Dreadful US economic trends in 2011 – Is this the start to an economic collapse?
If you switch on the television, you will watch the ‘economic pundits’ debating over the trends of the US economy. While one will pull out some statistics that got better within the past month, another will offer some statistics that got worse over the past month. So, what is the truth behind the entire US economy and where is it heading? There are some economic trends that get worse day by day and it is such trends that speak about the real decline of an economy. With the US national debt level spiraling out of control, the middle class is being wiped out and they are resorting to debt relief companies like the debt consolidation non-profit and the debt management companies. The US dollar is being gradually destroyed and America is slowly becoming nothing better than a post-industrial wasteland. Have a look at some dreadful economic trend that you must watch out for in 2011.
1. More than 6 million Americans will be unemployed for more than half a year
The number of Americans that have been unemployed and out of work for a long period of time has been exploding over the last few years. In the initial part of 2007, there were just 1 million people who were unemployed for more than 6 months. But unfortunately, with the present condition of the US economy, more than 6 million Americans will be unemployed for an extended period of time in 2011.
2. 61% of the US citizens will be living paycheck to paycheck
The high level of unemployment and the lack of cash flow in the hands of the people is crippling the middle class and squeezing their existence. As per a poll taken in the last quarter of 2010, 61% of the Americans usually live paycheck to paycheck. This figure was up from 49% in 2009 and 43% in 2008. Most people will not have any amount of saved money to pay off their debts or other financial obligations.
3. 21% children will be staying below the poverty level
The number of American citizens who are living below the poverty level is skyrocketing. 43 million Americans are living on food stamps and one out of every 7 Americans is enrolled in at least anti-poverty program that is being run by the US federal government. Unfortunately the class of people who have been hardest hit by the global economic downturn is the US children. 21% of all US children are living below the poverty line in 2010 and this will possibly rise throughout the next 20 years.
4. More than 1.2 million people will file for bankruptcy in 2011
Most American families have been pushed beyond their breaking point during this economic depression. According to a poll in 2009, over 1.3 million people have filed bankruptcies and trashed their credit scores. No amount of help provided by the debt consolidation non-profit companies and the debt settlement companies could avert the possibility of avoiding a bankruptcy. This amount was a 32% hike from 2008 and experts are of the opinion that it is expected to cross 1.6 million in 2011.
5. Commodity prices will soar into the stratosphere
Ten years ago the price of a barrel of oil was about $20-30 but today it is rapidly closing at $100 per barrel. Not only oil prices, all commodity prices will be soaring and going out of control and people will find extremely difficult to make ends meet.
All the shocking statistics mentioned above show that the good times that America had been enjoying for the last few decades are soon coming to an end. This is just the beginning of an economic collapse and therefore consumers are trying their best to manage their personal finances accordingly to stay afloat.
Contributed by Debt Community Member.