I am a Costco and Trader Joe’s type of guy, and I agree with everything you just said. The cost of living in the US is insane. Normally I am not a fan of taxes, but we are at historically low tax rates and also have a national debt of $39 Trillion and growing. Our national debt is unsustainable. At the same time, costs for everything else are off the charts, and what used to be attainable is becoming priced farther and farther out of reach. If you are a Costco type of family, of a certain age, and have saved and invested well, you’re probably doing ok. But if you are young, of a modest income, or are going through a difficult financial time (medical expenses, job layoff, providing care for a loved one, etc), you’re struggling and it is difficult to keep your head above water much less save and invest.
Thank you. Yes, I can't imagine what it's like for younger folks.
The constant stream of lies about taxes from the right drive me absolutely crazy. What matters is not "income tax," but ALL TAXES. For someone who isn't rich, it's TOTAL TAX RATE that matters, not income taxes. But it's in the interest of the rich to lie and concern themselves with lowering income taxes, but those are the only taxes they noticed.
Occupy Wall Street seems like it happened 100 years ago. Why couldn't Americans have sustained that outrage? Was it just s very vocal minority? Instead, we turn around and elect a greedy, narcissistic, criminalistic, 2nd-generation Wall Street billionaire and his Republican puppets. Talk about Gore Vidal's "United States of Amnesia." I'll never understand why the middle and lower classes support leaders who work against their interests. The GOP is a master of the giant con.
This so perfectly articulates why the playgrounds for the rich make me feel so icky! We're squarely in that middle class zone (in Canada) and in 2019, we moved to a small village 10 minutes from Ottawa on the Quebec side of the river. We bought a charming house in one of the three new developments, and it was beautiful, but it wasn't the "Seabrook" development that had just come up. My husband wanted to buy in Seabrook (I'm just gonna keep calling it Seabrook and trust that you know I'm referring to the place in Quebec) but I couldn't see why we should commit to a mortgage that was 300,000 dollars higher to get a house that was slightly smaller literally five minutes away. He reluctantly agreed, and we moved into our place and still went for walks there and took the kids to the "Seabrook" park, but it always left a bad taste in my mouth. And what you've is why! This neighbourhood was so picturesque, so manicured, so meant to mimic the charms of a 1950s Stepford style neighbourhood, except again it was only accessible to those who could afford to take on that insane bill.
Your observations about shows and sporting events and planes are also very apt. Our oldest son is 15 now, and he wants to do things with his friends, and just the cost of a movie and dinner is double what it used to be when he was a baby. It's all pretty crazy and frustrating, and that's without being part of the third group.
The death of unions over the past several decades has really hurt people’s fortunes. I was fortunate to retire at 58 with a healthy public pension. Doesn’t seem like there are many similar opportunities on the private side.
Even public pension benefits are getting less and less generous. I'm lucky enough to be in a stable and well managed system, but my benefits aren't as good as the ones for people hired before 2011, and there's been another round of "worse after year XXXX" since then.
And I still tell my entry level staff to stick around at least until they vest in the pension system because PENSION I mean seriously.
Brent, I’m always fascinated by your observations when you’re back in the U.S. It’s like reading a time traveler who has jumped forward into a dystopian future. You really nailed it. Enjoy this summer at the beach and to hell with Seabrook.
One other thing. And this is really fucking sad. When you said your insurance premiums were 26k, my first thought was, that's not a bad deal. I mean, it's a terrible deal. But a few years ago my wife left her corporate job and we bought insurance from Covered California. We didn't qualify for the subsidy since they use your previous year's salary and her's was high. So in a year when we had very little income we paid around 29k for the two of us. She has a new job and her employer cover us, but if you look at the total cost -- what they pay and what's deducted from her paycheck -- it's around 30k i think, and that's before copays and deductibles. I'm sure none of this surprises you, but yeah it was a real reality check when my reaction was, what a great deal Michael and Brent are getting on health insurance.
So sorry to hear about your horrendous medical insurance premiums. I don’t know long it will be until you’re Medicare age—but Medicare is amazing. Even when we were on private insurance that was partially subsidized by employers, our coverage was never this good (and inexpensive).
To be clear up front, I'm not advocating or suggesting anything by this. But I feel like people from all three Americas should probably be more familiar with the causes of the French revolution; and the potential similarities in modern day America.
I'm one of the "poor" class of Americans, but somehow make it work. Sure, having a ton more money would be welcome, but I'm not going to kill myself trying to earn more...and the system is definitely stacked against the lower class ever hoping to rise above it.
I could work 24/7/365 and still not be even close to as rich as these oligarchs. (And I'd be dead from no sleep or food...too busy working!)
This was a great read, albeit a depressing one. But you said what really needed to be said, because it is so true.
The greatest difference I see, as an American living in Europe, is the cost, accessibility, and quality of healthcare. To me, that is the great divide between the haves and the have-nots in the USA, and it does not have to be that way!!
The US has really become incredibly divided. My sister and I are in our 50s and often joke about how our elderly mom is winning at capitalism in a way we never will. Mom isn't on the scale of the ultra-wealthy, but she is definitely winning in the sense of the "magic of compound interest" and the US stock market over the last 40+ years.
She started a 401k back in 1981 when they were first created. She contributed in that system for 22 years before going into public service. Every time her bank statement arrives in the mail, she gets shocked all over again and tells us "Never in my whole life did I imagine I would ever have this much money." She got scholarships to public colleges and worked until she was well into her 70s.
The kicker is, while it IS a lot of money, it isn't anywhere even close to the top 1%, serious luxury consumer wealth, of the type you described.
Yes, we're the same. And also owning real estate in the Seattle area from 1995-now. It just doubled and doubled and doubled and doubled. But that ain't happening again.
Amen to everything you wrote, Brent! I'm solidly middle-class but can't stomach the thought of paying hundreds of dollars to go to a concert, even when I want to catch a favorite musician while she is still touring. And now, as inflation rears its ugly (and avoidable) head, prices are going up and the pain point of more expensive gas and groceries will inevitably hit the poor first. In my town, I already see more fruit and flower vendors on street corners, unlicensed food carts, and the like. I'm not complaining--people will come up with creative ways to earn a living as best they can. But the policy changes we need must come from the top...
You speak my thoughts, which I feel so deeply about. Inner peace and outer peace is all I want for all. Without having to die to obtain it. There is no logic to bad government, bad systems, bad intentions. That is what should be illegal. If only all people could have the few nice things they truly need, and all people utilized community to share what can easily be shared. Like common sense. There is literally no common sense in creating a world that individuals cannot afford to exist within.
Here’s the bitter pill for many middle class folks who now fluidly move between middle and poor - you run into an interesting mix in Dollar Tree these days. Things that many middle class folks took for granted in the 60s and 70s are out of reach. For example , beaches in RI where we went several times a week are now unaffordable for regular folks. The parking fees alone would make you faint. Rents are ridiculous and many landlords want one to make 3x the rent, Do the math, if it doesn’t kill you first. (Ex if rent is $2300 you’ve got to make &6900 a month. ) We live in a mid century apartment (few mod cons, but the apt ribs front to back with lots of windows). And the landlord is fair to poor . But we stay because we love the location and the cost. Btw, if Y’all are ever in the area we’ll take you on a guided tour of all the hot spots (our definition: good food and coffee/cheap; good natural environment).
This is really, really true. Just look at Disney, which used to be the most middle class thing in America. It's just not anymore, and Disney doesn't even care. They WANT to be a destination of the ultra-rich, because that's where the bucks are.
So agree with all this Brent. We've noticed this much more starkly after two years of nomad life as well. It's a challenging and depressing state of affairs on many levels.
I am a Costco and Trader Joe’s type of guy, and I agree with everything you just said. The cost of living in the US is insane. Normally I am not a fan of taxes, but we are at historically low tax rates and also have a national debt of $39 Trillion and growing. Our national debt is unsustainable. At the same time, costs for everything else are off the charts, and what used to be attainable is becoming priced farther and farther out of reach. If you are a Costco type of family, of a certain age, and have saved and invested well, you’re probably doing ok. But if you are young, of a modest income, or are going through a difficult financial time (medical expenses, job layoff, providing care for a loved one, etc), you’re struggling and it is difficult to keep your head above water much less save and invest.
Thank you. Yes, I can't imagine what it's like for younger folks.
The constant stream of lies about taxes from the right drive me absolutely crazy. What matters is not "income tax," but ALL TAXES. For someone who isn't rich, it's TOTAL TAX RATE that matters, not income taxes. But it's in the interest of the rich to lie and concern themselves with lowering income taxes, but those are the only taxes they noticed.
Occupy Wall Street seems like it happened 100 years ago. Why couldn't Americans have sustained that outrage? Was it just s very vocal minority? Instead, we turn around and elect a greedy, narcissistic, criminalistic, 2nd-generation Wall Street billionaire and his Republican puppets. Talk about Gore Vidal's "United States of Amnesia." I'll never understand why the middle and lower classes support leaders who work against their interests. The GOP is a master of the giant con.
Absolute masters! And our media have done a shitty job too, letting the GOP spew a stream of non-stop lies about the rich and taxes.
THIS.
This so perfectly articulates why the playgrounds for the rich make me feel so icky! We're squarely in that middle class zone (in Canada) and in 2019, we moved to a small village 10 minutes from Ottawa on the Quebec side of the river. We bought a charming house in one of the three new developments, and it was beautiful, but it wasn't the "Seabrook" development that had just come up. My husband wanted to buy in Seabrook (I'm just gonna keep calling it Seabrook and trust that you know I'm referring to the place in Quebec) but I couldn't see why we should commit to a mortgage that was 300,000 dollars higher to get a house that was slightly smaller literally five minutes away. He reluctantly agreed, and we moved into our place and still went for walks there and took the kids to the "Seabrook" park, but it always left a bad taste in my mouth. And what you've is why! This neighbourhood was so picturesque, so manicured, so meant to mimic the charms of a 1950s Stepford style neighbourhood, except again it was only accessible to those who could afford to take on that insane bill.
Your observations about shows and sporting events and planes are also very apt. Our oldest son is 15 now, and he wants to do things with his friends, and just the cost of a movie and dinner is double what it used to be when he was a baby. It's all pretty crazy and frustrating, and that's without being part of the third group.
You made the right call! Honestly, even ten years ago, the vibe might have been different. But things are changing FAST.
It's not sustainable, it's just not. Something has to change.
(I didn't know this was an issue in Canada too, but it makes sense!)
The death of unions over the past several decades has really hurt people’s fortunes. I was fortunate to retire at 58 with a healthy public pension. Doesn’t seem like there are many similar opportunities on the private side.
Even public pension benefits are getting less and less generous. I'm lucky enough to be in a stable and well managed system, but my benefits aren't as good as the ones for people hired before 2011, and there's been another round of "worse after year XXXX" since then.
And I still tell my entry level staff to stick around at least until they vest in the pension system because PENSION I mean seriously.
It's just outrageous. Worse and worse offerings.
Yes, I agree.
Brent, I’m always fascinated by your observations when you’re back in the U.S. It’s like reading a time traveler who has jumped forward into a dystopian future. You really nailed it. Enjoy this summer at the beach and to hell with Seabrook.
Haha, thanks! Honestly, sometimes it FEELS that way too!
Yeah, screw Seabrook.
One other thing. And this is really fucking sad. When you said your insurance premiums were 26k, my first thought was, that's not a bad deal. I mean, it's a terrible deal. But a few years ago my wife left her corporate job and we bought insurance from Covered California. We didn't qualify for the subsidy since they use your previous year's salary and her's was high. So in a year when we had very little income we paid around 29k for the two of us. She has a new job and her employer cover us, but if you look at the total cost -- what they pay and what's deducted from her paycheck -- it's around 30k i think, and that's before copays and deductibles. I'm sure none of this surprises you, but yeah it was a real reality check when my reaction was, what a great deal Michael and Brent are getting on health insurance.
So sorry to hear about your horrendous medical insurance premiums. I don’t know long it will be until you’re Medicare age—but Medicare is amazing. Even when we were on private insurance that was partially subsidized by employers, our coverage was never this good (and inexpensive).
That's good to know! And thanks.
Agree. Medicare is amazing. I remember the "Medicare for all" movement of a few years ago, which I didn't fully appreciate at the time. Now I sure do!
We're sold such a bill of lies, aren't we?
THIS.
To be clear up front, I'm not advocating or suggesting anything by this. But I feel like people from all three Americas should probably be more familiar with the causes of the French revolution; and the potential similarities in modern day America.
I agree completely.
I'm one of the "poor" class of Americans, but somehow make it work. Sure, having a ton more money would be welcome, but I'm not going to kill myself trying to earn more...and the system is definitely stacked against the lower class ever hoping to rise above it.
I could work 24/7/365 and still not be even close to as rich as these oligarchs. (And I'd be dead from no sleep or food...too busy working!)
This was a great read, albeit a depressing one. But you said what really needed to be said, because it is so true.
Thank you. And I agree with you about life priorities.
The greatest difference I see, as an American living in Europe, is the cost, accessibility, and quality of healthcare. To me, that is the great divide between the haves and the have-nots in the USA, and it does not have to be that way!!
Nope. This is a CHOICE that Americans have repeatedly made, and I don't understand it AT ALL.
Same. Why they don’t rise up and burn the whole thing down, I will never understand.
It's coming!
Absolutely agree. (I’d add on the expense of higher education as well…)
The US has really become incredibly divided. My sister and I are in our 50s and often joke about how our elderly mom is winning at capitalism in a way we never will. Mom isn't on the scale of the ultra-wealthy, but she is definitely winning in the sense of the "magic of compound interest" and the US stock market over the last 40+ years.
She started a 401k back in 1981 when they were first created. She contributed in that system for 22 years before going into public service. Every time her bank statement arrives in the mail, she gets shocked all over again and tells us "Never in my whole life did I imagine I would ever have this much money." She got scholarships to public colleges and worked until she was well into her 70s.
The kicker is, while it IS a lot of money, it isn't anywhere even close to the top 1%, serious luxury consumer wealth, of the type you described.
Yes, we're the same. And also owning real estate in the Seattle area from 1995-now. It just doubled and doubled and doubled and doubled. But that ain't happening again.
Amen to everything you wrote, Brent! I'm solidly middle-class but can't stomach the thought of paying hundreds of dollars to go to a concert, even when I want to catch a favorite musician while she is still touring. And now, as inflation rears its ugly (and avoidable) head, prices are going up and the pain point of more expensive gas and groceries will inevitably hit the poor first. In my town, I already see more fruit and flower vendors on street corners, unlicensed food carts, and the like. I'm not complaining--people will come up with creative ways to earn a living as best they can. But the policy changes we need must come from the top...
(I'll pay big bucks for Paul McCartney, Ringo Starr, and Stevie Nicks... and that's about all! LOL)
Thank you. We need a radical overhaul, that's for sure.
You speak my thoughts, which I feel so deeply about. Inner peace and outer peace is all I want for all. Without having to die to obtain it. There is no logic to bad government, bad systems, bad intentions. That is what should be illegal. If only all people could have the few nice things they truly need, and all people utilized community to share what can easily be shared. Like common sense. There is literally no common sense in creating a world that individuals cannot afford to exist within.
Thank you, Kristen. A huge part of the problem is American materialism. I think what we think we want is not what we need.
Here’s the bitter pill for many middle class folks who now fluidly move between middle and poor - you run into an interesting mix in Dollar Tree these days. Things that many middle class folks took for granted in the 60s and 70s are out of reach. For example , beaches in RI where we went several times a week are now unaffordable for regular folks. The parking fees alone would make you faint. Rents are ridiculous and many landlords want one to make 3x the rent, Do the math, if it doesn’t kill you first. (Ex if rent is $2300 you’ve got to make &6900 a month. ) We live in a mid century apartment (few mod cons, but the apt ribs front to back with lots of windows). And the landlord is fair to poor . But we stay because we love the location and the cost. Btw, if Y’all are ever in the area we’ll take you on a guided tour of all the hot spots (our definition: good food and coffee/cheap; good natural environment).
This is really, really true. Just look at Disney, which used to be the most middle class thing in America. It's just not anymore, and Disney doesn't even care. They WANT to be a destination of the ultra-rich, because that's where the bucks are.
And I love that offer! May take you up on it.
🔥🔥🔥
(That's a compliment for the perspective and writing, not a suggestion for a societal solution!)
LOL Thank you.
So agree with all this Brent. We've noticed this much more starkly after two years of nomad life as well. It's a challenging and depressing state of affairs on many levels.
Yes. It's just not sustainable. If this continues, there are guillotines for the rich in our future.
I should mention we live not far from Joe Biden’s favorite coffee shop. We could go Biden watching 😜
Love it! LOL