Written By Michael Overzat:
Why Do Politicians Constantly Herald The Middle Class As The End All Be All Of Financial Well-being?
The average cost of living in many American Cities exceeds the median household income:
“The U.S. Census Bureau reported in September 2017 that real median household income was $59,039 in 2016, exceeding any previous year.1“
Nevertheless, expenses for an average American household exceed that number at a total of $66,768.2 That’s if you low ball all the expenses, and you don’t include vacations, frivolous purchases, college debt, going-out-to-eat.
How Is It That Politicians Get Away With This Blatant Lie?
Under the current Administration, Unemployment and Interest rates are at a 40 year low, but home-ownership and savings are still lower than ever.3
The picture is scarier than you may think. In fact, if you look at the amount of inflation over the last 35 years, not only is the money becoming more worthless while wages stay flat, but also the amount of American citizens on welfare is growing to astronomical proportions:
- “What percentage of Americans are on welfare?
Through the fourth quarter of 2012, there were nearly 110 million Americans receiving some form of government assistance. That’s right around 35% of the total U.S. population.
- How many Americans receive food stamps?
As of September 2014, about 46.5 million people (or 15%) were receiving food stamps through the Supplemental Nutrition Assistance Program (SNAP).4“
So What Is The Bottom Line About The Middle Class?
Looking at a graph of historical savings levels over the last 100 years proves this supposition…
The Middle Class Is, And Probably Was Always A Myth: Here’s Why
Only the top 1% income earners (over 300k per year) can save more than 10% of their income. That means the bottom 90% of income earners are only able to profit 10% of all their earnings for an entire year… Imagine if I told you that you’ll work this whole year to only save 10% of what you earn, and that’s if you’re in the top 10% of income earners and you’re very frugal with your money.
So the key is: you don’t have a savings problem, you have an income problem…
That is why it is essential that you increase your yearly income past 350k so that you can save more than 10% of your money.