The Pauperization of Workers in the UK and America | WHAT REALLY HAPPENED


The Pauperization of Workers in the UK and America

Here is what happened: workers benefited from rising real incomes during the three quarters of deflation in 2009 – which probably was responsible for firing up moribund consumer spending. But it didn’t last long. In 2011 and 2012, a burst of inflation took it all away again.

It’s only during periods of low inflation or actual deflation that modern American workers get real wage increases. Turns out, the mix of slight inflation and slight deflation is good for workers!

But there is another huge group of people that has been taken to the cleaners: savers. These conservative investors don’t want to lose, in rigged financial markets, 30% or 40% or 50% of what little they have during the last 10 or 20 or 30 years of their lives. Unlike young folks, they have no way of ever re-earning their hard-earned money a second time, so to speak.

With interest rates on their bank accounts, CDs, and money market accounts reduced to nearly nothing, their income from those assets – $9.5 trillion! – was whittled down to nearly nothing as well, and they had to tighten their belts and curtail their spending.

Webmaster's Commentary: 

Absoflippinglutely unbelievable!!

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