140 million tax returns in the latest data:Poor American

Tax returns broken down further

Out of roughly 140 million tax returns in the latest data, 92 million had AGI of less than $50,000. Couple this with Social Security data which is based on raw W2 income and we find that the typical American worker is pulling in $26,000 a year. Is this giving you a better perspective of wages in the United States?

It isn’t the case that those at the very top are increasing in number in a sizeable level, it is that the few at the top are getting wealthier and wealthier because of a:

-1. System favoring lobbying even if it is negative for the overall economy (which it is)

-2. A system where Wall Street speculators pay less on their taxes than regular households

-3. A government for the banks and run by the banks

-4. A financial system focused on short term profits instead of long term sustainability

-5. A system that bails out the wealthy and forces the losses on the public

This is unfortunately the way the system is tilted at the moment. You have high frequency trading that is all about making a quick buck on mini trends. What about charging a surcharge on every transaction? Let the hedge funds go wild but they will need to pay for it. The poor buy and hold investor stands no chances against these Wall Street gamblers.

The disappearing middle class

Another troubling data point was found in the Social Security data showing an entire decade of wiped out wage growth:

Source: Social Security, Reuters

Since the recession hit in 2007 actual pay has been decimated. The median per worker wage for Americans fell from roughly $27,000 in 2007 to $26,250 in 2010. This is in nominal terms so inflation is eating away even more and more at the middle class as the Federal Reserve continues to bail out the banking sector.

It is rather clear why the press doesn’t want to cover this. They want to keep people spending and believing in the financial system even though it is completely rigged. Why bring this up? Yet as we reach peak debt situations around the world we have tough decisions to make.