Economic Mobility: Is The American Dream Alive And Well?

[cato2]

ECONOMIC MOBILITY: IS THE AMERICAN DREAM ALIVE AND WELL?

The report was co-written by John E. Morton, managing director of Pew’s Economic Policy Initiatives and director of the Economic Mobility Project and Isabel V. Sawhill, Senior Fellow at the Brookings Institution and a Principal of the Economic Mobility Project. It includes analysis led by a research team at Brookings and outlines what economic mobility is, why it matters in today’s economy, and why it is important for policy makers to focus on mobility as part of the ongoing national economic debate.

http://www.economicmobility.org/asse...0Report.pdf%20

[BrianK]

I looked for but didn't see a break down of how manufacturing in America has changed.

The article did point out that in the last 30 years that it went from a single parent [usually the father] able to support a household to taking two incomes now. I attribute that change to technology replacing the need for "hard work". The less manual labor needed has led to factory closings & faster more productive manufacturing.

Manufacturing typically hired the children of a "hard worker". Those kids came into the work force alongside a parent that would soon retire. That was at a time when wages & benefits grew. Now however there are less manufacturing plants with technology doing the work. Then under that system the dream was attainable. Now people are numbers that are replaced by other numbers, that can be brighter & willing to "work smarter" for less money.

[Shooterman]

Originally Posted by BrianK

I looked for but didn't see a break down of how manufacturing in America has changed.

The article did point out that in the last 30 years that it went from a single parent [usually the father] able to support a household to taking two incomes now. I attribute that change to technology replacing the need for "hard work". The less manual labor needed has led to factory closings & faster more productive manufacturing.

Manufacturing typically hired the children of a "hard worker". Those kids came into the work force alongside a parent that would soon retire. That was at a time when wages & benefits grew. Now however there are less manufacturing plants with technology doing the work. Then under that system the dream was attainable. Now people are numbers that are replaced by other numbers, that can be brighter & willing to "work smarter" for less money.

I would suggest the purchasing power of the 'dollar', once it was unshackled from a finite 'specie currency' has all but demoted the dollar to worthlessness, and has played a large role in the phenomenon you have posted, Brian.

The dollar, in terms of purchasing power, has deteriorated about 95 to 96% since the passage of The Federal Reserve Act in 1913. It has lost about 40 % of it's purchasing power just since 2000. We are a debtor nation, relying on the good graces of foreeign central banks to keep our lifestyles afloat, to support the entitlement programs everyone thinks is his due, and to support wars that are never declared as more than police actions or the exportation of democracy, ( using taxpayers dollars to shore up worthless regimes worldwide in the process ) and in effect, with the exception of WWII, having traveled the road to imperalism since Mr Lincoln was President. Wars are much more difficult to finace with a specie currency that they are with worthless, or soon to be, paper dollars, so therefore, all governments love paper money Add to the mix we have ceased to be a nation of savers, ( I believe I saw somewhere that the rate was a -1 or -2 % ) instead pushing for the 'brass ring' on credit that saps the energy of the dollar.

Technology is wonderful but everyone can not be bright enough to handle the change in technology, ergo, wages fall, coupled with the slow death of losing jobs to Illegal Aliens and the outsourcing of jobs to lower wage countries, we are in store for a world of hurt at somepoint down the road. I may have other things on my plate at that time ( as standing before the Big Man Upstairs ) and it may not matter to me, but I fear for my progeny.

[BrianK]

Originally Posted by Shooterman

I would suggest the purchasing power of the 'dollar', once it was unshackled from a finite 'specie currency' has all but demoted the dollar to worthlessness, and has played a large role in the phenomenon you have posted, Brian.

The dollar, in terms of purchasing power, has deteriorated about 95 to 96% since the passage of The Federal Reserve Act in 1913. It has lost about 40 % of it's purchasing power just since 2000. We are a debtor nation, relying on the good graces of foreeign central banks to keep our lifestyles afloat, to support the entitlement programs everyone thinks is his due, and to support wars that are never declared as more than police actions or the exportation of democracy, ( using taxpayers dollars to shore up worthless regimes worldwide in the process ) and in effect, with the exception of WWII, having traveled the road to imperalism since Mr Lincoln was President. Wars are much more difficult to finace with a specie currency that they are with worthless, or soon to be, paper dollars, so therefore, all governments love paper money Add to the mix we have ceased to be a nation of savers, ( I believe I saw somewhere that the rate was a -1 or -2 % ) instead pushing for the 'brass ring' on credit that saps the energy of the dollar.

Technology is wonderful but everyone can not be bright enough to handle the change in technology, ergo, wages fall, coupled with the slow death of losing jobs to Illegal Aliens and the outsourcing of jobs to lower wage countries, we are in store for a world of hurt at somepoint down the road. I may have other things on my plate at that time ( as standing before the Big Man Upstairs ) and it may not matter to me, but I fear for my progeny.

I think your assessment adds to the bigger picture the [think tanks] are trying to get a handle on.

I noted in the article that 33% believe gov. is responsible for reducing the differance in income levels. To believe gov. is responsible at all amazes me.

That point alone should be looked into deeper by the [think tanks] that have the time and resources to find out why.

I wonder what people in their 30' & 40's think about. Why minamal to no savings? Investment or 401k to assure a better retirement. What is the expectation? Has the system slanted towards depending on the gov. gone so far as to lull them into believing that America will be positioned to support them in their old age? That additional social programs will be in place for them if they vote a particular way?

[Shooterman]

Originally Posted by BrianK

I think your assessment adds to the bigger picture the [think tanks] are trying to get a handle on.

I noted in the article that 33% believe gov. is responsible for reducing the differance in income levels. To believe gov. is responsible at all amazes me.

That point alone should be looked into deeper by the [think tanks] that have the time and resources to find out why.

I wonder what people in their 30' & 40's think about. Why minamal to no savings? Investment or 401k to assure a better retirement. What is the expectation? Has the system slanted towards depending on the gov. gone so far as to lull them into believing that America will be positioned to support them in their old age? That additional social programs will be in place for them if they vote a particular way?

My friend, even with private investing and 401s, If you are not getting at least 7% return on your money, you are losing money. That simply means inflation, the evil tax we do not pay attention to, is running at a 6 to 7% clip.

Remember this cardinal rule, the more money the FED prints, the less the dollar value in the billfolds and pocketbooks of Americans.

Couple with this the impending retirement of the Baby Boomers, and the crunch will be hard. Higher retirement ages and reduced benes are definitely in store down the road.

I believe in one more cardinal rule; if government is involved, the taxpayers and consumers, of whom we all just about fit the bill, will get futched in the long run.

If gas goes to $5, $6, or $7 a gallon, there will be even more unhappy folks. By that time, having a full blown crisis to govern by, the Congresscritters will be in hog heaven. Management by crisis is the norm and if there isn't a crisis, one will be invented.

Easy Money, Easy Credit, and Easy Pay. The Big Easys. ( don't even know if that is a word. if not, I just coined it.

[BrianK]

Shooterman you & I have the advantage in this thread of being able to look back and compare. It's possible that 30 & 40 age range is so used to how life is now that it seems normal to them.

Mentioning gasoline pricing is a good demonstration of how our economy can be seriously affected. Project that out another 30 years just about the time the 30 & 40 somethings now will be ready to retire. We already know the social freebies enjoyed now will have to be carried by 2 or less on a payroll. Then add soc. sec. & medicare.

I think it's going to get UGLEEEEEEEEEEEEEE.

Given the demonstrated lack of ability of politicians now to make decisions that will affect long term well being future politicians if of this same ilk are not going to be able to begin managing a crisis.

[leobold1]

Gas prices 10 years ago was 99 cents per gallon. And that was tops. Now, we go above 4 dollars and we don't complain as much as we did with 99 cents.

It took 80 some years to get to 1 dollar per gallon, and less than 10 to get to 4 dollars per gallon.

30 years from now...12 dollars per gallon? Europe above 20 USD per gallon?