Colorado State economist Steve Pressman thinks so: in the next few years rising interest rates could squeeze household spending, and depress the economy.
I live in a middle/upper middle class neighborhood in Las Vegas and there are 3 glaring reasons why households are permanently indebted. 1) people finance cars that they really can't afford, 2) people finance boats, RVs, and/or 4 wheelers, and 3) people tend to buy larger homes whenever they get a little bit of home equity because rates are historically lower and "we can buy more house, but keep our mortgage the same!", while ignoring the frictional costs of selling, buying, moving, and then maintaining a larger home.
@bjkarana. Agree with EVERYTHING you said,BUT if Americans did none of those things the ENTIRE world economy would collapse, it right now is totally dependent on Americans being in debt
I had a good friend in the early 2000s whom had 10 rentals in the LV metro area. When the bubble burst, he ended up foreclosing on 9 of them ending up with one home with his kids, where do you draw the line if banks keep lending their depositors’ monies to speculators. After all it’s the capitalistic way. Then someone declares BK on these supposed “ponzi” victims, frequently we taxpayers shoulder the burden. My property of nearly two decades has seen its taxes go up by about 1.5% each year after neighbors kept buying and selling driving values up, those like me with no intention of selling suffer the tax burden. Now these think-tank folks want to make declaring BK easier, effectively punishing me whom pay his bills. It’s a crazy world. Make it stop.
@@JonMagno yes it can frustrating for those of us to do the right thing, when the system rewards speculation in the short term. One particlarly saavy woman I rented from bought 3 rental homes with cash for a steal in the aftermath of the crash, so there are opportunities even for the thrifty if you're patient.
Sadly I made the mistake of selling a house that I could afford very comfortably and bought a "nicer" more expensive house, now I pay more in interests than what my whole payment used to be...dumb dumb dumb
Middle Class? What a joke. My dad told me about the days when one man can raise a family of 5 on one income. We have not had a middle class in decades.
Im a millennial and i think back to my grandpa and great grandpa's generation (1920-1950) and what they accomplished. That generation built the electrical grid, paid for ww1, ww2 , and won. I have serious doubts my generation could do that.
My father raised a family of 9 with a stay at home mother. We never missed one meal and got new school clothes every year. My father made the money and my mother managed it - quite well.
Yep, I got an infection under a tooth I just found out about yesterday. $5000 I don't have to fix it. So... I basically wait around to die. I thought I could squeak by, but one routine visit to the dentist for a cleaning and BAM...
Brown Man I was on Zillow late last night looking at fixer upper homes near colleges, i was looking In Arizona 🏜 and Texas, I still have to do more research but it’s a great investment avenue.👍
Economically middle class are individuals who make income allowing home ownership and sizable spending on entertainment and consumer goods. That's why the middle class drives the economy. They spend a lot on consumer goods and entertainment.
You're wrong? No suggests when creating an emergency fund you save up to afford every single bill without work for a 12 month period. That is almost impossible to do unless you save for years and years and years. Most financial councilors suggest saving being enough for 3 months worth of no income. Where the hell did you get your definition?
I recently took $12,000 out of savings to purchase a different vehicle right now I have about six months in my savings account my mortgage is paid for I carry no credit card debt I've been living on social security for the last two years I am able to take $200 each month out of my social security to build my savings backup. I have not taken anything out of my 401k or Roth IRA to live on
I think he was on it because his questions were written on it. It's just that the video was cut in a way that makes it seem like he just messing around.
Yeah, it's unprofessional not matter which way you cut it. A true professional would write the notes down so that they don't give the person they are interviewing the impression that they're using their phone. I watch a lot of Dateline and 20/20 etc and you will NEVER see them on their phone. No that I think about it, even the journalists that despise Trump don't use their phone for notes! You'll see them sitting there with pen and paper. So that says something! lol
That's very easy to say, however, harder to do. Have you ever heard the phrase: "It's expensive to be poor"? Because it's true. The wealthier you are the easier it is to spend less of your income, the poorer you are the opposite is true.
There is no incentive to save when your savings account only pays 0.1% interest and your money loses value at 2% annually. Rich folks buy securities, poor folks buy boats and cars.
not saving is good for the economy overall. This is the point the economist is making. He is saying the Federal reserve economists aren't considering the whole picture when deciding how much to raise interest rates. He is saying in the current status of the economy a small increase in interest rates could crash the economy because it would cut down too much on how much the middle class will spend on cars boats etc. that keeps the economy alive.
@@ChiefKapui Bitcoin is a good experiment with a disinflationary currency. I hope it or something like it succeeds but currently too volatile for the average investor.
The black box he spoke of is consumerism. We are encouraged to spend every penny we get. We are bombarded everyday, virtually all day long with ads to buy stuff. We are told in a variety of ways that it's not who you are, but what you have that counts.
@@hypnotechno I think it would be safe to say, you're being sarcastic. Taking it as that, are you implying that it's just a matter of willpower? Having studied consumer economics, marketing and worked in customer service and sales. The psychology of people's spending is complex and not always in their control. It can be manipulated without the person being aware of the manipulation. We all have a button, blind spot, or circumstance that can cause financial problems. We live in a complicated world and it's unreasonable to expect everyone to know and understand everything. We also have to acknowledge that there is a financial tipping point where people become trapped in poverty and debt. As a percentage of income it actually costs more to meet your basic needs when you're poor. If you're in a good financial position, I hope you appreciate that you are. We should be considerate of those who are not. We are all one bad event away from financial ruin.
Okay and clearly many Americans are not able to do that. I assume you also had to purchase the land you built your home on, that doesn't even include the fact that most Americans don't know how to build their home nor have the time or ability to take off work to build a house.
The last recession of 09 was pretty bad, however what we’re experiencing now with tons and tons of homeless, outrageous housing, and a sick society. America is officially over.
Brilliantly put. Simple and directly to the point. I think this guy is a paper clown. A household earning 150k a year cant pay $200 without a credit card is a farse. Never mind half of them lol.
@@theaubad1006 people who make that kind of money to need to pay their audi and Mercedes bill. How else are people gonna know that they make 150k a year.
Camera hi. Lmfao. Its absolutely silly. I feel like i live in the most uneducated time im American if not even world history. And im not smart. I just never left the library to watch fox or cnn news. Or to trust google for that matter. I swear if we took google out. Most of the world would forget how to breathe. Also in my area i noticed walmart carrying only 2 or 3 brands of coffee. Outside potato chips and frozen pizza it seems our choices are narrowing on many products. Are you seeing a similar trend?
How and why households are getting into debt has been addressed - particularly by heterodox MMT macroeconomists. Neoliberalism is the short answer - Monetarism/finance deregulation has ensured unencumbered restricted 'state' money has been replaced by encumbered bank/finance 'debt' sourced money. Privatisation of essential services has caused a rise in cost of of those services as monopolist corporate' middle men' extract dividends, exec bonuses, profits and admin fees from household consumers. See the work of Prof Michael Hudson (www.counterpunch.org/2018/05/04/creating-wealth-through-debt-the-wests-finance-capitalist-road/) and Prof Bill Mitchell (bilbo.economicoutlook.net/blog/?p=35413) for further analysis of the impact of unfettered neoliberalism -they have researched and analysed this problem for several decades.
Agreed, Hudson is excellent (J is for Junk Economics, Killing the Host, e.g.). And the problems he highlights have been growing 40+ years. GFC was a forgone opportunity to reverse them.
I am one of five children, born in the 1970s. Those days are over. Friends of mine can only afford one child and both parents working full time. A lot has changed!
In Sweden too. You can only afford 1-2 kids if you´re working but if you´re living of social care and not working you can afford unlimited amount of children.
@UCFeJ9nNWQ5BYR1Li9gi4ElA Of course you don´t know in your circle. People who work spend time with other people that work. People who don´t work spend time with their own kind. :)
My debt service cost: 0. I use a credit card but pay the balance every month. They even pay me to do it. Eventually, the Government will have to institute a GBI, or expand the EITC. The situation will only get worse as technology takes over more jobs without creating new ones...at least for the rank and file, unskilled, uneducated Workers. But we’re all going to die from climate change so....
Healthcare isn't an issue. The money that's spent on health care fuels the medical sector of the economy. That's why he specifically speaks on interest not even the amount of debt only the amount towards interest. Interest has the slowest velocity of any capital in an economy. Interest is essentially dead money. The economists point is that the middle class will spend less on phones, food, healthcare, houses, cars, media etc. as interest goes up which will greatly stagnant the economy.
Household debt can indeed cause the next recession. The tariffs act as a tax increase on America's households. The tax cut for the rich was insufficient towards America's households.
There are some points of truth here. Adjusted for inflation, the average worker bee makes less than they did in 1968. That a problem for sure. But they seem to have money for Starbucks? They have thousand dollar phones? They have cable, Netflix, drones, campers, jet skis, vacations. The restaurant parking lots are always packed. No amount of government interference can replace self discipline and uncommon sense. Get a second job. Stop buying stupid shit. Dig out and stay out of debt. Stop hurting yourself and gambling on a future you cannot see or control.
This is where television comes in. Television eas the original version of social control under the power of repetitive suggestion. The tv exists for the sole purpose of business and social propaganda. Capitalism fuels consumerism through images and commercial that appear cool and hip. So the question of do we need this product or that product doesn't come into question because of social acceptance and status are primary concerns. Example. A generic brand of tissue costs $1 the name brands cost $6-$7 now tissue isnt that much different in quality but because of a classism mind set one might go for the name versus the usage or purpose being met. The same with bottled water and clothing. At the same time if everyone were to be conservative and savvy the capitalism model would fall apart still because in order to maintain the scheme there must be demand if everyone stays at home and hordes their money the employment side plummets which will effect wages. Which will than effect the businesses again which will effect the governments which will effect the consumers again. Creating a loop of decline until it is destroyed which is what is going on now. The only thing that is slowing this model is credit/debt. Capitalism is a system of cutting off the fat but eventually the fat runs out that is the flaw with this economic structure it eventually hurts itself. Just like now automation is being looked at now to replace most jobs but what happen to the employee/consumer who is buying the goods. Its a suicidal system.
If everyone does that then business's expected returns get worse, layoffs happen, and the whole situation gets worse. The only solution is more government spending.
So what are people supposed to do with their lives - work and sleep only and eat spagetti at home every night? To be a normal person existing in the world, with normal mental health and personality they have to be able to afford some kind of outside work activity - watching tv, movies on netflix, going out for a meal sometimes, and some kind or interest or hobbie. And remember our spending employs others, Starbucks barista, for example, and helps keep our economy going. The problem is taxes, surcharges, fees, insurances and interest. It's too much.
I would be curious to know how many people walking around with a iPhone X don’t even have a $1000 emergency fund, at some point people need to take responsibility for their own actions and not look for government handouts
rich b you sure are holding a lot of hate and projecting it on others , I can offer you help but like a drug attic you first need to admit to your problem
The Ponzi Finance was also seen in the collapse in 1929. My grandfather owned significant speculative property in Florida, including the current location of acreage of Disney World. He speculated like mad. Lost it all when he could not pay even the interest. Replay.
In 2014 I had a medical emergency, I paid what I could my credit is now ruined, and I stopped paying my student loans put them on forbearance, so the interest compounded. I sold the majority of what I own. I am now considering moving to Germany to go back to school and have affordable health insurance. The USA is crazy.
If I was being interviewed by a reporter and they played on their iphone instead of looking at me an paying attention, I would walk off the interview right there and then. That reporter should be fired for his behavior.
What do you expect will happen when the income gap keeps getting larger and larger? The people who are consumers will stop consuming because they can no longer afford to consume. Without the demand of those consumers, jobs that once met demand will be lost. Those who lose the jobs will also stop consuming. A downward spiral is inevitable. And then it crashes.
If the households would stop overspending, the economy would go into recession. Households are using debt because the tax cut went to the people who already had enough money. Households still have needs. And if all that money doesn't start trickling down real quickly, we are going to have a recession.
I wanted to use our tax return to help buy a more reliable car but it wasn't a good return like years prior. My mom was going to build a carport with hers. I kept telling her that her house write off was gone from the trump tax reform. No carport, no money back into the economy instead i had to spend $900 out of our savings on an unexpected car bill.. So I guess someone got paid!
@@dougmartin7129 it was always a lie created to justify the burgeoning wealth gap. You can go bankrupt on wealth. Like the monopoly game, once you have aquired all the assets, and everyone has none, the game is over. The most pointless game I have ever come across.
Economic bubble about to burst. Federal Reserve: "Hold my beer... got to restart quantitative easing V2. There, problem delayed, I don't get what these party-pooper economists are always so pessimistic" LOL!!
Instead of raising income tax, tax the stock market 1/10 of one percent and have wealthy people from all over the world pay our taxes instead of working people.
@@anniealexander9616 My tax the stock market is a replacement tax, not tax increase. With no corporate or personal income tax, money would flock to the US like never before. Only day traders and high speed traders would not like it, but no IRS I bet they would even support taxing investing not income. But I agree with you on spending; $22,758 per second playing army all over the world is unsustainable.
Yes, household debt is BAD , but the major cause of the next recession will be corporate debt (failure to shut down) causing massive layoffs resulting in bankrupt citizens, maybe leading to a depression that will last for decades.
My husband and I a transitioning to spending exclusively on assets. Unfortunately, we are climbing out of a hole because we bought the lies of the main stream about what we “should” own.
@@empoweredwhiteeqyptianking1049 lol. I'm on your side bruh. don't eat your own. By bought the main stream media lies I mean I went into debt to become surgeon and can now afford to pay my loans. My point was I didn't have to do that.
@@empoweredwhiteeqyptianking1049 also...I'm pretty sure that I made it clear that we made the choice. You are going to drive people away from truth with those types of comments.
I don't get this government workers like this guy. He describes problems government made and then offers solution as of more of government. Definition of insanity...
In response to that $400 statement: maybe that’s why Experian boosts your credit score if you attach it to your account but your account has to have a consistency of maintaining at least $400 a month in the account every month
Certain people are quick to call out credit card users as a mean to dismissed indebted people, because they don't understand basic economic. Most of the indebted are financing your lifestyle and household expenses. Remember, a person's spending is another income.
John Marcovecchio....This is so true and allows room for saving more money, better sleep and peace, building an emergency fund and retirement, better health and next to no stress! IT gives a peace that money can't buy.
From the Bible (over 5,000 years of wisdom) to Dave Ramsey and Warren Buffett in our era, the message is clear: avoid new debt and get rid of all existing debt that you have. Then, build a strong fund for emergencies and, beyond that, invest for retirement and long-term goals.
@MrHalified What the Bible, Warren Buffett, Dave Ramsey and many other wise and self-made wealthy persons teach has value for all people everywhere: (1) It is a steady and thoughtful approach rather than that impulsive spending. (2) Balancing saving, spending and good giving rather than overspending. (3) Using debt moderately, if at all, rather than being a slave to debt. (4) Using debt for investment rather than overspending. (5) Building character e.g., faith, patience, generosity, wisdom, perseverance, and temperance. (6) Beginning our adult life with an emphasis on saving, investment, and low spending = much more spending for the rest of one's life. (7) In short, it is not about all or nothing; or only saving and never spending. It is about choosing carefully how we use our time and money. It is about maintaining a prudent balance within each decade or stage of our lives in order to have more enjoyment and sustainable quality of living throughout our long and healthy lifespan.
A couple of ideas. Automatic pensions of the old days saved our grandparents, they were simply granted. 401k's and other retirement plans could be manditory/a certain percentage taken from paychecks. Credit cards need more regulations and limits so its not so easy to rack up debt. Mortgages shouldn't be granted in such massive amounts, if folks make a certain amount, mortgage companies always max out the amount they can spend - lets lower this amount so things don't get out of hand. Car debt: people are now financing new cars for crazy amounts of time, 7-8 or more years, on a depreciable thing like a car, which loses 25% of value as it rolls of the lot! Thats nuts! How about a required down payment or no loan. People need to start paying cash for cars, or driving older models (that they paid cash for). I like his idea of reforming bankruptcy for the many, many households who need it, and learn to budget.
Jay Zandegiacomo exactly. The problem with credit is that you are taking future income by definition. Net it doesn’t help at all for the retailers unless they have a credit card to tap into as much of the future to pull it from other potential competitors.
He clearly just mis-speaks, as 17%, which is what he does mistakenly say, is not an "elephant" either. He knows it's 70%, and so does anyone else working in economics, and I think its clear to infer that he meant 70%.
Income redistribution is contrary to the U.S. Constitution. Read Article 1 Sections 8 & 9 about capitation taxes which must be apportioned equally instead of the graduated income tax.
I'm trying to file for bankruptcy today.. The system we live in does not want the middle class and put to be out of debt, the system does not teach it's citizens about money
Unless you had something truly unfortunate such as a cruel divorce or a business partner who manipulated the deal. It’s your fault I’m afraid. If you simply racked up debt on credit cards, cars in finance, when for short term gratification, then it’s lack of discipline and poor planning. It’s not anyone else’s fault as we all have the intelligence not to buy things we can’t afford.
Most of the money we use comes from banks (fractional reserve lending). The QE was for the Big Banking institutions of which was used to prop up stock market.
NC Styles....The middle class is destroying the middle class. They are the ones that must have it bigger and better, taking out equity on their homes, buying luxury cars, etc they can't afford, excessive student loans, insist on keeping up with the neighbors, certain family members, trying to impress people they don't know or like, always living above their means. Never knowing the difference from a want or need, NOT putting money up for emergencies, refuse to wait before making large purchases. Before counting the cost. I ALWAYS SAY....ITS NOT HOW MUCH A PERSON MAKES....BUT THE WAY THEY MANAGE THEIR MONEY!
came across this 2 years later while in pandemic, household debt in Australia is at record high, interest rates have been going up gradually before cash rate goes up, inflation is skyrocket in the course of 12 months. average house price in sydney is 1million. How will people on average income afford to keep paying for million dollar house while supporting their kids' schooling.
In this year alone I went from making $14 dollars managing a T-shirt store, to $15 doing dispatch work, to $16 doing tree service, to $17 doing concrete and construction, and now I make $20 an hour operating forestry equipment in Colorado. Honestly I'm making more money easier then I ever have, if your struggling to find a job move to a place where you can get one. I mean damn even the Wendy's down the road starts at $14.25
Concerning the Topic in the Video title, the question is how many households that have a mortgage would not be able to spend 400$ in an emergency. The fact that many households would not will not harm the Banks if they do not have any debt.
Household spending includes taxes, fees, surcharges, insurances, and interest. It's too much and that's what's killing the middle class. We have to forego spending on consumer goods and services to be sure government, banks and insurance companies can get maximum out of us first?
Gary hi. There trained monkeys. They need a mercedes instead of a kia. So people see there greatness. They need a $1,500 smart phone because a $400 one is way below there wonderful selves. They must have gap clothes because we cant be seen dead in walmart shirts. We need to spend $1.5 million on a home. Well because we cant possibly live in a $500k house. Its all about showing off bro. Humble died long ago.
Simon hi. Unfortunately thats not true. But if ceo's didn't need 2,000 times the pay of there median worker. Then the employees would get paid better and more able to support there family. By the way 2,000 times the median workers pay imply's. The average worker works 20 years to earn as much as the ceo does in 1 week. A good company today the ceo earns 500 times the median workers wage. Even thats 5 years to earn 1 week of the ceo's pay. In the 1970's and prior the ceo earned 35 times the median workers pay. Thats actually fair.
Highest household income ever. Lowest household debt ever. Can do whatever we want....... Daughter increased her pay 80% in less than a year. No college debt. Son just got a 20% raise. He gets company funded dental and vision care. No premiums. Man times are horrible. Bullshit
The biggest problem will be a lack of liquidity when people start recognizing declining assets and other types of speculative vehicles like the exchanges - all of these are being fueled by debt which of course overinflates the basic necessities and wipes out disposable income and discretionary spending. Cash out now and buy a self-sufficient farm which is fueled with an abundance of renewable energy like hydro, geothermal, wind and an ideal year-round climate. The cities are going to be a complete disaster with homelessness and disease being the norm.
Remember. The whole financial system is built around DEBT. Bankers want you in debt. They loan invisible money to you, that is nothing more than 0's and 1's on a screen. You have to pay that back + interest. The whole system is based around DEBT. If there was no debt, there wouldn't be bankers and banks.
My man just started talking and never stopped
🤦🏽♂️🤫🙄
😂😂😂 I’m goin in ... im goin in lol
Didn't really need that other guy to sit there and stare at his phone. He could have gone home.
🤣🤣🤣
LOOLLL! I came here to write a thoughtful comment but got totally side tracked by this comment... smh
I live in a middle/upper middle class neighborhood in Las Vegas and there are 3 glaring reasons why households are permanently indebted. 1) people finance cars that they really can't afford, 2) people finance boats, RVs, and/or 4 wheelers, and 3) people tend to buy larger homes whenever they get a little bit of home equity because rates are historically lower and "we can buy more house, but keep our mortgage the same!", while ignoring the frictional costs of selling, buying, moving, and then maintaining a larger home.
@bjkarana. Agree with EVERYTHING you said,BUT if Americans did none of those things the ENTIRE world economy would collapse, it right now is totally dependent on Americans being in debt
I had a good friend in the early 2000s whom had 10 rentals in the LV metro area. When the bubble burst, he ended up foreclosing on 9 of them ending up with one home with his kids, where do you draw the line if banks keep lending their depositors’ monies to speculators. After all it’s the capitalistic way. Then someone declares BK on these supposed “ponzi” victims, frequently we taxpayers shoulder the burden. My property of nearly two decades has seen its taxes go up by about 1.5% each year after neighbors kept buying and selling driving values up, those like me with no intention of selling suffer the tax burden. Now these think-tank folks want to make declaring BK easier, effectively punishing me whom pay his bills. It’s a crazy world. Make it stop.
@@JonMagno yes it can frustrating for those of us to do the right thing, when the system rewards speculation in the short term. One particlarly saavy woman I rented from bought 3 rental homes with cash for a steal in the aftermath of the crash, so there are opportunities even for the thrifty if you're patient.
Sadly I made the mistake of selling a house that I could afford very comfortably and bought a "nicer" more expensive house, now I pay more in interests than what my whole payment used to be...dumb dumb dumb
Common sense is not so common #DaveRamseyRules
Middle Class? What a joke. My dad told me about the days when one man can raise a family of 5 on one income. We have not had a middle class in decades.
Im a millennial and i think back to my grandpa and great grandpa's generation (1920-1950) and what they accomplished. That generation built the electrical grid, paid for ww1, ww2 , and won. I have serious doubts my generation could do that.
@@thedude5040 u can thank Obama , Kardashian , Kanye, Kraperdick & P Diddy. Vishnu is doo doo, crack is whack & rap is crap
Let ALL the boats (people) rise with the tide (prosperity) .
My father raised a family of 9 with a stay at home mother. We never missed one meal and got new school clothes every year. My father made the money and my mother managed it - quite well.
@@a.citizen7668 yeah but if people cut back on eating out and cellphones they can still do that! *ending sarcasm now*
We are all one medical disaster away from ruin.
Yep, I got an infection under a tooth I just found out about yesterday. $5000 I don't have to fix it. So... I basically wait around to die. I thought I could squeak by, but one routine visit to the dentist for a cleaning and BAM...
@@Knaeben damn bro... teeth problems are hell
@@Knaeben look for alternatives... Natural alternatives
@@Knaeben pliers are cheaper.. if you're willing to take the risk.
Yeah...like death!
I am tremendously downsizing on my home my car and my spending, instead of spending on depreciating crap I’m going to pump up my investments.
Awesome!🤑
I started 10 years ago. And also trading my fiat currency for gold coins.
Brown Man I was on Zillow late last night looking at fixer upper homes near colleges, i was looking In Arizona 🏜 and Texas, I still have to do more research but it’s a great investment avenue.👍
@Brown Man I already did that many years ago.....sold them all and retired.
@Brown Man After 15 years I got tired of fixing stuff.......and cleaning.
Middle class is defined by: being able to survive without income for 12 month. Living from hand to mouth is called poverty.
Economically middle class are individuals who make income allowing home ownership and sizable spending on entertainment and consumer goods. That's why the middle class drives the economy. They spend a lot on consumer goods and entertainment.
Er, That’s pretty damn impressive. I wouldn’t be surprised if fewer than 5% of households in the US could even do that.
You're wrong? No suggests when creating an emergency fund you save up to afford every single bill without work for a 12 month period. That is almost impossible to do unless you save for years and years and years. Most financial councilors suggest saving being enough for 3 months worth of no income. Where the hell did you get your definition?
I recently took $12,000 out of savings to purchase a different vehicle right now I have about six months in my savings account my mortgage is paid for I carry no credit card debt I've been living on social security for the last two years I am able to take $200 each month out of my social security to build my savings backup. I have not taken anything out of my 401k or Roth IRA to live on
The problem is that people want to emulate success by over induling .....
Count your own blessings and stop looking over the fence!!!!
Nail on head. Economists can't figure this out because it's a social problem, not an economic problem.
Agreed.
No...the government fucked everyone during Reagan term and now it's just gotten worse
Exactly. Stop spending money like Congress , work hard and save money. It’s really not that hard.
Remember, there are people on the other side of that fence too...
Yo can the interviewer get off his phone for 16 minutes? God damn.
Shane Radick Uses his phone for notes and follow up questions.
@@CoolCat00001 Yeah I was wondering if he had Keep or something open
I think he was on it because his questions were written on it. It's just that the video was cut in a way that makes it seem like he just messing around.
Yeah, it's unprofessional not matter which way you cut it. A true professional would write the notes down so that they don't give the person they are interviewing the impression that they're using their phone. I watch a lot of Dateline and 20/20 etc and you will NEVER see them on their phone. No that I think about it, even the journalists that despise Trump don't use their phone for notes! You'll see them sitting there with pen and paper. So that says something! lol
Sweet Lil Devil I agree, write your notes down!
Personal finance 101: Spend less than you make.
That's very easy to say, however, harder to do. Have you ever heard the phrase: "It's expensive to be poor"? Because it's true. The wealthier you are the easier it is to spend less of your income, the poorer you are the opposite is true.
For most people that means living in a car though. So they need to change the law against living in your car for that to happen.
kinda too late when the country has 22 trillion dollars in debt :/
Some truly can't, and some are too undisciplined. And some do it in spades.
@@DeshaunIsAmazing While I understand this is true in some instances, it's also an excuse.
The economy these days may aswell be loan sharks, pickpockets & snake oil salesmen
Call A Spade A Spade Bro 😎
To think all the "interviewer" said was a simple "Hi".
The interviewers questions have been edited out.
I like to think the interview was supposed to be about making a pizza, but the interviewee decided to go on a 16 minute economic rant instead.
There is no incentive to save when your savings account only pays 0.1% interest and your money loses value at 2% annually. Rich folks buy securities, poor folks buy boats and cars.
not saving is good for the economy overall. This is the point the economist is making. He is saying the Federal reserve economists aren't considering the whole picture when deciding how much to raise interest rates. He is saying in the current status of the economy a small increase in interest rates could crash the economy because it would cut down too much on how much the middle class will spend on cars boats etc. that keeps the economy alive.
Barclays offers 2.3% for their savings account
Bitcoin is where the middle class will see massive growth. The ones that have done their research. 👍👍
@@ChiefKapui Bitcoin is a good experiment with a disinflationary currency. I hope it or something like it succeeds but currently too volatile for the average investor.
@Snow 123 It's gone on for too long as the system is completely lopsided. Nobody is spending and the elite hoard it off shore...
The black box he spoke of is consumerism. We are encouraged to spend every penny we get. We are bombarded everyday, virtually all day long with ads to buy stuff. We are told in a variety of ways that it's not who you are, but what you have that counts.
and we have no control over it, we just have to buy it, own it
@@hypnotechno I think it would be safe to say, you're being sarcastic.
Taking it as that, are you implying that it's just a matter of willpower?
Having studied consumer economics, marketing and worked in customer service and sales. The psychology of people's spending is complex and not always in their control. It can be manipulated without the person being aware of the manipulation. We all have a button, blind spot, or circumstance that can cause financial problems. We live in a complicated world and it's unreasonable to expect everyone to know and understand everything.
We also have to acknowledge that there is a financial tipping point where people become trapped in poverty and debt. As a percentage of income it actually costs more to meet your basic needs when you're poor.
If you're in a good financial position, I hope you appreciate that you are. We should be considerate of those who are not. We are all one bad event away from financial ruin.
@@hypnotechno lollllllllllllllll
I live in Puerto Rico and i built a house from a ship container and go to beach! Live minimalist life! Only the necessary!!!
Okay and clearly many Americans are not able to do that. I assume you also had to purchase the land you built your home on, that doesn't even include the fact that most Americans don't know how to build their home nor have the time or ability to take off work to build a house.
Not in cold climate...
The last recession of 09 was pretty bad, however what we’re experiencing now with tons and tons of homeless, outrageous housing, and a sick society. America is officially over.
Camerons Car Reviews
I agree ☝️
It’s way worse now
Suffering & struggling
No. Student loan debt. Btw, hackers get on your job and erase these loans.
How much are you paying a month? How much did you borrow? What is your degree in?
They have back ups of data
Lmao
simeon310 yeah just use the AC controls and a raspberry pie
I am pretty happy in 1 year after graduating i paid off 8.5k and saved a 6month emergency account.
@3:15 This guy doesn't give a damn about the economy he is just scrolling through Instagram instead.
Yup, probably looking at t&a
@@diann9159 for 16 Minutes Sheryl.... 16 MINUTES!?
What the fuck is he doing in his phone, seriously.
Cat videos!
If your outgo exceeds your income
then your upkeep will be your downfall.
Brilliantly put.
Simple and directly to the point.
I think this guy is a paper clown. A household earning 150k a year cant pay $200 without a credit card is a farse. Never mind half of them lol.
@@theaubad1006 people who make that kind of money to need to pay their audi and Mercedes bill. How else are people gonna know that they make 150k a year.
Camera hi.
Lmfao. Its absolutely silly.
I feel like i live in the most uneducated time im American if not even world history. And im not smart. I just never left the library to watch fox or cnn news. Or to trust google for that matter. I swear if we took google out. Most of the world would forget how to breathe.
Also in my area i noticed walmart carrying only 2 or 3 brands of coffee. Outside potato chips and frozen pizza it seems our choices are narrowing on many products. Are you seeing a similar trend?
How and why households are getting into debt has been addressed - particularly by heterodox MMT macroeconomists.
Neoliberalism is the short answer - Monetarism/finance deregulation has ensured unencumbered restricted 'state' money has been replaced by encumbered bank/finance 'debt' sourced money. Privatisation of essential services has caused a rise in cost of of those services as monopolist corporate' middle men' extract dividends, exec bonuses, profits and admin fees from household consumers.
See the work of Prof Michael Hudson (www.counterpunch.org/2018/05/04/creating-wealth-through-debt-the-wests-finance-capitalist-road/) and Prof Bill Mitchell (bilbo.economicoutlook.net/blog/?p=35413) for further analysis of the impact of unfettered neoliberalism -they have researched and analysed this problem for several decades.
And neoliberalism is the inevitable consequence of capitalism or free markets. The concept of a Free market democracy is an utopia.
Agreed, Hudson is excellent (J is for Junk Economics, Killing the Host, e.g.). And the problems he highlights have been growing 40+ years. GFC was a forgone opportunity to reverse them.
My income has already fallen 40 percent. Laid off and took a lower paying job
John D Same here
economists have predicted 15 of the last 6 recessions
harrison wintergreen more like 154 you gotta add a 4 at the end of the 15 lol
But you have to admit even the boy who cried wolf was right once and that is all that matters.
You mean like the 2 seperate recessions back around 2008?
And GOPee has been in White House for 8 of last 9 recessions, soon 9 of 10 thanks to Fat Donny Chump the Banktrumping BOY
I am one of five children, born in the 1970s. Those days are over. Friends of mine can only afford one child and both parents working full time. A lot has changed!
In Sweden too. You can only afford 1-2 kids if you´re working but if you´re living of social care and not working you can afford unlimited amount of children.
@UCFeJ9nNWQ5BYR1Li9gi4ElA Of course you don´t know in your circle. People who work spend time with other people that work. People who don´t work spend time with their own kind. :)
Fortunately I have money in the bank ...but after 40 years of employment !!!
Re money in bank . . . Now you see it, now you dont.
Your bank can take your money any time they want... laws already on the books.
Silver, gold, food, and guns...those, they cannot take.
My debt service cost: 0. I use a credit card but pay the balance every month. They even pay me to do it.
Eventually, the Government will have to institute a GBI, or expand the EITC. The situation will only get worse as technology takes over more jobs without creating new ones...at least for the rank and file, unskilled, uneducated Workers.
But we’re all going to die from climate change so....
Really? All that money the state takes off you to pay its debts. Your debt service costs are around 30% of your taxes and that's going to rocket.
One thing he forgot to talk about HEALTHCARE. That is the money spent that they can't figure out where it's going in the households.
I pay for insurance,
I pay co-pays,
Claim denied; I pay the bill.
Student Loans too
Healthcare isn't an issue. The money that's spent on health care fuels the medical sector of the economy. That's why he specifically speaks on interest not even the amount of debt only the amount towards interest. Interest has the slowest velocity of any capital in an economy. Interest is essentially dead money. The economists point is that the middle class will spend less on phones, food, healthcare, houses, cars, media etc. as interest goes up which will greatly stagnant the economy.
I just totally refuse to pay for healthcare or insurance.
Rich people don't spend money, everyone knows this 😂. The economy is driven by debt and poor people spending even more money to pay it off.
I don’t know why this guy needs an interviewer :)
Household debt can indeed cause the next recession. The tariffs act as a tax increase on America's households. The tax cut for the rich was insufficient towards America's households.
There are some points of truth here. Adjusted for inflation, the average worker bee makes less than they did in 1968. That a problem for sure.
But they seem to have money for Starbucks? They have thousand dollar phones? They have cable, Netflix, drones, campers, jet skis, vacations. The restaurant parking lots are always packed.
No amount of government interference can replace self discipline and uncommon sense.
Get a second job. Stop buying stupid shit. Dig out and stay out of debt. Stop hurting yourself and gambling on a future you cannot see or control.
This is where television comes in. Television eas the original version of social control under the power of repetitive suggestion. The tv exists for the sole purpose of business and social propaganda. Capitalism fuels consumerism through images and commercial that appear cool and hip. So the question of do we need this product or that product doesn't come into question because of social acceptance and status are primary concerns. Example. A generic brand of tissue costs $1 the name brands cost $6-$7 now tissue isnt that much different in quality but because of a classism mind set one might go for the name versus the usage or purpose being met. The same with bottled water and clothing. At the same time if everyone were to be conservative and savvy the capitalism model would fall apart still because in order to maintain the scheme there must be demand if everyone stays at home and hordes their money the employment side plummets which will effect wages. Which will than effect the businesses again which will effect the governments which will effect the consumers again. Creating a loop of decline until it is destroyed which is what is going on now. The only thing that is slowing this model is credit/debt. Capitalism is a system of cutting off the fat but eventually the fat runs out that is the flaw with this economic structure it eventually hurts itself. Just like now automation is being looked at now to replace most jobs but what happen to the employee/consumer who is buying the goods. Its a suicidal system.
If everyone does that then business's expected returns get worse, layoffs happen, and the whole situation gets worse. The only solution is more government spending.
So what are people supposed to do with their lives - work and sleep only and eat spagetti at home every night? To be a normal person existing in the world, with normal mental health and personality they have to be able to afford some kind of outside work activity - watching tv, movies on netflix, going out for a meal sometimes, and some kind or interest or hobbie. And remember our spending employs others, Starbucks barista, for example, and helps keep our economy going. The problem is taxes, surcharges, fees, insurances and interest. It's too much.
You sound like an old man. Yes, yes, the only way to get out of debt is to give up the $5 cup of starbucks you get every week. It makes perfect sense.
I would be curious to know how many people walking around with a iPhone X don’t even have a $1000 emergency fund, at some point people need to take responsibility for their own actions and not look for government handouts
Dennis S Fuck you and the Fox New Speak.
Why would they bother taking responsibility when they can vote themselves other people's money?
Don't hate the player hate the game, old man.
rich b you sure are holding a lot of hate and projecting it on others , I can offer you help but like a drug attic you first need to admit to your problem
The Ponzi Finance was also seen in the collapse in 1929. My grandfather owned significant speculative property in Florida, including the current location of acreage of Disney World. He speculated like mad. Lost it all when he could not pay even the interest. Replay.
In 2014 I had a medical emergency, I paid what I could my credit is now ruined, and I stopped paying my student loans put them on forbearance, so the interest compounded. I sold the majority of what I own. I am now considering moving to Germany to go back to school and have affordable health insurance. The USA is crazy.
That man can win any filibuster.
If I was being interviewed by a reporter and they played on their iphone instead of looking at me an paying attention, I would walk
off the interview right there and then.
That reporter should be fired for his behavior.
People might be interested in what Steve Keen has to say on private debt
No milton friedman?
Oh yes now we're talking , he really has his finger on the pulse of the economy .
@Olivia PMark Blight is good and a man born in poverty , that's the best place to take the measurement because it eats away at the middle class .
@Olivia P. Thanks for the tip on Stephanie Kelton. Richard Werner is also good
@@romanbrandle319 explain
The next recession is going to be caused by everyone's collective protest of that guy's haircut.
My hair is thick like his but mine is real. It's possible that he still has a full head of hair at his age because I do myself.
What needs to be done? Listen to DAVE RAMSEY!
What do you expect will happen when the income gap keeps getting larger and larger? The people who are consumers will stop consuming because they can no longer afford to consume. Without the demand of those consumers, jobs that once met demand will be lost. Those who lose the jobs will also stop consuming.
A downward spiral is inevitable. And then it crashes.
If the households would stop overspending, the economy would go into recession. Households are using debt because the tax cut went to the people who already had enough money. Households still have needs. And if all that money doesn't start trickling down real quickly, we are going to have a recession.
samuel nelson
Trickle down economics is a lie. Money doesn’t flow like that. It’s just something republicans tell the stupid people.
I wanted to use our tax return to help buy a more reliable car but it wasn't a good return like years prior. My mom was going to build a carport with hers. I kept telling her that her house write off was gone from the trump tax reform. No carport, no money back into the economy instead i had to spend $900 out of our savings on an unexpected car bill.. So I guess someone got paid!
@@dougmartin7129 it was always a lie created to justify the burgeoning wealth gap. You can go bankrupt on wealth. Like the monopoly game, once you have aquired all the assets, and everyone has none, the game is over. The most pointless game I have ever come across.
@Fila Kri But the automotive sector of the economy needs to sell a 35k automobile. That spending drives the economy.
Property taxes are the killer. Since they have established them . Homelessness has been a issue.
Economic bubble about to burst.
Federal Reserve: "Hold my beer... got to restart quantitative easing V2. There, problem delayed, I don't get what these party-pooper economists are always so pessimistic" LOL!!
Ferrari Scuderia you can't have a welfare state without heavy taxation or a federal reserve. Pick one.
Instead of raising income tax, tax the stock market 1/10 of one percent and have wealthy people from all over the world pay our taxes instead of working people.
Don't raise any tax. Cut spending! 🤔
@@anniealexander9616 My tax the stock market is a replacement tax, not tax increase.
With no corporate or personal income tax, money would flock to the US like never before.
Only day traders and high speed traders would not like it, but no IRS I bet they would even support taxing investing not income.
But I agree with you on spending; $22,758 per second playing army all over the world is unsustainable.
It’s corporate and government debt that’s going to cause recession and ultimately affect the dollar
Buy btc
Every one should not pay debt so the banks can give us better terms!!!
Ruben Torres
That’s a great 👍 idea actually 🤔 💭
Car loans alone could cripple America
Interviewer, in the beginning, was so considerate. Being on his phone and all
The FIRE movement is the response to his ‘black box’ of home economics. This discussion is important.
I've been tracking the yield curve and I think it inverted around the middle of March. I'm fairly certain it's happening.
How can I capitalize on this is the real question.
Lmao
Short the stock market.
Hey, it's said the great depression made some people millionaires!
Crypto...Bitcoin, small positions though. Collapsing countries are demanding it now as their currency (form of payments) have become worthless.
Outside costs dental car reg
Are adding up gas license insurance repairs rent food going through money fast
Yes, household debt is BAD , but the major cause of the next recession will be corporate debt (failure to shut down) causing massive layoffs resulting in bankrupt citizens, maybe leading to a depression that will last for decades.
My husband and I a transitioning to spending exclusively on assets. Unfortunately, we are climbing out of a hole because we bought the lies of the main stream about what we “should” own.
At least you realize now and putting forth the effort to make the necessary changes......
You’re an adult, you make your own choices. Don’t blame the mainstream media
@@empoweredwhiteeqyptianking1049 lol. I'm on your side bruh. don't eat your own. By bought the main stream media lies I mean I went into debt to become surgeon and can now afford to pay my loans. My point was I didn't have to do that.
@@empoweredwhiteeqyptianking1049 also...I'm pretty sure that I made it clear that we made the choice. You are going to drive people away from truth with those types of comments.
I don't get this government workers like this guy. He describes problems government made and then offers solution as of more of government. Definition of insanity...
Universal healthcare, anyone...
Greetings from U.K.
I’m a Republican. But I do believe health care should be provided by the government for the people. They can increase my tax 2%, I wouldn’t mind.
George V explain, in curious
LoL the UK is as dead broke as the rest of the world. Get off your high horse.
nicewknd No.. I don’t want to pay for your college. You pay for it.
I lived in the UK for over 7 years, the NHS has a lot of problems including a lack of money, very slow service and mis-appropriated resources.
In response to that $400 statement: maybe that’s why Experian boosts your credit score if you attach it to your account but your account has to have a consistency of maintaining at least $400 a month in the account every month
Who's the dude playing Solitaire
Get out of debt and stop using those dang credit cards please!
Certain people are quick to call out credit card users as a mean to dismissed indebted people, because they don't understand basic economic. Most of the indebted are financing your lifestyle and household expenses. Remember, a person's spending is another income.
Amen brother!
John Marcovecchio....This is so true and allows room for saving more money, better sleep and peace, building an emergency fund and retirement, better health and next to no stress! IT gives a peace that money can't buy.
Corporate debt wildly slipping to junk status
wow its amazing how well they do talking robots nowadays
“Stop borrowing money you can’t afford to pay back”. There, the five second UA-cam video on debt reform.
From the Bible (over 5,000 years of wisdom) to Dave Ramsey and Warren Buffett in our era, the message is clear: avoid new debt and get rid of all existing debt that you have. Then, build a strong fund for emergencies and, beyond that, invest for retirement and long-term goals.
You lost me at "From the Bible"
@MrHalified What the Bible, Warren Buffett, Dave Ramsey and many other wise and self-made wealthy persons teach has value for all people everywhere: (1) It is a steady and thoughtful approach rather than that impulsive spending. (2) Balancing saving, spending and good giving rather than overspending. (3) Using debt moderately, if at all, rather than being a slave to debt. (4) Using debt for investment rather than overspending. (5) Building character e.g., faith, patience, generosity, wisdom, perseverance, and temperance. (6) Beginning our adult life with an emphasis on saving, investment, and low spending = much more spending for the rest of one's life. (7) In short, it is not about all or nothing; or only saving and never spending. It is about choosing carefully how we use our time and money. It is about maintaining a prudent balance within each decade or stage of our lives in order to have more enjoyment and sustainable quality of living throughout our long and healthy lifespan.
What’s the difference between household spending and consumer spending ?
A couple of ideas. Automatic pensions of the old days saved our grandparents, they were simply granted. 401k's and other retirement plans could be manditory/a certain percentage taken from paychecks. Credit cards need more regulations and limits so its not so easy to rack up debt. Mortgages shouldn't be granted in such massive amounts, if folks make a certain amount, mortgage companies always max out the amount they can spend - lets lower this amount so things don't get out of hand. Car debt: people are now financing new cars for crazy amounts of time, 7-8 or more years, on a depreciable thing like a car, which loses 25% of value as it rolls of the lot! Thats nuts! How about a required down payment or no loan. People need to start paying cash for cars, or driving older models (that they paid cash for). I like his idea of reforming bankruptcy for the many, many households who need it, and learn to budget.
US interest rate had been near zero for several years. This has not happened in the history of US. And QE. We will see the repercussions of these two.
Let’s bail out the banks again...not!
Would be interesting to see how many family can survive a 6 month job searching and 3 years of 25% paycut...
Low interest rates cause increased debt, they don't nessisarily stimulate the economy.
Jay Zandegiacomo exactly. The problem with credit is that you are taking future income by definition. Net it doesn’t help at all for the retailers unless they have a credit card to tap into as much of the future to pull it from other potential competitors.
Agree. It's too tempting to borrow more and more when money is almost free.
@@dougn2350 It incentivizes more risk
We’ve had 10 years of essentially free money. The consumer is tapped out. How much debt can a person take on?
Really sad when 40% of households CAN'T put together $400.
Household spending is only 17%?? Consumption is 66% of gdp!
yeah this one is a bit strange in what we have always been told ad nausea the us is a consumer society.
@@marsmotion just looked on fred.stlouis.org: "Personal Consumption Expenditure" $14Trn; "GDP annual non-adjusted" 20.5Trn; 70%.
He clearly just mis-speaks, as 17%, which is what he does mistakenly say, is not an "elephant" either.
He knows it's 70%, and so does anyone else working in economics, and I think its clear to infer that he meant 70%.
@@klam77 kind of terrifying isnt it what the usa has become.
70 not 17
Income redistribution is contrary to the U.S. Constitution. Read Article 1 Sections 8 & 9 about capitation taxes which must be apportioned equally instead of the graduated income tax.
I'm trying to file for bankruptcy today.. The system we live in does not want the middle class and put to be out of debt, the system does not teach it's citizens about money
letsgetsocialinfo nor should they.
@@frusciantesplectrum7980 of course they should, of you want a slice then teach him nothing .. If you want an informed citizen they should
Unless you had something truly unfortunate such as a cruel divorce or a business partner who manipulated the deal. It’s your fault I’m afraid.
If you simply racked up debt on credit cards, cars in finance, when for short term gratification, then it’s lack of discipline and poor planning. It’s not anyone else’s fault as we all have the intelligence not to buy things we can’t afford.
It’s a good factual piece. Just have issues with the soft sell on recessions
Strange how income inequality drains the market of disposable income. Who could have predicted it?
Donald Kasper What?
Don’t you mean economies of scale, tax evasion, and global labour arbitrage?
@Donald Kasper Income inequality exists because centrally managed institutions have control over where goods get disturbed in a capitalist economy.
And 'households ' hv how many people.?
This is quality, in format and content. Subbed.
Why doesn't ANY Economist telllll the audience WHERE DOES MONEY COME FROM !!!!
Oy vey there's no need to be asking such questions.
Money comes from quantitative easing 😁
Most of the money we use comes from banks (fractional reserve lending). The QE was for the Big Banking institutions of which was used to prop up stock market.
It's quiet simple. If you have debt and can't pay, don't. The statue of limitations is a wonderful law. Just wait and start again.
Student loans and health care cost are destroying the middle class.
Boo hoo starvation and disease are literally killing the lower class.
NC Styles....The middle class is destroying the middle class. They are the ones that must have it bigger and better, taking out equity on their homes, buying luxury cars, etc they can't afford, excessive student loans, insist on keeping up with the neighbors, certain family members, trying to impress people they don't know or like, always living above their means. Never knowing the difference from a want or need, NOT putting money up for emergencies, refuse to wait before making large purchases. Before counting the cost. I ALWAYS SAY....ITS NOT HOW MUCH A PERSON MAKES....BUT THE WAY THEY MANAGE THEIR MONEY!
Nah, its state debts that will cause the mess.
$250 trillion of US government debts for starters
That toupe is making me anxious.
came across this 2 years later while in pandemic, household debt in Australia is at record high, interest rates have been going up gradually before cash rate goes up, inflation is skyrocket in the course of 12 months. average house price in sydney is 1million. How will people on average income afford to keep paying for million dollar house while supporting their kids' schooling.
In this year alone I went from making $14 dollars managing a T-shirt store, to $15 doing dispatch work, to $16 doing tree service, to $17 doing concrete and construction, and now I make $20 an hour operating forestry equipment in Colorado. Honestly I'm making more money easier then I ever have, if your struggling to find a job move to a place where you can get one. I mean damn even the Wendy's down the road starts at $14.25
“Neither a lender nor a borrower be.”
Concerning the Topic in the Video title, the question is how many households that have a mortgage would not be able to spend 400$ in an emergency. The fact that many households would not will not harm the Banks if they do not have any debt.
No one talks about poor spending ....
Household spending includes taxes, fees, surcharges, insurances, and interest. It's too much and that's what's killing the middle class. We have to forego spending on consumer goods and services to be sure government, banks and insurance companies can get maximum out of us first?
The interviewer is soo bored that he’s on his cell phone @15:16 lol
Its called living within your means..double your income. go debt free and flip houses..
What was the question again?
I never did understand economics. Thank you for your insights.
Debt is kind of a stimulus in my thoughts. We don't ever get an influx at any other time just in the cycle where we max out our credit cards.
This guy looks like Jim’s dad in American Pie 😂
live below your means
way below if you're smart
'gonna get bad
then badder
you're not familiar with 'badder'? you will be soon
Gary hi.
There trained monkeys. They need a mercedes instead of a kia. So people see there greatness.
They need a $1,500 smart phone because a $400 one is way below there wonderful selves.
They must have gap clothes because we cant be seen dead in walmart shirts.
We need to spend $1.5 million on a home. Well because we cant possibly live in a $500k house.
Its all about showing off bro. Humble died long ago.
'aubad, 'wonderful selves, Ha Ha Ha, you nailed it!
Simon hi.
Unfortunately thats not true.
But if ceo's didn't need 2,000 times the pay of there median worker. Then the employees would get paid better and more able to support there family.
By the way 2,000 times the median workers pay imply's. The average worker works 20 years to earn as much as the ceo does in 1 week. A good company today the ceo earns 500 times the median workers wage. Even thats 5 years to earn 1 week of the ceo's pay. In the 1970's and prior the ceo earned 35 times the median workers pay. Thats actually fair.
More worser even!
How rude is the interviewer on his phone? Its like he doesn't care.
How about the people who get a 200k education for a 40k job
@@ALCAN52 They were sold on a lie! I owe 60 grand in college debt and it's still too much!
I was sold a law school lie. They sucker you in with guaranteed promised of high paying jobs.
Highest household income ever. Lowest household debt ever.
Can do whatever we want.......
Daughter increased her pay 80% in less than a year. No college debt.
Son just got a 20% raise. He gets company funded dental and vision care. No premiums.
Man times are horrible.
Bullshit
The biggest problem will be a lack of liquidity when people start recognizing declining assets and other types of speculative vehicles like the exchanges - all of these are being fueled by debt which of course overinflates the basic necessities and wipes out disposable income and discretionary spending. Cash out now and buy a self-sufficient farm which is fueled with an abundance of renewable energy like hydro, geothermal, wind and an ideal year-round climate. The cities are going to be a complete disaster with homelessness and disease being the norm.
Government debt increasing.... household debt rising ..... company debt even greater..... a wake up call is coming
Remember. The whole financial system is built around DEBT. Bankers want you in debt. They loan invisible money to you, that is nothing more than 0's and 1's on a screen. You have to pay that back + interest. The whole system is based around DEBT. If there was no debt, there wouldn't be bankers and banks.
I would rather have household debt rather than no household savings due to out of control "debt relief" vastly causing inflation.