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Going Broke in the USA

By: LN Shapely | 03Feb2000

LN Shapely is the epitome of the postwar, baby boom generation (Peace, Baby).
Her radio soapbox is with WNOS am 1450 in New Bern, North Carolina.
She is also a freelance writer, roving speaker and chicken rancher.

Who can afford to live in America today? Alarmed am I. Inflation is reported to be "under control," yet it was 2.5% in November, 1999 and was just 1.4% in '98.

How come lettuce now costs $1.20 per head and the price for groceries seems to average $2/item? Every time I go to the grocery store I am shocked. A couple of carrots, apples, bananas, cereal and a bag of coffee. "That'll be $17.68," says the checker who cannot count change without the use of a register.

I went to the glorious NC State Fair last fall. Every game of chance was $2 and it cost $6 for my daughter, Buttercup, and me to ride the ferris wheel. Frugal individuals, like me, can't take it. You wouldn't think it was too high by the amount of people throwing money at the harkers, getting nothing in return except an occasional stuffed toy. Is it no wonder the boomers aren't saving for their retirement?

Digging into inflation statistics I go. If you had lived in 1800 and had 1998 money, you'd need to spend $936 to get $11 worth of their goods. Even as recently as 1988, you'd have to pay $140 in today's money to buy $71 worth of their goods. That's double, folks. Doubled in ten years.

Some things almost doubled in one year - like fun. Last year, rides at our local big fair were $1.50. This year? $2.75. How can I have fun when dear little Buttercup has to drool over, instead of riding, the rides? Ok, Ok. It's the whining I can't stand. We went bowling.it now costs $2.75 per GAME. We're lucky to "only " pay $6 for a movie..in Manhattan it's $9.

In 1978 bananas cost 35 cents/lb, lettuce was 48 cents/head, gasoline was 68 cents/gallon, bread cost 51 cents/loaf and coffee was $2.81/lb. Electricity has almost doubled. Yet, according to US Census bureau reports, relative median household income has increased less than 6% since 1969.

Alarming, although not surprising, statistics cloud our booming, affluent society. Since 1975, most of the increases in income have gone to 20% of people at the top of the income ladder. The rich do get richer and the poor do get poorer. 13% of our population now lives below the poverty line. Also sad, but true, remains the fact that female households with children, but no spouse have a "median household income" of $18,000, while men in the same position earn $31,020 per year.

Recent headlines, based on the Federal Reserve's survey of family finances, claim a hefty 17% increase in the median net worth of US households, but what they conveniently forgot to mention is those same families' debt grew by 42 percent during that same period - essentially backpaddling by a 25% LOSS. Tricky Dicks, aren't they?

Keeping a roof over our head costs 33% of my income. Luxuries like a car that doesn't break down four times a year, economy basic cable TV and some credit card debts I'm foolishly trying to pay off adds another 14%. Do you have your pencils ready? That's 51% of my income gone already.

Half of my income is gone and I haven't bought food yet.or clothes or school supplies or gasoline or gifts or internet charges, and don't forget doctors and dentists. I can only afford to pay for major medical insurance with a $5,000 deductible so all that comes out of my pocket, too.

How are we to cope? My world gets smaller and smaller. I rent movies, rarely eat out and ride one ride at the fair. I vacation on the world wide web. I cut coupons and simply do not shop for anything unless it's absolutely necessary. Buttercup gets most of the clothes, doctor and dentist visits.

As I write, I kick myself to be grateful even as every penny I have flies out the window. I live in a nice climate-controlled home, which didn't get under the floods of Floyd, and I am still richer than 3/4 of the world's population. Compare all these wild figures to the per capita income of an average Angolan: $1,000 That wouldn't last her a week here.

Well, our Congresspeople are doing their part to keep Federal spending down for 2000. They might cut their 3.4% pay INCREASE by 1%. How generous they are with their $140,000 per year average salary.

©2000 LN Shapely All rights reserved.

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