According to the Social Security administrator, the medium American wage for 2008 was 41,000.00. This means the middle class occupy +/- $10,000 on each side. Lower middle class @ 30,000.00 and upper middle class in the $50 to 100,000 range. By the government statistics "wealthy" would start around $125,000.00. Now this is the medium for all Americans regardless of regional cost of living differences. Obviously $125,000 a year means a great deal more in Lousiana then it does in New York.
http://www.ssa.gov/OACT/COLA/AWI.htmlIt does tend to show a serious discrepancy in wealth accumulation because adjusted for 2008 inflation the $40,000 would've been considered 'lower class' status in the 1950s and 1960s. What this means is that your parents were able to do more with their money (at the medium) range with one working partner then you can do now with two. You can also contrast the personal family debt levels between then and now and see a mathematically smooth function by Big Business, Big Government and the Federal Reserbver to deplete the average American's savings/wealth through the increasing of the money supply. Inflation is the greatest enemy of the common people and the greatest weapon of the elites and politicians. It makes you "feel" wealthier but actually diminshes your purchaing power.
Ironically, in the 1950s you could buy a loaf of bread for a quarter (90%silver in pre 1965 coins). Today, that same silver quarter is worth $3.00 (silver content alone) and that will, ironically, buy you a loaf of bread. What does that mean? Let's take a look.
There are three variables in that transaction.
1) the seller's goods (bread)
2) the buyers goods (silver)
3) the value of the currency (amount marked on the coin)
In 1950 the .12grams of silver (amount in a pre1965 Quarter) was worth to the seller the amount of materials + labor it took to bring that one loaf of bread to market. In 2010, that same transaction with a silver quarter
still holds true except that we have a "currency" (Federal reserve note/coin) that acts as an intermedieary. That FRN has a value assigned to it through a complicated process that continually enriches the elite bankers and continually erodes the value of FRNs you have in your wallet or savings account.
A 2010 quarter has only about 5% of the purchasing power of the 1950's quarter yet the actual commodities changing hands (silver for bread) is consistent. That 60 year disparity has been achieved by increasing the amount of quarters 'currency' in cirulation as well as removing the silver content 'the desired attribute' from the coin.
What this means is that whoever controls the circulation of currency (private Fed bank) plus the lawful composition of coinage (congress) have conspired against the American public for decades.
In a "free" market you can take your silver, or goat, or grains and exchange them with another person for bread, gold, wine, cows, whatever. The transaction happens instantly and both parties leave more or less satisfied. there is no continuing of debt or third party exchange meeded to balance everything out. In the 2010 market you give your FRNs to a seller. These notes come to you (the public) with a debt attached in the form of interest payments. By trading your FRNs to BestBuy for that TV you are giving that seller private debt in exchange for a physical commodity. Now that seller is forced to exchange that FRN debt to another seller to 'reap' the benefit of the primary transaction. We all play hot-potato with the private debt. The debt itself can never be repaid by the American public because the debt requires the same FRNs for payment, this means we have to borrow the same currency to repay the debt, which comes with more debt, which means we have to borrow more...ad infinitum.
The more americans borrow currency to live the more currency needs to be available so the Congress raises the legal debt cailing each year and the Fed Prints the FRNs...this increase of supply dilutes the FRNs you're holding right now and drives up the cost of living. This type of economic culture encourages spending (getting rid of FRNs as fast as possible since they lose value over time) and discourages savings. Your 5% interest bearing savings account will never keep up with the real yearly inflation cost. This means that Americans are almost consripted to have to spend.
Change your thoughts and you change your life. Debt is slavery.