By mid-2005, according to the Economic Policy Institue, 28% of families living in the US did not have the incomes to afford the items in EPI’s basic family budget for secure, safe and decent lives. There are 108 million households in this nation. So, 30 million familes cannot make ends meet and fall more and more in debt with every passing month.
That was almost a year ago. Since then, we’ve seen interest rates rise, consumer debt continue unabated and the price of energy (home heating oil; gasoline) skyrocket. The Bush Administration’s sabre rattling toward Iran has had the predictable effect on the price of oil, now well over $70 a barrel and rapidly driving up producer prices that, in turn, will drive up consumer prices for more than just gassing up the car.
With nearly 30% of families already living below the ‘decency line’, the outlook for economic sustainability and sanity in the US is grim. There are many differences in affordability of life depending on where one lives (e.g. rural vs. urban), size of family, and local price patterns (among other things). Still, a very gross picture emerges from comparing the median income to the median family budget required for decent living. According to the latest figures I could find:
In 2005, the median family budget required $40,000 of income.
In 2004, the median family income was $43,200. (So, make it $44,000 for 2005)
The median is the point at which half the households are above; half below.
At 108 million households, this means 54 million operate, at best, within $4,000 of not being able to make ends meet (30 million of whom already cannot).
These are pre-tax incomes, by the way. So, the margin for (t)error is even less than the $335 per month indicated.
Everyone sees what’s happened at the gas pump this last month. And, the Washington Monthly online has an interesting statistic: the typical household uses just over 90 gallons of gas a month. In the past year, of course, the price of gas has gone up more than 50 cents per gallon — meaning this one item alone has eaten up $45 a month — or, more than 13% of the margin of (t)error.
If you live well above the ‘decency’ line, these movements in gasoline (as well as interest rates and other) prices are annoying. And, it’s not even noticeable if you are someone like Lee Raymond who just retired with an obscene pay package from ExxonMobil — a company that, under Raymond’s immoral leadership denied it had any power over gasoline prices. But, we are rapidly approaching a point where half the households in this nation will not be able to afford a decent, basic life.