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?

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.

Competition Among Citizens and Illegal Immigrants

Immigration is the foundation of the United States of America. In 1607, individual English settlers came to America to seek religious freedom and personal fortunes. The English immigrants journeyed to the land of the states and made thirteen colonies. The new settlers created jobs that strengthened what we know today as the U.S.A. As decades passed, people from all over the world with different ethical backgrounds immigrated to the United States. Mexicans, Africans, and Asians are some immigrants that journeyed to the United States.
Today illegal immigration has become an economic issue with American prosperity. Americans with low-skills, often high school drop outs, have to compete with illegal immigrants over low-skills jobs. There has been massive debt in the United States over the past years. The Total Public Debt Outstanding was approximately 93 percent of the annual GDI (gross domestic income). This massive debt has caused plenty of job loss and has also caused citizens to settle for low-skilled jobs. Illegal Immigrants are taking low-skilled jobs such as: carpet layers, plumbers, and construction workers. According to The American Resistance, between 40 to 50 percent of wage losses of low-skilled Americans is due to the in-immigration of low-skilled workers. FAIR, the Federation for American Immigration Reform, states today, more than 15.4 million Americans are without a job and are actively looking for work. At the same time, estimates conclude that 8.3 million illegal aliens are part of America’s workforce despite their employment being a violation of U.S. law. Is this fair? Should illegal immigrants be able to come to America and take the jobs of rightful U.S. citizens?
I don’t oppose immigration because immigration is the reason the United States is so diverse today, but I do believe illegal immigration is not fair. An immigrant coming to the U.S. should take the proper steps to becoming a citizen. Proper citizenship will make fair competition with low-skilled American workers. This could promote Americans to accept immigrants in society today.

photo from flickercc.bluemoutains.net