Economists have predicted that the economic downturn will exacerbate the United States' standard of living since the "worst is yet to come."

Howard Davidowitz, head of Davidowitz & Associates, has warned that the economic woes will hurt more US citizens as consumer spending has fallen due to increasing job losses, crumbling financial markets, and deteriorating living standards, which demonstrates a "permanent change" in the American way of life.

According to his company's findings, Davidowitz claims, the United States now suffers from "an $8 trillion negative wealth effect from declining home values, a $10 trillion negative wealth effect from weakened capital markets, and a $14 trillion consumer debt load amid exploding unemployment, leading to exploding bankruptcies."

"The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car," Davidowitz noted, adding, "A lot of that is gone."

He also said that it was good to get rid of growing unregulated consumerism, but people in the United States would have to reconcile themselves with the 'painful' consequences of a bankrupt system that has already made life more difficult for US citizens.

ARQN/HGL