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Wednesday, March 1, 2023

The Middle Class Is Crumbling


Poor Man Survival

Self Reliance tools for independent minded people…

ISSN 2161-5543

A Digest of Urban Survival Resources


The Core of the Economy--The Middle Class--Is Crumbling


The net result of hyper-globalization and hyper-financialization is the crumbling of the middle class.


“Based on the recent data we got . . . the inflation curve has bent back up.  The months of declining inflation are in the rearview mirror.  Now, we are going to see accelerating inflation . . . and I think before the year is over, we are going to take out that 9% inflation high last year in year over year CPI (Consumer price Index) . 

Neofeudal societies and economies lack a vibrant middle class. This is the defining feature of feudalism and its updated V2.0, neofeudalism: a nobility (based on birth or finance, it doesn't matter) controls the vast majority of wealth, political power and productive capital, all served by a powerless peasantry.

The modern versions of capitalism emerged when a European middle class arose and became powerful enough economically and politically to dismantle feudalism. The fundamentals of the middle class are:

1. A mindset / set of values embracing (as highlighted by writer Peter Frost) "thrift, prudence, negotiation, and hard work."

2. Access to markets and credit so enterprises could be established and expanded.

3. Sufficient education to navigate regulations and the requirements of enterprise.

4. The free flow of labor, capital, goods and services.

Feudal economies lacked these fundamentals by design. All these forces were restricted to enforce the power and perquisites of the Nobility.

Neofeudalism is a trickier beast. Neofeudal economies and societies make a big PR show of being open to new enterprise, but the real-world reality is not so warm and fuzzy: new cartels and monopolies arise in a fierce struggle to stamp out competition and influence regulators to not just enable predatory cartels/monopolies but defend them.

The past 30 years can be characterized by the ascent of capital and the decline of labor. As the chart below shows, wages' share of the economy has been in a 45-year decline. The recent uptick may be a false breakout or it might be a change in trend. It's too early to tell. But in any event, wages--the bedrock not just of the working class but of the middle class--have been chipped away to the tune of $50 trillion siphoned away by capital. (Source: 
Trends in Income From 1975 to 2018 RAND Corporation)

Another mechanism is visible in the charts below showing the Share of Total Net Worth of the top 1% and the middle class, i.e. the households between 50% and 90% (this broad definition includes the spectrum fron lower middle class, households with incomes around the median, and upper-middle class households earning considerably more).

As the chart below shows, the top 10% own the vast majority of income-producing assets:, stocks bonds, income real estate and enterprises. The relative share owned by the middle class is at best modest, at worst negligible.

The key economic dynamic of the past 30 years is central bank-driven credit-asset bubbles which propel the assets owned by the top 10% to the moon. Those who own few such assets do not benefit from these asset bubbles, so their share of net worth (wealth) declines accordingly.

The two primary forces in the past 30 years are financialization and globalization, forces which accelerated under central bank / Neoliberal trade policies into hyper-financialization and hyper-globalizationhyper-financialization constantly inflates ever-larger asset bubbles, enriching the already-rich, while hyper-globalization forces labor to compete with lower-cost workforces globally, effectively transferring wages to capital, which can optimize labor / regulatory /credit / currency arbitrage to maximize corporate profits at the expense of the bottom 90% who depend on wages for their income rather than capital.

The most striking feature of the fortunes of the top 1% and the middle class is clearly visible: the share of total wealth of the top 1% soars to new heights in every bubble, while the share of the middle class dives.

The share of the middle class only rises when asset bubbles pop. This is the result of the top tier of US households owning the vast majority of assets: as bubbles pop, those who own few assets suffer far less than those who own most of the assets that bubble higher on the back of central bank stimulus and easy credit.

When the bubbles inevitably pop, the share of the top 1% crashes as the share of the middle class makes a temporary gain.




American life satisfaction is at the lowest level in 50 years…

Why Americans’ confidence in the government, big business, and the media are at all-time lows…

And why an unprecedented 58% of Americans believe “America’s best years are already behind us.”

Many of the things you take for granted right now are due for a big disruption in the months and years ahead.

Journalist Alex Newman, author of the popular books “Deep State” and “Crimes of the Educators,” predicted at the beginning is this year that the Deep State demons will have one crisis after another to keep people confused and afraid.  The latest crisis is the economic and ecological disaster in East Palestine, Ohio.  Newman says expect many more disasters and explains, “All across the country we are seeing very bizarre things happen. 

 Factories and chemical plants going up in flames, food processing facilities blowing up, airplanes crashing in mysterious ways, and I think we are heading into an era of really serious crisis.  Last summer, I was putting together the wave of crises that the Deep State was preparing for us, and one of the terms I used was ‘polycrisis.’  Then, right before the World Economic Forum meeting this year, they actually put on their website is 2023 the year of the polycrisis?  Of course, it will be the year of the polycrisis.  I think we are prepared and being groomed for cyber-attacks, currency crisis, economic crisis and, of course, Russia/Ukraine and China/Taiwan.  I think all of this is going to be used for a series of never-ending crises until we are ready to give up our freedoms

Gaslighting is a form of psychological manipulation.

It’s actually a form of abuse… and describes when someone is telling you so many lies that you actually start to question your own sanity!

So that’s a bold statement to say that the government is gaslighting Americans…

As you’re about to see, your Social Security benefits will likely be slashed.

Your taxes are probably going way up.

Many of your investments are likely to continue falling.

 The auto-industry company Edmunds recently reported that more than half of American households couldn’t even afford a used car at current prices.

And all those folks who bought NEW cars back in 2020 or 2021… when the government’s stimulus checks were flowing like cheap wine?

Meaning even if you think you’ve saved enough money to retire… you’re probably going to need way more money than you thought.

All these things you’re seeing on TV and online – about the fastest-growing inflation in history… the talk of recession… the bear market in stocks – these are all just symptoms of a much deeper problem in America.

Ways To Save With Rubbing Alcohol

We explore some ways to save with rubbing alcohol around the house. You’ll find it can replace some of your expensive store-bought cleaners.


DIY Pancake Mix and Homemade Syrup Savings

Looking to cut food costs? Cook from scratch as much as possible to save as much as possible. Start by making your own pancake mix and homemade syrup instead of buying the pricier boxed and bottled stuff.


Make Frugality a Family Affair

Most kids certainly like to spend money. Enlist your kids in the fight to save money and make frugality a family affair.

Hackable Humans Obliterate Privacy?

 The annual World Economic Forum meeting 2023 session on “Ready for Brain Transparency?” opened with a short video showing a dystopian scenario where employees’ brainwaves were not only decoded to determine their performance in the workplace, but also to determine whether they participated in illegal activity, reported website As dystopian as that sounds, in her presentation, Nita Farahany from Duke University explained that the technology to decode brainwaves already existed and was currently being rolled out in some use cases…

How Biden's 'Green Energy Economy' is Benefiting Left-Wing Billionaires

Much of the Middle Class is getting screwed by scarcity and high prices!


The Uselessness, Risk, and Extreme Danger of Physical Mass Protest As a Solution to Tyranny


 [Recipe] The Best Pioneer Survival Food

3 basic ingredients are all you need to make this long-lasting survival meal...


That’s also seen action in WW1, as emergency ration for shipwrecked sailors, and a homestead essential in times of famine.


So don’t delay...


Click Here to Discover ’The Best Pioneer Survival Food’ <<


Why do you need an emergency radio?


·         . Just 60 seconds of hand cranking provides more than 45 minutes of radio

Radios: Having a couple small, portable radios on hand is going to be a must. If there’s a disaster, you’ll need to listen to the radio to get news about what is happening around you….grab a TacRight Emergency Radio:


4Patriots Patriot Power Cell Solar Phone Charger

USE THIS solar gadget to survive an emergency! 

In 2022 alone there have been over 70 attacks on the power grid with reports of six in Florida, five in Oregon and Washington.

And according to national security experts, this trend is only going to continue.

As America's power grid comes under increasing attack and/or disruption…

THIS is your lifeline in a crisis.

It's peace of mind that you can...

·         Call family and friends in an emergency

·         Signal for help from first responders

·         Stay connected to critical weather updates





Free enterprise, limited government, individual freedom!


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Tom said...

Most losers will simply bury their head in the sand-like Mad Magazine's "What-Me Worry?"

Renee said...

Agree with Tom-most people are idiots.

Samuel said...

America's Middle Class have become serfs...

Cindy said...

I have read that consumers are spening like crazy, credit card debt at highs not seen since the '08 crash under Obama.

Ed said...

Americans are out of cash.

Consumer debt is at an all-time high, and personal saving is lower than it's ever been.

According to the Wall Street Journal, even wealthy Americans could soon suffer "more than usual."