By Mac Slavo – SHTFplan.com
It is clear that the economic realities falling upon the masses in America are driving us towards a crisis point.
Even with substantial government subsidies, the bottom 10% of Americans are beyond struggling, spending more than 60% of their meager incomes on the bare essentials. According to the latest official numbers, the poorest in the United States are spending 42% of their income on housing and another 17% on food, statistics that are unsustainable for individuals and families.
The Wall Street Journal reported:
For many Americans, the rise in food and housing prices is a tough squeeze. That’s because—even in an era with low overall inflation—low-income Americans spend a disproportionate share of their money on food and housing.
New data from the Labor Department show the extent of the discrepancy. The bottom 10% of Americans, by income, devote 42% of their spending to housing and an additional 17% to food–nearly 60% of their total spending, according to the Consumer Expenditures Survey. By contrast, the wealthiest 10% of Americans dedicate only 31% of their spending to housing and 11% to food–closer to 40% of total spending.
Contrary to perception, not all food and housing is covered by the welfare state, with many lower class Americans paying out all their wages just to get by with the basics – leaving scant to nothing for everything else.
Take a look at this chart based on Labor Dept. statistics:
The richest spend less, proportionally, on food and housing, as do the upper half of Americans, who average less than a third of income on homes and only about 11-13% on food.
By contrast, the world’s poorest billions, who often live on less than a dollar a day, typically spend 50% of their money alone on food for sustenance, putting prosperity even beneath the dream level. Not surprisingly, most of these people live in unstable, chaotic and often war-torn regions.