Thursday, September 22, 2011

When Income Drops by 14.5%, Consumer Demand/Job Creation Stops.

This Republican austerity plan of "shared pain" is failing consumers. Putting everybody on the same "level playing field" of low wages, no benefits and job uncertainty, is killing our economy. Here are the sad facts about why demand is non-existent. 
Adjusted for inflation, median household income in the state declined 14.5% between 1999 and 2010, according to U.S. Census Bureau estimates released Thursday.
In the big picture, we're getting killed:
jsonline: The rate of decline in Wisconsin dwarfed the national drop of 8.9% in median household income over the same period.
In Scott Walker's former county, it appears he did little or nothing to stop the pain.
In the city of Milwaukee, the fall in household income was even more alarming - a 22% drop. The median household income in Milwaukee was $32,911 last year … In the 2000 census, the median household income was $42,166 when adjusted for inflation. "Eight to 10 years ago, you didn't fear for your future. You didn't fear for the stock market. There was a little talk about Social Security not being there, but you didn't fear you might not have a house," said Sheri Hyland of Franklin. "Now, you're cutting coupons, shopping at Aldi's. You say, maybe we won't drive that truck and we'll buy a 10-year-old car because gas prices are high," she said. "I'm hoping my health holds out until I'm 95."
So what about all those lazy unemployed freeloaders picking the pockets of hard working Americans? Here one such welfare queen:
Wendy Cole thought she was living the American dream. Cole lost her job in March 2010, and she has been in a downward spiral ever since. She's yet to find a job, despite applying for 200 positions. Her condo is in foreclosure. She lost her health insurance. She signed up for Badger Care, but there are 30,000 people in front of her. She takes her twice-daily medications now once a day, and won't be able to afford a doctor to write a new script when she runs out of refills. And her unemployment ends in November. Her oldest son, just back from Iraq, is helping her with her bills; her middle child moved back in with her because she couldn't find a job; and her youngest has gone to live with her dad. "My biggest fear is the house will sell before I find a job," said Cole, who has bled her 401(k) to survive over the last year and now has enough left to pay the movers, but not rent. "Who's going to rent me an apartment without a job?"

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