Doesn’t it feel like you’re getting poorer? That’s because you are, unless you’re super rich. The median net worth of a typical US household has shrunk 30% in the last ten years.
What’s the explanation for this? The usual culprit for everything is freedom, but we haven’t seen an explosion in economic freedom in America since 2004. On the contrary, in 2004, the US was 6th in the world on the economic freedom index; now we’re 12th. Think of all the labor saving devices that have been invented since 2004, yet the average worker is getting decimated.
In 2008, Congress bailed out the banks and ever since then, the Fed has been quietly bailing them out every month with trillions of dollars in so called “quantitative easing” (counterfeiting). The Fed has been writing a check for trillions of dollars to Wall Street and the big banks every year. It’s not rocket science. When you counterfeit money and give it to the ultra rich, they get ultra richer. Meanwhile, when they spend their counterfeit money in the economy, consumer prices rise. This makes us all poorer because wages lag behind the consumer price level. This is why all the packages in the grocery store are getting smaller.
Is this the hope and change that Obama promised? Soft fascism? Crony capitalism? He’s in on it, yet people still believe in him because he’s black, I guess…or he likes gays? Is that a good enough reason to let someone rob you blind? It’s only getting worse, but I don’t see any outrage on social media over it. How long are we going to let politicians and their friends rip us off for 3% of our net worth every year? How long are we going to bicker about divisive social issues while we let ultra rich bankers and government contractors make off with the value of our money?
Americans are suffering under the misapprehension that we are so rich that we can afford petty arguments over things that will never change and don’t matter. We’re not that rich. Lose 30% of your net worth every decade for the rest of your life and see how rich you are.