(The Economic Collapse Blog)—As the U.S. economy slows down, those at the bottom of the economic food chain are being hit the hardest. Homelessness is surging, the number of Americans living in poverty is rising, and more Americans are considered to be among “the working poor” than ever before.
Unfortunately, we are witnessing a historic economic shift right now, and economic conditions are only going to get even more harsh during the months ahead. Needless to say, that is really bad news for all of us.
According to a report from Harvard University, approximately 650,000 Americans were homeless at some point last year. That represented an increase of nearly 50 percent from 2015…
A January 25 report from Harvard’s Joint Center for Housing Studies estimated that over 650,000 Americans experienced homelessness in 2023—up almost 50% from 2015. Costs of renting and home ownership have skyrocketed while wages largely stagnate. The Harvard report found that half of U.S. households are “cost-burdened” (meaning that 30-50% of monthly income goes to housing), and 12 million people are “severely cost-burdened.” These Americans stand one accident, health setback, or employment disruption away from eviction.
During the past several years, scores of tent cities have sprouted like mushrooms in and around U.S. cities from coast to coast.
One 32-year-old woman named Brandy that is living in a tent city near Winterhaven, Florida says that she has been living there for five years and literally has nowhere else to go…
Deep in the woods outside of Winterhaven, Florida, are a cluster of tents and tarps. There are 46 people that live in this homeless encampment, including Brandy C., who has been there for five years.
“I just made a mistake and I’ve been stuck here since. I’m trying to fix it and I can’t,” Brandy told Scripps News Tampa.
The 32-year-old said the homeless camp is not the safest environment, but it is somewhere she can lay her head at night. However, it could soon be taken away.
“They tell us, ‘y’all know y’all fixing to have to leave,’” Brandy said. “We’re like, ‘so where do we go?’”
These are the forgotten people that our politicians don’t like to talk about.
And their ranks are growing with each passing day.
In Denver, officials have spent 274 million dollars to fight their homelessness crisis, but the area has still “added more homeless individuals than any other metro region in the country since 2018″…
Metro Denver’s homeless crisis has worsened and become among the most acute in the nation despite the city of Denver contracting for at least $274 million from 2021 through 2024 to keep people off the streets.
The Denver metro region has added more homeless individuals than any other metro region in the country since 2018, according to key metrics collected by the federal government.
Like we are seeing in so many other cities, mass migration has been playing a major role in Denver’s homelessness crisis.
We can’t even come close to taking care of the hundreds of thousands of Americans that are already homeless, and more deeply impoverished people are constantly being allowed to pour over our borders.
Meanwhile, the number of Americans that are living in poverty and the number of Americans that are considered to be among “the working poor” both continue to increase.
As I discussed last week, more than 11 percent of Americans are officially impoverished, and another 29 percent are “Asset Limited, Income Constrained, Employed”…
Over time, higher costs and sluggish wage growth have left more Americans financially vulnerable, with many known as “ALICEs.”
Nearly 40 million families, or 29% of the population, fall in the category of ALICE — Asset Limited, Income Constrained, Employed — according to United Way’s United for ALICE program, which first coined the term to refer to households earning above the poverty line but less than what’s needed to get by.
That figure doesn’t include the 37.9 million Americans who live in poverty, comprising 11.5% of the total population, according to data from the U.S. Census Bureau.
Do you understand what this means?
More than 40 percent of the U.S. population is either homeless, living in poverty or among the ranks of the “working poor”.
That is staggering. The middle class is being absolutely eviscerated, and a lot more pain is on the way.
Former Merrill Lynch chief economist David Rosenberg accurately predicted the recession that hit us in 2008, and he is now warning that things are about to get really bad in this country.
In fact, even though the Biden administration is telling us that the economy added “175,000 jobs” last month, he is convinced that the economy is actually bleeding jobs…
The US economy added 175,000 jobs last month, shy of economists’ forecasts for 238,000. In notes to clients Friday, the former Merrill Lynch chief economist explained why he views the numbers as a cause for concern.
He said the data is inconsistent with numbers coming from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages and Business Employment Dynamics datasets, both of which stated the economy actually lost jobs in the third quarter.
Given the disparity, Rosenberg said the data is likely ‘overstated – by historical proportions.’
I agree with Rosenberg.
Large companies all over America have been conducting mass layoffs, and the numbers that we are getting from sources that are not controlled by the Biden administration clearly indicate that the economy is losing jobs.
But I am also convinced that our economic problems will accelerate significantly as we head toward the end of this year.
A “perfect storm” of factors is hurting economic performance all over the world, and I anticipate that global turmoil is only going to become more intense as the months roll along.
So what is the bottom line?
Coffee the Christian way: Promised Grounds
The bottom line is that more Americans will soon be homeless, more Americans will soon be living in poverty, and more Americans will soon be among the ranks of the “working poor”.
Our standard of living is steadily declining, and if you want someone to blame you can blame those that are currently running the show in Washington.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
