In America, the standard of living for most people is unsustainable. It has been this way for years, but many chose to ignore the realities and continue buying giant homes, import cars, big TVs, fancy vacations and sushi on a nightly basis. The reality is that most people are broke, and there is no way for these people to sustain these standard of livings. Eventually, credit cards won’t work anymore. Home equity loans are a thing of the past. Unemployment continues to worsen.
The result is that there is a massive standard of living shift that will occur in this country. It might take one of two forms but it will indeed come I can assure you. One form is via inflation. Costs of basic necessities will increase so much that people will be able to afford less and less – examples: gas, food, energy, etc. The other form is a depression. A depression is essentially where unemployment shoots higher and people have less money overall.
We will get one of these forms or possibly a combination of both. We’re already seeing this as unemployment hovers around 10% meanwhile gas prices are rising and food costs are rising. Again, standards of living are falling. This trend will continue.
Economy