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In North America, the middle class is quickly becoming an endangered species.
In many ways, opportunity for middle income jobs is disappearing quickly as the jobs migrate overseas to India, China, Brazil and other up and coming economies.
In both Canada and the USA, we are quickly becoming a third world country.
The best definition can find for a third world country is: A country where there is no middle class – only rich and poor.
There are many factors that threaten and endanger the middle class, some of which are:
1) Unions and inflated labor prices in North America that keep the USA and Canada from competing on the world market
2) North American consumer demand for the lowest possible prices of consumer goods aka: Wal-mart. North American consumers will not pay premiums for locally produced goods.
3) The death of American manufacturing
4) The Federal Reserve, Quantitative easing and inflated money supply
5) Rising oil, food and real estate prices as a result of Quantitative easing.
6) Rising minimum wage while middle income earners have stagnant earnings
7) Technology that eliminates certain jobs every year, ie: Clerical jobs replaced by automation.
8) Rising taxes and fiscally irresponsible governments
All of the above factors are a threat to the shrinking middle class and as the world becomes more global, many more middle-income jobs will disappear.
Why hire an assistant in Winnipeg for $12-$15 per hour when you can hire a virtual assistant who speaks perfect English with better education in the Philippines for $1.50-$4 per hour?
An MBA graduate in the USA costs a company $300,000 a year while the same MBA graduate from India costs $30,000 a year.
The world is changing rapidly and, for many, it is time to make a decision between joining the ranks of the rich or poor.
Eventually, there will be no middle ground in the North American economy. If a person wants to keep living a middle class lifestyle, he or she may have to move to Brazil.
If given the choice between living rich or poor, everyone always says they would choose to be rich. However, when you survey the actions of the average person, it is quickly evident that most people choose a life of poverty over a life of wealth.
The top 5 reasons why “Poverty Sucks” and why you need to be Rich in the next 10 years.
1) You don’t get what you want in life: People who choose a poverty mindset over a wealth mindset ask themselves “what is the cheapest thing I can afford?” For these people, life is controlled and dictated by prices – not value. When you go to a restaurant for dinner, do you order the cheapest thing on the menu? Or do you order what you actually want to eat?
2) Lack of Freedom: When you have a poverty mindset, other people make critical decisions for you. Most people are 100% controlled by their government and their employer. If you want the freedom to make your own decisions, it may be time to build a wealth mindset. Every great experience in life has a price of admission, if you want the experience, you have to pay for it. America’s jails are filled with people who have absolutely no freedom. Most American prisoners made less than $10,000 per year before entering the prison system. When you are impoverished, you are stuck in survival mode and cannot get into “creation mode” where you can freely create wealth and the life you want.
3) Lack of confidence and health: Lack of funds creates stress. Everything in life is difficult if you cannot pay the price of admission. Stress is a major threat to health and wealth. Lack of funds also creates a lack of confidence, which can be a vicious cycle. No funds equals no confidence and no confidence equals no funds. If you are in this cycle, break it immediately.
4) Broken Homes: The #1 cause of broken homes and divorce is financial stress. Financial infidelity aka: hiding bank accounts, secret spending and secret credit cards ruins trust and relationships. Divorced families are much more likely to be faced with poverty and financial problems.
5) Debt: Nearly 50% of the families in the USA are 1 paycheque away from bankruptcy. We live in a paycheque to paycheque society where overspending and money mis-management makes debt a necessity for survival. Today with credit cards, it’s easier than ever to get into debt. Although debt is a convenient way to take care of immediate problems, it is a double-edged sword. Debt will let you do the things you want today while robbing you of the things you want in the future.
All of the above reasons can create cycles of poverty that are very difficult to break.
Unfortunately, in the future, there will only be rich and poor in North America unless some major changes are made. I have heard many experts say that next 10 years will be the biggest wealth transfer in history and best time in history to become very rich... or very poor.
The USA is in a recession that may turn into a depression and this means that businesses, real estate and other assets will be on sale. There will be more opportunity than ever to become wealthy.
The best part of living in a free country like the USA or Canada is that each of us has the ability to choose between becoming Rich or Poor.
Thanks for reading,
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