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Friday, November 13, 2015

Debt: Fun With Numbers..

Sometimes when things are slow and I'm feeling particularly bored, I like to play with numbers..

Nothing too advanced that my trusty calculator couldn't assist me in but things that when broken down into smaller sums kinda amaze me..

Like for instance, Apple released the iPad Pro the other day with a 128 GB device with wi-fi only going for $949

Then I thought of the minimum wage which nationally is $7.25 though its been raised in a few states with District of Columbia now the highest at $10.50
So how many hours would someone making minimum wage in DC need to work before affording the new iPad including the DC sales tax of 5.75% which would make the device cost $1,003.57

$1,003.57 divided by $10.50 equals..

95.57 work hours which is two full 40 hour weeks and about 16 hours into a third week..

Yikes!
For someone living in Maryland where minimum wage was raised to $8 for 2010 and sales tax is 6%, the cost of that iPad Pro would come to $1,005.94 and a worker would have to work.. hmm, lets see..

$1,005.94 divided by $8 equals..

125.74 work hours which is over three full weeks of working!

Zoink!
Sometimes I like to just stare at the US National Debt Clock..

*Click the link: http://www.usdebtclock.org/

Yep.. just sit n' stare and watch all those numbers frantically move

It says that the US population now stands at over 322.1 million people and of that number 149 million or so are in the work force..

So if that means that less than 50% of all Americans are working, how is it the official unemployment figure stands at 5% as of September???
The Debt Clock also shows that back in 2000 when Clinton was finishing up his second term, the US work force was at 154 million which is 5 million More than 2015 yet in the year 2000, US population was 282.2 million..

So how did we as a nation expand our population by 40 million people in 15 years while the workforce dropped 5 million people and still call it a recovery?

Back in 2000, the median income was $28,794 and according to the Clock, in 2015 the median income is $29,014

So in 15 years the median income grew by $220
Now if the value i.e. cost of buying a new home grew in the last 15 years by just over $114,000 yet median income grew by the cost of one night at a Marriott Courtyard hotel ($220), then just WHO are buying all these homes?

Real question is how?

Praise be the Lord for the creation of the 30 year mortgage, something that simply did not exist 50 years ago..  Mortgage?   - Yes..   30 years?  -  Nope

This Debt Clock is so much fun to look at..
It says back in 2000, there were over 19.2 million manufacturing jobs and today there are 12.5 million

What ever happened to those 6.7 million skilled workers?   I imagine for most, they became part of the 43.6 million Americans currently living in poverty..

The Clock seems to show that the government annually spends $3.7 Trillion to keep the nation running while only collecting $3.2 Trillion in taxes

That's a budget gap of half a trillion..  Yep, good economic policy to not properly tax the wealthy and those who make profit off the Stock Market..
Now the US National Debt (what we owe foreign nations and creditors) is currently $18.605 Trillion and counting but the Total Debt (the total of what the government and citizenry owe combined) is actually $65.8 Trillion

This includes the Debt, interest on it which is $2.4T, personal debt (over $17T), mortgage debt ($13.7T), student loans ($1.3T), credit cards ($934+ Billion), etc...

Makes one thing why would anyone Rep or Dem actually Want to run for President and take all this mess upon his/her plate

BTW, did you know only 1/3 of our debt is held by foreign countries like China and Japan..  

The other 2/3 is held by the Federal Reserve..  This is why the US can never default on its debts because it would be defaulting on itself..
Whewwie, all these numbers are making me dizzy..

One last number before I become loopy and close my eyes from it all..

Of a population of over 322 million, only 8.4 million or so actually own their own businesses..

That comes to only 2.6% of all Americans..

In fast food, there are an average of 15.7 workers per establishment.   Now while the wages aren't the best, if 100,000 new small business owners opened up their own fast food restaurant, that would be an increase of 157,000 new workers

If this economy is to ever have a chance of turning itself around, the number of self-employed must dramatically go up and They, not the 1% will pull up the rest of the nation..