Size of the economic pie The size of the economic pie in America is shrinking, and the share of the pie for those that are poor is shrinking a lot faster than the share of the pie for those that are wealthy. According to the Washington Post, the average yearly income of the bottom 90 percent of all U.S. income earners is now just $31,244. When you look at the ratio of employee compensation to GDP, it is now the lowest that is has been in about 50 years. At this point, the poorest 50% of all Americans now control just 2.5% of all of the wealth in this country. Big corporations are recognizing the change that is happening to
In the 1920’s there were several social and cultural changes. Before the twenties, thrift and frugality were the true values and consumption with abandon was bad. [2] There was a huge rise in culture, leading to economic and social changes. The development of popular culture included the rise of literature, radio, music, dance, theater, sports and recreation, art, and motion pictures. In order for corporations to make money, they produced things related to the rising popular culture.
-They would all become rich and poverty would just go away (Words of President Calvin Coolidge) Doc C: John T. Raskob, a well-known economist, told people to buy more stocks and in invest in banks and you’ll become a millionaire. -The chart in document K, shows that 20% of the income goes away if they listen to Raskob’s advice to fifteen dollars in the bank every month. When the banks failed, those people lost all that was in there. Doc G+H: With the new types of credit, margin and installment, millions were buying things they didn’t even have the money for. -They would take out a loan from the bank, but they could never pay them back and this hurt the businesses too
Since 1991, gas prices were maybe close to two dollars even for a gallon. A whole decade and some years later, gas prices are roughly $4.50 a gallon. These ridiculous jump in numbers have brought the value of currency down. Economy is bad, insurance policies went up, and people become more irritated as these absurd state of affairs keep happening. What is just as preposterous is how the upper, middle, and working classes differ in cultures because of their financial circumstances they find themselves in.
The problem with debt is there is an interest payment that must be paid. Using the above example, the country's benefit from the GDP minus the deficit was $800 billion but the interest on the national debt is $20 billion. The country loses another $20 billion from its GDP bringing the net to $780 billion. These losses affect every tax payer as more tax dollars go to pay for what the country loses in GDP dollars (The Spectrum Group,
We have downfall and then we pick things back up and everything gets better. But , just when things get better, it happens to get worse again. Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars.
The U.S. government has stolen trillions of dollars from future generations of Americans, and we continue to add well over a hundred million dollars to that total every single day. The 59 trillion dollar binge that we have been on over the past 30 years has fueled the greatest standard of living the world has ever seen, but this wonderful life that
Poverty in the richest country It is ironic that hunger and poverty still persist in the world’s wealthiest nation. About 58.5% of Americans spend at least 1 year living below the poverty line. There was about 643,000 sheltered and unsheltered homeless nationwide in 2009. In 2011 about 46.2 million (15.0%) Americans lived below the poverty line. This was more than 15 million people in poverty, than in the year 2000.
In the book Outsourcing America: Wages in developing countries such as India and China are 10 to 20% of comparable U.S. workers, and there is a nearly endless supply of educated underemployed workers in those countries. And it is much cheaper to live in the developing countries. For example, the cost of living in India or China is one-fifth that of the United States. (Hira
The New Deal led to a huge change in American economy at the time. The amount of unemployed people was halved. But the national total of personal income fell by $13 billion, this shows how the money in the economy was spread around the people in a fairer way than in my opinion at any time in American history. Unfortunately, many black people and extremely poor people stayed poor and barely improved their life quality at all throughout this time despite Huey Long’s efforts. Overall, the New Deal did improve America and its prosperity.