This Housing and Banking Crisis Is Caused By Wage Stagnation

[Yavin4]

Because wages have been stagnant for the middle class since the 1980s, people have had to rely on credit to approximate a middle class lifestyle, which consists of a college education, housing, personal transportation, child rearing, healthcare, etc. Sure, it's easy to blame prolifligate spending on the crisis, but sober analysis has shown that people need to borrow just to have a normal life.

In our parents and grandparents generations, they formed unions to fight for wages and benefits, cost of living adjustments, pensions, etc. They were able to purchase their housing because they held steady paying jobs, and their healthcare coverage was paid by their employers.

You cannot have a middle class nation based on credit.

[BlueJac]

1. I agree n/t

[DJ13]

2. I've been saying this since 2006 on other boards

You wouldnt believe the venom it elicits from the kool aid drinking Republicans.

They honestly all think one day they will become rich enough not to worry about getting hardly any real wage increases in nearly 30 years (after inflation).

K&R!

[MercutioATC]

3. That's one of the contributing factors...

...but there are many others.

We also have appreciably "better" (at least, more expensive) lives than our grandparents did. Homeownership in the 1930's and '40's was about 45%. It's now 68%. Private automobile ownership is higher. We have far more "convenience" items than our grandparents did. Less than 50% of them completed high school while our graduation rate is roughly 85%.

[Skink]

4. Wages and median incomes have been declining for 30 years.

except at the top which skews the numbers. Meanwhile basic human needs like electricity and rent have skyrocketed.

[MercutioATC]

5. Agreed, but our standard of living has increased, too.

It's not really accurate to compare our standards to those of our grandparents.

[Yavin4]

10. So Has Our Productivity

which has outstripped our income. We produce better, faster, cheaper, and higher quality goods and services than ever before, but we have not financially benefitted from it.

Let me give you an example, in the 70s, I would go with my mother when she cashed her check on Fridays. This was before ATMs, online banking, and longer baking hours. She would stand in a line that took about 1 hour for her to cash her check.

Today, we have direct deposit, online banking, ATMs, and banking hours on the weekend. Routine banking transactions take seconds to complete, and often without human involvement.

But who has financially benefitted from this increased productivity? Not people like my working class mom.

[NashVegas]

7. Yes. Stagnant Wages + Granite Countertops. We Must All Have Granite Counter Tops

For resale value.

[Yavin4]

9. We're Also Far More Productive Than Our Grandparents and Parents

However, our incomes have not kept up with our productivity.

Private auto ownership is higher because mass transit funding has evaporated. In 90%+ of America, you have to have a car just to go to work.

Homeownership is higher largely because of easier access to debt and govt subsidy through mortgage interest deductions.

Given the technological advancements that we have seen and our increased productivity, our lives should be far more financially secure than it is.

[anonymous171]

6. Unions are bad for the worker.

If we don't suck up to the corporations, they won't give us jobs. Unionizing only infuriates them even more. Also they reward mediocrity and hold the individual back. Ayn Rand told me so.

[Still Sensible]

8. It is an incredibly important contributing factor. n/t