Gap between rich & poor growing! Say goodbye to middle-class.

What would you do if you lost your job tomorrow?  How are you preparing yourself for the “new economy”?  Are you doing the same things you’ve always done and expecting a different result (isn’t that the definition of insanity)?  Or are you taking steps to make sure you don’t land in America’s new underclass?  

Damien Hoffman of Wall Street Cheat Sheet says the growing underclass now accounts for about 10% of the U.S. population.  Here is the evidence:

1. A record 40 million Americans are on food stamps – 1 in 8 Americans may not be able to eat without government assistance.
2. 32 million Americans don’t have health insurance – these people pray everyday that they don’t lose their health because the costs can drive the average person into bankruptcy.
3. 24.5 million Americans are unemployed – it’s more like 17% if you include those that have given up the search or are working part-time and still looking for full-time work.
4. 2.8 million homes were foreclosed in 2009 – that number is expected to jump to between 3 & 3.5 million in 2010.
5. Dollar Tree Stores stock is at all-time highs – revenues are up 12.5% which means that 12.5% more dollars are chasing ultra-cheap products.

Many jobs lost in recession gone for good?

Unlike previous recessions where jobs returned quickly and people simply picked up where they left off, many experts suggest that this time is much different as many of the 8.4 million jobs lost are gone for good.  And many of those that are getting jobs are having to settle for half of what they were making previously.  So what do you do if you’ve lost your job?  Many are returning to school for a college or technical degree, but this is no longer a guarantee that you will find a job as employers now have a huge pool of talent to choose from. 

On the other hand, a US News article titled 7 New Rules For Getting Ahead suggests that economic dowturns tend to produce a surge in entrepreneurship.  This is especially true in the home-based business arena as these businesses cost very little to start, are very low risk and high reward.   The author goes on to say that entrepreneurs have an advantage, as they overcome obstacles for a living and tend to be a lot more resilient.  Even if you work for someone else, an entrepreneurial attitude can set you apart from your co-workers.