The little Middle Class has left the building.
Today I was watching Morning Joe and a remarkable chart came on displaying the net worth difference between 2005 and 2009 by race. As a matter of course, I looked to see where each race landed and what it means to my business and clients the little middle class.
As you can see, the divide between wealth is dramatically different and almost undeniably tragic. I’m not here to place blame. The original television discussion of course revolves around who is better equipped to get the economy and wealth back in the game.
I am simply looking at the level of net worth of Hispanics and African Americans. What does this chart say to you?
The little middle class is virtually non-existant. The chart clearly indicates that hispanics and blacks are mostly:
- Renters not Owners
- Borrowers not Lenders
- Owe not Owed
- Consumers not Producers
- Spenders not Savers
Living a life of you are in control of is all a matter of mindset. As long as people turn a blind eye to the reality that everyday a choice is made as to how we will live our lives. The choice is not made by the president of the United Stated, Congress, the Governor, the Mayor, or City Council. It is made every time you decide to impulse shop, to buy more then you need, and to compete with your neighbor.
The little middle class will get smaller and smaller until each and every person demands control of their personal habits and decisions.
Every day I coach some client desperate to get ahead see that they are not their financial past. I explain that every time they pull out their wallet they are making a choice as to what tomorrow will look like.
Until the little middle class begins to invest in appreciating assets:
- Real Estate
There will always be a gap as wide as the Pacific Ocean between the haves and the have-nots. There is no shame in being in the little middle class after all it is what America was built on. Just don’t be blind to the fact the the drop isn’t far from there.
Graphics Source: PCW Research Center