Toemeesleather wrote:When it comes to measuring the combination of unemployment and inflation, it doesn’t get much more miserable than this.
In fact, misery, as measured in the unofficial Misery Index that simply totals the unemployment and inflation rates, is at a 28-year high, reflective of how weak the economic recovery has been and how far there is to go.
The index, first compiled during the soaring inflation days of the 1970s by economist Arthur Okun, is registering a nausea-inducing 12.7—9.1 percent for unemployment and 3.6 percent for annualized inflation—a number not seen since 1983. The index has been above 10 since November 2009 and had been under double-digits from June 1993 through May 2008.
Yes, we're having another Jimmy Carter economy.
From WWII to the very early 70s, the amount of actual "work" required to put food on the table for an entire family was less and less. From that perspective
only, 1972 was the peak of human existence in the United States. I believe that it only required 36.5 hours of work to provide for a household of five. People got married younger and younger. College was still dirt cheap (because so few people bothered applying.) The Federal government had a budget surplus. Motown was booming and Michigan was in it's glory days!
Then OPEC hit in 1973 and this wonderful
American Way of Life trend started reversing. It's been all UPHILL from there.
The mid to late 1970s, kind of marked
the beginning of the end of the one-income-household, for households where the breadwinner lacked a college education. It used to be, that you went to high school, finished (or dropped out), got a labour job at the factory/mill/textile-mill/plant/quarry/warehouse in town and that provided sufficient earning power to pay for the mortgage on the 3-bedroom 2-bath ranch, the one car payment, and put food on the table for a family of five. Then OPEC hit in 1973 (was exacerbated again by OPEC in 1979), with gas price increases we had inflation (a 6% interest rate on a mortgage in 1972 became
16% in 1978), Japan started selling people cheaper cars (that got great gas mileage) cannibalizing a now crime-ridden Detroit that could not convert fast enough, China and Southeast Asia non-union sweatshops started making shit that union men made here in this country (for
one - one-hundredth the price), and that changed everything, forever.
Mills closed. Factories closed. Plants closed. And they remain closed today. Just roam around New England and look at all the boarded up plants and factories that haven't had a single wage earner in them for over 3 decades. Very sad. A major "conversion" happened in this country through the 70s and 80s. Things were not made-in-America anymore. We had the "misery index" instead.
A man couldn't just get a "lifetime job" at age 18 anymore. Marriage was delayed for men (until they finished college) and women became much more choosy of their life partners (holding out for the most educated young men.) This created a
terrible resentment of the working man towards women in still functioning mill towns (that was beautifully dramatized in one bar scene in the 1982 movie
An Officer and a Gentlemen.) This rush/demand for higher-education started pushing college tuition rates to increase by 10-15% per year (and that hasn't stopped!) Office/Professional work increased during the Reagan years, thank goodness. Unfortunately, professional work increases dramatically increased the prices of things that non-professionals needed (and once could afford
back in the day.) If you wanted to support a family of five,
you needed multiples more money as that same 3-bedroom 2 bath ranch that went for $21,000 in 1971 was now $60,000 by 1982 and $119,000 by 1985!
By the late 1980s (very early 1990s), life for the high school drop-out (or high school graduate with no college education) was that of poverty. You could enlist and get $600/month as an E-1. Or, you lived at home with your parents if your parents were good enough to let you stay. You could find jobs but none that provided anywhere near the kind of money to support a mortgage payment on a 3-bedroom house (let alone an entire household.) The only good news is that interest rates on mortgages were now returning to sane single digit level (9.25% instead of 12%.) Unfortunately, those $119,000 houses were now $200,000 or more (unreachable goal on a $6/hour job.) For the labourer wise enough to plan ahead save a little money, he can afford a mortgage on a 1-bedroom condo.
Fast forward to today....
Marriage (for all practical purposes) is non-existent in the inner city. It has simply ceased to exist. Read that moving and haunting book
American Dream where you will see three generations of welfare single-moms who hadn't even been to a wedding. Lifetime marriage in the suburbs is now only a privilege for those with above average paychecks (both men AND women) and for those who live check-to-check, divorce rates tip 60% - 70%. 35% of the children in this country are born, illegitimate. 75% of African-American children are born illegitimately.
Colleges and Universities are perfectly financially "
Bi-Polar" ($50,000/year in tuition for the students whose parents are both college educated and each work 50/hours a week in an office
OR 100% financial aid for the students who come from single-family homes with little to no income, subsidized entirely by the students paying full tuition) and those unfortunate kids in the middle spend 3-4 years at junior college and finish
part-time getting their BA after 7 years of study, functioning households are
tiny (1 adult with no spouse, a married couple, or perhaps a married couple with one spoiled child), primary and secondary education is a joke (as too many tenured teachers are legacies of "
tracking" where 60% of the students aren't expected to attend college, even though 100% need to), and no one, NO ONE AT ALL expecting to work at just one company for their entire life (living every day on egg shells as if that day could be their last day of employ at their current employer.)