ARE YOU BETTER OFF THAN FOUR YEARS AGO?
Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
No, but I could afford my home mortgage if I had one and had needs—food, utilities, gas, etc. But going to the grocery store and paying $100 for two bags—come on, Man!
Since 2020, living expenses have risen painfully, impacting most Americans. Tens of millions of Americans cannot afford basic needs today.
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Maybe a better question – Can the next President make you better off?
I say flip a coin. Neither candidate offers details on their plans. Harris writes her plans in invisible ink. Focusing on anything other than his grievances has never been the former President’s strong suit.
DELIBERATELY VAGUE ECONOMIC PROPOSALS
| Harris | Trump |
| Penalizing Grocery Stores that overcharge. {Note grocers have a 0.5 to 1.5 percent margin} | Drill Baby Drill |
| Give $25,000.00 to a first-time home buyer | 20% Tariff on Chinese Goods |
| Probably a continuation of Bidenomics | Make the Trump Tax Cuts Permeant |
| Open Borders, where ~nine million illegally entered the country | Deport millions who are here illegally |
| Increase Capital gains tax from ~20% to 44% | Reduce regulatory burden |
| An unrealized gain tax of 25% on individuals earning over $100 million annually | Make the Trump Tax Cuts Permeant |
The above policies fail to restore stability to the average American’s home and dinner tables. Some of these proposals will result in fewer jobs and increased costs/inflation.
ARE YOU BETTER OFF THAN FOUR YEARS AGO?
When Ronald Reagan asked if Americans were better off four years ago during his 1980 presidential campaign, he alluded to the economic struggles many Americans faced, including an annual inflation rate of around 13.3% and an unemployment rate of approximately 5.8%. Representing challenges for many American families. And American hostages held by Iran. A simple question and the majority must have said no, as Reagan soundly defeated President Jimmy Carter.
However, in 1979, UNLIKE 2024, the average U.S. family could afford a home, a new car, and to send their children to college. The same cannot be said in 2024!
FOUR YEAR SURGE IN COSTS
| ITEM | Percent Increase since 2019 |
| Rent | 30% |
| Groceries | 25% |
| Gas | 9% |
| Electricity/Utilities | |
| Mortgage Rates {2.7% to 7.0+%} | 178% |
| The median Price for a Home is $420,000.00 | 40% |
| Used Cars | 35% |
| Home Loan on Median Priced Home {2019 = $260,000.00.} with 10% down and a 2.7 % interest rate over 30 years.$ 1,623.00 | Four years later, your mortgage payment is up 49% for a median house now priced at $400,000 .00. With a 10% down payment at a 7% interest rate over 30 years is $2,414.07 |
| Wages |
INFLATION
Several factors, including U.S. stimulus measures, have contributed to the rise in inflation since the onset of the COVID-19 pandemic. While these measures were crucial for economic recovery, they also increased the money supply, which can lead to inflation if it outpaces economic growth.
In March 2021, the pandemic was all but over, and the economy was recovering when Biden shoved trillions of dollars into our economy, increasing demand and prices. This act pushed us into the worst inflation in 40 years. Inflation peaked at 9.1% in June 2022, reducing Americans’ real incomes. While annual inflation has dropped below three percent, Americans are paying about 25% or more for essentials compared to 2019.
I wish a normal and intelligent American would run for President and focus on:
- The majority of Americans cannot afford an unexpected $500 cost. Crap, every time I go in for routine maintenance on my car, I see an unexpected cost! Sometimes well over $500.00!
- Social Security and Medicare are headed toward insolvency by 2035. What do you hear from both candidates -crickets.
- We, the taxpayers, owe > $35 Trillion and add a few TRILLION EVERY YEAR! Our interest payments on that debt are now our second-largest expense!
- We are supporting two wars, and the threat of war seems to be increasing with a growing list of enemies: China, Russia, Iran, North Korea, and more.
- Artificial Intelligence
The paths to financial freedom are UNLIMITED. CHOOSE YOUR OWN!
LET’S MAKE SOME MONEY – CRYPTOCURRENCY, ANYONE?
WHAT SUBJECTS DO YOU WANT TO READ NEXT? WHAT QUESTIONS CAN I ANSWER? UNTIL NEXT TIME!
YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – SOME CHARITIES I SUPPORT
St Jude Hospital: The mission of St. Jude Children’s Research Hospital is to advance cures and means of prevention for pediatric catastrophic diseases through research and treatment. Consistent with the vision of our founder Danny Thomas, no child is denied treatment based on race, religion, or a family’s ability to pay.https://www.stjude.org/
Wounded Warrior Project: An American charity and veterans service organization that offers a variety of programs, services and events for wounded veterans of the military https://www.woundedwarriorproject.org
Folds of Honor: Providing life-changing scholarships to the spouses and children of America’s fallen or disabled military. And now, our mission expands to the families of America’s first responders. On our watch, those who protect our freedoms and our families will know they are not forgotten. https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: A N0-Kill shelter that is a top-rated non-profit. They compassionately care for all their animals. https://wilsoncountynokillanimalshelter.mywcn.com/
Tunnel To Towers: Since 9/11, we have been helping America’s heroes by providing mortgage-free homes to Gold Star and fallen first responder families with young children and by building specially adapted smart homes for catastrophically injured veterans and first responders. We are also committed to eradicating veteran homelessness and helping America to Never Forget September 11, 2001. https://dogood.t2t.org/give/320847/#!/donation/checkout
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
