What Has Happened to the American Dream?
For many it meant having a college degree, getting a good job, raising a family, buying a home with a dog and a white picket fence.
Those who were lead to believe that they were going to be part of something great and all they have to do is work hard and anyone can have the opportunity to live the life of the middle class.
What exactly does that mean for Americans in the Working Class?
This turns out to be just that a dream because the reality is that single parents, unemployment, along with low wage jobs has individuals disillusioned about the future.
Are poor people happier than rich people?
Some believe that having money is not the road to happiness and it is better to be poor. Well I guess it depends on your perspective. Just being rich is not always the key to living a fulfilled life. It is how you use the money you have that makes all the difference.
Those who define themselves by the material things they possess are the ones who are trapped by their own need to continue to accumulate things.
Economic Crisis and the Working Class
The U.S. economy has been in a recession for a very long time and during that time companies have downsized and laying off workers. Those who have seen the lack of increased wages from companies while enduring the rising cost of living have had to settle for less in their lives.
Many financial experts will recommend that families live within or below their means in order to save for retirement, but the reality is that many who are part of the working class will not see retirement the same way as their parents did. This is because there is no money left in social security and the economy can not see any growth if people are unable to participate in consumerism.
It is likely that those who are growing in numbers as the working poor will have to get two jobs to try and make ends meet and that will not leave any money left over for savings. The rising cost of food and health care is creating a generation of over-worked and stressed employees with poor health.
The future for the working class is a dim one and this article will cover some of the reasons why.
Who Are The Working Poor ?
You may have seen in the news that the reporters and economist are referring to a class of people known as the working poor.
You may have seen in the news that the reporters and economist are referring to a class of people known as the working poor. What this means is that the amount of money that the employee makes each week is below the standard of living wages.
Even after working 40 hours a week the take home pay after taxes is not enough to cover their living expenses. It is harder for these individuals to save for the future or put their kids through college when they don't earn enough income to live.
The working poor used to be the people who were unskilled and uneducated, they were the ones who could only take the low wage employment due to not having the proper qualifications for higher paying jobs.
This has been mostly service based jobs or manufacturing jobs where the pay is minimum wage and the hours are part-time, on-call or at the time of day most people would be sleeping such as in the swing or graveyard shifts.
Although this is changing you still see a great number of people who work jobs that don't pay enough to live off of.
The New Working Class
As mentioned previously, the working poor used to be those who were uneducated and unskilled so they could only get the service based jobs, that is found in restaurants.
As mentioned previously, the working poor used to be those who were uneducated and unskilled so they could only get the service based jobs, that is found in restaurants. Waiters and waitresses who make minimum wage and then get tips.
Well now economist are noticing a new working class that is entering the low wage jobs, these are individuals who do have a college education, and did well in school having high grades. Many of them also have work experience or a skill or trade.
Ironically they also are unemployed and unable to find work in their chosen occupation, so they have been left with applying for the low wage jobs to try to make enough money to pay back student loans and the rising cost of car gas.
Commuting to work using public transportation is on the rise as workers have to catch the bus, train or metro to get to and from work. The cost of commuting on the freeway in a automobile going to eat into the wages that are not enough to cover the rent or food each month.
This new working class are the ones who are getting squeezed out of the middle class.
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Middle Class America is Disappearing
Those who once could afford to live in a nice neighborhood and who worked a good job are finding that this is changing.
Those who once could afford to live in a nice neighborhood and who worked a good job are finding that this is changing. Many are facing unemployment, and needing to get on government assisted food stamps. These same families who used to make $70,000 a year annually have now been pushed out into lower paying jobs.
Those who were layed off due to corporate downsizing know all to well the story of what it is like to be unable to pay for their home mortgage or the reality that they have to move in with family members while they save up enough money to rent an apartment.
Single family households that used to have two working parents are finding that with one of the spouses losing their job it puts a strain on the marriage as well as the household budget. The former middle class is watching as they are cut out and left to dwell among the working poor who do not make enough money on their jobs to make ends meet.
Is Job Creation the Answer?
Employment analyst who report on data related to the workforce are always saying that the answer is with creating more jobs.
Employment analyst who report on data related to the workforce are always saying that the answer is with creating more jobs. It has been said that the lack of wage increases and the loss of jobs is creating a depressed economy, because when people are unable to participate in consumer spending the economy can not grow.
Is creating more jobs going to help stop the shrinking middle class?
In my opinion that is not the answer and the reason is because the problem is not in not enough jobs but instead a lack of jobs that pay high enough wages for Americans to live the life they need to live. Most jobs do not pay enough money, or require skills that the average worker does not possess.
Many low wage earners still seem to think that they can improve their lifestyle by going back to school and getting a good job. But due to the long hours, mandatory overtime and lack of health care insurance families are stuck in a matrix that they can't get out of.
The irony of the situation is that the people who can afford to go to school to get a college education find themselves unemployed after graduation. Employers are not hiring and with a stagnant economy the creation of jobs is not possible.
Should There Be a Minimum Wage Increase?
Some seem to think that raising the minimum wage to $10.10 will help the bottom 80 percent of the population to get out of poverty.
Reference: http://www.businessweek.com/articles/2013-11-27/what-a-higher-minimum-wage-does-for-workers-and-the-economy
Minimum Wage Jobs Are Going to College Graduates
When the economy is bad, and companies stop creating jobs it creates competition among the available and open positions.
When the economy is bad, and companies stop creating jobs it creates competition among the available and open positions. Hiring managers now can choose from the best of job candidates.
So imagine what happens when a restaurant or bar receives applications from recent college graduates looking for work, or professionals who have been downsized out of their careers? Well as you may have suspected the recruiter is going to give those minimum wage jobs and hard to fill positions to the most qualified candidate.
Often times this is going to put those without a college degree out of the pool of job options. Although most minimum wage jobs only require a GED or high school diploma and not working experience, the reality with the job market being tight and employers wanting to avoid having to replace workers repeatedly due to high turnover, they just may go with the person who is really over-qualified for the job.
Image: http://pixabay.com/en/termination-silhouettes-human-110301/?oq=employment
Job Outlook & Starting Salaries for New Grads
Compiled by: Online Colleges Guide
The Poverty Line and Wage Crisis in America
Even with all the talk about poverty and low wages in America, as a society those who live in the United States make more money than half of the whole world.
While we complain about earning $7 dollars an hour on minimum wage some countries the workers earn $7 dollars in one week.
It is best to keep things in perspective and realize that the working poor are still doing better than most other workers across the globe.
So What Is Considered the Poverty Level?
According to the Department of Health and Human Services a households income level is determined by the annual income after taxes that a person earns.
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Reference: 2014 Poverty Guidelines U.S. Department of Health and Human Services (http://aspe.hhs.gov/poverty/14poverty.cfm)
Jobs That Pay Minimum Wage
You will be surprised to learn that not all minimum wage jobs are in fast food, manufacturing or retail stores, although these are most of the careers that pay between $7 to $8 dollars an hour.
You will be surprised to learn that not all minimum wage jobs are in fast food, manufacturing or retail stores, although these are most of the careers that pay between $7 to $8 dollars an hour.
There are lots of jobs that pay $10 dollars or less in annual salary and is classified as low wage jobs.
Entry Level Jobs that Pay Minimum Wage
As you probably know some professions require training and experience, which would have one to believe that these jobs would also pay more money but the reality is that the incomes of these entry level careers are part of what is known as the poverty line.
1. Airline Carrier Pilots
2. Home Health Aids
3. Part-Time School Teachers
4. Actress/Model
5. Child Care Provider
6. Cafeteria Workers
7. Movie Theater Attendants
8. Hotel Desk Clerks
9. Maids Housekeeper
10. Bartenders
These low paying jobs are plenty and the turnover is high due to the nature of these kinds of occupations. They usually are entry-level, require long hours, pay very little, don't offer health benefits and require standing or physical lifting which can cause back problems or fatigue.
Hiring Low Wage Workers
Requirements to get hired for low paying jobs
Educational requirements for most of these worst paying jobs can be such things as taking a written exam, getting a certificate, taking a class in customer service or work safety. Some minimum wage jobs require no experience at all while others ask that you show work history in a related field.
Employers who hire candidates for low wages usually are not interested in people with high qualifications because they want to fill vacant positions and need workers who will stay on the job for a length of time.
Hard to keep employees due to low wages
Those who have skills or trade experience most likely will take an entry level position but later leave for higher pay and benefits and this causes hiring managers of minimum wage jobs to have high turnover making it hard to keep employees for very long.
This is changing as more people are out of work, unemployed or have recently been downsized out of higher paying careers and they are seeking any type of employment they can find.
Downsizing Living Below Your Means
If you make less money than you have to live with less, those who have changed the way they live and how they spend are able to live a satisfactory life with little to no money.
Gap Between the Poor and the Rich
The working poor is unable to catch up to the upper class because of low wages.
Why The Rich Earn Money From Capital Gains Instead of Wages
One of the reasons that the rich can continue to make more money and work less is because they invest their money instead of spending it.
One of the reasons that the rich can continue to make more money and work less is because they invest their money instead of spending it. The two areas that most of the wealthy will put their money is in stocks and real estate, primarily because they can use other people's money instead of their own to buy assets.
The way it works is that if you have your own business, land, real estate properties or a stock portfolio you can get investors, venture capitalist and crowdfunding to use as capital. The gains and returns on those investments can be re-invested back into those assets creating a net worth that allows banks to grant a line of credit.
It is this line of credit that the rich use to buy rental properties, commercial land and to start businesses. This is something that is learned and passed down from generation to generation. The wealthy are more likely to build a legacy. Wealth that is inherited among future generations with in the same family is how the ultra-rich stay rich.
Those who are poor or are part of the working class are at a disadvantage from the day they are born and are not taught financial literacy. Knowing how money works is the key to building wealth and getting out of the working class.
Relying on wages is the reason that the poor stay poor, lack of job creation and without minimum wage increases the working class will constantly stay behind.
How To Win Against the Unfair Advantage of the Wealthy
For those who find themselves at the bottom and were not part of the upper class or rich communities there is still a way to gain momentum and change your circumstances.
You can win against the unfair advantage of the wealthy
Staying in a minimum wage job or occupation is not your destiny, things can turn around and improve for you. How this is possible is by changing your mindset and the way you think about yourself and your abilities.
What can you offer to others? How can you take your inherited talents and use them to propel yourself forward? This is the things that will change your life and can get you to where you really want to be in life.
Earning Low Wages Can Be Changed
Here are some tips on how to improve your wages. This can be done in a few ways.
1. Learn a New Skill
2. Help others
3. Take a Leadership Role
4. Negotiate for a Higher Wage
My best tip would be to increase your value and then you can increase your wages.
Minimum Wage Increase California
Should the California Department of Labor Increase the Minimum wage to $10.
Should the California Department of Labor Increase the Minimum wage to $10.00 or even $15.00 an hour for service based workers?
Some seem to disagree with the State approving or passing a law to increase the minimum wage due to the fact that this is supposed to be an entry-level position. It is a starting point that is not intended for the worker to be at indefinitely.
The truth of the matter is that increasing minimum wage will not create anymore jobs, if anything it will probably eliminate more jobs causing more competition in the marketplace.
Is minimum wage a stepping stone in a persons career?
This is what those who argue against the minimum wage increase conclude, they say that a person should want to improve their skills in the workplace and eventually promote out of a low paying job and get a higher paying one either by means of going back to school to learn a trade or from gaining more experience in a specific industry.
It would be nice if it was that easy but for many this is the end of their job search, working for low wages is the only solution and they have no chance of getting a better job at some point in their lives.
My Opinion of the Working Poor and the Disappearance of the Middle Class
So far I have talked about all the things that his happening in the economy when it comes to those who are called the working poor because they do not earn enough on their jobs to cover their living expenses.
In these situations those who get paid minimum wage and are service-based employees have no options to make more money as long as they stay in these low wage positions.
The fact that those who lived comfortably in the middle class with high paying jobs from college degrees is that now times have changed and the downsizing of companies going out of business along with budget cuts is causing a disappearance of middle income earners.
We first say the decline happening when the real estate bubble happened and those who were home owners suddenly could not keepup with the Jones and instead went into foreclosure. With so many homes defaulting on their mortgages it was clear that those who lost jobs and the hope of the American Dream pushed further and further away.
Those who were in the upper middle and rich economies would see an increase while the working poor continues to see a decline. It is interesting to see this happen in a place where anyone should be able to take advantage of free enterprise.
How To Break Through the Glass Ceiling of Poverty
Those who are willing to recognize that they are not destined to be poor can find a way to break through to the other side.
Those who are willing to recognize that they are not destined to be poor can find a way to break through to the other side. Escape a life of poverty and want, by using one of the most powerful tools available to every person of mankind.
What is the secret to breaking the chains of poverty?
Even if you lack education and you were not born with a silver spoon in your mouth, you can do something about your current situation to make it better. You are not destined to being poor. Those who hold all the wealth know that we are all born with a very powerful tool at our disposal and it can change everything for us in an instant.
What exactly is it that we all possess that can change how we see the world?
Well it is our thoughts, yes the very thing we think about can make all the difference in changing the way our life turns out. If you want to become a better person and influence others for good all you have to do is to visualize yourself as the person who is about change.
The Poor Will Always Be With You
In context it has been prophesied that the poor will always be here, so what can Americans do in light of the fact that no matter what changes are made on capital hill or in congress the average worker can expect to keep earning below the living wages in this country.
The Wealthy need the working poor, because who else is going to help them with luggage at the airport, or serve them at restaurants? Those who have money need service based workers to assist them while traveling and preparing for meetings.