Is Economic Collapse Already Here?

[Doc Safari]

I usually look askance at articles like this, because a lot of them either rely on tinfoil hat theories or are ultimately trying to sell you something, but this one was pretty compelling:


https://www.zerohedge.com/news/2018-...-collapse-here

United Way has done a study on a group of Americans they call ALICE: Asset Limited, Income Constrained, Employed. The study found that this group does not make the money needed “to survive in the modern economy.”

Between families living below the poverty line due to unemployment or disability and ALICEs, the study discovered that 43% of Americans were struggling to cover basic necessities like rent and food

Some states have more families living in ALICE levels than others. The 3 states with the most families barely surviving paycheck to paycheck are California, New Mexico, and Hawaii. Each of these states saw 49% of families struggling. North Dakota had the lowest ALICE percentage with 32%. You can check how your state fares right here. Despite the lowest unemployment rate since 2000, families all over the country are barely getting by.

This is just the beginning of a looming collapse in America.

Remember back when Greece began to collapse? It was the same thing – no one could afford the basics and things went downhill pretty quickly from there. It really hit the papers when a strict austerity program was instituted and culminated when a “bank holiday” shut down the financial system for an entire week.

There are similar stories in the UK (where the taxpayers can still fund a 45 million dollar wedding but poor families can’t afford to eat every day), Argentina, and Cyprus.

Jose wrote for us about the warning signs that the collapse of Venezuela was approaching and they’re eerily familiar. Food rationing began, the cost of medical care became prohibitive, the health insurance system began to fail, and people began to make difficult choices about rent versus food.

I don’t know how it could be any more clear than the fact that nearly half of the American population is also making that decision each month.

My take: I live in one of the states he lists (New Mexico). I don't doubt him for a minute based on what I've seen.

[markm]

I trip out at the new generations of young people who have nothing, Uber here and there. The idea of buying a car is not even possible.

[JulyAZ]

I trip out at the new generations of young people who have nothing, Uber here and there. The idea of buying a car is not even possible.

I’m a millennial, who has tried to buy a car on multiple occasions, I cannot get approved to save my life. Despite a good income, and the up until recently no dept or other bills, yet I had no problem buying a new house at 2% fixed interest.

I also have never been able to get a credit card.

It’s hard for us, most my friends are in the same spot, we make our money and no one’s willing to help us out so I see a lot of my friends go out and do dumb shit with their cash because they can’t invest it where it counts.

[soulezoo]

And yet, here in CA, I see both sides. Families that can't make it, and at the same time young folks all sporting signs of wealth... fancy vacations and cars and eating out all the time. My wife and I who do well can't afford much of what we see... just don't understand.

Anyway, to the point of the OP, no. We're not that close yet. On our way however, yes. We'll be behind Europe in that collapse. Watch them first.

[RetroRevolver77]

To many people don't budget or bother with trying to live in survival mode.

[Toyoland66]

Interesting.

I work in the construction industry, and we are facing a labor shortage, there is more work than people to perform it which is driving up costs. It makes me think that people are either unmotivated, unskilled, or both. At a minimum, people make bad decisions, and go to school to get stupid degrees that aren’t worth the debt they accrue to obtain them. I got a BS degree in construction management 12 years ago and have never been unemployed, I guess it also helps that CO has a strong economy right now.

I think the problem is more social than economic but I’m no expert...

[FromMyColdDeadHand]

And when interest rates rise and debt coverage gets more expensive and housing prices get under pressure. We don’t have the same problems as Greece, but when interest rates go up, servicing all the debt is going to squeeze things hard in the budget.

I try to live in my means, but the other side looks at all the idiots- too many idiots- and the whole thing is going to tumble at some point because of too many bad choices. Why should I keep capital when it will be taxed or taken, while all the idiots spent theirs.

We need capital to take less and employment income to take more of the economic pie. The money changers take far too much.

[elephant]

I think the rise of inflation is a direct result of amount of credit given every year.

[Arik]

I trip out at the new generations of young people who have nothing, Uber here and there. The idea of buying a car is not even possible.

Comes down to where you live. In NYC or Center City Philly you're probably better off using Uber. Philly not as much as NYC but still. A few years ago I made the mistake of driving my grandma to NYC to see her dying sister. It was surprisingly ok on the way there. However, on the way back I sat in traffic for 3hrs 1.3 miles away from the Holland tunnel. That's all I had left to go to get out of NY and into NJ and on to the turnpike. I've been there too many times and should have known better than to drive. Should have taken the train.

And every time I have to drive someone to JFK international airport. I just feel like saying F this and walking out into traffic. Between 678, 495 and the belt parkway....I'd rather have my teeth pulled without novacaine

Sent from my XT1650 using Tapatalk

[MegademiC]

Interesting.

I work in the construction industry, and we are facing a labor shortage, there is more work than people to perform it which is driving up costs. It makes me think that people are either unmotivated, unskilled, or both. At a minimum, people make bad decisions, and go to school to get stupid degrees that aren’t worth the debt they accrue to obtain them. I got a BS degree in construction management 12 years ago and have never been unemployed, I guess it also helps that CO has a strong economy right now.

I think the problem is more social than economic but I’m no expert...

This. I’m industrial. We have two open positions, got about 50 resumes, 24 call backs, 6 showed up for competence testing and 4 passed. People just dont want jobs in this area- or they are “too good” for a certain wage. I hear that often from my fellow millenials.

I’m a millennial, who has tried to buy a car on multiple occasions, I cannot get approved to save my life. Despite a good income, and the up until recently no dept or other bills, yet I had no problem buying a new house at 2% fixed interest.

I also have never been able to get a credit card.

It’s hard for us, most my friends are in the same spot, we make our money and no one’s willing to help us out so I see a lot of my friends go out and do dumb shit with their cash because they can’t invest it where it counts.

How old are you? Millenial is a huge range, but ive had zero issues. Im 30 and had a cc since i was 18 or so. Have you tried a devit card to start?