Tuesday, July 5, 2011

The widening gap between the rich and the poor

The June statistics are out and the gap between the rich and poor is the U.S. has reached levels not seen since 1928 just before the great depression.  I recently wrote an article about the gap itself for Helium and linked it through Redgage. I will leave both references below if you are interested.  If you go though Helium, you only click once. If you go through Redgage, you click through twice (and I get paid for both views).   

A writing friend commented to me that she didn't know what the answer was. Her comment started me thinking about long term solutions and short term solutions. I don't know what the answer is either and I know that there are plenty of Washington economists much well equipped to answer than I. But we have to find ways to survive.

In the article, I point out that part of the problem this increasing disparity creates is the inability for the middle class to remain the consumer class that has always driven out economy.  And I think that remains true.  The top 1% doesn't consume enough to drive the economy. After all, there are only so many houses and yachts that one needs.

So, short term survival for the rest of us 99% depends in some measure upon opting out of "consummerism."  It may not be life off the grid, but it is a matter of mindset really.  Creating wealth may be a far cry for some of us, but a realistic plan for getting out of debt is a neccessity if we are carrying debt.  Find a plan that works for you and stick to it.  (More on various tools and methods to come!)

And about this article, if you are not angry yet, please think about getting angry. At least one of the source that I looked at discussed looser lending practices as a means to quell the anger that the middle class and poor feel periodically about this huge gap.