Gasoline is close to $4 a gallon.
Now we stand on the precipice of another major global financial crisis. Economic conditions in America are going to become significantly worse. The politicians in Washington D.C. may make sure that the boys and girls on Wall Street are always taken care of, but there will be no bailouts for the large numbers of Americans that are about to lose their jobs and their homes.
If you want an idea of what is coming, just look at what is happening in Greece. 25 percent of the businesses have shut down, one-third of all money has been pulled out of Greek bank accounts and unemployment and poverty are absolutely rampant.
Could it come to this? Not overnight. But the USA is running trade deficits larger than any in history. The federal debt will increase by $1.3 trillion in 2013, according to the Obama Administration’s latest estimate.
Greece got there first. The USA will follow unless its policies change. But they never do.