Below are three statistics that show the vast majority of people are simply “Facebook frontin”:
Statistic 1- Many Aren't Making More Money
According to the Economic Policy Institute, since 1979, wages of workers have remained essentially flat even as their productivity has increased steadily. This means that corporations and their shareholders have amassed tremendous financial gains over the same period, while employees saw little to no increase in their standard of living.
Statistic 2- Many Are Going Into Debt
The following chart shows the increase in consumer prices over several decades. As illustrated, there has been a sharp increase in prices since around 1971. As the cost of goods and services become more expensive for the average consumer, many have resorted to using debt as a means to sustain their standard of living. According to an article by CBS News, credit card debt in America is ballooning, with an estimated $57.1 billion in new credit card debt in 2014. The article also states that, “The surge has left the average household credit card balance at almost $7,200, or not far from the $8,300 level that CardHub considers unsustainable."
Statistic 3- Many Rely on Assistance
Finally, since the financial crisis of 2007 and 2008, the number of people receiving assistance for food has risen to 47 million, or 1/6th of the country’s population. This stat doesn’t say “economic recovery." To be sure, in recent years this number has started to decline, but you get the picture.
The three statistics above present only the tip of the iceberg. A number of quality jobs have been lost and/or shipped overseas as globalization expands. Nearly 50% of recent college graduates are either unemployed or underemployed. More, the wages of recent grads have declined even as average student loan debt has increased.
Putting it plainly, the US economy is very weak and not likely to improve for a considerable time. You have to smarten up and get wiser with your money. Don’t fall into the debt trap of “Facebook frontin.” Do the right thing and start your financial education today.
Have you seen any Facebook frontin' on your timeline? Or, are you bold enough to confess to frontin' yourself? Hit us in the comments below and let us know.
Samuel Boggan is a first generation investor. Based on the teachings of best-selling personal finance author, Robert Kiyosaki, he is the publisher of Entertaining Money (www.entertainingmoney.com). With Samuel as its "Intro to Financial Education" instructor, Entertaining Money strives to increase the awareness of the need for financial education across the globe.