Let's check in on the modern state of Kamalanomics, shall we?
Your money is worth far less than it was just 5 years ago thanks to all the money printing during Covid. Supply-chain issues and the weakening of the American dollar and influence have caused prices to increase at the same time (and interest rates now make loans near impossible for many people).
Elsewhere, artificial price increases have been created in sectors like the housing market by pumping in a ton of illegal immigrants who are competing for starter homes with young Americans - sometimes even with government assistance!
Red tape and the endless fees/forms of bureaucracy are strangling any time and/or money that Americans have left.
Is it any wonder that people feel the need to make 6 figures to get by?
Almost 6 in 10 people say they'd need to earn at least $100,000 a year to stop feeling anxious about their bills, according to a new report from Edelman Financial Engines. About half of that group pegged the amount even higher at $200,000 per year or more, the financial services firms found.
Let's say you make $100,000. If you have a family of 4, you could easily be spending $15,000 a year on groceries (this is on the low end!). You'll save some on taxes because of your kids, but you could still end up paying around $10,000 in federal income tax alone. State and local tax might be another $5,000 or so.
Then you have property taxes and housing insurance and a mortgage (depending on your home and interest rates, this could be anywhere from $10,000 to $30,000 a year for a middle class family). You have to pay annual fees for the privilege of driving your cars. You need to pay for health insurance (in the private market this could be $1,000 a month easily) and dental insurance (over a hundred bucks a month) and vision insurance (all of these are purchased separately, of course).
Now that gas is twice as expensive as a few years ago, you'll need a few thousand extra for that, too. Maintaining your car(s) will also be more expensive as prices for parts and labor have jumped.
And don't get me started on what happens when you have an unexpected medical bill and you have to find a few thousand extra dollars in the budget before your cruddy Obamacare policy kicks in.
The study, Edelman's third annual 'Everyday Wealth in America' report, finds that Americans generally don't feel wealthy, and many are anxious about their finances, ranging from wallowing in credit card debt to concerns about how the November presidential election could impact their finances.
When you add up annual costs of living - especially if you are self-employed or don't have insurance through an employer - a family of 4 might reasonably have a few thousand dollars left over in discretionary income at the end of the year - most of which will go toward family needs (clothes, modest birthday gifts, the occasional fast food run, repairs, etc.).
Vacations are a luxury now.
$100,000 is what's needed to survive. $200,000 is what you need to maintain the family YMCA membership, golf outings with your buddies, the occasional spa day out with the girls, a new car payment, and an annual week-long vacation out of state.
'What we are noticing is that many Americans, even those who are affluent, aren't feeling very confident about their financial situation,' said Isabel Barrow, director of financial planning at Edelman. 'It might be coming from inflation, the election cycle or things more related to them,' such as debt or other headwinds ...
'When I was getting out of college, it was a dream to say you could make $100,000,' she said. Such an income signaled that 'you knew you made it.'
But today, a six-figure income is seen more as the basis for a stable financial life, rather than a sign of wealth or achievement.
I feel this in my bones.
It feels like we are on the verge of a sort of hyperinflation, where you need a wheelbarrow of cash to buy a loaf of bread. If we don't get a pause to catch up, we're all gonna need 7 figures soon to afford the basics of the American Dream.
That's not an unlikely reality should Kamala get 4 more years.
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