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Most of those people live in ultra high cost-of-living places like Hawaii, CA & NYC. $100k in those places isn't much after housing & taxes are paid.
The rest are just very poor money managers, & lack self-discipline.
And yes, I agree that this inflation will continue to increase, and be w/ us until the Feds reduce spending....Feds reducing spending ROFL
Even in Hawaii (although some Hawaiian islands are more affordable than others, and even on some of the more expensive islands, there are degrees of unaffordability), parts of CA, or parts of NYC, I say that it sometimes comes down to poor money management.
My parents are a good example.
They raised six kids and did the best they could, but my father's low six figures income did result in us living paycheck to paycheck. But that was ridiculous and was the result of a lack of smart financial management. Prior to my parents buying their current home in 1999--a purchase that led their monthly housing costs to increase to more than $2,000--they paid $800 a month to rent two floors in a brownstone in Brooklyn for over a decade. And this was with my parent's combined more than $100k income (before my mother quit her job to take care of the kids, their income was probably $140k combined). There is absolutely zero reason why they should not have been able to put away a nice nest egg, but instead they splurged, took out massive credit card debt on unnecessary things, and were generally otherwise unwise with their money. Yes, we had a large family, but they also had a lot going for them on the rent savings front alone.
I am sitting here watching the news that is reporting the huge unprecedented demand for spring break travel, despite inflation. Miami, Orlando, the Gulf Coast and Hawaii are the hot spots.
Due to demand, lodging prices in some areas have doubled.
Spring break includes families with children, not just young adults.
According to this, nearly 40% plan to travel during Spring Break, up from 29% in 2021. Vbror reporting a nearly 50% increase in demand compared to 2021.
One of my colleagues wants to plan a spring break trip, but unless I can get a killer steal of a deal (which I doubt in these times), I'm going to pass hard.
Let’s discuss policies instead of your attempt at deflection.
Trump:
- reduced taxes across the board for everyone, the economy responded by posting the highest growth since the 80’s, unemployment lowest for over half a century. Trillions pumped back into this country’s economy through repatriation due to his lowered taxes,
- kept out millions of illegals that if they had entered would have required tax payers to pay for them,
- reduced medical costs including drugs by reducing government red tape,
- removed ridiculous red tape so domestic oil production increased to where we were energy independent.
Biden:
- signed off on executive orders on his first days in office killing oil pipelines, fracking for oil, reversing many of Trump’s orders that reduced government red tape, which made us energy dependent again,
- spent trillions on government waste on Leftist social justice causes under the guise of infrastructure and helping the needy
- forcing vaccine mandates on workers that lead to worker shortages, supply shortages,etc.
- let in 2+ millions illegals in just 2021 alone that taxpayers have to pay to house, feed, school, provide medical services for, etc.
Trump also started trade wars with every country he didn’t like and was handing out tariffs like it was candy on Halloween.
Last edited by bluesclues5; 03-05-2022 at 08:00 AM..
People are spending money like there is no tomorrow. Credit cards and orders online made it easy and appealing. So many choices and people are bombarded by ads that tell them: you must have... !)
Filing for chapter 7 is easy and no consequences. Debts are forgiven, so why bother?
Work and shop it's all what we do...
You aren't kidding. I do deliveries and people have not stopped spending. I know how much more it costs to order from a restaurant or a pet store, or department store, etc using one of those apps. Going there yourself costs enough, but to do it through an app, where I deliver it, the prices are marked up, there's a delivery fee, there's a tip...it's a good chunk more.
Same with groceries, they are marked up in the app. You're not getting the price that you would see at the store if you went, yourself, you're getting a marked up price, plus the delivery fee, plus any tip - which some people seem to have a hard time doing despite the damn time I take to get their crap.
I'm still very busy, which I'm thankful for because the gas prices here are $2.04 more than they were 2 years ago, PRE lock down. (So, no, lock down had nothing to do with the low price - but even after that was all said and done, the price never went up more than 15 cents the entire year. Not until Biden got in did the price start to go up, and up, and up, and up.)
Every weekend, they go to the stores and restaurants and spend, spend, spend. I feel like I'm the only one around here who only puts money on bills, rent, food, and gas to do my work. I buy nothing else unless it relates to my car: oil changes, battery, tires...I buy nothing beyond that.
The study lists two groups in the "$100,000 paycheck to paycheck" group... people who are comfortably paying their bills, and those who are struggling (which amounts to about 11% of the $100,000 group). All of them also have about $11,000-$12,000 in savings, and nearly all would be able to pay for an emergency with cash. The determination of "paycheck to paycheck" is up to the respondent, as they are self-reporting. I think their idea of paycheck to paycheck living is a bit different than mine.
To me I always thought paycheck to paycheck was just that. Without that paycheck you don't money for food or rent. I have known lots of people like that. They are down near zero until payday. Something happens mid week like their car stops running. Its a huge problem.
So really this just means the money coming in equals the money going out. How is that struggling?
To me I always thought paycheck to paycheck was just that. Without that paycheck you don't money for food or rent. I have known lots of people like that. They are down near zero until payday. Something happens mid week like their car stops running. Its a huge problem.
So really this just means the money coming in equals the money going out. How is that struggling?
Exactly. Paycheck to paycheck. For those earning more than $100,000 it was less than 10% with Trump. Now it's 48% with Biden. That's a HUGE jump.
Why would an employer "eat profit loss"? That profit is the employer's pay. Why would an employer take the loss in pay rather than the employee? Over my nearly seventy years I have owned many businesses. This included one that was international. I have employed countless employees over the years. I know hundreds of very successful business owners. I assure you no successful business owner is going to voluntarily take a pay cut.
Their options are:
1. Raise prices and pass increased cost to the consumer.
2. Lower wages
3. Sell the business to someone willing to pay for and operate the business at a lower profit margin.
4. Liquidate the business.
5 Business owners who are unable to walk away, may take a pay cut, but not if they can help it.
6. Declare bankruptcy and move on.
People believe any profit is good enough for the business owner. This is not true. The amount of profit must:
1. Justify the financial investment in the business.
2. Justify the time the owner must devote to the business.
3. Justify the long term risk of financial loss due to lawsuits, hazardous materials, changes in regulations and many other factors.
Just as no employee will work at an absurd low wage, no businessman/woman is going to invest large amounts of time and money for a small profit. Maybe a a small business owner heavily in debt and unable to walk away would choose option 5, but a successful owner of a large business owner will not. They will retire or liquidate and find another business venture. You haven't lived until you try to sell a big business making small profits, which is why large companies often close. Finally the financially strapped small business owner is not likely to have many employees.
I would never invest my money in a business that paid me the same amount of money as my employees. I go get a job working for someone else and let my employer have the stress of the financial investment and operation of the business if I was just going to make employee wages. Business ownership is hard and stressful work.
Higher wages mean higher prices or closed businesses almost 100% of the time.
I agree with virtually all of this, but you're taking things to the extreme right away (business owner works very hard for peanuts at the first sign of wage increase). You have a point with the wealthiest being able to walk away entirely if their effort/risk is deemed not worth the profit. However, the consumer still has this cash to spend, and it goes elsewhere. The vacuum they left may or may not be filled by someone who is more willing (and able) to take that risk. All I'm saying is, the opposite of your assertion can exist (though the likelihood is up for discussion). That is, a smaller profit loss than you're asserting may be worth the risk/effort of not closing up shop, and the risk of moving to another venture may be too great, in certain instances. Corporations have every incentive for people to believe otherwise, whether it's true or not, which I will agree is true in a lot of instances. Companies can and do raise wages all of the time, due to both market and non-market forces (regular-old market, legislation, collective bargaining etc). The effect and ethics of those are another huge discussion entirely.
when you get your paycheck,you pay -
rent or mortgage
phone,streaming,cable
gas,electric and water
car payment,gasoline and auto insurance
homeowner insurance if you own a home
grocery
student loan
credit cards
drycleaning,haircut,prescription drugs
clothes,shoes,misc
so how much is left?
when you get your paycheck,you pay -
rent or mortgage
phone,streaming,cable
gas,electric and water
car payment,gasoline and auto insurance
homeowner insurance if you own a home
grocery
student loan
credit cards
drycleaning,haircut,prescription drugs
clothes,shoes,misc
so how much is left?
With Trump, more than 90% of those earning over $100,000 had some left. Now with Biden, that's dropped down to 52%.
Exactly. Paycheck to paycheck. For those earning more than $100,000 it was less than 10% with Trump. Now it's 48% with Biden. That's a HUGE jump.
^ According to polls/ surveys of a relatively tiny sampling of anonymous responders.
Having said this:
Primary home purchases/ sales increased by about 14% between 2019- 2021. Of these sales, about 34% were reportedly to first time buyers.
When people buy, regardless if it’s first time or not, they tend to make incremental purchases, like new appliances, furniture, lawn/ garden patio equipment, etc. No question, demand exceeds inventory in most areas, as it relates to real estate, thus double digit year over year compounded appreciation. No question, demand has substantially contributed to the so called supply side shortages, thus increases in prices.
We know, home owners are sitting on record home equity, right now. And a percentage of them are tapping into it to make home improvements, buy second homes, buy new car, etc and this too is creating increased demand, push- pull inflation.
Rents tend to increase every year and have been doing so, since forever.
Makes sense to me that some who earn $100,000+ year don’t have liquid assets.
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