"Persistent Economic Insecurity"

Talk to almost anyone and you'll quickly find out that they are touched by "economic insecurity" either directly (themselves) or indirectly (they know someone personally who is experiencing it).  Our JOB is to reach out to people who are looking for security and prosperity and let them know that we have found a better path!   Dennis

Nearly Half of America Lives Paycheck-to-Paycheck

The economic picture is looking brighter these days. The federal government announced Thursday that economic growth had picked up to its fastest pace in two years, while employment growth over the past five months has averaged a healthy 185,000 new jobs. But as evidenced by a report out Thursday from the Corporation for Enterprise Development, nearly half of Americans are living in a state of “persistent economic insecurity,” that makes it “difficult to look beyond immediate needs and plan for a more secure future.”

What American Workers Have to Look Forward To...

As this article explains, Americans have much longer workweeks to look forward to, not to mention, flat or declining wages to go along with it. But after all, this IS the new normal (where the large corporations and bosses have all the leverage over you).  Whoever controls your income, controls your LIFE.   Dennis

Good News For Employed Americans: You Are Now Working Longer Than Ever

We have some great news for those Americans who are still in the labor force (so that excludes about 92 million working age US citizens) and still have a (full-time) job: you are now working longer than ever! In fact, as JPM's Michael Cembalest observes using Conference Board data, the average manufacturing workweek is now just shy of 42 hours - the longest in over 60 years. And there are those who say Americans are lazy...

Of course, with labor productivity stuck in limbo this is to be expected: corporations, desperate to extract every last ounce of efficiency from their workers, are making them work hard, not smart, in order to boost bottom lines, and activist investors' P&Ls.

One tangent: even as companies are putting more people into the same amount of office space, reducing square footage per worker, the point at which more space will have to be added, or where the lack of slack becomes unbearable, is a long way away: as the chart below shows, while there was over 330 square feet per worker in 2011 when the average workweek was a little over 40 hours, it is currently roughly 20 square feet higher over 350. So yes: the slack if being absorbed. Very... Very... Slowly. 

In fact at this rate, courtesy of the tens of millions of Americans who no longer have any chance of reentering the work force, all those betting on wage inflation as a result of slack absorption may have to wait another 5, 10 maybe 15 years before the existing labor capacity is hit and office space and new workers have to be added.

Having a JOB is NO LONGER Good Enough...

Let these quotes sink in for a few minutes:

"A low-wage job supplemented with food stamps is becoming more common for the working poor," said Timothy Smeeding, an economics professor at the University of Wisconsin-Madison who specializes in income inequality. "Many of the U.S. jobs now being created are low- or minimum-wage - part-time or in areas such as retail or fast food - which means food stamp use will stay high for some time, even after unemployment improves."  (After reading this article, I would love to hear your comments regarding how this impacts our business.)  Dennis

THE NEW FACE OF FOOD STAMPS: WORKING-AGE AMERICANS

WASHINGTON (AP) -- In a first, working-age people now make up the majority in U.S. households that rely on food stamps - a switch from a few years ago, when children and the elderly were the main recipients.

Some of the change is due to demographics, such as the trend toward having fewer children. But a slow economic recovery with high unemployment, stagnant wages and an increasing gulf between low-wage and high-skill jobs also plays a big role. It suggests that government spending on the $80 billion-a-year food stamp program - twice what it cost five years ago - may not subside significantly anytime soon.

Super Bowl Tickets Are....Available AND Cheaper???

When the economy cuts into Super Bowl tickets (as in...they can't be sold unless prices come down), you know things are not doing well...Dennis

Prices plummet for SB tickets

Two hungry fan bases and the wealth of the New York metropolitan area had some guessing that Super Bowl XLVIII would turn out to be the most expensive ticket in Super Bowl history.

However, judging from the reaction of the resale ticket market in the past 24 hours, it could turn out to be one of the least expensive.

Since the conference championship games ended, ticket prices have steadily plummeted.

Julia Vander Ploeg, general manager of Ticketmaster's resale business, which runs the NFL Ticket Exchange, said the number of tickets on the market has increased by 10 percent in the past 48 hours. And that's before the NFL has even given the physical tickets to the majority of people the league is taking care of.

"What we have now is like a panicked stock market," said James Kimmel, owner of Epic Seats, a ticket brokerage in Seattle. "The buyers have frozen, and the sellers are panicking."

On Friday, Kimmel said he got an offer to buy a man's tickets for face value, something he said he never expected to hear. 

FULL STORY

What's YOUR Misery Index?

From the Washington Examiner: “Unemployment in its truest definition, meaning the portion of people who do not have any job, is 37.2 percent."  Isn't this what your "instincts" are telling you when you look around?  As we watch retailing giants like Sears and J.C. Penney close their doors and lay off thousands more, how can we deny what's knocking on our doors?  Talk to someone today about our business...while they have time to build. Dennis

Wall Street adviser: Actual unemployment is 37.2%, 'misery index' worst in 40 years

Don't believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the realunemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud.

In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government.

You Can't SAVE Your Way to Security...

The old models of "saving for the future" don't exist anymore in traditional business.  Why?... Well, for one thing, your money in a bank account is not accumulating enough interest to stay anywhere NEAR the inflation rate.  So even if you are able to save money every week and put it in the bank, you're actually LOSING money over the long term.  What we all need is a consistent income that grows with the times! ...Dennis

Saturday Humor: "High-Yield Savings"

Frequent Zero Hedge contributor Mike Krieger sent this in: "Just got this in the mail. No, it's not meant to be a joke." Which is why it is unclear if one should laugh or cry at this fantastic offer for a "High-Yield" savings account...

Guess WHO Didn't Make the List...?

A new study by the Wall St. Journal confirms that the US has fallen off the list of the "top 10 most economically free countries."  How is this possible???  Try massive tax rates, out of control government spending and regulations that strangle business owners!  The ramifications of this continued decline are important for those of us who believe in freedom and prosperity, and our business plan is the answer to the rising pressures.  Dennis


America's Dwindling Economic Freedom

Regulation, taxes and debt knock the U.S. out of the world's top 10.

World economic freedom has reached record levels, according to the 2014 Index of Economic Freedom, released Tuesday by the Heritage Foundation and The Wall Street Journal. But after seven straight years of decline, the U.S. has dropped out of the top 10 most economically free countries.

For 20 years, the index has measured a nation's commitment to free enterprise on a scale of 0 to 100 by evaluating 10 categories, including fiscal soundness, government size and property rights. These commitments have powerful effects: Countries achieving higher levels of economic freedom consistently and measurably outperform others in economic growth, long-term prosperity and social progress. Botswana, for example, has made gains through low tax rates and political stability.

Workers Are Simply "Giving Up"

This article from Washington's Blog lists a number of reasons for the massive drop in labor "participation rate" which I pointed out in my last post.  It's not JUST the aging baby boomers, or the significant drop in the number of women participating in the work force (male AND female ages 25-54 also fell sharply).  It all points to a significantly weaker economy in the future for the US.  ...Dennis

What Caused the Crash In the Labor Participation Rate?

Posted on January 11, 2014 by WashingtonsBlog

Workers May Simply Be Giving Up

Zero Hedge notes that the number of Americans in the labor force has dropped to 1978 levels:

The civilian labor force … dropped from 155.3 million to 154.9 million, which means the labor participation rate just dropped to a fresh 35 year low, hitting levels not seen since 1978, at 62.8% down from 63.0%.

And the piece de resistance: Americans not in the labor force exploded higher by 535,000 to a new all time high 91.8 million.

What’s causing the crash in labor participation?

Initially, the number of women not in the labor force climbed to a new high.  This is significant because the labor force skyrocketed in the 1960s when feminism encouraged women to work outside of the home:

FULL ARTICLE:

Labor Participation at 35-Year LOW...

This chart says it all.  You can deny it if you like, but NUMBERS DON'T LIE.  ...Dennis

People Not In Labor Force Soar To Record 91.8 Million; Participation Rate Plunges To 1978 Levels

Curious why despite the huge miss in payrolls the unemployment rate tumbled from 7.0% to 6.7%? The reason is because in December the civilian labor force did what it usually does in the New Normal: it dropped from 155.3 million to 154.9 million, which means the labor participation rate just dropped to a fresh 35 year low, hitting levels not seen since 1978, at 62.8% down from 63.0%.

And the piece de resistance: Americans not in the labor force exploded higher by 535,000 to a new all time high 91.8 million.

The jobless, laborless recovery continues to steam on.

LINK to Article:

What are the Odds for Success?...Think About It.

If you knew about a way in which average people could band together and create sustainable incomes, why in the world would you keep it to yourself???  We have a REAL business opportunity for success.  What are the odds of success in our business?...well a whole lot better than the odds of being hired to work at an ice cream plant in Maryland! ...Dennis

Employment Recovery? 1,600 Workers Apply For Just 36 Jobs At An Ice Cream Plant In Maryland

The stock market may be soaring to unprecedented heights, but things just continue to get even tougher for the middle class.  In this economic environment, there is intense competition for virtually all kinds of jobs. 

For example, more than 1,600 applications were recently submitted for just 36 jobs at an ice cream plant in Hagerstown, Maryland.  That means that those applying have about a 2 percent chance of being hired.  About 98 percent of the applicants will be turned away.

Now There Are "Workplace Loans"...

We have a financial solution for millions of struggling Americans.  Imagine working 3-4 part-time jobs and STILL not getting by financially.  In a desperate attempt to stay afloat, more Americans than ever are turning to emergency loans, with high fees and interest.  Now a new twist has emerged on the scene...Dennis   

By Michael Snyder

I have written about the payday loan scam previously, but now a new twist on that scam has emerged.

They are being called “workplace loans”, and companies all over America are beginning to offer them as “benefits” to their workers.  But the effective annual percentage rate on these loans can be as high as 165 percent…

Arizona Restaurant Systems Inc., a Scottsdale, Ariz., company that operates 28 Sonic locations in the state, allows workers to take out loans ranging from $150 to $500 that typically last two weeks.

...Almost 24% By 2018

Real stories...Real people...Real problem...
Real Opportunity for US (and them).  ...Dennis

Retirement unlikely for some blue-collar Americans

By EMILY WAGSTER PETTUS Associated Press

Tom Edwards grew up in a family that's been cutting trees and hauling timber in the Pacific Northwest for more than a century. The Spanaway, Wash., resident says he has worked as a logger since he was a kid—it's just what an able-bodied youngster was expected to do.

Now, at 53, with business in a slump and little money in savings, he's pessimistic about his chances of retiring.

"It's never going to happen. By the time I reach retirement age, there won't be Social Security. There's not going to be any money," Edwards said. "I'll do like my father did: I'll work 'til I die."

You Know Times Are BAD When...

If you need a clue as to whether or not money is tight nowadays, imagine a NFL playoff game in Green Bay Wisconsin where the owners can't fill the seats!  This ought to be a wake-up call to anyone who doubts that we are in a deep recession.  We HAVE AN OPPORTUNITY here.  Dennis

NFL should be alarmed that three of four playoff games, including Green Bay's home game, still not sold out

The legend of the waiting list for Packers season tickets in Green Bay has grown over the years. Newborns get put on the list, with parents hoping some day their offspring hits the top of the list.

Green Bay has perhaps the best fans in the NFL ... which is why the league should be very worried that the Packers and two other teams are still struggling to sell out their playoff games.