The American Dream Isn't Dead... You Just Can't Afford It
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2024-05-20に共有
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How much money would you need to buy the American Dream?
Not how much would you need to make in order to afford the REPAYMENTS on the American Dream… how much would you need to buy the house, the two cars, the family and a basic vacation every year?
Probably a lot more than you have, right?
I know it’s not going to blow your mind to find out that these (supposedly) vital ingredients to a good life have gotten kind of expensive… but it has reached a tipping point.
The American Dream is not dead, so much as it’s an extreme luxury that in many parts of the country can now cost as much as TEN MILLION DOLLARS to afford… that’s more than most of us will ever earn in our lifetimes BEFORE taxes, interest payments and basic essentials like… food…
Sorry to be the bearer of bad news, but holding onto the traditional financial wisdom of what you AUGHT to have in life is now permanently out of reach for most people and as more Americans realize this, it’s fundamentally reshaping our economy…
According to data from the US Fed and the Census compiled in the Cas Shiller Index, the average cost of a home in the US is now more than seven point six times [7.6X] median COMBINED household incomes.
That’s now significantly higher than it was in the leadup to the Global Financial Crisis, an economic meltdown enabled by… housing speculation.
If you think that’s bad, spare a though for the UK, which has lower wages but similarly priced homes or Canadians who according to data compiled by financial samurai have on average ten percent less [10%] less disposable income but live in houses SEVENTY FIVE PERCENT [75%] more expensive
New mortgage rates are also at the highest point they have been since 2000, when home prices were only four times household income.
The average person even IF they have a full-time working partner cannot reasonably afford to purchase an average home at current prices with current interest rates without paying more than HALF of their BEFORE TAX income in INTEREST.
That’s before principal repayments on the loan, and before income tax. In reality, the average bank wouldn’t even write this mortgage because it would be financially irresponsible.
So it’s time to learn How Money Works to find out why it might be time to let go of the American Dream
コメント (21)
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America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
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When having a child is considered a luxury, you know you've fucked up.
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More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
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Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
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Fifty seven years old. Started working at 14. Fell for the "dignity of hard work" BS. Generated enormous profits for decades for employers. Rewarded with stagnant wages, slashed benefits and a body that is scarred by a dozen injuries. Little wonder young people are not falling for the working hero mantra.
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“It’s call the American Dream, because you have to be asleep to believe it.” - George Carlin.
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People: can’t afford to have children or own homes Government: the nasdaq and GDP are at an all time high! We’re winning everyone the economy’s doing great!!!
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"...earns too much to qualify for any government benefits, but too little to actual afford what the benefits offset the cost of..." damn if that doesn't describe my life perfectly.
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When literally giving life has become a luxury, something has gone horribly, HORRIBLY wrong.
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Everyone you meet always asks if you have a career, are married, or own a house as if life was some kind of grocery list. But no one ever asks you if you are happy. -Heath Ledger
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Being old myself: there is a bit of historical revision of the American Dream from 50-70's. Cities were for the uber-rich and low blue collar. Post-war boom allowed (some) people to buy into modest suburban homes with usually 1 car. Vacations were expensive. (Roadtrips and camping were done because the were inexpensive.) Consumer goods and clothing were bought on "installment". Basically, the "dream" was always a degree of struggle.
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If everything we buy is “outpacing inflation” then wtf even is inflation based on? Food outpacing inflation. Houses outpacing inflation. Cars outpacing inflation. College degree outpacing inflation. Healthcare outpacing inflation. What the af is inflation?
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Well no, if it's unaffordable to the average person, then it is dead. The point of the American dream is that the majority of people, with basic jobs can be prosperous, have their own land/property, and just generally be financially stable. So yes, the American Dream is dead.
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Its basically like that in all first world countries. Only after getting my master in computer science was I able to afford the same 3 bedroom apartment that my single mom could buy without a degree 25 years ago.
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If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you... prevent inflation
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"These companies don't make billions of dollars, selling $2,000 shoes by appealing to logic" 😆🤣😆🤣
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It's me, I gave up! 33, married, dual income home, 1 child(toddler). Outside of hitting the lottery somehow, I won't be retiring or even likely owning a home. I will work until I am no longer useful and then I will die, just as the system intended. EDIT: I know everyone is coming at this from a place of kindness and wanting to help. I'm not looking for advice however. I live comfortably, family is fed and bills are paid. I have simply accepted the situation and changed my perspective. Instead of scraping every dime together for the next 40 years to enjoy being jobless for 4 and then dying, I am investing in my hobbies and enjoying myself. So congratulations to those of you on your second house and fourth child at 14 years old with a stay at home wife, thank you for having me in your thoughts today, and best of luck. ❤️
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The American Dream should be that if you work hard enough, you can become rich/sucessful/famous, while the American life should be if you work a good job you should be able to retire later. Sucks that politicians have tricked people into thinking that the “dream” is middle class. Middle class should be the norm, not the dream.
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It always shocks me when my parents say “you’re 29 when we were your age we had 3 kids a home and food on the table” and when I rebuttal them with an inflation comment they don’t see it they think it’s easier now than it was 25 years ago it’s insane to me
