People are way over their heads in debt, and have no way out except bankruptcy which the Republicans have made more difficult and more costly to protect their business interests, but bankruptcies are on the rise.
People on the bottom half just can’t make it any more on their incomes. The median household income is below $50,000. Food, housing, health care and energy are consuming more and more of their incomes.
Add a debt burden that has been steadily growing to this picture, and you see the Big ‘R’ fast approaching.
What the bottom half needs is an increase in income–not just a short-time, one-time stimulus.
Wages have been suppressed and depressed for years. The minimum wage stayed at $5.15 an hour for almost ten years!
Meanwhile, debt in the bottom half has soared. Add to this grim picture growing unemployment and the financial crisis due to the subprime mortgage mess, and you can understand the situation we are in.