Widening Wealth Divide: The Poor Get Poorer, and the Rich Get Richer
Updated March 2023
Presenting a disheartening revelation: Approximately 10% of the US population belongs to the underclass or the undeserving poor. This fact is particularly shocking, considering the US’s status as a first-world country. With so many individuals facing hardships, it raises the question of why we engage in unaffordable wars, global policing, and providing aid to nations deemed unworthy.
Moreover, the following data indicate that the situation is poised to deteriorate further. While the official unemployment rate is 9.9%, many believe this figure is grossly inaccurate. The actual rate likely falls within the range of 18% to 20%, with certain regions experiencing rates surpassing 25%.
The impact of foreclosures is another concerning factor. Although there may be improvements in home sales, these improvements can largely be attributed to the government’s $8,000 credit for first-time homebuyers. In 2009 alone, around 3 million homes were foreclosed upon, and according to www.Realtytrac.com, this number could rise by an additional 3.5 million in 2010. If we consider strategic foreclosures as well, the outlook appears even bleaker. Full Story
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Number of Americans on Food Stamps Soaring
As reported by Reuters, approximately 40 million Americans rely on food stamps, serving as a stark reminder of the widening gap between the affluent and impoverished, with no apparent resolution in sight. Full Story
The Department of Agriculture reveals a startling statistic: 1 in 8 Americans rely on government assistance for basic sustenance. Take a moment to absorb this fact; we are not discussing a third-world nation but the United States itself. The unemployment situation clearly indicates that the reality is far grimmer than it is portrayed.
Moreover, it is crucial to acknowledge that certain jobs are unlikely to return. We explored this topic in a recent article. High unemployment levels are here to Stay.
Growing Inequity: The Poor Sink, the Rich Swim
The thriving success of Dollar Tree, Wal-Mart, Sam’s Club, and other major warehouse clubs serves as an indication that challenging times are upon us. Once again, it reaffirms the growing disparity between the affluent and the underprivileged.
According to the latest census data, approximately 35 million Americans live in poverty.
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More evidence that the divide between the wealthy and the poor grows. In December 2008, 22.9 per cent of the unemployed had been out of work for at least 27 weeks. A year later, that portion rose to 39.8 per cent. That translates to having about 4 per cent of the total civilian workforce categorised as long-term unemployed.
Average Number Of Weeks Individuals are Unemployed
In December, the average duration of unemployment for individuals was 29.1 weeks, a significant increase compared to the onset of the recession two years prior, where the average unemployed person had been jobless for 16.5 weeks. Full Story
Lingering Hunger in 2023 Amplifies Growing Wealth Gap
In support of the notion that the rich continue to prosper while the poor face increasing hardships, recent data from the U.S. census highlights the persistent issue of hunger even in 2023. Although there has been some improvement in hunger rates across America compared to a month ago, food insecurity remains far from returning to pre-pandemic levels. As per the census data, households with children reported the lowest levels of self-reported food insecurity since the pandemic’s onset.
While positive economic indicators such as substantial job numbers and stronger economic growth align with these improvements, the enrolment in food stamps remains significantly higher, with a staggering increase of 2 million compared to the previous year and 6 million more than in 2019. Furthermore, food banks continue to witness an overwhelming demand surpassing pre-pandemic levels. Washington Post
Conclusion
The gap between the rich and the poor continues to widen, perpetuating the unfortunate reality of “the poor get poorer, and the rich get richer.” Despite decades of efforts, there seems to be little change. The underclass, consisting of the undeserving poor, is expanding as a distinct social group, with many individuals formerly belonging to the middle class.
Considering the persistently high unemployment rates, this trend appears likely to endure for some time. In many cases, such circumstances could have been avoided if individuals had chosen to live below their means, saving the surplus and investing it wisely in secure ventures. For instance, they could have considered high dividend-yielding stocks, bullion investments, high-quality technology, or commodities-based stocks. Unfortunately, instead of opting for prudent financial decisions, many individuals opted for a lifestyle far beyond their means. Regrettably, they are facing the consequences of their lack of foresight. However, avoiding generalizing and attributing this behaviour to everyone is essential.
Originally published on May 15, 2015, this article has undergone several updates over the years, with the most recent update in March 2023.
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