10 Myths About Government Debt

Antony Davies, Phd goes through a listing of 10 Myths about Government Debt. For future blog posts, I will attempt to expand on each of these 10 myths. This growing debt is a huge issue, not only for current generations, but for those to come in the future. As mentioned in the video, Dr. Davies does provide a “solution” to handle the Government Debt. It is a must see. Take copious notes.

Cheers,

Robert

Fifty Percent of Americans Earn Up to $33,000 per Year

In this “booming” economy, we are told that jobs are being created, and unemployment is at its lowest levels in decades. Prime facie, this seems true. Consider this: Most Americans earn less than equal to $33,000 per year. This statistic comes directly from the Social Security Administration. Excerpt from the report:

“The “raw” average wage, computed as net compensation divided by the number of wage earners, is $8,383,540,628,515.51 divided by 167,669,326, or $50,000.44. Based on data in the table below, about 67.4 percent of wage earners had net compensation less than or equal to the $50,000.44 raw average wage. By definition, 50 percent of wage earners had net compensation less than or equal to the medianwage, which is estimated to be $32,838.05 for 2018. “raw” average wage, computed as net compensation divided by the number of wage earners, is $8,383,540,628,515.51 divided by 167,669,326, or $50,000.44. Based on data in the table below, about 67.4 percent of wage earners had net compensation less than or equal to the $50,000.44 raw average wage. By definition, 50 percent of wage earners had net compensation less than or equal to the median wage, which is estimated to be $32,838.05 for 2018.”

All that means is this: 50 % of United States citizens earn up $634.62 per week, or less, before taxes. It makes sense why people are extending themselves on credit; the subprime auto lending is expanding, while loan defaults are on the rise. With all the macroeconomic issues, e.g. The Fed printing more money and The Government spending spiraling up to new heights, I wish you good luck saving for retirement.