Showing posts with label cost of living. Show all posts
Showing posts with label cost of living. Show all posts

Friday, January 17, 2025

The Reckoning: Taking Back the American Dream

The Greek philosopher, Plato, said in his two famous political works, "The Republic" and "Laws", that unchecked economic inequality was a principal reason for the fall of democracies and the rise of demagogues.

But as History has repeatedly shown it's not only democracies, but nearly every form of government which will eventually collapse under the weight of economic inequality, which typically brings about political failure, from the ancient empires of Sumer and Babylon to Pharaonic Egypt, Rome, and up to modern times.   

Today, economists and political scientists are looking at the strain that climate change, rising prices and taxes, population migration, aging populations, crumbling infrastructures, rising public and private debt, public apathy, and failing school systems as symptoms of an increasingly unstable United States and Western Europe. Even China, India, and other nations along the Pacific Rim are seeing cracks in their economies as monies are diverted more and more to critical services.

The gap in quality of life between the top 20% and the remaining 80% has grown along every measurable statistic for the last 30 years. The cost of an average house has risen approximately 817% between 1970 and 2024, which is higher than the average rate of inflation (4.19% for housing compared to an overall inflation rate of 3.94%), All items, excluding food, rose 627% between 1967 and 2024. 

Using data from the Center For Economic and Policy Research (CEPR), between February 2020 and November 2023, average wages rose 19.4%. For individuals in production and non-supervisory roles, 21.9%, while for high demand non-technical positions such as hotel and restaurant workers, their wage shot up 31.6% (note that these jobs represent 80% of the job market). While an average increase in wages of 19.4% is pretty good, the Consumer Price Index, which measures the overall change of prices, went up 18.8% for the same period. 

Starting with the COVID pandemic in 2020 and continuing through November of the following year, the price of food jumped 24.7%, exceeding the average growth of wages by 5.3%.  So, if you're seeing the content of your grocery cart getting smaller while the amount at the checkout counter getting higher, it's not your imagination or because you're unnecessarily splurging. For instance, the price of a loaf of bread has increased 28.8% since the pandemic while the cost of eggs have jumped 24.7%. 

While the consumption of red meat has been steadily declining, it still remains a staple for many U.S. households. Since COVID-19, the price of beef went up 30.3%, with the highest jump in price occurring in 2020 during the peak of the lockdown. Interestingly, the cost for chicken rose by the same percentage (driven up, in part, by the arrival of the "Bird Flu"). Milk, another staple found in most homes, saw a 20.4% increase per gallon. The good news (if there is any), is that the prices of milk and milk related products (such as cottage cheese, sour cream, and butter) are showing signs of stabilizing and in some instances, even dropping.   

As an aside, most Americans tend to struggle with their weight. Americans are notoriously overweight according to the National Institutes of Health (NIH), which say that one in three Americans are over their optimal weight. Just over one in three men (or about 34.1%) are considered obese while about one in four women (27.5%) are "chubby" while 42.4% of both genders are considered seriously overweight. This, of course, is part of the reason for the explosion in diabetes and heart disease. 

While some individuals are overweight due to genetic or other medical conditions, most are tubby due to their lifestyle. One common recommendation from physicians to deal with our weight problem is a combination of regular exercise and adopting a healthy diet. However, the NIH reports that the cost of many diet suggested foods, such as vegetables, fruits, and oils, have risen in price by an average of 17.9% since the pandemic. Ironically, Unhealthy foods have seen an increase in price of just 9%!  The single exception was the price of fast food, which rose 14.7% between 2019 - 2022.  It should be mentioned too that since 2000, the cost of medical care, including prescriptions, increased by 121.3%. 

Based on data from the United States Department of Agriculture (USDA), the price of fruits increased 9.5% between 2021 and 2022 while the cost of fresh veggies rose by 7.9% over the same period. Even the cost of eating out has jumped in price. On average, restaurant food prices have risen 7.1%. Of course getting to and from the grocery store, local eatery, work or just about anywhere else requires a vehicle of some sort. So, what about the cost of gas?

Under President Donald Trump, the average price of gasoline ranged from a high of $2.81 a gallon in 2018 to a low of 2.26 in 2020 (equaling President Obama's low in 2016). Under President Joe Biden, gas was $3.10 a gallon for regular in 2021 and rose to a high of $4.06 for a gallon in 2022. This is higher than the three previous presidents, Trump, Obama, and George W. Bush. However, in looking at the broader picture, from 2020 through the end of 2023, gas prices have risen by a astonishing 30.4%, thus outpacing wage growth for all but a few.

Despite the increase the cost of living for practically everything, not everyone is feeling the pinch. According to a recent study, conducted on behalf of Bank of America in 2024, roughly 30% of American households are living paycheck to paycheck (a similar study reported by CNN put that percentage at 35%). Another 20% or so percent can't afford to miss anymore than one paycheck before their financial house of cards begin to fold.  

What's meant by the expression "living paycheck to paycheck"? According to the Bank of America study, living "paycheck to paycheck" means spending 90% or more of your income strictly on necessities such as rent/house payments, food, utilities, or medical bills. 27% of all Americans have no money in savings. 27% of those over 50 years of age are in the same boat. On top of that, 40% of Americans have less than $1000 set aside for emergencies according to the American Bankers Association. Of that, 49% have $500 or less available while 36% said they have just $100 for emergencies (and yet, we can afford to send $64.1 billion dollars to prop up the Zelensky regime in Ukraine to fight a war that we encouraged). 

So, while the average American struggles to keep a food on the table and roof over their head (13.7% of Americans are food insecure while 14% of Americans have experienced homelessness at some point), the federal government lets approximately $92 billion dollars in corporate welfare annually slid by. Corporate welfare includes tax credits, give backs, preferable regulatory treatment, no bid contracts and automatic contract renewals, debt write-offs, deep discounts, bailouts, low or no interest loans, public grants, public-private partnerships (public money financed ventures), subsidies, and more.   

 From 1980 through 2021, the level of income for the Top 1% rose by 574%. For the Bottom 20%, it was just a paltry 31%. For the Top 0.01%, their wealth grew 832%. The Top 1%---about 12,000 households--- are 139 times richer the Bottom 20%. According to the Organization of Economic Co-Operative Development (OECD), a international economic and social policy forum, the United States has one of worse levels of income inequality among its 100 nation members. 

In 1971, 61% of American families made up the Middle Class. Today, that percentage ranges from 46% to 55% and declining. 50 million Americans now fall below the poverty threshold, and yet the federal government is doing little to stop the millions of illegal immigrants, the majority of whom falling into the poverty category, into the United States. Of course, we can't forget that women, on average, still earn just 82% of what men earn despite being mandated by federal legislation. 

One other factor to look at is the wage inequality between CEOs and their employees. In 1965, the average CEO made roughly 21 times that of their employees, which sounds reasonable. As of 2023, that percentage is 290 times more than their employees (there are 58 companies where that ratio is 1000 to one).. To put it another way, between 1978 and 2023, the pay of the average worker (wage and benefits) rose by 24%. Over that same time period, pay and benefits for CEOs and senior officers went up 1085%. The median pay for a CEO in 2023 was $16.3 million dollars according to a report published by the Associated Press (the data was comprised by Equilar). 

Can the United States continue with this level of income inequality? Ever since the decline of organized labor in the late 1950's, the income ratio between the working class and corporate leadership has been expanding, in part because the composition of their compensation package has changed to include more stock options and performance incentives. 

Meanwhile, similar types of incentives for employees have been reduced or cut, not to mention wage and/or benefits through so-called "voluntary give backs" out of fear that their jobs would be eliminated or the facility closed and sent overseas. Is this cost cutting measures to protect the business's profitability or merely a form of extortion? 

Since 1967, the Middle Class has been on a downward spiral, nearly matching the decline in public union membership. This decline of the union rank and file has meant a decline of union and non-union bargaining power and political clout which by extension, has directly affected the Middle Class. A strong working class, union or not, tends to mean a vibrant and financially healthy Middle Class. 

As mentioned at the beginning of this article, economic instability, coupled with public apathy, demagoguery and a well educated citizenry are a greater factor in the fall of democracies as well as empires, second only to severe and sustained climate events, than all other reasons. We have those in spades. 

Right now, we're facing not only extreme income inequality, but a strain on the economic elasticity of our social safety net, made all the worse by an defacto invasion, albeit non-military (at least at this point) of hoards of poor, largely poorly educated people who are interestedly solely in economic opportunities with no desire to contribute to their new homeland .

A people seeking to migrate or seek refuge will adopt to their new homeland's values and traditions. They will adapt to the laws and find ways to contribute. They will pay for public services through taxes. They will learn their adopted country's language.

 An invading army will do none of these things. Their objective is to supplant everything they can by any means available. They'll establish exclusive enclaves, turning them into semi-automatous zones of occupation, daring their hosts to enter. They will pervert the laws of their hosts. They will plead for tolerance when their numbers are small but offer none when there number have grown. 

Distrust in the government and media are at all time highs and have been that way for decades. Mediocrity at all levels of society, especially politics, are accepted as the norm. Excellence is often mocked if not actively discouraged. Herd mentality is the rule. 

The good news to all this is that there's a growing resistance to the ruling Status Quo. People are walking away from the Corporate imposed partisanship.  People are not just questioning so-called "authority", they're challenging it. The scripted narrative is no longer accepted. 69% of the public has little or no trust in the corporate media.

Increasingly, we're waking up to being played by the ruling class. The approval rating of Congress is laughable 17% We're refusing to accept the artificial divisions they want us to play. It's time we stop playing by their rules and start working to build a society which can benefit everyone. Not by mandating equal outcomes, but by ensuring equal opportunities. We need a society that our Founding Fathers would be proud of.   


 Thank you for reading "Another Opinion", the Op/Ed blog page for the "militant middle".  Here at "A/O" we truly value our readers. At A/O we seek the facts as they exist, not partisan talking points.  We hope you found our articles informative and engaging. Comments are welcome, provided they are not vulgar, insulting or demeaning.  Another Opinion is offered without charge and is directed toward all independent and free thinking individuals. We do ask, however, that you be sure to "like" us on whatever site you found us on in order to keep our articles available for others, and that you please pass our post along. Below you will find links to the sources we used in writing this article. Thank you. 


Average Gas Prices Under The Past Four Presidents


Wages and Prices: Who Is Keeping Up with What? 


Healthy Food Prices Increased More Than The Prices of Unhealthy Options during the Covid-19 Pandemic...


Nearly Half Have less than $500 in Savings


Survey: One in Four Americans Have Less than $1000 in Savings


The typical CEO makes nearly 200 times more than their workers


   

Friday, June 07, 2024

Can We Still Save America?


Today we're faced with a whole litany of troubles. It seems that we just jump from crisis to crisis every day. Sometimes it feels like its hour to hour! Many of us have all but stopped listening to the media's "Crisis du Jure", which attempts to tell us who to hate today and what causes or issues we should be for or against. We just can't take another minute of this negativity anymore. So, what do we do?

They whip our passions using fake patriotism, images of charred houses, and the ubiquitous impoverished children and heartbroken women. We turn to distractions like our "smartphones", video games, brain dead television programs which conditions us when to clap or laugh thanks to their programmed laugh tracks.

We even focus on sports to the point of obsession. Our discussions often become so intense you'd think we had a financial stake in the outcome. Why? Because we know that ultimately the outcome of some game doesn't really affect us. Our attention has carefully been turned away from the issues which truly matter such as rising prices, the declining value of our hard earned dollars or the loss of any benefits  we may happened to have had.

We work longer and harder and earn  less. Did you know that today's average worker's income, after adjusted for inflation,  has the same buying power as it did in 1979? Prices haven't remained the same, and hence finding households where both adults work, and some are holding down two or three jobs!

In fact, we now bring home less than our parents or even grandparents did in the 1970's! When adjusted for inflation, worker wages have only increased 15%. At the same time, the income of CEOs and their ilk have increased 1,209 % since 1979.At the same time taxes and prices continue to rise and yet multi-billion dollars conglomerates pay little or nothing. Do you think that's right?

Divisions among class, race, religion, and ethnic group are worse now than they have in decades. As long as we're divided and fighting among ourselves, it's so much easier to control us while they are free to pull the strings. After all, as long as we're fighting each other, the ruling elite can do as they please. Face it,  those with the real power are playing our manufactured fears like a fiddle from Hell. 

The mainstream media publishes or slants the stories the ruling class wants us to hear. Propaganda is all about perception. Wars, for instance, are usually framed in such colorful phrases  such as "freedom", "democracy", "free enterprise", "obligation " and "duty". They try to  connect our revolutionary war to whatever cause their pushing in order to create a link. It's almost always accompanied by imagery intended to play on our emotions and patriotism. But just how sincere is their message?

More often than not, the answer is it isn't.  Everything always comes down to economics. It's often about forcing a sovereign nation to open its markets to U.S. and Western corporations under the not so subtle veil of a U.S. military invasion.  If it weren't, then why do we prop up undemocratic autocracies like Kuwait or Saudi Arabia just as we did for South Vietnam, Iran, Cuba, Chile, Peru, Paraguay, Nicaragua or Panama. Iraq and Nicaragua were praised as allies until they stopped following directions.

Take for instance Iraq. Saddam Hussein (who we helped into power) invaded Kuwait, a key provider of oil and gas. That triggered a rise in prices. So, after a propaganda campaign to manufacture consent by the American People, we were fed a bunch of BS about  promised democratic reforms by the Kuwaiti monarchy such as allowing women to vote and sharing power. You know what happened after we "liberated" Kuwait? Nothing.

Most of these were the result of coups following democratic elections in which we didn't like the outcome.  In their place, we installed ultra conservative military juntas who opposed anything democratic! However, invasion isn't always or even mostly the end result.

In the majority of cases good old bribery and kickbacks do the trick in the form of economic aid. Of course, this works both ways such political donations to various foundations, insider tips on stocks or seats on boards of directors, or being hired as a "consultant".  It's called "pay to play" and the typical American doesn't have the cash to feed the pot.

We talk about being the land of opportunity, yet so many family farms and "mom and pop" businesses are forced to close because of big box stores. Did you know that only 4 companies control 65% of the food market or that other four control 95% of the world's fertilizer and seeds? That represents 65% of the global food supply. Nationally only 5 banks dominate the U.S. financial market---Chase Bank, Bank of America, U.S. Bankcorp, Wells Fargo, and Citibank. 

Just six corporations dominate the pharmaceutical industry and can virtually dictate the price of medication (as an aside, several medical industry research studies have been published which show that 70% of the price increases of prescription medication are not supported by medical research or demand). Shareholders of "Big Pharma" stock saw a 400% increase in payouts from 2000 to 2018.  Government regulations attempt to regulate our ability to cultivate our own gardens or collect rainwater. It's all about dependence.

While the largest producers of oil and gas are Russia and OPEC, the U.S. is a strong contender, yet, when we talk about those companies with control over the spigot, 10 companies overwhelming dominate the market. Together they represent roughly 90% of oil and gas market.

Any new green technology is quickly bought up or "boo hooed" as unpractical  and back up using paid for research papers. That doesn't mean there aren't windmill farms and the like, but there are too few to make much of a difference. They use their influence to divert federal aid from projects that would improve mileage or lower energy costs.  

We now have five corporations controlling 96+% of our media from print and digital to radio and TV. They are behind the shows we watch nightly, the movies we see, the games we play, and even our access to the internet. Just five technology companies dominate 33% of the global technology market, and so the story goes.

Many of these conglomerates have more money than some countries. When comparing economies of size, Apple's revenue is larger than the individual economies of Italy, Canada, Brazil, Russia, Australia, Spain, and others. Microsoft is financially bigger than nine countries including Russia, South Korea, and Mexico. The same goes for Amazon, Facebook, and Saudi Aramco. Only seven nations still has economies larger than these corporations --- U.S., China,  India, and the UK, but that doesn't mean their governments are in control.  

Is it any wonder then that America has undergone a silent coup in slow motion and become a corporatocracy? It was done in such a way that most Americans never even noticed.  And the best part about this silent slow motion coup is that there are those who still denied it ever happened. That's when you know your coup was successful.

The "Republic" is held up as mask to pacify the naive. Our new "America, Inc" is managed by a handful of these meg-rich individuals --- aka "Oligarchs" (or plutocrats if you prefer).  They serve the interest of Wall Street, not Main Street America. Both political parties are quite literally bought and paid for. Consider the "Citizens United" blunder for instance.

Corporations are nothing more than legal fictions. But under Citizens United, they don't have just the same rights as you and I do (an absurdity in itself), but more. How so? Because money is now defined as "free speech" and  you can bet that they have far than we do. Secondly, these "fictional persons" can donate basically whatever they feel like to a issue, party or individual.

Ordinary citizens are capped at an insignificant  $1000 in donations per election cycle. Compare that to Bloomberg Lp which donated just under $93 million to Joe Biden in 2020. The Las Vegas Sands gambled $45 million on Trump . Congressional Leadership PACS (basically "slush funds") received a total of $40.5 million dollars from Big Business, with most of that going to the Republican Party. But what about unions?

The power of organized labor has been broken since the 1960's. Once, they were protected workers and were actively involved in social issues. Nowadays, they are more interested in keeping workers on production lines rather than picket lines. When it comes to donations, corporations give nearly ten dollars for every dollar unions give.

Look at illegal immigration. This has been a national security crisis since the 1980's. That's over 40 years ago. If government really wanted to resolve the issue you'd think four decades would be ample  time. The truth is that they never had any real intentions to resolve the problem. The influx dilutes the workforce, thus driving down wages and benefits (and in some cases, eliminating them altogether). 

It makes employees more concerned about keeping a job than improving their working conditions.  What the ruling class wants is a workforce just smart enough to keep their heads down, do their job, and don't ask questions, which happens to be exactly what public education has participated in creating--- a dumbed down workforce of economic serfs. An unengaged citizenry allows those in power the freedom to do as they please without interference.

Writing legislation has become increasing a corporate lobbyist function rather than that of Congress while using their large staffs to reviewing proposed bills and make recommendations to the House or Senate member on how to vote on any given issue. That frees up the elected representative to spend more time raising money for party leadership.

These corporate lobbyist are also known to provide first rate perks, grease palms, and most importantly, underwrite their elections and provide opponent research.  No wonder members of Congress  have a 98% reelection rate despite having an approval rating of 13% (in November 2013 it was 9%). Think about those numbers for a moment. These are Soviet Era rates! This is what you'd expect in the old Soviet Politburo, China's National People's Congress, or North Korea's Supreme People's Assembly.  They are the percentages of failed democracy.

It's obvious therefore why there's no shortage of willing takers! Why else would already wealthy individuals spend millions for a job that pays just $174,000 or less than what an medium size company president makes? A sense of civic duty? Noblesse oblige?  As the expression goes, the winners write the history...and the game rules. So, in case you're keeping score,  the American People aren't winning. Is there anything we can do to save any part of our remaining Republic?

Well, the answer is a qualified "yes", but there's very little time remaining in the hourglass of our once great nation. Key is that we have to stop bitching and actually do something. We need to stop voting for the "lesser of two evils". Evil is evil. We need to break up the political duopoly. We need to think and vote outside the box. 

While we may be too late to save the federal government, we should focus our efforts on local and state elections. We need to support third parties and Independent candidates in any way we can. We need to force state legislatures to permit citizen initiatives (if you already have one, count yourself lucky). We need to press for term limits, changes in our campaign financial requirements, adding third party and Independent representative to local boards of election.

We need to eliminate partisan offices on non-policy making offices such as county clerk or attorney, the offices of Secretary of State, Agriculture, or Treasure. Newly elected officials should be required to resign from whatever party they belong to and take an oath to represent everyone in the district, not just fellow partisans.

We must build stronger local communities and demand more from our boards of education, police department, as well as reforming our taxing authorizes. No rate or taxes increases without voter approval. While these are just a handful of changes we can make, to set back and do nothing is not an option any more. You don't have to do all of them. Pick one. Get involved. Be the change we must have. It's time to come home to our roots.

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Who Controls The World's Food Supply?


For most U.S. worker, real wages havebarely budged in decades


CEO pay slightly declined in 2022


Who owns the world's largest pharmaceutical companies? 


Who are the Players in the Pharmaceutical Industry (Big Pharma)?