📣We are planning to do an episode dedicated solely to answering your biggest questions about money! 📣Drop your questions in the comments and Nir will answer them in an upcoming video.
When inflation hurts our purchasing power and first time homebuyers and renters are stuggling due to record high housing costs, does it really matter how good economists think the economy is?
The economy is an inaccurate measure of how people are doing. It's a measure of how much money is changing hands. People are paying more for everything. Of course the economy looks like it's doing well.
The government knows that, it's why a lot of their figures like "retail spending" aren't adjusted for inflation. As such, they are almost always positive, even in periods when people bought fewer items. In the rare occasion that they do adjust for inflation, they use their own phony inflation numbers!
So, if the math is that a worker needs to make at least $86,000 to support a family of 4, then the REAL minimum wage is $41.35 ($86,000/52 weeks/40 hours). How many hourly workers approach that kind of wages? And in what businesses? Part of the conversation must focus on training and education to help workers be prepared for those jobs and careers that can support that type of income.
If we raised the wages through some Act of God, then the cost of living would increase and gobble it up. Things must happen Organically from within the System. Not be enforced from outside by an Expert in a Thinktank.
@@iVETAnsolini how long you been running at it, where did you get 'trained' or however you want to factor that in, and what state? That's great though man, glad to hear that's been crushing
As a German, I was really shocked to see that transportation is the biggest cost factor for an American family. I really don't get why Americans don't want public transport. I pay 49€ a month for transportation.
Biggest price for transportation is the insurance we are forced to buy. Outside of the government legally requiring us to pay a company to scam us. Transportation really isn't that expensive.
Political Lupus! The United States has an extremely dysfunctional relationship with groups they consider " out casts," example, African Americans, if better cities and transportation might help that group in any way there's a sizable group that will block public transportation in the name of preventing anything getting to those people dubbed undeserving. I call it Political Lupus, like when the immune system attacks the very body it should protect. We have yet to talk these people out of this behavior so our country remains a depressing sea of parking and boring suburbs. It's a source of shame how we have ruined the landscape of our country in the name of tribalism but it's what an influential size of the population wants. They choose misery for everyome as insurance to hurt the outcasts. Our other cost of living crisis is the world has failed to prevent the oligarchy and neo cons from sucking every bit of life from our planet in the name of a few more yachts. We simply don't understand these individuals aren't like us, they are sociopaths and we're accepting their abuse.
Europeans do not understand the sheer size of the United States. Mass transit only works in a city like NY. People do commute from New Jersey and Connecticut to New York for work. But you still need a car to get around.
Watch the video! We break down data showing the root cause for this and Nir explains how we got to this point. Let us know what you think about his take on the issue!
An even easier solution is to gauge economic health and make policy based on median statistics for income and necessary expenses. Those data are readily available and do not require trying to pass legislation to force public companies to publicly disclose their pay scales. Many Americans with median incomes were barely making ends meet 2 or 3 years ago. It doesn't matter to them that the economic averages look great because their economic reality is watching the prices for their necessities rise beyond their ability to pay for them.
The problem is “inflation is falling” still means prices are going up. What’s never thought about thoroughly enough is that it just means they’re going up slower than prior. 7% inflation means that what once cost $100 now costs $107. 3% inflation means what once cost $100 now costs $103. When “inflation goes down”, it means that what once cost $100, went to $107 a year later, and is now with 3% inflation $110.21, whereas if it continued at 7% would be $114.49. But when wages are stagnant, just because $110.21 is less than $114.49, doesn’t mean it’s easier. It just means it’s not as bad as it could be. Until prices stop increasing and wages increase, or until wages stagnate and prices decrease, AKA what once cost $100 now costs $98 (which economists hate), it won’t get better. We need 0% inflation is what we need.
Think about all the debt Americans owe. Inflation is continuously making people's debt cheaper because it's a fixed amount that gets repaid over time with decreasingly valuable dollars. Think about how that would work if those dollars were increasing in value. Suddenly all your debts are more expensive just when your income is likely falling because your employer's revenue has fallen. Deflation is not desirable. The system doesn't work in a deflationary environment. Zero percent inflation is also undesirable because it eliminates the economic penalty for doing nothing with your cash. Inflation keeps the cash flowing through the system because there's a penalty for sitting on it. Without inflation or in a deflationary environment that behavior is rewarded.
@@BTrain-is8ch so the translation is? Print more and JPowell & the team keep winning? I don't think what they said is good, I'm just asking since you combatted it with saying it isn't good
What about the changes in our society such as no longer buying everything at the grocery store? We now have 30% or more of our needs delivered to our door by amazon or other overseas retailers. How could the grocery store provide everything at a reasonable price when demand isn’t the same? What about the old infrastructure and land that isn’t available anymore because we have built up every bit of land possible? How can we ever match the real estate of the 50’s-60’s-70’s-80’s when those structures are now old and falling apart yet being sold for three times the price when they were new?! We need to reframe these basic concepts in our society and begin to provide affordable homes and services by providing incentives to such businesses.
Pegging wages to productivity has never made sense to me. It seems like one of those things we'll know in one hundred years was more coincidence than valid predictor. Much of the boost over the past few decades comes down to technology. Specifically the computer/software and automation. One person might be doing what took a team of ten previously or in 1/10 the hours but the worker isn't 10x better than their predecessors. It's their computer or Excel or the machines that are doing the real work. It's the stuff capital brings to the table. The owners spent 100 million dollars retooling the plant and now they can produce more with a quarter of the headcount. Why on earth would the remaining workers think that's the signal for them to get a raise? They're not working any harder. The company figured out how to use their time more efficiently. It makes sense that companies aren't sharing those gains with people who did not share in the expense required to deliver them.
If companies paid workers based on profit sharing places that make millions of dollars at each location like Chic fil a would have to pay their cashiers around $100,000/year.
📣We are planning to do an episode dedicated solely to answering your biggest questions about money!
📣Drop your questions in the comments and Nir will answer them in an upcoming video.
When inflation hurts our purchasing power and first time homebuyers and renters are stuggling due to record high housing costs, does it really matter how good economists think the economy is?
The economy is an inaccurate measure of how people are doing.
It's a measure of how much money is changing hands. People are paying more for everything. Of course the economy looks like it's doing well.
The government knows that, it's why a lot of their figures like "retail spending" aren't adjusted for inflation. As such, they are almost always positive, even in periods when people bought fewer items. In the rare occasion that they do adjust for inflation, they use their own phony inflation numbers!
So, if the math is that a worker needs to make at least $86,000 to support a family of 4, then the REAL minimum wage is $41.35 ($86,000/52 weeks/40 hours). How many hourly workers approach that kind of wages? And in what businesses? Part of the conversation must focus on training and education to help workers be prepared for those jobs and careers that can support that type of income.
I’m a Union Pipefitter-Plumber and we make that. About to get another $3 raise June 1st took. Taking us to $44.
60% of Americans make, as a household, $75,000/year university or less.
If we raised the wages through some Act of God, then the cost of living would increase and gobble it up. Things must happen Organically from within the System. Not be enforced from outside by an Expert in a Thinktank.
@@iVETAnsolini how long you been running at it, where did you get 'trained' or however you want to factor that in, and what state? That's great though man, glad to hear that's been crushing
it would be $43k. minimum two working people in a household.
As a German, I was really shocked to see that transportation is the biggest cost factor for an American family. I really don't get why Americans don't want public transport. I pay 49€ a month for transportation.
Biggest price for transportation is the insurance we are forced to buy. Outside of the government legally requiring us to pay a company to scam us. Transportation really isn't that expensive.
Political Lupus! The United States has an extremely dysfunctional relationship with groups they consider " out casts," example, African Americans, if better cities and transportation might help that group in any way there's a sizable group that will block public transportation in the name of preventing anything getting to those people dubbed undeserving. I call it Political Lupus, like when the immune system attacks the very body it should protect. We have yet to talk these people out of this behavior so our country remains a depressing sea of parking and boring suburbs. It's a source of shame how we have ruined the landscape of our country in the name of tribalism but it's what an influential size of the population wants. They choose misery for everyome as insurance to hurt the outcasts. Our other cost of living crisis is the world has failed to prevent the oligarchy and neo cons from sucking every bit of life from our planet in the name of a few more yachts. We simply don't understand these individuals aren't like us, they are sociopaths and we're accepting their abuse.
Europeans do not understand the sheer size of the United States. Mass transit only works in a city like NY. People do commute from New Jersey and Connecticut to New York for work. But you still need a car to get around.
That's exactly it. The US has a large landmass. The US is spread out way more than many Europeans realize.
My state is twice the size of your country.
Because my rent just went up another 5.3% on top of the combined 25% for the two years prior. A sandwich and a drink is $13.
Watch the video! We break down data showing the root cause for this and Nir explains how we got to this point. Let us know what you think about his take on the issue!
It shouldn't take $5k per month after tax income to live a middle class life
An even easier solution is to gauge economic health and make policy based on median statistics for income and necessary expenses. Those data are readily available and do not require trying to pass legislation to force public companies to publicly disclose their pay scales. Many Americans with median incomes were barely making ends meet 2 or 3 years ago. It doesn't matter to them that the economic averages look great because their economic reality is watching the prices for their necessities rise beyond their ability to pay for them.
The problem is “inflation is falling” still means prices are going up.
What’s never thought about thoroughly enough is that it just means they’re going up slower than prior. 7% inflation means that what once cost $100 now costs $107. 3% inflation means what once cost $100 now costs $103.
When “inflation goes down”, it means that what once cost $100, went to $107 a year later, and is now with 3% inflation $110.21, whereas if it continued at 7% would be $114.49.
But when wages are stagnant, just because $110.21 is less than $114.49, doesn’t mean it’s easier. It just means it’s not as bad as it could be.
Until prices stop increasing and wages increase, or until wages stagnate and prices decrease, AKA what once cost $100 now costs $98 (which economists hate), it won’t get better.
We need 0% inflation is what we need.
Right! Inflation isn't falling at all. The rate of inflation has slowed.
Think about all the debt Americans owe. Inflation is continuously making people's debt cheaper because it's a fixed amount that gets repaid over time with decreasingly valuable dollars. Think about how that would work if those dollars were increasing in value. Suddenly all your debts are more expensive just when your income is likely falling because your employer's revenue has fallen.
Deflation is not desirable. The system doesn't work in a deflationary environment. Zero percent inflation is also undesirable because it eliminates the economic penalty for doing nothing with your cash. Inflation keeps the cash flowing through the system because there's a penalty for sitting on it. Without inflation or in a deflationary environment that behavior is rewarded.
@@BTrain-is8ch so the translation is? Print more and JPowell & the team keep winning? I don't think what they said is good, I'm just asking since you combatted it with saying it isn't good
What about the changes in our society such as no longer buying everything at the grocery store? We now have 30% or more of our needs delivered to our door by amazon or other overseas retailers. How could the grocery store provide everything at a reasonable price when demand isn’t the same? What about the old infrastructure and land that isn’t available anymore because we have built up every bit of land possible? How can we ever match the real estate of the 50’s-60’s-70’s-80’s when those structures are now old and falling apart yet being sold for three times the price when they were new?! We need to reframe these basic concepts in our society and begin to provide affordable homes and services by providing incentives to such businesses.
This is why we need more apprenticeships in this country. Less college and more OJT
All I know is I get less back in taxes for my kids than I did for one before thanks to inflation according to them.
WOW, 🤩the economy is BOOMING.
K shaped recovery, duhh. It's not booming for everyone.
FJB. Terrible economic years
Get rid of all the regulations that drive up costs.
Corporate GREED is running up the cost. it doesn't matter how much help you give them, it's never enough they will always want more $$$$$$$$$$
Pegging wages to productivity has never made sense to me. It seems like one of those things we'll know in one hundred years was more coincidence than valid predictor. Much of the boost over the past few decades comes down to technology. Specifically the computer/software and automation. One person might be doing what took a team of ten previously or in 1/10 the hours but the worker isn't 10x better than their predecessors. It's their computer or Excel or the machines that are doing the real work. It's the stuff capital brings to the table.
The owners spent 100 million dollars retooling the plant and now they can produce more with a quarter of the headcount. Why on earth would the remaining workers think that's the signal for them to get a raise? They're not working any harder. The company figured out how to use their time more efficiently. It makes sense that companies aren't sharing those gains with people who did not share in the expense required to deliver them.
If companies paid workers based on profit sharing places that make millions of dollars at each location like Chic fil a would have to pay their cashiers around $100,000/year.
If it wasn’t for guys like me your server rooms would be melting. Start paying up or your going to see nation wide strikes!!!
Of all the people to lowball on wages. 🤦♂️
Economies Booming for Who ? No one I know ! If they say its Booming, expect the Total opposite ! FJB
Tiktok is for zoomers. It's normal to be broke prior to 20s, booming economy or not.
Amen! You and Jamie Dimon are the only clear voices on this, it seems! Good luck to us all.....! 😎✌️
Jamie Dimon. Are you an AI bot? wtf who says that
Very interesting.
were doing well relative to 80 years ago.
I make $10.50/hr as a cashier and $900/semester as intern.
I'm on welfare
Does it work? Or what isn't working out?
@@rgbking488 Medicaid isn't accepted by most doctors.
Bai Lan.
HA
Replace the dying fiat currency system with bitcoin
Bidenomics
Reaganomics. It actually started under Jimmy Carter, but Reagan put it on steroids, effectively killing the middle class.