Quote:
Originally Posted by Baraka_Guru
And here I was expecting cool animated infographics demonstrating the mechanism of output gaps.
---------- Post added at 10:47 PM ---------- Previous post was at 10:35 PM ----------
There are many factors affecting the average American beyond taxes and inflation. As noted above, the taxation on Americans is relatively low. And starting from 2009, the U.S. went through a brief deflationary period (negative inflation) and has consistently averaged around 2% inflation, which is a desirable rate. Sure, this doesn't include such thing as oil, but oil prices have been low because of low demand.
Of course, what I'm getting at is the near future: oil is set to rise. But this is a global factor, not a U.S.-only factor, so there is only so much the government can do.
The other problem is America's abhorrent saving rate. (Is it still zero? Negative?) Americans, on average, aren't saving money and they haven't been for years. In China, the savings rate has ranged between something like 30% and 40%—yeah, that's the equivalent of $3 to $4 of every $10 earned. Of course, that's the far end of the spectrum (China's rate is the global high), but it demonstrates what's possible. The issue is that a lot of Chinese know how to do without much of what would be considered the trappings of the middle-class (though there is no indication this won't change).
In the U.S. (and in Canada largely), there is a kind of expectation that comfortably middle class living is the norm: too big of a house, too many TVs, too many cars, replacing furniture too often, too many appliances—of course, the question arises: what does "too big," "too many," or "too often" mean? Well, if you aren't saving 10% of your income, then it's up to you to decide your limits.
Don't blame the government for everything. The problem isn't just with them. We live in the age of marketing, where spending is the norm, and saving is something to do "one day." The American way of life will continue to be difficult to maintain as the global economy rises. The disparity of wealth between the U.S. and poorer nations will flatten, which will make it increasingly difficult to find cheap labour and cheap resources/commodities.
We will all need to change our standards in terms of rethinking: what is a quality way of life?
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you are right. to a point... i went from having 2 car payments of over 1000 a month, to having one now of 350 a month. i used to put 15% in my 401k and now i only put 5% in it. when the inflation of things went up, my pay rate statyed the same and my income fell flat on its face. I am 100% comission in what i do. I have learned to live a much simpler life than 3 years ago. look at the housing market. people were living in 400,000 houses that they couldnt afford and now they are foreclosed on ( for many different reasons, some they can help and some they cant). my house is of average space and money (at that time).
I'm not blaming the government for everything, just some of it. i have a feeling that it will get worse before it gets better.
in the county that i live in it has the highest unemployment rate in the state. 11.5%. thats horrible. but some of it could be prevented. i have friends that lost their jobs and CHOOSE to stay at home and collect unemployment because they cant find a job tha pays enough. WTF
i have one friend that went from being a project manager for a big construction company to being the drive through guy at burger king. its all a matter of self pride. and thy both have families. go figure...
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tomorrow i'm taking me fishing, hang a sign on the door of my life,
tell the world i've gone missing and i wont be back for a while.
Quote:
Originally Posted by Ourcrazymodern?
Don't go to work for anybody who cares about anything other than your work performance. Such prejudiced idiots will never profit you.
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