Can cost segregation create jobs for America? Well, let’s see…but first, what’s really going on with our unemployment!
The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated “long-term” discouraged workers, who were defined out of official existence in 1994. That’s right, they simply just don’t exist any more. True unemployment hovers near 24% when you add all groups affected. That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers.
The U-3 unemployment rate (8.3%) is the monthly headline number you’ve seen trumpeted about today by the drive-by media. The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure, including short-term discouraged and other marginally-attached workers as well as those forced to work part-time because they cannot find full-time employment. That number is roughly 15%. Below are some stats and facts that certainly demonstrate the fragile state of our economy. I say again, very fragile.
- Median household income in the United States is down 7.8 percent since December 2007 after adjusting for inflation.
- There are 5.6 million less jobs than there was when the last recession began back in late 2007.
- The U.S. government says that the number of Americans “not in the labor force” rose by 17.9 million between 2000 and 2011. During the entire decade of the 1980s, the number of Americans “not in the labor force” rose by only 1.7 million.
- In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.
- In 2007, 73.2 percent of all young adults between the ages of 18 and 24 that were not enrolled in school had jobs. Today, that number has declined to 65 percent.
- Back in the year 2000, more than 50 percent of all Americans teens had a job. This past summer, only 29.6% of all American teens had a job.
- In 2008, the number of “long-term unemployed workers” in the United States was approximately 2.6 million. Today, that number is sitting at 5.6 million.
- The average duration of unemployment in the United States is nearly three times as long as it was back in the year 2000.
- In 1950, more than 80 percent of all men in the United States had jobs. Today, less than 65 percent of all men in the United States have jobs.
- According to the White House, about 20 percent of all jobs in the United States were manufacturing jobs back in the year 2000. Today, about 5 percent of all jobs in the United States are manufacturing jobs.
- More than 56,000 manufacturing facilities in the United States have been shut down since 2001.
- In 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs.
- The U.S. trade deficit with China during 2011 was 28 times larger than it was back in 1990.
- About twice as many new homes were sold in the United States in 1965 as are being sold today.
- Home prices in the 4th quarter of 2011 were four percent lower than they were during the 4th quarter of 2010. Overall, U.S. home prices are 34 percent lower than they were back at the peak of the housing bubble.
- The total value of household real estate in America has declined from $22.7 trillion in 2006 to $16.2 trillion today.
- At the end of 2011, 22.8 percent of all homes in the United States with a mortgage were in negative equity. That would have been unthinkable a decade or two ago.
- Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
- Total consumer debt in the United States has increased by a whopping 1700% since 1971.
- Since the beginning of 2009, the average price of a gallon of gasoline in the United States has increased by more than 90 percent.
- The number of children living in poverty in the state of California has increased by 30 percent since 2007.
- Back in the year 2000, 11.3% of all Americans were living in poverty. Today, 15.1% of all Americans are living in poverty.
- In November 2008, 30.8 million Americans were on food stamps. Today, 46.5 million Americans are on food stamps.
- The U.S. dollar has lost 96.2 percent of its value since 1900. You can thank the Federal Reserve system for that.
- In 1950, the United States was #1 in GDP per capita. Today, the United States is #13 in GDP per capita.
- According to the U.S. Census Bureau, 49 percent of all Americans live in a home that receives direct monetary benefits from the federal government. Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.
- In 1980, government transfer payments accounted for just 11.7% of all income. Today, government transfer payments account for more than 18 percent of all income.
- Federal housing assistance increased by a whopping 42 percent between 2006 and 2010.
- Medicare spending increased by 138 percent between 1999 and 2010.
- In 1990, the federal government accounted for 32 percent of all health care spending in America. Today, that figure is up to 45 percent and it is projected to surpass 50 percent in the next two years.
- In 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse. It is being projected that Healthcare reform will add 16 million more Americans to the Medicaid rolls.
- Today, spending by the federal government accounts for about 24 percent of GDP. In 2001, it accounted for just 18 percent.
- In 2004, the U.S. government had a budget deficit of a little over 412 billion dollars. This year (2012), the U.S. government will run a budget deficit of over 1.3 trillion dollars.
- In 2001, the U.S. national debt was less than 6 trillion dollars. Today, it is over 15 trillion dollars and it is increasing by about 150 million dollars every single hour.
- The U.S. national debt is now more than 22 times larger than it was when Jimmy Carter became president.
It’s a sad state of affairs, but calm your fears for there is hope! Again, the question posed is, “Can cost segregation create jobs and save the US economy?” Overwhelmingly the answer is yes!
First, what does cost segregation do? Cost segregation identifies tangible personal property assets in real property and, as a result, accelerates the depreciation from 39-years to 5-, 7- and 15-years. In simple terms what that means is that any commercial or residential rental property owner can apply cost segregation to their property and take a huge income tax credit or refund right out of their existing property. In dollars and cents that translates to 1.12 trillion dollars in real, after-tax cash that the US economy would realize from cost segregation. This is based on the approximate (recently estimated) 16.2 trillion in US commercial holdings world-wide and the approximate 3.8 trillion in US residential rental holdings world-wide that qualify for cost segregation.
This cash would be DIRECTLY in the hands of those who already are invested in America and want to see America remain strong and vibrant. These building owners are mostly average, middle-America citizens going about their daily lives as we all do…working 8 to 10 hours a day, team sports practice for the kids after school, piano recitals, weekend getaways, yard-work, etc. Cost segregation puts the cash in the pockets of every-day people who will spend it and re-invest it as they have before. As that money is spent and invested, other businesses must hire more people to meet the needs of their customers. $1,120,000,000,000 is now circulating throughout America without government intervention or re-distribution of this wealth…cost segregation delivers results.
It is estimated that for every $100,000 of new cash invested into the US economy through the private sector a new job is created. With 1.2 trillion coming directly from the results of cost segregation that means 11.2 MILLION new jobs could be created as a direct consequence of applying cost segregation to all available qualifying properties!
What a great solution and alternative to any government-sourced “solution” (sic) to creating jobs and growing our US economy! A cost segregation study works every time it is tried.
Source: Shadow Stats, BLS.
Cost segregation delivers results every time it’s applied!