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So, maybe someone can explain this like I'm five. Based on a discussion on another sub, people seem to have this notion that most of our fellow Americans are walking around with six-figure incomes and tons of cash.
I guess I'm just confused, because it seems that the public discourse every election cycle tends to be about the financial struggles of most Americans. But based on the discussion on another sub, it seems like so many people are actually very well off, earning six figures, able to afford million dollar plus homes, etc. Are most people under reporting their incomes? I always thought that people tended to inflate their actual earnings, but maybe I've been wrong about this the whole time.
So, maybe someone can explain this like I'm five. Based on a discussion on another sub, people seem to have this notion that most of our fellow Americans are walking around with six-figure incomes and tons of cash.
I guess I'm just confused, because it seems that the public discourse every election cycle tends to be about the financial struggles of most Americans. But based on the discussion on another sub, it seems like so many people are actually very well off, earning six figures, able to afford million dollar plus homes, etc. Are most people under reporting their incomes? I always thought that people tended to inflate their actual earnings, but maybe I've been wrong about this the whole time.
What was the discussion on another sub? Without context it's really difficult to answer
Housing costs and COL. There were a good portion of posters who argued how they knew all these people earning six figures in order to justify such a huge increase in COL in a particular large metro city. It seemed that everyone they knew, with a college degree and a decade of work experience, were making six figures.
Mass loss of jobs due to structure changes of society (outsourcing, automation, etc) which disproportionally hits working class
Truth is, poverty is a relative term. Although not an ideal situation, a poor people in the U.S. is of much better shape than some one else. And both bottom and top are being taken care of, while the low 6 figures are footing the bills.
So, maybe someone can explain this like I'm five. Based on a discussion on another sub, people seem to have this notion that most of our fellow Americans are walking around with six-figure incomes and tons of cash.
I guess I'm just confused, because it seems that the public discourse every election cycle tends to be about the financial struggles of most Americans. But based on the discussion on another sub, it seems like so many people are actually very well off, earning six figures, able to afford million dollar plus homes, etc. Are most people under reporting their incomes? I always thought that people tended to inflate their actual earnings, but maybe I've been wrong about this the whole time.
Thoughts?
You are making a lot of assumptions.
Six figures just means they broke 100K. There is a big difference between making 100K and 999K.
My ex husband makes 'six figures'. He'll never make any more because if he does, he'll have to pay more child support. So the rest he gets in perks like cheap insurance, client outings to resorts, air fare miles, and a country club membership. In real life, he has a wife, 4 cars, 4 kids, a 700K mortgage on a home that still needs upgrades. He vacations at the beach with his parents or inlaws because they pay for it. Six figures doesn't mean what it used to.
Old saying: You don't own a house, the house owns you. I'd expand that to say: He doesn't own his lifestyle, it owns him. He doesn't understand why he isn't happy.
As for your nationwide income averages, they are averages. There are plenty of people living in poverty to drag those averages down.
You should focus more on overgeneralizing about the 1%.
Six figures just means they broke 100K. There is a big difference between making 100K and 999K.
My ex husband makes 'six figures'. He'll never make any more because if he does, he'll have to pay more child support. So the rest he gets in perks like cheap insurance, client outings to resorts, air fare miles, and a country club membership. In real life, he has a wife, 4 cars, 4 kids, a 700K mortgage on a home that still needs upgrades. He vacations at the beach with his parents or inlaws because they pay for it. Six figures doesn't mean what it used to.
Old saying: You don't own a house, the house owns you. I'd expand that to say: He doesn't own his lifestyle, it owns him. He doesn't understand why he isn't happy.
As for your nationwide income averages, they are averages. There are plenty of people living in poverty to drag those averages down.
You should focus more on overgeneralizing about the 1%.
Actually, they are medians. There's a difference. Anomalies don't affect medians like they do averages. I'm not making any assumptions at all. I re-stated what people told me, and I provided statistics and data that seem to not support the idea that there are so many people walking around making six figures. What your ex-husband's spending habits have to do with any of this is beyond me. Grind your axe somewhere else.
personally i worry about me , i could not care less what assumption are for everyone else and all the doom and gloom articles . i spent a lifetime surrounding myself with those smarter and more successful than me so i can learn from them .
"Median" household income is not the same as "average" household income. Median only says that half those polled have incomes above the number and half below. "Median" is often used by people writing editorials and related, because it only requires one report on whomever was surveyed, not on any type of viable cross-section. In other words, the people surveyed determine the results of the survey.
These days, $100K (6-figures) income is not that unusual for college-educated people in larger cities, with some type of experience. Also, don't forget the large number of two-earner households, which raises the "median" family income (Your own article states the "median" family income in Denver is $81,329). (Did the survey ask, "What is your household income; or What is your individual income?"), There are also many business owners and successful tradesmen in the $100K range.
A single, $100K-$200K salary does not allow one to purchase "$million dollar homes," nor does a $million-dollar home mean one has a million dollars. These days, with 2-4-percent interest rates, twice as many folks can afford a million dollar home than at, for example, an average rate of 7-8-percent interest. Also, housing is again shooting-up in many markets, giving people substantial, non-income-based equity reserves. (That's what caused the RE bubble to burst in 2007-2008). Finally, just because one lives in what is now a $million-dollar-range home, does not mean they can afford it -- or could afford to buy it today.
Re: the $1000 in "emergency fund savings" assumption. One needs to be careful with so many of these "shocking titles" - that really aren't supported by facts. In your article, the title "most" said something far different than the article, which said, only about 10-percent of those surveyed (?) stated they had less than $1000 in their "savings account." But, what does that mean? Who is being surveyed? What question is being asked? Do people have money elsewhere? and Does the surveyor have an interest in 'balanced accuracy' -- or simply in publishing an article based on catchy hyperbole?
Otherwise, only you know what other forum or thread you are referring to and what assumptions you or other are making. IMO, many folks today are getting their "facts" from social networks and a biased media ... and are not bothering to look further than "facts" that support what they think. It appears to me that many have sacrificed 'truth' and critical-thinking at the altar of political correctness and biased relativism.
There were a good portion of posters who argued how they knew all these people earning six figures in order to justify such a huge increase in COL in a particular large metro city. It seemed that everyone they knew, with a college degree and a decade of work experience, were making six figures.
Quote:
Originally Posted by SQL
If that is the case, then why is the median household income in this country only around $53k?
The median household in this country is not college-educated with at least 10 years of professional experience, living in a large metro city.
Last edited by Mr. Zero; 08-16-2016 at 08:36 AM..
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