Why the USA Economy is Broke
By Dr. Sol Adoni
Technology Entrepreneur over 40 Years
The fact is since 1976 I’ve created dozens of companies and most were in Technology.
I’m the founder of 1 Media the largest network of business portals in the world.
What I’m discussing in this article is how I now view the big picture of the USA economy and the global world economy.
The fact is China is now the largest economy in the world. It has a GDP a few Trillion dollars larger than the USA. But the USA has 1/4th the population of China, so the USA is still considered the most powerful economy in the world.
Yet, I know the USA economy is completely broke and it’s time for a complete reset. The reason is simple, the economy will never be able to payoff the USA debt and housing prices will soon crash like never seen before.
The sad reality is, the new work force entering the USA economy has no hope of a future equal to or better than their parents.
Employers are paying new workers even those with worthless college degrees, what can only be called slave wages.
Most employers are now huge international companies that think $10 bucks an hour is a fair wage. That’s $400 a week, which is $600 less than a person needs to earn to even quality to live in poverty in a studio apartment which is $1,000 a month now and way more in most markets in the USA.
So why should anyone work for $400 to even $800 a week when the MINIMUM you need is $1,000 to $1,200 a week to even qualify to live with a tiny amount of human dignity in a tiny studio apartment. To live in a Studio is to still live poor without even your own bedroom.
When you have no affordable housing for the new workforce, the new workers will refuse to work and start to abandon cities and buy 20 year old vans and SUV’s to live in and move to remote areas to fish and gather food in rural areas or even 3rd world countries and just drop out of the whole bullshit economy that the USA economy has become.
A $50,000 or $60,000 a year job IS NOT A GOOD JOB as many believe, since it only gives a young worker the ability to live in poverty in a tiny studio apartment. A while ago I wrote an article explaining on $50,000 is the REAL MINIMUM WAGE today in the USA.
The fact is you need 50 or 60 thousand a year now to qualify for a meager studio apartment.
You need 75k a year to qualify to just rent a 1 Bedroom apartment and almost 100k a year to afford a 2 or 3 Bedroom apartment.
Houses I lived in most of my adult life are now $5,000 a month or more in most major USA markets. So my own kids will never have jobs that will allow them to live as I did most of my life.
The fact is real estate prices are so out of line with job wages that the USA housing price bubble has to crash, that means banks will have write off bad real estate loans after abandoned properties go to foreclosure sales. That means banks will soon all crash.
The next housing market price crash will make 2008 look like a picnic and it will lead to a global depression.
I can see communes popping up all over the USA soon as young workers realize they will never have a wage to buy a home and new cars and all they will ever be are low paid slave wage workers for huge international companies that will never pay a service labor workforce a good living wage.
Face it, you got college grads brewing coffee at Starbucks living with their parents and their cheap 10 buck an hour job is about the best job they will ever have.
The new work force didn’t learn solid trade skills like auto repair where a worker can earn $25 to $40 an hour working for a small auto shop that now bills around $100 an hour. Nor did they learn trade skills like being a plumber or roofer or electrician. They went to a bullshit University and took up space and now they have huge school loan debts for worthless degrees that will never earn them much more than a lousy $15 bucks an hour.
There are NO GOOD JOBS for new college grads in the USA, even ones with tech degrees.
You have too many lawyers in the world and technology has replaced most doctors, so low paying medical tech jobs is what the broken USA medical industry is hiring for now.
In the 1950’s a man could work and feed, house and cloth his family. It was the end of the Industrial revolution when strong Unions gave USA workers jobs that a man could take care of a family on.
Then you saw woman’s liberation hit the USA and females enter the workforce enmasse and families with two incomes led to the huge inflation of the past 50 years that led to where the USA is now.
Real estate so over inflated in value that a new worker needs $50,000 a year to live in poverty in a tiny studio apartment.
So why should a young worker go to work for $10 to $15 bucks an hour when they need $25 an hour to qualify to live in a meager Studio apartment?
The answer is, they shouldn’t take these low paying service jobs and they should flee the USA and move to remote areas of the world and learn to live off the land.
The USA is no longer a manufacturing country, its a service labor workforce of 300 million CONSUMERS and the entry level jobs for a service workforce need to go to $30 bucks an hour or the entire system breaks down.
A young person is better off buying used lawnmower equipment and a used truck and building a small lawn service company than they would be taking $10 buck an hour jobs at Home Depot and Starbucks.
Those are dead end jobs, where career employees that move into low management jobs make less that 50k a year.
Kids need to be starting office cleaning companies and maid service companies and they might be able to build a small business that makes them $50k a year which is way more than these low paying service industry corporate jobs will ever pay them.
As the new work force dwindles in the USA, then government systems such as social security will crash, since it relies on increasing numbers of new workers with higher wages to replace the baby boomers who now all retiring and that scenario will never happen in the USA.
Sure some new grads will find good jobs. But most of the new workforce will find only $10 buck an hour jobs at Starbucks and Home Depot.
A Studio Apartment needs to crash in value to $400 a month from the $1,000 range they are at now. That means a depression level crash of the economy and that means a loss of 25% to 50% of jobs.
There’s no way to spin these facts about the USA economy as anything but what it is. It was one big ponzi scam and now the house of cards are set to collapse.
Just talk to 22 to 32 year old kids. See if they make over $60,000 a year. See if they live on their own or own a home.
I bought my first house at 19.
I founded my first tech company at 16.
I’m 57 in a few days, and all my assets are up for sale since I see there is no future to the broken USA economy.
It was fun while it lasted, but times are about to get real hard for most of the planet. A service economy is not a global leader, so the glory days of the USA economy are over.
Get ready for the housing crash, it must occur to adjust housing prices to what the USA has become. That is 300 million consumers most with no real skills worth more than $10 to $15 bucks an hour.
They all need cheap affordable housing so prices will crash and adjust as the USA learns how to adapt to what it is really, a large mass of low paid unskilled workers.
I’m sorry people, but a real business person with over 40 years of running companies needs to tell you the simple truth.
In my life I’ve seen the powerful USA economy move from a solid gold base backed dollar with real manufacturing jobs to the broken service economy it has become.
Sell off your assets now while you can and move to a farm you own in a 3rd world country.