Deflation Welcome! Lower Third of Population Goes Deeper in Debt, Cannot Afford Any Price Increases | MishTalk
. . . which shows exactly why the progressive cant which limits land development is wrong.
"A new PEW study on Household Incomes and Expenditures goes a long ways towards explaining why economists who expected a big jump in consumer spending based on falling gasoline prices were dead wrong."
Homeowners in the bottom third of income spent 40% of their income on housing, while renters in the bottom third of income spent about 48% of their income on housing. Worse yet most families in the lower third of income had more in expenditures than in income, with the median family going $-2339 and the 25 percentile going $-6938 in the red. Even the median family in the middle third of income can only save $5944. That is by definition "middle America."
The urban growth boundary, or urban services boundary, or various zoning schemes designed to allow the upper middle class to live above and away from the hoi polloi are killing the ability of the middle and lower classes to thrive. Instead they are barely surviving. These arrangements need to stop. America has plenty of land.
Mish makes another point. The Fed wants inflation at 2%, but this would further destroy the ability of the average American to survive. Deflation, however, would allow these people to make do.
The progressive era has just about wrung all the money it can out of the averageAmerican. Perhaps it is time for a change, a return to more rational economic, and social policies, policies which place the individual's liberty above the monetary desires of the wealthy elite? Or is that a bridge too far?