People in the USA have grown so accustomed to their middle-class lifestyle that they are trying desperately to keep it during an extended period of shrinking real wages.

Somewhere I saw some statistics to the effect that real wages in the USA have been declining for nearly a full generation now. If that is true, it explains why the Great Depression and the present have some eerie similarities, with people dipping into their savings in order to go on living as they have.

I wonder if this is a potential catastrophe waiting to happen, like a dam that is about to burst. Could the USA become an impoverished nation in a relatively short period of time? A financial crisis might just bring that about. (And that is why terrorism is such a threat to the USA. The physical damage from an attack might not be great relative to the size of the country, but the loss of confidence might shatter the economy.)
Even bush in his recent state of the economy speech said that the wages have been shrinking and that the rich are getting richer...the poor poorer.


person...=news - Google News
WASHINGTON (AP) -- Americans once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression.

The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned, but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4 percent in 2005, and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Depression.



This on the same day Exxon Mobil announced a $39.5 Billion annual profit, the largest in corporate history.
And on the same day Ford Motor Company announced a $12.7 Billion annual loss, the worst in it's 103 year history.

Makes sense. We don't teach things like this in school. In my opinion we should have excercises that role play what happens if you over spend or rely on credit cards. We teach too many topics that do absolutly nothing for the student instead.

I have always held the opinion that if you can't afford something in cash you shouldn't have it. Less a home of coarse. And I'm well ahead of the game because of it.

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If the average person's butt caught on fire I'd be willing to bet the American media could convince them its not in their best interest to put it out.

If I recall correctly, that report didn't include savings such as personal IRA's, 401K's, and the many others.
I seen on the news that when everything is factored in, the U.S. actually far exceeds countries such as China, France, Finland and others in personal savings.

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Anyone who thinks freedom comes cheap, please put the blindfold on and stand against the wall.

Many times I believe Americans will have to take back the country and start a new government.

I agree, kids today are not taught how to save. They are learning from their parents which unfortunately is how too over tax their credit and then file for bankruptcy.

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Anyone who thinks freedom comes cheap, please put the blindfold on and stand against the wall.

Many times I believe Americans will have to take back the country and start a new government.

They are not taught PERIOD.