The American Ream is Alive and Hell

fire 33

By William Hudson


The number of Americans that own a home has fallen to its lowest recorded level ever. The second quarter of 2016, reflected that the non-seasonally adjusted homeownership rate fell to 62.9 percent, the same percentage reflected when the U.S. Census began tracking homeownership rates back in 1965.
Since the recession, and through the Obama presidency, the percentage of Americans that own a home has decreased significantly. The American middle class is now a minority- for the first time ever. Homeownership and consumer demand are driven by the middle-class purchaser who holds a middle class job. The United States economy is suffering from income stagnation, flat wages, and inflated consumer and home prices. The average median household income of only $51,939 only goes so far after half of that income goes to some type of tax.
An after tax salary of 30k doesn’t buy much, and forget any life quality perks. Food, energy, transportation and medical care can exhaust an income of 30k in no time flat. If this is the federal government’s idea of a recovery- the middle and lower classes are doomed.
This isn’t about how home-ownership rates are decreasing while rents increase- this is about the fact that home ownership rates are at their lowest levels ever seen. Home-ownership is central to pride of ownership, stable neighborhoods, and low turnover rates. As neighborhoods transition from family ownership to landlords with rentals, there is typically a depreciation in house value, an increase in turnover, and less stability. The quality of education then falls, crime rates increase and once well-maintained houses lose their value and typically incur deferred maintenance. Although this is not always true, the statistics support this scenario.
Home ownership once represented that you had attained a certain level of achievement and were a member of the middle class. Home-ownership rates rose over the past decade to their highest level ever, and now we are seeing a continuous decrease in home ownership every month. During the gilded housing boom of the mid-2000s, approximately 69.2 percent of Americans owned homes.
Home-ownership rates are falling because:
• Home prices have inflated while wages have stagnated (for the lower 80%) making entry   level homes too expensive for the majority of lower and middle class Americans.
• Affordable homes in suburban areas require lengthy and expensive commute every day.
• First time buyers have difficulty saving for a down payment since they are burdened by soaring rents and no money left over at month’s end.
• Millennials witnessed the American Dream become the American Nightmare, and have been taught they are tenants in their own homes and their vulnerability when dealing with predatory servicers.
• Low interest rates have created a housing bubble where home prices have inflated beyond their free-market value and monthly payments have soared.
• Higher home prices result in higher taxes, commissions, and insurance.
• Past homeowners who have had a bad experience with a mortgage servicer will likely NEVER purchase a home again from a large lender. Once bitten twice shy.


However, there is more to this story. The life quality of the middle class has been eroding for decades. For example:
• Unemployment impacts one of every five families, where no one in the family works.
• 102 million working-age Americans are unemployed.
• The Social Security Administration reports that 51 percent of American workers currently make less than $30,000 a year.
• In 1970, the middle class brought home approximately 62 percent of all income. Today, that number is 43 percent.
• The Federal Reserve says that 47 percent of Americans could not pay an unexpected $400 emergency room bill without borrowing the money from somewhere or selling something.
• A recent survey discovered that 62 percent of all Americans possess less than $1,000 in savings.
• If you have no debt and ten dollars, you have a GREATER net worth than about 25% of all Americans.
• Today one out of five children is on food stamps. In 2007 that number was one in eight children.

The middle class in America is dying while our politicians continue to get wealthier while no changes are made. America was once the most innovative, free and thriving economy in the history of mankind. The economists that are realists believe that the 20+ trillion dollars of debt coupled with 100 million unemployed Americans spells disaster.
The 50 million Americans who live in poverty and receive food stamps can’t afford a further decrease in the buying power of the US dollar. Yet, the media and your government officials swear up and down that things are just fine. They report the job market is rebounding, wages are rising and the markets are at peak levels.
Nothing could be further than the truth. Obama is the FIRST PRESIDENT EVER to not see a single year of 3% GDP growth.

10 Responses


  2. Great article.
    The US Govt is no longer a govt. of the people.
    The top 1% who are making the wealth don’t care what happens in the farther off future, so long as they get all they want NOW. They have succeeded in destroying the 99% by buying what was formerly our govt.
    With the two candidates ‘they’ have selected for us, nothing will change after this election that will be an improvement for the 99%, no matter what their lyin’ lips say.
    As a victim of the banksters & now renting for the first time in my 64 years of life, my anger has not subsided in the 5 yrs since they stole my home. Listening to all the CRAP this election year has only made it grow, as NO ONE has mentioned the housing problem.
    “Old news. Nothing to see here. Move along.”
    Too bad the 6-8 MILLION of us who lost our homes illegally can’t all gather in DC & physically throw out 99% of the govt!
    Enough is enough.

  3. Reblogged this on Deadly Clear and commented:
    Don’t you find it remarkable that the U.S. is 40 countries below #1 Romania 96% and Cuba 90% in worldwide homeownership? We are in a tighten market along with Germany and China. Where’d you say the democracy went?
    List of countries by home ownership rate
    This is a list of countries by home ownership rate, the ratio of owner-occupied units to total residential units in a specified area.[1]

    Rank Country Home ownership
    rate(%) Date of
    1 Romania 96.1 2014[2]
    2 Cuba 90.0 2014[3]
    3 Lithuania 89.9 2014[2]
    4 Slovakia 90.3 2014[2]
    5 Singapore 90.3 2014[4]
    6 Hungary 88.2 2014[2]
    7 Croatia 89.7 2014[2]
    8 India 86.6 2011[5]
    9 Bulgaria 84.3 2014[2]
    10 Russia 84.0 2012[6]
    11 Poland 83.5 2014[2]
    12 Norway 84.4 2014[2]
    13 Latvia 80.9 2014[2]
    14 Estonia 81.5 2014[2]
    15 Malta 80.0 2014[2]
    16 Czech Republic 78.9 2014[2]
    17 Mexico 80.0 2009[7]
    17 Thailand 80.0 2002[8]
    18 Spain 78.8 2014[2]
    19 Iceland 78.2 2014[2]
    20 Slovenia 76.7 2014[2]
    21 Trinidad & Tobago 76.0 2013[9]
    22 Greece 74.0 2014[2]
    23 Brazil 74.4 2008[10]
    24 Portugal 74.9 2014[2]
    25 Cyprus 72.9 2014[2]
    26 Finland 73.2 2014[2]
    27 Italy 73.1 2014[2]
    28 Luxembourg 72.5 2014[2]
    29 Belgium 72.0 2014[2]
    30 China 70 1990[11]
    31 Ireland 68.6 2014[12]
    32 Sweden 69.3 2014[2]
    33 Canada 67.6 2013[13]
    34 Israel 67.3 2014[14]
    34 Turkey 67.3 2011[15]
    35 Netherlands 67.0 2014[2]
    36 Australia 67.0 2011[16]
    37 New Zealand 64.8 2013[17]
    38 United Kingdom 64.8 2014[2]
    39 United States 64.5 2014[18]
    40 France 65.0 2014[2]
    41 Denmark 63.3 2014[2]
    42 Japan 61.6 2008[19]
    43 Austria 57.2 2014[2]
    44 South Korea 54.2 2010[20]
    45 Germany 52.5 2014[2]
    46 Hong Kong 51.0 2014[21]
    47 Switzerland 44.0 2013[2]

  4. @Rhody that’s exactly the question we should be asking elected officials no matter what party. Immigration always the go to scapegoating issue to distract.

  5. Somehow the President went from talking about boom/bust economy to pointing to the stock market as success. The American people were conned into hating Obama while the Republican party worked against our country’s interest. In the end the billionaire class has taken over and now we have a sham of an election.

  6. Why are the presidential candidates not giving any real solution to illegal foreclosures? This totally baffles me when people are not getting much help. Both Democrats and Republicans seem to be talking too much on immigration and all that giving little importance to home ownership in this country. Is this because the number of people who own homes are very low?

  7. The fractional reserve banking system of the private central banks (Federal Reserve Banks) monetization of US Notes (we call the “dollars”) is the root of the problem. That system is not our Constitutional system of monetization, rather it is a perverted system that slowly drains the wealth from the US because it is the creation of wealth out of nothing, with interest. President Andrew Jackson ran on the platform of “kill the banks”, meaning, go back to the Constitutional system of monetization where the USA owns and prints its own money rather than the central bank owning the money and authorizing the US Treasury to print money, at interest owed to the central banks. Jackson, Lincoln and Kennedy all attempted to get away from the central banks and go back to what our constitution requires for monetization of currency. We can blame democrats or republicans, but ultimately, its our fault for not demanding the elimination of the central banks and a return to the constitution. This is what Ron Paul and members of the Libertarian Party are supporting.

  8. Thanks for the article. In fairness, I don’t think either party has any real ideas for improvement. Neil’s ideas about the rule of law are the only thought that make sense.

  9. Bruce, first thank you for your service. Second… the real problem is… there are a group of other pigs at that trough, and those pigs call themselves Democrats. We need to rid this country of party politics. no vet should be treated the way you have been. It’s a disgrace. You will be getting a cola increase this year because the FED sees the only inflation they don’t like… Wage Inflation.

  10. OMG! I knew it was bad, but bad. The bit about cost of live v soc Sec payments. We aren’t STUPID just because we are poor.Those on SSA like me at 77 and disabled vets are not enjoying a statice COL. Its been over 4 yrs and I get only $1390. Yet Food stanps says I make too much money…they give me $14 per month!! The VA says I make too much money so I am stuck with co-pay meds at$50 to $80 per month. The VA days I make too much monet so I get no ?mileage pay for a 100 mile round trip from Banner Elk, NC to VA Med Center in Mt Home, TN. I pay $550 rent, TV (its a necccessity) $90 per month, Power/water/propane $100 per month B4 winter! Charter internet (a neccesity) $60 per month, cell phone (neccessity $50 per month, gasoline $30-$50 per mo ( and I only use to shop and VA appts. I am a vet with proven 70% hearing loss wearing a $4k Phonak prescribed by VA for service connected disability but a year after applying for my monthly VA benefit ratings decides I di not haave compensable hearing loss, I have srevice connected ptsd, yet ratings denies benfit, I have tinnitus service connected with hearing loss but a seperate claim and yahoo id get $130 per month service connected disability for “tinnitus” which is part and parcel with my 70% hearing loss. It is a no sum game for me which puts me at the food bank monthly. So I am moot or noisey testimony to fact that us disabled seniors are getting it up the rear end. The do nothingGOP has rejected COLA for 4+ yrs now but the pigs I see at the trough seem to be all well fed…..hummm, whats wrong with this and so many others picture?

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