How the average American became a debt slave
After real money and real savings left the economy circa 1971, GDP growth rates fell. Wages atrophied. And now, for the first time in 35 years, American business deaths outnumber business births.
The body economic grew soft and mushy – unable to hold itself erect or to stand on its own two feet. Thenceforth, it needed the crutch of increasing credit.
The new credit-based monetary system meant that Americans had less real wealth. But until 2007, they could still get what they wanted by borrowing. Few noticed that they were borrowing from the company store and becoming slaves to their credit masters."
*Government and its cronies in the banking sector created money ex nihilo. This money cost them nothing. Still, they lent it out just as though it were real savings.
The typical American took the bait. He bought a house. He bought a car. He had a nice steak dinner and paid with a credit card.
Now, he was no longer a free man, in a free economy with real money in his pocket. He was a slave to the credit system. And he needed to work hard to keep up with it.
The feds got the money for nothing. But he had to pay for it. Most often, he couldn’t pay off his debt. So, he became a debt serf – beholden to his masters for his home, his transportation, his education, his health care… and even his food."
Here are the numbers from the Social Security Administration:
• 39% of American workers make less than $20,000 a year
• 52% of American workers make less than $30,000 a year
• 63% of American workers make less than $40,000 a year
• 72% of American workers make less than $50,000 a year
These flabby income numbers are also the result of the regulatory policies and artificial money that has been drip-fed to the American people over the last 44 years."
http://thecrux.com/bill-bonner-what-you-should-know-about-the-american-dream/
