Dear reader, if you’ve learned one thing from reading these issues of Profit Confidential, I hope it is this: Don’t buy into the hype created by the rising stock market and the media that the U.S. economy is improving. The economic growth promised by the Federal Reserve and the politicians five years ago is still missing.
The majority of Americans are facing serious financial troubles. Their jobs don’t pay them well or enough. Those who are looking for better jobs can’t find them. Their salaries aren’t increasing, but inflation sure is rising. Many Americans can’t even afford to live in their homes!
And young Americans are in just as bad shape as retired Americans…
According to research by the University of Arizona, half of graduates, after they are out of college for two years, are relying on their parents or other family members for financial support. As per the study, graduates are postponing many of life’s goals, such as marriage, having children, or buying homes, because they can’t afford them. (Source: CNN Money, June 10, 2014.)
In times of economic growth, you have college graduates finding jobs easily. This isn’t happening. In fact, student debt in this country sits at $1.2 trillion, 85% of it guaranteed by the government and 11.5% of it 90-days-plus delinquent or in default. (Source: “$1 Trillion Student Loan Problems Keeps Getting Worse,” Forbes, February 21, 2014.)
But it’s not only college graduates in the U.S. economy who are suffering…
According to the “How Housing Matters Survey” by the John D. and Catherine T. MacArthur Foundation and Hart Research Associates, 52% of Americans have made at least one sacrifice to pay for their rent or mortgage payment over the last three years. Why? Their jobs aren’t paying enough to cover their mortgage/rent payments. (Source: MarketWatch, June 8, 2014.)
Hence, you can see why I say don’t believe the media or politicians when they tell us the U.S. economy is improving. Of the 217,000 new jobs added to the U.S. economy in May (which sounds like a lot), the majority were low-paying retail and food service jobs. In fact, May had the highest jobs cuts in the U.S. economy in 15 months: 52,961 Americans lost their jobs. And the majority of these jobs came from high-wage-paying industries, like computers and transportation. (Source: Challenger, Gray & Christmas, Inc., June 5, 2014.)
Dear reader, this so-called economic “recovery” in the U.S. economy has only been real for a very few: the rich. The majority of Americans continue to suffer economically. Going forward, I am not very optimistic about the U.S. economy. I see more troubles ahead. The stock market you see roaring higher each day is nothing more than a mirage. Be very careful.