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No cushion for the Trump recession: Why this one could be worse than 2008

6 61 0
25.08.2019

As the corporate media bangs the drum of imminent recession, we need to take a look at how tens of millions of American households that live paycheck to paycheck are situated for another choreographed downturn.

It will tell you all you need to know about the predatory nature of late-stage vulture capitalism, over which Donald Trump presides as its orange mascot. What jumps out when you look at the data is just how phony the “longest recovery” has been — the one for which Joe Biden wants to take a victory lap.

Lost ground

The stark reality is that in the last decade or so the rich have gotten richer as the rest of the country has sunk deeper and deeper into debt, with little to show for it except rent receipts.

As we head into the next downturn, whenever it happens, tens of millions of American families are hanging on the edge of economic oblivion. Thanks to the Trump tax cut, their government will be too much in debt to throw them a lifeline.

The $20 trillion in lost American household wealth that came from the unprosecuted theft of household wealth during Wall Street's Great Foreclosure caper had generational consequences that linger and still define many lives today.

The Federal Reserve Board's latest "Report on the Economic Well-Being of U.S. Households," released in May, surveyed 11,000 adults. It found that in order to cover an emergency $400 expense, 39 percent of those polled would have to either borrow or sell something to come up with the cash.

In the real world

Many years into this “amazing recovery,” the Federal Reserve found that “across the country, many families continue to experience financial distress and struggle to save for retirement and unexpected expenses."

Changes in family income from month to........

© Salon