Is American Life Unaffordable?

NY Post asks, why the middle class can’t afford life in America any more?

Consider problems and solutions…


One theory…

US population since 1970 went from 200m to 300m = a 50% jump.

While money supply since 1970 went up 6x = 500% jump??

So there’s clearly more $$ accessible to the economy compared to the # of people in US – – by a factor of 10x more money in the economy than in 1970, vs the number of people here?

A couple responses to this:

1 – All of that money has to go somewhere… (e.g., housing prices go up merely by supply vs demand)

2 – …that financial capital has concentrated into the hands of a few people, who often also coincidentally set the prices for common goods and services we access (e.g., food and transportation).

How Money Supply and Its Distribution Promotes Wealth Inequality

So food, housing, and transportation  costs  – aka, living expenses – go up, merely due to more $$$ floating around the system.

The worse chapter in this book, is the maldistribution of financial capital by race since abolishment of American slavery, that perpetuates through today — despite laws being established as early as 1866 to promote economic rights and interests to specifically reverse the hardship imposed upon American people who are descendants of the American slave.

Proposed Solutions…

One:  Live off a high paid relative, no debt, cut expenses to zero if possible, work any full time job, use tax deferred investment accounts (employer sponsored 401k/457 +IRA +solo401k) with closest to 100% of income possible, and acquire top skills on nights and weekends.

States with BOTH 401k and 457 Plan

Two: Commit to philanthropic investing. — become that high paid relative who sponsors people per ‘1’ above.

Three: Proposed role of government: Promote 1 and 2, and guarantee employment opportunities for any economically disadvantaged American who wants to work (No UBI).

See this PBS video on a report from the U.N.

Review in detail this popular link to the U.N. report.

See the State Department’s response to the report.

From Ambassador Haley’s response:

“The best way to help people get out of poverty is to help them get a job.”

Fully agreed.

Is the economy really that strong, if 5,700 people applied for 350 [full-time minimum wage] jobs recently?

At the current valuation of his company, just one of America’s wealthiest could theoretically sell everything he’s amassed and hire hundreds of thousands of economically disadvantaged American people with 10 year jobs.

With so many strategies abounding and accessible to defer taxes and invest maximally, achieving a ‘millionaire’ net worth is becoming increasingly more easy. The absolute hardest part, is convincing the millionaires to let family live on their dime, and hire hundreds or thousands of economically disadvantaged young adults.

Fortunately, policies are aiming to support job growth. Certainly, higher taxes don’t boost our innate desire to help a neighbor. Instead, policies like Opportunity Zones are steps in the right direction to give people an incentive to re-invest into low wealth communities.

Are you among the top 10% by household net worth who together hold 76% of wealth (totaling approximately $50 trillion cash)?

If so, Commit to invest into and hire low wealth + low income, economically disadvantaged American people.

Author: pH14 Plan Staff

pH14 Plan is an economic development model for all U.S. households' participation. You can support this research by subscribing for more access, or contact us to make a gift.