It’s the silent suck on the wallets that get you. Everyone budgets for food, shelter, but very little attention is paid to the dailies, the subs, the fees, the lattes.
Largest household expense after housing is usually (sometimes indirect) health insurance premiums. For a family of 4, this is running on the order of $30k annually now. That's creeping up on half the median household income (which often requires two workers).
Hiding this very real expense in tax deductions for employers obscures the fact of just how large it is.
It's the sectors of the economy that have become consolidated. Food, insurance, banking, healthcare. There is very little competition in those markets and prices are artificially high because huge conglomerates manage to siphon off a larger and larger stake, while preventing small players from offering an alternative either through market power or regulation.
Unlike subscriptions, it does not show up on your credit or debit card statement because the price of everything just goes up by a little percentage here and there.
If yes, then conceptually we're on the same page, if no, then I think this is wildly off base.
If rent is not a subscription fee, then you're probably talking about virtual goods like entertainment and games. I think consumers get a ton of value from digital entertainment and media, the problem is that literally everything else in the physical world feels like it's getting more expensive and falling apart.
Young people have virtually limitless virtual entertainment and media options. But they have almost no options when it comes to affordable housing or transportation.
The cost of housing has outpaced inflation every year for 2 decades (basically the entire lifetime of Gen-Z) and owning a home feels more and more out of reach every year. The average age of first time homebuyers is now over 40 years old, and the average age of all homebuyers is over 50.
The average cost of a new car in the US is now over $50,000. Public transit projects if they're being built at all are years behind schedule and billions over budget, and existing infrastructure is falling apart. This is in a time where wage growth has stagnated.
It's completely understandable why young people feel they're getting a raw deal, and wealthier and older people seem more out of touch every year. Actual physical needs : housing, transportation, healthcare and food feel viscerally more expensive every year.
Capitalism seems to only want to address these needs by pushing more and more substitution of virtual entertainment: Have more games, more apps, more stuff on social media, more cat videos, AI generated content in endless quantity.
It's almost like the internet is the Heroin of our age, a drug that keeps both the stock market and individual consumers high so they're less conscious of how much everything in the physical world sucks more every day.
TLDR; if you're founding a company do a hardware startup. We're maxxed out in how much our digital services can improve our lives.
When I was young, you could live off the wage you made in retail.
I had uncles who worked in retail and where able to buy a nice house and raise a family. Now, you need snap to live if working retail. Buying a home, out of the question.
We need to go back to the tax rate we had in tge 1950s and force companies to pay a living wage as they did back then
How many of the billionaires you mention are themselves the proginy of previously wealthy parents?
Wow, you know a person who can mine, smelt, and forge steel into a computer case... While still having time to mine, process, purify, reprocess, and design the whole die process not just for a CPU but GPU's and all matter of electronic components!?!!??!
Holy shit, you know someone who can design, assemble, and launch not one comm sat...but dozen?!?! And he builds the rockets all by himself as well?!?!? And he built the ground stations and infrastructure required to power and connect to them?!!?!
Oh you know a guy who can write a forum.... Yeah that's kind of neat I guess...
But let's be real here. These single individuals did not produce Thousands upon thousands of life times worth of value by their lonesomes. It required standing upon the shoulders of countless individuals, not even taking into account the organizational structures of governments, their utilities, and people long dead who built the world they used to make their billions.
Billionaires did not build any operating systems or computers or launch any satellites or write any web pages you are using. Workers built those things while billionaires watched.
Linux is a testament to how much we don't need billionaires to organize ourselves to create these things.
I think the article has the nugget of some good ideas and would love to hear them explored a little more rigorously and with more critical thinking.
https://1940census.com/Img/1940_census_map_usa.jpg vs zoom in a little here: https://maps.geo.census.gov/ddmv/map.html
LA and New Orleans should have made the list, after that it’s more questionable.
To wonder where the wealth went you need to look at places that where at some point wealthy. Wealth however takes time to accumulate because waves of immigrants or kids from population booms don’t tend to have a lot of wealth.
It’s easier to downplay inflation so people think they’re doing better.
In 12 years, my salary is up about 50%, most of the change since Covid. Sure, sounds amazing… However, home prices doubled. Consequently auto, home, and flood insurance has at least doubled. Prices on even raw food has gotten crazy, restaurants are also 50-100% increase in prices. Health insurance is about 4x what it used to be for me. Tax bracket is higher.
So aside from the huge luck of low interest loan at a smaller principal, it doesn’t feel like anything amazing has happened.
On the flip side, I feel the plight of those looking at a 30yr loan at 5-6% on $500k. I can’t stomach it today and certainly not 12 years ago either.
By normal inflation rates, feels like I’ve seen maybe a 15% “raise” for over a decade extra of specialized experience —- before considering increased costs. Of course that was from changing jobs twice…
And quite frankly, property ownership is somewhat a poor investment, just better than renting. The S&P 500 has nearly tripled over the same time period. Of course, taking a 15 or 30 year loan for stock market investment would be insane (aside from impossible).
I dunno I just see so much cool shit in the world today. I see Waymo cars driving themselves around. LLMs are still wildly revolutionary. My TV is the tits. There's so much good happening but there's this massive undercurrent of negativity that's hard to reconcile.
Personally I'm doing something that brings me more happiness than most of my activities for the last twenty years - I'm providing direct aid for the unhoused and the impoverished. And I'm know there are people who are doing things that are their passion unrelated to that.
But I have to say, your list for is remarkable for being about things, not people. You amazed by the cool stuff available for some people for a lot of money and some things that are pretty cheap. But X percent of the population can't pay their rent with their income, cool stuff for sale is hardly going to help them. And indeed that statement itself is a strong illustration of how self-insulating people are from the conditions people live with.
I feel like it's such a cultural thing here in the US. There is a pervasive culture of individualism and operating wholly within ones own means. Need help? Don't ask your neighbor for help, ask Our LLM (tm) for only $9.99 a month! I'm being hyperbolic of course.
having 50 different flavours of ice cream and a big TV available is a fifteen year olds idea of paradise, but what people actually care about is infrastructure, public health, safety, childcare and progress in the material world.
The US has the problem that the commons and the physical world have been run into the ground, the country has effectively become the Wall-E future.
This is what I mean by unrelentingly negative. The world today is way better than the world I was born into.
You might start to understand the negativity some people have if you could understand the economic struggles they have.
In a way, I see this as our unwillingness to invest back into society. It very much is the fault of our wealthiest who have alienated themselves from anything resembling the everyday people and created themselves walled off enclaves where they no longer need to face the degredation. Wealth isnt visible anymore because its being hoarded, walled off, and turned into bits that can be easily moved from one place to another, allowing them to invest it only in the things they care about. I promise you, any time spent around the wealthy will show you their worlds are not decaying, its just that you dont get to live in it yourself.
Yes they can get at that wealth, tax free at that!
It's not like there's a fixed number of naturally occurring megayachts around and the $500m price is a fiction that isn't fungible to be used on other things
It doesn't seem related to the "you have a trillion dollars on paper but that's mostly fiction" topic. The $500m yacht has been materialized to "atoms" and isn't on paper anymore.
A prime example of this being many cryptocurrencies which can be argued are a means of making large sums of wealth more portable.
I've done reasonably well as a developer, having been an architect at several large enterprises. I consider myself a pretty good developer. My kid followed in my footsteps and also became a developer. He is objectively ridiculously good at it. And far faster than I ever was. But it took solid 9 months before he found a job. A one month contract. Which he then parlayed into a full time job, once they saw how good he was.
Compare this with when I graduated. I had a full time job before I received a diploma. It never even occurred to me to worry about finding work.
If the rate of TOTAL debt was accumulating at the same rate now as it was then, there would be jobs aplenty.
Debts are still rising, but at slower rates.
I grew up wildly excited about the capitalist world of promise and meritocracy in which I was going to grow to be a man. I never had grand ambitions of becoming wealthy, but wanted to work hard so that I coulod have a nice life and build a family. Now that im an adult, I cant think of a single reason to be proud of the current system. Ive worked incredibly hard for a life of 'getting by'. Im incredibly privileged where my friends and family are not, and cannot imagine the struggle and hardship of those with less prospects than me.
I cannot in good conscience witness the world in which I am now an adult and say that this capitalism is a good thing. The people around me are suffering and I firmly believe that it is every man's duty to fight for their family and community. Nothing about fighting for community here involves supporting capitalism as it stands today.
https://joshworth.com/dev/wealthgap/
The bottom 90% of Americans only have 32% of the wealth.
People WITH ASSETS (real estate, stocks, businesses, etc) have done incredibly well since Obama. Real estate has skyrocketed and mortgage rates dropped to 2%. The stock market has gone up 10x, but some stocks like nVidia has gone up 100x.
People WITHOUT ASSETS have been fucked. The prices have all inflated, rents have skyrocketed and food has skyrocketed but they have nothing except their paychecks to help pay for living. They need 2 jobs just to stay afloat and there is no way they will ever afford a house. They are fucked.
The people with assets have an inordinate amount of money such that they can do extremely sociopathic things that people shouldn't be able to do. Hedge funds are buying hundreds of thousands of the single family homes and turning the next generation into permanent renters. Mark Zuckerberg is so rich he bought an entire neighborhood in Palo Alto (guarded with a bunch of security guards) so that his family could have a fake semblance of normalcy, but then he buys an entire island in Hawaii as well.
The rich are inordinately rich and doing sociopathic things, meanwhile the lower and middle income people with no assets can't participate in the upside and have no power to fight against these sociopaths.
And you wonder why Mamdani was voted in? It's clear as day to me.
Where did the prosperity go? Into the pockets of property owners in large cities. Runaway urbanism made large cities practically the _only_ place where people can get ahead. If you want to achieve something, you have to leave your nice spacious house in Ohio and go and live in a tiny closet in New York City.
So we have a paradoxical picture. The number of housing units per capita, or per family is near the record high levels. Yet we're somehow in the middle of a "housing crisis".
Moreover, this migration into large cities creates a whole slew of low-paying dead-end jobs. This is also how generational Black poverty in the inner cities keeps perpetuating itself.
But it keeps getting worse. In the US not just the people, but the _land_ also votes. And all these dying smaller cities keep getting radicalized, pulling the entire country rightward. They are an easy target for populists, who always have an easy answer like "it's all the immigrants' fault".
http://kilkennycity.ie/Your_Council/The_History_of_Kilkenny_...
PaulHoule•1h ago
quantummagic•1h ago
ajross•11m ago
They actually aren't. Median income is measured as a median for a reason. Poverty line statistics are taken at the low end. Local CPI and price data is taken and reported. And all of those numbers are, indeed, getting better and not worse.
I repeat this everywhere this subject comes up, but the real reason things look like they're getting worse is unsavory. More than two generations back, people were on balance poorer but they were black, so they didn't matter. Or they were immigrant, or single mothers, or institutionalized, or otherwise invisible to the white-picket-fence set who were all buying their family homes on one income.
Well, all those other demographics have done super well in the last half century, reaching parity with white men at the low end of the spectrum.
And those white men are the pissed off groypers detailed in the article. Not "Americans" in the abstract.
I mean, it's true they can't afford homes easily! Neither could minorities in the sixties, but we don't talk about that part.
TylerE•1h ago
We live in a banana republic.
https://www.pbs.org/newshour/politics/trump-seeks-to-fire-bu...
https://www.science.org/content/article/republican-push-make...
https://www.cbpp.org/research/poverty-and-inequality/federal...
https://www.voanews.com/a/trump-administration-disbands-2-ex...
https://www.brookings.edu/articles/the-us-government-data-pu...