The Middle Class Act; Has The American Dream Become A Nightmare?

In my first two blogs I discussed how the current U.S. recession has played a major part in the financial turmoil that the middle-class is currently experiencing, along with their own irresponsible money management. In conclusion, I find that the recession does not have to dictate the lives of the individuals. While it is true that losing your job can and will have an effect on your household income, people that have managed their money the financially responsible way, and followed the basic financial disciplines, will fare much better than those who don't.
By managing money correctly while they have a job, they won't go hungry a month after they lose it.

Financial planners say that in order to get ahead, people must build their wealth and assets. They can't do this by overspending and not having goals. Some people don't set goals, and thus overspend. Many can't discern between needs and wants, while others spend money to look the part, but have no clue on how they are actually going to keep it up.

The basic money management principles consist of saving three to six months of expenses, getting rid of debt, and saving an emergency fund. There are many books written on this, as well as T.V. and radio programs. If more people read and followed these financial disciplines, then maybe the economy will strengthen and the middle-class will be the image of the American dream once again.

Do you think your current spending habits are on track for prosperity or poverty? If not prosperity, are you willing to change your spending habits and save as stated above?

Homeward Bound: Journey From Afghanistan

In the two previous installment of Homeward Bound: Journey From Afghanistan, I further discussed the reasons for the decline of American support for the war in Afghanistan. In the first installment, I discussed the role that time played in the decline of support for the war. In the second installment, I explained the role war controversy, such as war crimes, played in America’s decline in support. However, these are not the only reasons for decline in support. Another pressing issue, which affects support for the war is the recent state of the economy. With the United States continuing to fund a war in the midst of a recession, American support continues to drop. Many Americans would rather stimulate the economy as opposed to funding the war in Afghanistan.

Specialist in U.S. Defense Policy and Budget, Amy Belasco, presents the total figures for the war to the date of September 2, 2010 in a report entitled The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9/11. From September 11, 2001 until September 2, 2010 the United States government has spent a cumulative $336 billion to fund the war in Afghanistan. Though this total is not as larger as the $751 billion spent over the same time period on the war in Iraq, it does raise the question as to whether this money could be put to better use at this time.

As the United States is suffering from one of its worse recessions, the need for government funding is great. According to a report by the Bureau of Labor Statistics, national unemployment, as of September 2010, was 9.6% a figure which insures that millions of Americans are out of work. That being the case, the money that is being pumped into the war in Afghanistan could very well be used to help the millions of Americans who have lost jobs as a result of the sluggish economy. Therefore, many Americans want the war to end and the troops to come home in order to help the economy get back on its feet.

To bring the war in Afghanistan to an end would mean less divisions of government spending. The U.S. government would be able to help more jobless Americans and even boost the economy. While many Americans want the war in Afghanistan to come to an end, the reasons why vary. Some believe that the war has been going on for far to long; others fear the dark possibilities that can come from remaining at war; and many more consider the war effort a strain on the economy. For these many reasons, Americans want United States soldiers to come back home. The time is now.

The Middle Class Act; Has the American Dream Become A Nightmare?

Craving "bling bling" and living above their means is why some middle-class Americans are now in financial ruin and living in poverty. Instead of admiring their manicured lawns or grilling steaks in the backyard, some are living out of their cars or sleeping on the floors of friends or family members.

It is true that America's economic downturn has a major negative effect on the middle-class lifestyle as stated in my first post, but some if not most of the turmoil can be blamed on their own personal financial choices. If a person was making at least $70000 a year for the last 5 or 10 years and was laid off last month, then why are they barely able to buy food next month? Did they not save any of their money? Did they need that huge house payment or new Tahoe? Why didn't they listen to the financial experts who say to save enough money for at least 6 months worth of living expenses?

In Dr. Phil's "Living Beyond Your Means" episode, he tells a financially strapped couple that, "The hardest thing to do is to admit that what you're doing is not working and be willing to change it." That's a major part of the problem. Most of these people are not willing to admit that they can't afford this lifestyle, which for the most part was an act to begin with. They don't want to give up anything.

Getting on a budget and living within your means will help to solve many of the financial problems facing the middle-class. To some this may be easier said than done, but if you put the well-being of your family and/or marriage first, the desire to achieve this common sense approach will become much more clearer and attainable. Nobody wants to see their kids hungry or having to sleep on someone else's floor. This thought alone should make most people spend their money wisely.

The Middle Class Act; Has the American Dream Become A Nightmare?

The current recession that America is facing has put the middle class under brutal attack, with new casualties everyday. The dream of a good career and raising a family in a good neighborhood, is no longer within reach for many Americans. Middle-Class neighborhoods were viewed as "incubators" for the American dream, according to the Washington Post report "U.S. Losing Its Middle-Class Neighborhoods".

A large percentage of former middle income Americans are now living in poverty. Many of them are having problems dealing with their reversal of fortune. "It's very sad," said Maria Chavez, who was a middle-class citizen a year and a half ago. "I cry sometimes because I don't want to come here for food", she said as she tried to find dinner for her family at a local food pantry.

This CBS report states that the recession and slow recovery are causing the Chavezes and many other Americans to slip into poverty.
"The most important anti-poverty effort is growing the economy and making sure there are enough jobs out there, "President Obama said Friday at a White House news conference. He stressed his commitment to helping the poor achieve middle-class status and said, "If we can grow the economy faster and create more jobs, then everybody is swept up into that virtuous cycle."

Who is at fault for these grim prospects? Some would say the U.S. government, while others would say that greedy CEOs are to blame. Many will argue that it's due to bad personal financial decisions. Is the American dream now just a facade or can we overcome these obstacles and continue the pursuit of happiness.