A Long, Steep Drop for Americans' Standard of Living

[katty]

more: http://www.cnbc.com/id/44962589

Think life is not as good as it used to be, at least in terms of your wallet? You'd be right about that. The standard of living for Americans has fallen longer and more steeply over the past three years than at any time since the US government began recording it five decades ago.

Bottom line: The average individual now has $1,315 less in disposable income than he or she did three years ago at the onset of the Great Recession – even though the recession ended, technically speaking, in mid-2009. That means less money to spend at the spa or the movies, less for vacations, new carpeting for the house, or dinner at a restaurant.

[Vincardog]

1. How are the rich doing?

[kestrel91316]

2. Fabulously, from what I've heard.

[CrispyQ]

3. I read an interesting article a few months ago, wish I'd saved the link.

It stated that many advertisers are gearing their ads toward the $250,000 a year or more crowd only.

They've written the rest of us off.

[subterranean]

6. P&G's new product strategy

is to target the high end and low end of the market. They're abandoning the middle class. It's called the "hourglass strategy," and indicates that they (and other companies) believe the current state of things will continue for the foreseeable future.

[Johnny Noshoes]

9. Guess that's why...

Guess that's why I've seen and ad for the new Jaguar XJ a lot the last few days. The thing has a base price of 85k. I watch Top Gear a lot that's the only way I know the price of the thing.

[LongTomH]

4. This excerpt sums it up nicely:

Text"Maybe it's the evolution of the economy, but it appears large segments of the workforce have moved permanently into lower-paying positions," says Joel Naroff of Naroff Economic Advisors in Holland, Pa. "The economy can't grow at 4 percent per year when the middle class becomes the lower middle class."

The Wall Street types and other elites have worked under the concept of a Plutonomy: The idea that a 'healthy ' economy can be maintained by meeting the wants of the upper 0.01% to 1%. I think it's becoming apparent to everyone else but Mitt Romney and Wall Street that the plutonomy model ain't working!

[katty]

8. exactly-the PTB want only 2 classes: rich and not rich

[RandomKoolzip]

5. "Suck it up, whiners!"

Sorry - just had to post what's most likely the conservative response to this report...a response which of course disregards the long-term impact less money in the economy has on everyone, including the businesses they claim to support.

[The Wizard]

7. The decline started in 1973

with the oil shortage and rapid increase in energy prices that fueled an inflationary spiral that the working class never (excepting 1998/99 when real wages adjusted for inflation increased) recovered. I lost the best job I ever had in 74 because of the oil shortage. The working class never got back to that living standard.