How Money Works
How Money Works
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The American Dream Isn't Dead... You Just Can't Afford It
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My Other Channel: @HowHistoryWorks
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#business #finance #realestate
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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…
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Komentáře

  • @user-mm8vw1ow1x
    @user-mm8vw1ow1x Před 6 minutami

    There's nothing more valuable than a good environment

  • @dreamingflurry2729
    @dreamingflurry2729 Před 8 minutami

    Indeed! While Boomers were exploited by the wealthy, at least they could build wealth themselves if they weren't totally stupid and invested at least part of their money! For us Millenials and younger it's not like that! Most can't even afford to invest, as rent, groceries and bills eat up most of your income and you'll want a bit of social life, too! So yeah, Boomers kind of fucked us over/allowed company owners and the rich to do so in their stead!

  • @dreamingflurry2729
    @dreamingflurry2729 Před 27 minutami

    I'll take the house, but you can keep your 'Murican gass-guzzler cars, the pet and especially the family! Don't want kids and I don't want marriage or cohabitation either! Why? - I am an introvert with ADHD...so going to the office is already TORTURE for me (how can you concentrate in those modern open-plan offices or even cubicles? I can't!), so why would I want to prolongue that by having even more people around me when I am home? Sorry, but no! That would be a recipe for disaster! I'd go nuclear if you criticised me when I got home, no! Leave me the fuck alone!

  • @waynesimpson4081
    @waynesimpson4081 Před 34 minutami

    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.

  • @aviationdesigner0016
    @aviationdesigner0016 Před 38 minutami

    Forbes should add all the major politicians from all the countries especially the democracies

  • @taelynkim117
    @taelynkim117 Před hodinou

    I often get confused with poor people with snap card eating steak and lobster. Top of that 13k free healthcare. If you can given that to every American we won’t be poor

  • @Hongsebaoshi
    @Hongsebaoshi Před hodinou

    People who already have a job and a good life can easily say that AI won't make you income 😭 Fuck you all

  • @Hongsebaoshi
    @Hongsebaoshi Před hodinou

    Then what should i do? Work my ass 7 years just to make some money! EASY FOR YOU TO SAY!!!!

  • @waynesimpson4081
    @waynesimpson4081 Před hodinou

    Funny to me that "the poors" and middle think they're escaping to "low tax" states when they're actually the most regressive while offering the fewest and least social services. (Google it) It's like they're choosing to be the patsies. Seems far better to go to another country where cost-of-living is lower, but services are much higher.

  • @zerozok
    @zerozok Před hodinou

    Thank you for this video. So much bs online right now.

  • @quashmonkey
    @quashmonkey Před hodinou

    Home price to income ratio in New Zealand during covid was 8.6 times which is more than the USA

  • @freemanojeikere
    @freemanojeikere Před hodinou

    I thought I would see solutions in this video

  • @swampwiz
    @swampwiz Před hodinou

    First off, housing prices are very locale-dependent, and there are plenty of places where there is decent, affordable housing. Of course these places might not have as good of job opportunities, but as the AI Onslaught becomes a reality, folks will begin realize that it is far better to be unemployable in a low-cost area than a high-cost area - and indeed, the Mother of All Jobs Recessions that are going to soon be hit with will bring about the political impetus for Basic Guaranteed Income, and folks will come to the realization that that level of income is better spent in Hays, KS than Irvine, CA. There is also the economic situation of older folks that have houses, fat 401K/IRA, and even pensions (!), while their children are incredibly struggling. Of course, with the passage of time these assets will pass to the children - indeed, this situation is not a whole lot unlike Medieval European nobility, where the highest generation had the assets, and the following generation would only get wealth through inheritance. But of course, this is only for those families that had saved up - there are a lot of families that for whatever reason did not save up, and their children WILL be locked out of the American Dream, at least if they don't take my advice and move to a very low-cost area. And the main effect of this development is one of the main reasons behind the birth collapse - how can young folks think about reproducing if they can't even set up a proper homestead? (There in another reason for this, due to the Tinder effect, but that is discussed in another realm of CZcams videos.)

  • @testuser9928
    @testuser9928 Před 2 hodinami

    I think it’s just time to do what our ancestors did as Americans, find somewhere else to immigrate to in search of a better life. Also it’s funny how it’s never mentioned that there are ~20 million migrants and illegals here which is at least 5-10 million housing units that could be utilized by actual citizens.

  • @NoSirNotTodayOrTomorrow
    @NoSirNotTodayOrTomorrow Před 2 hodinami

    Non-compete being banned is by far the best news I've heard in months. Companies force new hires to sign these day one, I can see wages going up to keep talent. Very good and very much deserved.

  • @spencernaugle
    @spencernaugle Před 2 hodinami

    My collage roommate had to sign one of these for a minimum wage job at a sandwich shop. 😑

  • @COLD17
    @COLD17 Před 2 hodinami

    No new insight just depressing facts. Why did I watch this? What can I do different now? Why should I invest time on another video of yours if I can't answer this question?

  • @broca246
    @broca246 Před 2 hodinami

    Boomers and gen X took the dream lived it and took it with them on the way out.

  • @mattbrown2701
    @mattbrown2701 Před 2 hodinami

    Eventually the housing market will collapse again. It's not sustainable. There simply are not enough qualified buyers or renters for that matter. Eventually the system will break. This is mostly due to non homestead residential. IMO.

  • @jodiecarlson6955
    @jodiecarlson6955 Před 2 hodinami

    THANK YOU for pointing out the downside of Dave Ramsey's "debt snowball" advice. I've had so many family members who absolutely lap up every word of his, and I've tried to explain why this strategy is really not a good one, but I'm not "an expert" like he is, I guess.

  • @United_Wings
    @United_Wings Před 3 hodinami

    Ok

  • @wheelmanstan
    @wheelmanstan Před 4 hodinami

    I can't wait to vote Biden the expletive out of office. Sorry, was typing out loud.

  • @chiucheeyong
    @chiucheeyong Před 4 hodinami

    Only those on top of the pyramid are having dreams while those beneath are having nightmares

  • @diogomm710
    @diogomm710 Před 4 hodinami

    Hobo lifestyle is the new deal lol

  • @MatthewMS.
    @MatthewMS. Před 5 hodinami

    Wall Street is super regulated of us professionals who have a bad reputation from the movies and conspiracy theory types, and we hold Public Corporations incredibly accountable.. “eff around and find out”. The government? Not so much.

  • @ThorstenStaerk
    @ThorstenStaerk Před 5 hodinami

    it's not called the American DREAM for nothing. There is no guarantee dreams come true. And that has been like this for generations. Pretending now that the American dream has been rendered impossible for normal Americans is nothing short of sowing incontent.

  • @millennialmind9507
    @millennialmind9507 Před 5 hodinami

    What exactly is the American dream? Is it about buying big houses?

  • @pyroplays2017
    @pyroplays2017 Před 5 hodinami

    I work retail at harbor freight part time when they were clearly hiring for full time shockingly im stilll their now were required to get phone numbers and emails if not we get written up their motto is smile me im not a smileing porsone lot of things wrong with me lot of psychological things wrong with me

  • @bf6159
    @bf6159 Před 6 hodinami

    Some of us got a clue back in the 1990's, when Retirees started taking the jobs held by High Schoolers. Back then I stated, less than 6 figures will soon be working poor. Folks on both sides of this debate refuse to acknowledge many things. Years back, most I knew were several to a rental until mid 30's, making it easier to save. Society's conditioning has altered that reality into a dangerous situation. The dollar was worth more and Corp America, while very Authoritarian, needed employees. Today, laxadaisy and disposable human resources. Back then Corp America wasn't compiling residential properties into investment portfolios as they do today. And, the dollar was worth more. As I tried to explain to my mother prior to her death. This isn't the America she grew up in, back in the 1950s/60s. It's not even the America I grew up in, in the 70s/80s. You cannot utilize the same units of measure when both economically and socially in nearly every aspect, things are different. Although, some refuse to take off the blinders, they were told something as a kid and that's that, they were fortunate enough to live at the moment in time were such was attainable, thus they were capable of establishing a foundation. I'm Gen X and I was told around 14 years old, that I was part of the first generation which will make less than the generatiuon prior. The Boomers knew this by the 80's, yet many behave as though they can't understand. They don't want to understand because it provides a false sense of superiority and accomplishment. Been working since 14, enlisted with a waiver following the 10th grade. Earned a GED, went to College and University, worked multiple jobs at a time from 21 through 40's. Been everything from homless to home owner. While it can still be done, there is no apples to apples compairson. Fortunatey, folks today have finaly realized company loyalty is for wilfull human resources, not for humans trying to advance. It's all about the money, as inspired by Corp Americas planned obsolescence.

  • @TheRiverweasel09
    @TheRiverweasel09 Před 6 hodinami

    Big corporations can't afford to raise wages because they can't? Yeah, sure bro. Or maybe it's because the CEO must get his 49 million dollar salary to sit around and eat caviar. They absolutely can, but they instead prioritize shareholders and short term profits because they'll be gone before the ship sinks, so why care?

  • @MatthewMS.
    @MatthewMS. Před 6 hodinami

    I agree with this after 20 years of Wall Street work with the big banks. Something like an incompetent mean manager can potentially become soul draining. Be well 📈🙏

  • @nunyabusiness22
    @nunyabusiness22 Před 6 hodinami

    I'd say thank god I'm not the only person saying this, but I'll settle for thanking you.

  • @therealmcgoy4968
    @therealmcgoy4968 Před 7 hodinami

    The new American dream is to leave.

  • @bigbeargaming7608
    @bigbeargaming7608 Před 7 hodinami

    Lol 9 to 5?! Ive worked 8 7 to 9 for 6 days a week for the last 13 years. I still live paycheck to paycheck

  • @cw7288
    @cw7288 Před 8 hodinami

    If this effects you remember, this is a Biden policy that will go away if Trump is elected.

  • @janijaakola3179
    @janijaakola3179 Před 8 hodinami

    or like in finland... go to free college.. 1)take student loan. 2)yolo in stocks. 3) ???? 4) profit?

  • @ScootsFromNewCastle
    @ScootsFromNewCastle Před 8 hodinami

    Tim Apple did more for Apple than Steve Jobs did he deserved his pay

  • @watamatafoyu
    @watamatafoyu Před 8 hodinami

    "But we've been doing it this way since the 1800s!" That doesn't matter, you dopey investors. What matters is what's happening NOW.

  • @martinlutherkingjr.5582
    @martinlutherkingjr.5582 Před 8 hodinami

    Buy some bitcoin, folks. It’s a peaceful opt out of the US dollar ponzi scheme that got you here. Ignore all the crypto garbage, Bitcoin is all that matters.

  • @tcavalo
    @tcavalo Před 8 hodinami

    It's called nepotism and graft.

  • @Cozc47
    @Cozc47 Před 8 hodinami

    All I've ever wanted and aspired to since I was like 11 was a wife, house, and children. I'm now 33 and realizing that outside of a lucky lotto ticket I'll never be able to afford it. I have no idea what to do with myself and I'm staring down the barrel of 40 years of basically just waiting to die.

  • @vicewave2631
    @vicewave2631 Před 8 hodinami

    The best teachers are… funnily enough philosophers

  • @MistFN-et6cb
    @MistFN-et6cb Před 8 hodinami

    A vacation every year.... People, do that???.....

  • @Elemblue2
    @Elemblue2 Před 8 hodinami

    The children exploding into clouds at 6:26 is a f***ed up kind of past murder, since we witnessed them here in the present before they were removed by undoing them in the past. The unchanging hypnotically shuffling faces of the mother and father somehow make it more horrifying. Like they dont know what has been taken from them... but we know.

  • @wesbeplayin
    @wesbeplayin Před 9 hodinami

    Sob's want to push Democrat views but live in and reap the benefits of Republican benefits

  • @floop2935
    @floop2935 Před 9 hodinami

    Jobs are slavery

  • @jasondashney
    @jasondashney Před 9 hodinami

    I'm a thousandaire, yo. I'm kind of a big deal.

  • @Lisaruthdecker.
    @Lisaruthdecker. Před 9 hodinami

    Three years ago, nobody could have foreseen the current state of the U.S. dollar. The U.S. continues to repeat the same mistakes that have led to the dollar's current situation. As a result, there's no guarantee that the dollar's future will be as bright as it's hoped to be.

    • @ohioveteran
      @ohioveteran Před 9 hodinami

      Indeed, you are correct! But on the advantageous aspect, economic downturns offer numerous prospects for ordinary individuals to create wealth from the ground up. Nevertheless, seeking guidance from an investment planner might be necessary if you desire a more assertive return.

    • @emmaarmando
      @emmaarmando Před 9 hodinami

      I fully agree and place great value on my advisor's role in guiding my daily investments. They excel in both long and short strategies, managing risk for potential gains and protection against market downturns. Their access to exclusive insights and in-depth analysis makes exceeding expectations a regular outcome. In the two-plus years I've worked with my advisor, I've gained over 1.2million dollars.

    • @noah-greene
      @noah-greene Před 9 hodinami

      @@emmaarmandowho is your advisor please, if you don't mind me asking?

    • @emmaarmando
      @emmaarmando Před 9 hodinami

      "Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment

    • @spacecadet6
      @spacecadet6 Před 9 hodinami

      I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

  • @johnstraley9057
    @johnstraley9057 Před 9 hodinami

    Technology has destroyed the job search process.

  • @Mystefier
    @Mystefier Před 9 hodinami

    Guys are also driven to people like him because of the anti-male messages being pushed in popular media like the View going on about how men are useless. So when guys see rich and successful women calling men useless, they get driven to messages like with Tate.