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America's Fiscal Stupidity Mirrors Detroit

rawtruth Wrote: Mar 02, 2013 9:06 AM
While I usually agree with your comments, this inability of the average family to afford a new car is laughable. There are a lot of new cars on the road across the country. People are purchasing new cars and trucks whether they can afford them or not by that outfit's analysis.
Joseph64 Wrote: Mar 02, 2013 9:23 AM
He didn't say that nobody was buying new cars, just that families earning the median income could not afford them anymore. When you have millions of people lose their jobs, that median income thing tends to plummet as more and more people with zero income because they lost their jobs drag down the average.
Joseph64 Wrote: Mar 02, 2013 9:27 AM
Here's an example because I know you lefties need everything explained to you in the simplest terms possible

Say you earned $50,000 last year and so did I. Between us our median income would be $50,000 ($100,000 / 2). now let's say that I lose my job. Now our median income is $25,000 ($50,000 /2). Now let's throw in a few more people who lost their jobs. So if there are now 5 of us, 4 of whom are unemployed, then your $50,000 income has to be divided 5 ways to arrive at the median income which would now be $10,000 ($50,000 / 5). Do you understand how medians work now?
wiseone Wrote: Mar 02, 2013 10:06 AM
Joseph,

What you have described is not a median. It is an avverage.

A median is the income at which there are the same number of people earning more than that amount as less than that amount.

In our country the median income is said to be around $30K because that is the figure among EMPLOYED people where there as many making more than that as making less.

But if you count all the people who are unemployed (some 23 million) and retired (I don't know how many that is) the median figure would be much lower.

It’s fitting that on the day Washington, DC is cutting the budget by an agreement that they really didn’t mean, that the city of Detroit will finally get what’s it has needed for a long time: declaration of fiscal disaster.

Michigan’s Rick Snyder has appointed an emergency city manager to do for Detroit what Obama, Biden, the UAW, GM, Chrysler, the city’s council and mayor have not been able to even with a $80 billion bailout of the automotive industry.

“Snyder’s decision comes after a state review team report concluded last week that Detroit is in a financial...