Bill Clinton Is Right! It’s The Economy Stupid!
Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
In 2024, Economics Rose To The Top Of The Priority List For Voters
For the first time in my lifetime, I saw more than ten percent of black males (24% to be exact) vote for a Republican candidate for President. As Joe Biden loudly whispered in Obama’s ear under a live mic- “That’s a big F___ING Deal!” Black voters are typically 90%+ locked and loaded to the Big Blue Dems. What happened?
Americans of all races are grappling with economic reality (it sucks), dwindling job opportunities, escalating rents, unaffordable homes, and $1,000.00+/month car payments. Too many Americans are working NOT one but two or three jobs to pay their bills! There is not a lot of “joy and opportunity” in that!
The Middle-Class Has Been B____h Slapped!
My daughter and other young adults worry that the American dream is dead. In my opinion, it is on life support—it is not dead (yet)!
A significant problem is the disappearance of jobs paying enough to raise a family. Millions of these jobs were handed to China and other countries in exchange for low-quality, cheaper goods, impacting middle-class Americans.
Next is the ridiculous and almost criminal cost of college. But first, let’s wake up to the reality: everyone does not need a college degree! We do not need an electrical engineer to add an outlet to our home. We need plumbers, electricians, painters, lawn care, auto mechanics, and many other trades. And many of these trades earn six figures.
For those better suited for college, the question today is, how can you afford it?
My parents on two NC teachers’ {It is a disgrace what NC and other southern states pay their teachers} salaries accomplished: Owning their three-bedroom home, debt free; Owning rental property; sending their two handsome sons to college and leaving their boys an inheritance. Today, these accomplishments are unlikely on two educators’ salaries, especially in the South.
More than a white-and-black problem in the US today; we have an American Middle-Class problem
Economic Disparity – The New Reality
- Stagnant Wages: While living costs continue to rise, real wages minus inflation have stagnated in many middle-class jobs. The promise of upward mobility is increasingly distant for hardworking families.
- Job Displacement: The decline of traditional industries—manufacturing, mining, and agriculture—has left a significant hole in the job markets of many states. The shift toward a technology-driven economy has often left these areas behind, exacerbating local unemployment rates.
- Boeing: In November 2024, announced it would lay off 10% of its workforce {~17,000 people}
- AMD: In November 2024, announced it would lay off 4% of its workforce.
- Volkswagen: In October 2024, stated it would cut thousands of jobs
- Airbus: In October 2024, announced that it would lay off up to 2,500 jobs in its defense and space division
- Nokia: In October 2024, it announced that it would lay off nearly 2,000 employees in Greater China and 350 more jobs across Europe
- Amazon: In October 2024, stated that it would cut approximately 14,000 managerial positions by early 2025
- 23andMe: In November 2024, it stated that it would lay off around 40%
- Other companies that have announced layoffs in 2024 include Paramount, Warner Music Group, Apple, Qoo10, Twitch, FibroGen, Intel, RealPage, Microsoft, GoPuff, Vacasa, Peloton, Luminar, Motional, and Indeed
- Housing Crisis: As demand outstrips supply, coupled with COVID work-from-home space needs, housing costs soared ~40% over the past five years, and throwing salt on the wound, interest rates more than doubled to seven percent. The 2020 median price on a home was ~$321,000.00, and with a mortgage rate of three percent, your mortgage payment was ~$1,360.00/month. In 2024, that house costs ~$450,000.00, and paying seven percent rates gives you a mortgage payment of ~$2,994.00/month. Whose income increased enough to afford this?
- Education and Childcare Affordability: Childcare and university education are unaffordable for millions of Americans.
WE NEED ACTIONS AND LESS FINGER-POINTING FROM OUR GOVERNMENT
Our politicians must do something we learned in first grade – play nice. Both political parties must work collaboratively to address the above and more disparities, redirecting attention from ideological battles to actionable solutions prioritizing economic revitalization including:
- Investing in Infrastructure: Modern infrastructure can stimulate job growth, improve connectivity, and attract new businesses. Investment in sustainable energy projects, transportation networks, and digital access is crucial for revitalizing these communities.
- Increase US Manufacturing: I believe the best chance to bring manufacturing back to the US is to focus on high-end products manufactured with robotics and AI.
- Chips must have at least two US mfg sources, perhaps the US and Canada.
- Also, we need to be able to manufacture large electrical transformers. The only place we can buy them today is South Korea, and they are a two-year delivery item. We are fast running out of spares.
- We need to re-open and reconstitute some of our metals mining—lithium, Molybdenum, Iron Ore, etc. We cannot leave it all to the Chinese in Africa. Biden and his damn trip is 4 years too late to toss $$$$ at the Africans.
- Pharmaceutical and precursor product manufacturing. NJ is doing some of this, but more than one state must do it.
- Supporting Education and Workforce Development: Equipping the workforce with the skills needed for the jobs of the future is essential. Enhanced vocational training, community college partnerships, and post-secondary education access can pave the way for a more adaptable workforce. Warren Buffett has repeatedly pointed out that college isn’t for everyone. “Some people are going to get a lot out of advanced education, and some people are going to get very little,” he said in a 2018 interview with The Long-Term Investor.
- “College education is one of those investments where the payoff isn’t always guaranteed.”
Conclusion: A Call to Action
It is time to shift our focus from the simplistic red-and-blue dichotomy and recognize broken middle-class states’ profound economic struggles. By fostering dialogue and encouraging bipartisan efforts, we can confront these challenges head-on.
In doing so, we can revive the spirit of the American dream for millions who are navigating economic uncertainty and reinvest in the promise of a better future for all.
As we debate essential issues, let us remember that the middle class most often bears the brunt of these economic and social changes—not just on the ballots during elections but in the everyday lives of everyday Americans. Only through collective action and understanding can we hope to mend the fractures that threaten our society.
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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.
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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.
