The Coming Collapse of the Middle Class

silverharp

Belfast wrote: »

I have no problem with women working. I have a problem with women being forced to work by the Planning permission turning house into a pyramid scheme. In general more women look after children than men, but this is not always the case. In some case men may chose to stay home and look after children.To put in in more political correct language families should not have to both parents working just to provide for a basic need like housing.

Have you read your Kropotkin?
Not real a fan of Anarchist communism.
I am more into Milton Friedman and Thomas Jefferson.
I am mixture Classical liberalism and free-market anarchism.

I wouldnt look at this though the prism of planning permission as countries like Australia and Canada have housing bubbles and I assume more efficient planning systems. I do agree with you general point though, looking at the US, the standard of living of middle class people has dropped since the 1960's, where one salary was sufficient, now it takes 2 salaries, 40 year 100% mortgages, and read below to see whats starting to happen now. the ultimate cause is a debasement of the money supply. inflation always screws the middle and lower class and transfers wealth to the rich and the % merchants.


http://www.globaleconomicanalysis.blogspot.com/

Pawnshop Society

A telling sign of overconsumption can be seen in the now booming pawnshop business.

Carin Dillingham handed over her watch to the pawnbrokers at Society Hill Loan as if she were giving up one of her bones.

The 30-year-old bookkeeper stood pregnant, broke and sad under rows of pawned guitars hanging like curing hams from the ceiling of the ragged South Street shop. She got a $20 loan for her $200 Bulova, a gift from the Harley-Davidson Co., where she used to work.

"It feels so weird," said Dillingham, accompanied by her fiance, Pat Lapetina, 35, an unemployed ironworker doing painting jobs on the side. The couple recently moved to South Philadelphia from Florida to build a life.

"I worked hard for this watch. I'm middle-class, not poor. I can't believe I have to do this to buy gas."

"People are cleaning out their houses of gold, silver, whatever, to get money just to fill their cars with gas," said Nat Leonard, 51, whose grandfather opened Society Hill in 1929. "People are pawning out like crazy." "I've got business owners coming in to pawn things just to make their payrolls," Leonard said, incredulous. "I've never seen that before."

"Upper-income people are in pawnshops nowadays, needing money right away to meet payments," said Bill Stull, chairman of the department of economics at Temple University's Fox School of Business and Management.

"We are in an economy in which many people are living right at the margins, even middle- and upper-income people. They have little savings, they've borrowed so much, their credit-card bills are high, and their house values are going down."

Over at Carver W. Reed & Co., a pawnshop at 10th and Sansom Streets since Lincoln was president, more and more higher-echelon people are filing in, owner Tod Gordon said.

"The upper middle class is feeling the crunch like never before," he said. "They're bringing in diamonds and gold to pay for margin calls on stocks. There's a feeling of despair.

And the shop is holding 30 guitars, worth $170,000, that a Grammy Award-winning Philadelphia musician owned. "He bought a bunch of properties right when everything in the economy was hitting the fan," Leonard said. "I feel awful about it. I don't want to sell his stuff out."

Of course, as always, things are worse at the bottom of the ladder.

"I'm seeing people extending their loans, unable to pay back their $100 loans for diapers, food, medicine," said Bob Sink, owner of JR Auto Tags & Pawnshop in Bristol Township.

"These folks are making $10 an hour or whatever working at Home Depot and can't cut down on expenses any more," Sink said. "So they borrow against a gold chain or a new tool. The economy is really hurting them."

Also stung are young people, hitting pawnshops in unprecedented numbers.

"We never saw so many people in here 30 and younger," Society Hill associate Damien Robinson said. He spoke as a 22-year-old Neumann College graduate walked out with a $75 loan on her Dell laptop computer. "What are young people going to do for rent now that apartments are so expensive?"

Belfast

silverharp wrote: »

I wouldnt look at this though the prism of planning permission as countries like Australia and Canada have housing bubbles and I assume more efficient planning systems. I do agree with you general point though, looking at the US, the standard of living of middle class people has dropped since the 1960's, where one salary was sufficient, now it takes 2 salaries, 40 year 100% mortgages, and read below to see whats starting to happen now. the ultimate cause is a debasement of the money supply. inflation always screws the middle and lower class and transfers wealth to the rich and the % merchants.


http://www.globaleconomicanalysis.blogspot.com/

I agree with about planning permission is not the only problem. Debasement of the money supply and the resulting inflation is also a major problem.

meathstevie

I agree with the planning permission angle : the planning permission system Irish style has only served one purpose and that is making developpers rich and create unviable one entry/exit housing estates with zero amenities while putting every hurdle imaginable in the way of Joe Public who wants to build their own.

As for the printing money angle : hello ? Any idea why the ECB is so stringent on budget overspending, is so moderate and conservative in it's rate policies and is like a pitbull when it comes to inflation ? Well, exactly to avoid the mistakes that were made in the US and Europe in the 1930's and are still being made every day of the week in the likes of Zimbabwe.

Belfast

meathstevie wrote: »

I agree with the planning permission angle : the planning permission system Irish style has only served one purpose and that is making developpers rich and create unviable one entry/exit housing estates with zero amenities while putting every hurdle imaginable in the way of Joe Public who wants to build their own.

As for the printing money angle : hello ? Any idea why the ECB is so stringent on budget overspending, is so moderate and conservative in it's rate policies and is like a pitbull when it comes to inflation ? Well, exactly to avoid the mistakes that were made in the US and Europe in the 1930's and are still being made every day of the week in the likes of Zimbabwe.

I agree that the ECB is doing a much better job that the Federal Reserve. it is still expanding the money supply just not as fast as the Federal Reserve.

Germany history of hyperinflation was what made the Germans push for a conservative approach when it was setup.

silverharp

meathstevie wrote: »

As for the printing money angle : hello ? Any idea why the ECB is so stringent on budget overspending, is so moderate and conservative in it's rate policies and is like a pitbull when it comes to inflation ? Well, exactly to avoid the mistakes that were made in the US and Europe in the 1930's and are still being made every day of the week in the likes of Zimbabwe.

A pitbull is a bit strong, M3 money supply growth is in excess of 10% at a time when the economy is growing at less then 2%, thats pretty inflationary. Also bear in mind that the euro hasn't been tested during a serious downturn. when part 2 of the credit crises starts, and italy and spain threaten to leave the euro because their economies are falling apart lets see how tough the ECB is then.

Dalfiatach

is_that_so wrote: »

I also wonder why 1962 is a key year

It's the year before the TACA-inspired 1963 Planning Act, which created the rigged and dysfunctional land market and ludicrous "planning" system we enjoy to this day.

At least, I assume that's why he picked 1962.

A lot of what is wrong with the way this country is run has its roots in the 1963 Act. That's the primary cause of poorly planned, poorly delivered, and wildly expensive public projects; expensive badly-built houses in inappropriate locations; and our particular brand of political corruption - Haughey, Burke, Lawlor and (unproven as yet but looking very likely) Ahern.

It all goes back to TACA.