BALTIMORE, June 1 /PRNewswire/ -- And the winner is ... Indianapolis?!? A recent report indicates Indianapolis is sporting the highest foreclosure rate of any city in the U.S. While many are stunned to see Indianapolis oust classically volatile cities such as Atlanta and Dallas, one expert sees this report as evidence of the "hollowing out" of the U.S. economy. The RealtyTrac 2006 U.S. Metropolitan Foreclosure Market Report documented a staggering one foreclosure for every 69 Indianapolis homes.
"The foreclosure rate in Indianapolis is a perfect example of a very unsettling American economic trend," said Addison Wiggin, author of "Empire of Debt" and editorial director of "The Daily Reckoning." "Overseas manufacturer outsourcing, an undereducated working class, and a housing glut have combined to produce the nation's highest foreclosure rate."
A former agricultural and manufacturing hub, Indianapolis' gradual swing away from the manufacturing industry coupled with growth in the insurance and retail industries have put blue collar workers in a serious predicament. Wiggin believes this change could soon be mirrored in similar cities across the nation. "The shift from a manufacturing economy to a service society doesn't mean everyone who used to work in a manufacturing position will get a job in the 'new economy,'" said Wiggin.
Wiggin also accredits the "brain drain" of many Midwest cities. "Not only are blue collar workers losing their jobs to overseas markets, but a general lack of education puts them out of competition for what few jobs remain.
"This is the beginning of a vicious cycle," said Wiggin. "As blue collar workers exhaust the resources they need to live a comfortable life they resort to credit cards and mortgages to feed their consumption. In an era of rising interest rates, this is putting many middle-income earners in a bind." Wiggin sees this as yet another sign of "our long history of economic power and wealth being eroded from within."
No comments:
Post a Comment