When a digital "coin" is worth as much as 2 years of hard work and the owners of this thing didn't lift a finger to attain it, hourly wages are like a cruel joke! and on top of that we have the Cantillon effect on many other things. I would say the value of what labor can buy you has diminished.
You remind me of a family member of mine who looks down on everyone not saving every nickel and micro managing all their free time hustling for money and deals. This whole "grind" mentality and living your life as a professional consumer is almost slave like mentality to me. Play the game as you see fit, and try to enjoy yourself and stay healthy it wont be long before you're in a pine box and you aint taking that beater with you.
@@GrappIer grind temporarily. Thats the one thing that goes over your head. All you gotta do is focus for a couple years its not realistic to do it your whole life Those couple years can change the course of your life forever
@@GrappIer well im living proof I grinded for 4 years now i dont need a job. Im not saying slave your life away but if you have goals do what it takes to get there.
@3:15 you're getting the causation wrong. What's changed today is the amount of control the state has over the economy. It's the state that prints itself money, thereby causing inflation. It's government that prohibits people from building on their own land and it's government which controls what you may build and how you may build it. On top of that, two people each making 50k per year, know what their biggest expense is? Taxes. Government is the problem.
Not convinced there’s much of a middle class anymore. Even people who make household incomes in the 6 figures would be doomed if someone got injured or they needed a new car out of the blue. To me, that’s not middle class.
2008-2018 the housing market crashed, I was seeing 1-3 family homes selling $100-200k all the way up to 2018. No builder could compete with that. We don't plan as a society for when the fertilizer hits the fan ie. when demand picks up again. We have different options to manage the Cantillon effect.
So what you’re saying is, if companies hadn’t gotten greedy and sought lower wages overseas, we’d be ok? When those middle class jobs went overseas that only left the really high paying skilled jobs and the idiot jobs. I’ve met EEs working at a gas station right after the 2008 crash. Talk about depressed. I’m not putting down folks with those jobs, I’m saying there are very few middle class jobs available, so people needed to work whatever job they could get. Whether it was screwing on toothpaste caps or babysitting….
Yes, but Simon doesn't believe in policy effects. Only fancy macro terms from finance. He won't touch the policies that created the atmosphere for private equity groups to perform leveraged buyouts (making the company you're buying pay for you to but them - which should be illegal) like Bain (Mitt Romney and BB) driving out anything from ToysRUs to KB Toys to Hertz RentACar to PizzaHut etc. You were robbed by the ruling class and no one will tell you that.
The value of the homes may not be underwater right now with the current transaction volume, but I don't trust the value of the homes. There's not enough activity to have a true price discovery.
We we very lucky... we bought our last home in Phoenix back in 2010 for $180k at 2.875% and then I took $200k out in equity at 2.625% in 2021 with it valued at $450k and invested the $200k in the market. I still owe $140k on the loan, but I've made $60k on that money (still have $110k invested). Unfortunately, a replacement home now costs $700k at 7%, so I can't afford to move. That's why they say you're rich "on paper". Thanks!
Proving that real estate is nothing but a money moving around scheme. It’s the low end version of “art” aka money laundering. Your home creates ZERO value but you gained $60k bc of…
At least in production homes. For custom built homes, the trades tend to be a lot better. We need to invest in trade skills. There is a lot of $$$$ to be made in those fields. Once Trump starts to deport workers things will get worse.
Economics is probably the most complicated social science with thousands of influential variables. The power of buying on credit, corruption, taxes and wealth inequality are just a few. Seems like currently, gaining wealth from a low socioeconomic status is becoming more and more impossible. Service industry seems to have become more corrupt, accepted and expected too. Ethics and values have deteriorated.
yes work, work and work, full time and part time 14 hours a day just to have a house and loose on everything that is important in life, don't see the logic on this video.
If you are a skilled carpenter, electrician, or plumber or know people who are, hook up with a realtor to find you a foreclosed property. There are tons of them on the market all across America and in varying types of neighborhoods. A friend of mine purchased a tax lien foreclosure 2400sqft 2bdr home in a nice suburban neighborhood for $5600. He pumped roughly 40k into the electrical, plumbing, and some minor carpentry work. He used some sweat equity to paint the interior and landscaped the front and back yards himself. A recent appraisal has the home worth $435k. Not bad for a $45,600 investment. Homes are there if you know how to find them. You cannot find it if you are not willing to hunt for it. Live within your means. That's what my parents taught me and my siblings.
People love talking about the increase in housing cost, no one wants to consider that the size of the house has also increased 3-4x and can easily have 50-100k in soft costs before you can even think about building anything. Go ahead and try to talk to someone at a planning or building department; no organization, no communication, no one who knows building, just endless requirements.
This is funny you don't talk about how much it has cost the United States to fly them in from overseas and once they let them in from Arizona and California and Texas they picked them up boarder patrol then bused them to tents and ngos then help them filled out paperwork then flew them where they wanted to go then paid for food that they wouldn't eat then gave them ebtcards and cellphones and visa cards and free schooling and free housing free garbage and internet and electricity and water and cable and insurance and internet .how much do you think that the government has spent on this for 4 years ?
You say the problem is the move into luxuries. I say the problem is economic rent. If you read "Progress and Poverty" by Henry George I'll read Cantillion. Deal?
The most hours i ever worked in a week is 91hrs ive been working 50-80 hrs per week along with side hustles until eventually it made more sense to prioritize my business. I see the prices going up but instead of complaining like everyone else im finding ways to make extra money. The one thing ppl fail to do is adapt to your environment. Simple survival skills
There are affordable homes in most places in America. I see them all the time. The problem is that the homes are not in the neighborhoods and areas of town where potential homeowners want to live. I buy rental properties and they are affordable. They rent out quickly, but people who are looking to buy are looking in nicer, newer neighborhoods which are priced much higher. If we would all live below our means, we would have more disposable income to invest in assets and build wealth. Most Americans buy the most expensive houses and cars they can afford to carry the payments on, which is why they save and invest very little and never achieve wealth. Working to pay bills instead of investing to stop working.
Median family income can still afford a median home in about 63% of locations. Definitely much less than precovid, but there are still lots of locations people could afford.
You don’t deport 20 million, all you have to do is enforce the existing employment laws on employers using everify, and most undocumented folks will return to their countries of origin because they won’t be able to find employment (just like any American would experience living in any other country without employment documentation). The whole argument is crazy, we have an official policy of ignoring laws
Ive seen this coming years ago.I did building repair for a few millionaire real estate investors an so many have been getting in on the easy bucks that the greed is killing people of all wage groups an low wage renters are hurt the worse. Laughable beyond measure to think a billionaire tycoon real estate prez will Make America affordable again....
All the insane zoning, permitting, and building regulations make building your own home almost impossible in 2024. The majority of self-builds are by the rich now, whereas in the past, someone could just build their own modest home without bureaucratic insanity. Government involvement = $$ More government involvement = $$$$$$
So many people have learned to create money online, that blows regular wages out of the water. People need to learn to monetize there minds, just like you do here everyday. Welcome to 2024
About deporting illegals it is more expensive to house, educate and feed them as well as the possible income that could have been taken by citizens and legal immigrants.
When I got my first good shift work factory job I worked every hour overtime that was offered me. I have a great wife that did basically everything at home. My wages were good and overtime wages were really good. The more overtime I worked the more better basics I could afford. I also could save way more money. I was blessed with opportunity and I took it. Sometimes I worked 90 days with out a day off, sometimes they were weeks when I would work 12 and 16 hours a day for weeks at a time. It took 20 years before I could finally turn down voluntary overtime down but still had to work some mandatory overtime. But as long as they paid me good wages it made me financially secure. The more effort you put forth sometimes it pays off.
I like your out of the box thinking overall. I also think people need to read some Adam Smith (if they haven't) to understand what goes on as economies mature (China is even having this problem).
Thanks for the breakdown! Could you help me with something unrelated: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). Could you explain how to move them to Binance?
Well, if you think it is bad now, was for Trump's policies to kick in. Fewer will be able to afford to buy a home and more will go into foreclosure. No, problem, I shall wait to buy more properties at steep discount to turn into rentals. You people voted for Trump and now sit back and enjoy the results.
I think he is likely correct. It all depends what happens to interest rates. I think mortgage rates will be 8% again shortly and 9 or even 10% is not out of the question.
@@hangguy209 that’s true. But there won’t been any supply. People with a 3% won’t be selling and there are no new starts. So no drop in value because even if there’s no demand there also won’t be any supply. And since real estate is the safest investment the price will probably go up as the market begins to go bear.
So fear them into departing of their own accord. My cousins from Saskatchewan were living 'illegally' in California starting in the late 70s. They had fake ID from the back of comic books :) In 1986 they got amnesty but they had to give up Canada citizenship. Amnesty might be an option so there would be no deport costs. Perhaps it's a way to 'Make Fake Work' -- from what you deduced that would create a whole bunch of jobs
Don't you wish you would have bought a home 10 years ago? You will say the same thing in 10 years. They aren't going to get any cheaper. There is no crash coming and if a crash comes, you won't be ready and banks won't be lending. Buy something you can easily afford now, then move up in 10 years with equity.
No, no, no….. It’s cheaper to rent today. You never own your home. You still have to pay taxes. You can’t spend that money. I am entitled to live in the best locations I can’t afford. Etc…… Too many Americans are just plain dumb, lazy and their own worst enemy.
Everyone complains nowadays. My dad grew up in the Depression and then went right into WWII. Never heard him nor his friends ever complain about their situation.
The fact that you need a full-time job plus a second job to pay for a house is evidence that the value of the dollar is crashing before our eyes.😮
It's a symptom of the Cantillon effect. Oil , Lumber and silver didn't suffer from a devalued dollar
When a digital "coin" is worth as much as 2 years of hard work and the owners of this thing didn't lift a finger to attain it, hourly wages are like a cruel joke! and on top of that we have the Cantillon effect on many other things. I would say the value of what labor can buy you has diminished.
@ Definitely agree that the Cantillon Effect increased home prices. Do you believe that the Cantillon Effect can cause currency devaluation?
@@craigcolbourn8351 You need those things to pay rent where have you been?
@@rolandthethompsongunner64 I agree. Do you think that needing 2 jobs has something to do with the dollar loosing its value?
So you need 3 jobs to make money, got it. Something previous generations didn't have to do.
I finally made enough money to afford a 200,000 dollar house and they all cost half a million now!
You remind me of a family member of mine who looks down on everyone not saving every nickel and micro managing all their free time hustling for money and deals. This whole "grind" mentality and living your life as a professional consumer is almost slave like mentality to me.
Play the game as you see fit, and try to enjoy yourself and stay healthy it wont be long before you're in a pine box and you aint taking that beater with you.
agreed.
@@GrappIer grind temporarily. Thats the one thing that goes over your head. All you gotta do is focus for a couple years its not realistic to do it your whole life
Those couple years can change the course of your life forever
@@citystarproductions6703 Work smarter, not harder.
@@GrappIer well im living proof I grinded for 4 years now i dont need a job. Im not saying slave your life away but if you have goals do what it takes to get there.
@@citystarproductions6703sounds like you're a genius if you just worked hard for a few years and never have to work again. Grats
@3:15 you're getting the causation wrong. What's changed today is the amount of control the state has over the economy. It's the state that prints itself money, thereby causing inflation. It's government that prohibits people from building on their own land and it's government which controls what you may build and how you may build it. On top of that, two people each making 50k per year, know what their biggest expense is? Taxes. Government is the problem.
Absolutely government is the biggest reason the U.S citizens are struggling , with all the taxes on absolutely everything !
Not convinced there’s much of a middle class anymore. Even people who make household incomes in the 6 figures would be doomed if someone got injured or they needed a new car out of the blue.
To me, that’s not middle class.
2008-2018 the housing market crashed, I was seeing 1-3 family homes selling $100-200k all the way up to 2018. No builder could compete with that. We don't plan as a society for when the fertilizer hits the fan ie. when demand picks up again. We have different options to manage the Cantillon effect.
So what you’re saying is, if companies hadn’t gotten greedy and sought lower wages overseas, we’d be ok?
When those middle class jobs went overseas that only left the really high paying skilled jobs and the idiot jobs. I’ve met EEs working at a gas station right after the 2008 crash. Talk about depressed.
I’m not putting down folks with those jobs, I’m saying there are very few middle class jobs available, so people needed to work whatever job they could get. Whether it was screwing on toothpaste caps or babysitting….
Yes, but Simon doesn't believe in policy effects. Only fancy macro terms from finance. He won't touch the policies that created the atmosphere for private equity groups to perform leveraged buyouts (making the company you're buying pay for you to but them - which should be illegal) like Bain (Mitt Romney and BB) driving out anything from ToysRUs to KB Toys to Hertz RentACar to PizzaHut etc. You were robbed by the ruling class and no one will tell you that.
The value of the homes may not be underwater right now with the current transaction volume, but I don't trust the value of the homes. There's not enough activity to have a true price discovery.
We we very lucky... we bought our last home in Phoenix back in 2010 for $180k at 2.875% and then I took $200k out in equity at 2.625% in 2021 with it valued at $450k and invested the $200k in the market. I still owe $140k on the loan, but I've made $60k on that money (still have $110k invested). Unfortunately, a replacement home now costs $700k at 7%, so I can't afford to move. That's why they say you're rich "on paper". Thanks!
Proving that real estate is nothing but a money moving around scheme.
It’s the low end version of “art” aka money laundering.
Your home creates ZERO value but you gained $60k bc of…
No you are not lucky you live in Phoenix !
carpentry is an underrated skill, new houses wont last
At least in production homes. For custom built homes, the trades tend to be a lot better. We need to invest in trade skills. There is a lot of $$$$ to be made in those fields. Once Trump starts to deport workers things will get worse.
Economics is probably the most complicated social science with thousands of influential variables. The power of buying on credit, corruption, taxes and wealth inequality are just a few. Seems like currently, gaining wealth from a low socioeconomic status is becoming more and more impossible. Service industry seems to have become more corrupt, accepted and expected too. Ethics and values have deteriorated.
I was in construction most my life. When I bought my home I did and do my own repairs and what I don’t know I TH-cam it!
yes work, work and work, full time and part time 14 hours a day just to have a house and loose on everything that is important in life, don't see the logic on this video.
Do you really think this world is fair?
@@UneducatedEconomist i really know it is not, but I refuse to think working all the time is a way of having a joyful life.
Your only a home owner when you pay off the bank note.Until then,,,your just buying a house.
If you can sell it for profit even though you're buying it, you must own something about it.
You are never a home owner. You must pay exorbitant taxes or they will take your home.
@@MatthewSmith-uf6trand that trade off is 100% still worth it.
The government always owns the home, you simply rent it by paying property taxes, if you don’t pay the taxes Uncle Sam will take it away
All rationalizations aside, the fact remains that the average home is now vastly unaffordable to the average American.
If you are a skilled carpenter, electrician, or plumber or know people who are, hook up with a realtor to find you a foreclosed property. There are tons of them on the market all across America and in varying types of neighborhoods. A friend of mine purchased a tax lien foreclosure 2400sqft 2bdr home in a nice suburban neighborhood for $5600. He pumped roughly 40k into the electrical, plumbing, and some minor carpentry work. He used some sweat equity to paint the interior and landscaped the front and back yards himself. A recent appraisal has the home worth $435k. Not bad for a $45,600 investment. Homes are there if you know how to find them. You cannot find it if you are not willing to hunt for it. Live within your means. That's what my parents taught me and my siblings.
I spent 2012 putting offers on a dozen foreclosed home. Never even got a reply from the banks.
Rent and invest your money. Buy assets not liabilities.
I agree. Buying a home to live in doesn't produce income or cash flow. Invest in a business and assets that produce an income.
Only reason I bought a home was because it was the same monthly payment as rent.
Yes I have to maintain it, but I do all that myself.
Don't care how much $$ it costs. Deport as many as you can. Something worth printing for..
Why!? Is it just out of envy?
People love talking about the increase in housing cost, no one wants to consider that the size of the house has also increased 3-4x and can easily have 50-100k in soft costs before you can even think about building anything. Go ahead and try to talk to someone at a planning or building department; no organization, no communication, no one who knows building, just endless requirements.
This is funny you don't talk about how much it has cost the United States to fly them in from overseas and once they let them in from Arizona and California and Texas they picked them up boarder patrol then bused them to tents and ngos then help them filled out paperwork then flew them where they wanted to go then paid for food that they wouldn't eat then gave them ebtcards and cellphones and visa cards and free schooling and free housing free garbage and internet and electricity and water and cable and insurance and internet .how much do you think that the government has spent on this for 4 years ?
DONT CARE WHT THE OPTICS ARE THEY STILL HAVE TO GO NO MATTER WHAT AND NOT IF WE CUT OFF ALL OF THEIR BENEFITS
You say the problem is the move into luxuries.
I say the problem is economic rent.
If you read "Progress and Poverty" by Henry George I'll read Cantillion. Deal?
The most hours i ever worked in a week is 91hrs ive been working 50-80 hrs per week along with side hustles until eventually it made more sense to prioritize my business. I see the prices going up but instead of complaining like everyone else im finding ways to make extra money. The one thing ppl fail to do is adapt to your environment. Simple survival skills
❤prayers. Take care of yourself.
@@citystarproductions6703 your hustle may be commendable, but it’s not sustainable. People can’t work that much and maintain a family.
What if you work 200 hours a week? That would be great!
@@rathelmmc3194not having a family saves so much money!
You dont have kids do you?
There are affordable homes in most places in America. I see them all the time. The problem is that the homes are not in the neighborhoods and areas of town where potential homeowners want to live. I buy rental properties and they are affordable. They rent out quickly, but people who are looking to buy are looking in nicer, newer neighborhoods which are priced much higher. If we would all live below our means, we would have more disposable income to invest in assets and build wealth. Most Americans buy the most expensive houses and cars they can afford to carry the payments on, which is why they save and invest very little and never achieve wealth. Working to pay bills instead of investing to stop working.
It turns out people want to buy houses in safe neighborhoods, and don’t want to live in high crime neighborhoods. What a shocker.
Too many Americans feel entitled and aren’t willing to do what is needed.
That is a strategy for long term misery.
@@anthonydooley3616 People don’t want to live in shitty high crime neighborhoods, what a shocker.
Median family income can still afford a median home in about 63% of locations.
Definitely much less than precovid, but there are still lots of locations people could afford.
I bought a 2 bed, 2 bath townhome in September of 2023 for $203,500. My mortgage is $1,550.
Greetings fron Spain! Really nice to watch your videos mate! ❤
Was also nice when twice the population wasn't cutting the wages in half, a man went to work and the woman kept the hoke he bought for both of em.
You don’t deport 20 million, all you have to do is enforce the existing employment laws on employers using everify, and most undocumented folks will return to their countries of origin because they won’t be able to find employment (just like any American would experience living in any other country without employment documentation). The whole argument is crazy, we have an official policy of ignoring laws
Ive seen this coming years ago.I did building repair for a few millionaire real estate investors an so many have been getting in on the easy bucks that the greed is killing people of all wage groups an low wage renters are hurt the worse. Laughable beyond measure to think a billionaire tycoon real estate prez will Make America affordable again....
All the insane zoning, permitting, and building regulations make building your own home almost impossible in 2024. The majority of self-builds are by the rich now, whereas in the past, someone could just build their own modest home without bureaucratic insanity. Government involvement = $$ More government involvement = $$$$$$
600k for an old 1 bedroom 600 sq ft condo in dana point ca. 5k per month. O.m.g.
Coastal SoCal is for the rich.
If someone isn’t rich they shouldn’t even be thinking of living in these locations.
So many people have learned to create money online, that blows regular wages out of the water. People need to learn to monetize there minds, just like you do here everyday. Welcome to 2024
Also beats having to have a boss and get away from the W2 and move into 1099
How many as a percentage as a total population? .00001 %?
I do think people are making absurd money online but I do wonder how many
What is this nebulous word salad?
About deporting illegals it is more expensive to house, educate and feed them as well as the possible income that could have been taken by citizens and legal immigrants.
I live in an area where there are still the homes people order through Zear Catalog and put them together themselves. Homesteading! Thanks Simon!😁
Under 8-10k minimum a month to deal with house .. 🏠 and if 2 people are paying way better
Bro is filming from a heavenly backdrop!
People need to level up with title fraud and need to be able to provide a chain of custody. That's what I'm saying.
When I got my first good shift work factory job I worked every hour overtime that was offered me. I have a great wife that did basically everything at home. My wages were good and overtime wages were really good. The more overtime I worked the more better basics I could afford. I also could save way more money. I was blessed with opportunity and I took it. Sometimes I worked 90 days with out a day off, sometimes they were weeks when I would work 12 and 16 hours a day for weeks at a time. It took 20 years before I could finally turn down voluntary overtime down but still had to work some mandatory overtime. But as long as they paid me good wages it made me financially secure. The more effort you put forth sometimes it pays off.
Sounds miserable. If you have kids you missed out on so much.
Talk about slavery
Thanks Simon!
I like your out of the box thinking overall. I also think people need to read some Adam Smith (if they haven't) to understand what goes on as economies mature (China is even having this problem).
Thanks for the breakdown! Could you help me with something unrelated: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). Could you explain how to move them to Binance?
Goof! Im sure u 🧢
Yeah it's called homesteading and many people still do it !
Possible hyper inflation and expensive debts paid for with cheap money?
It’s called greed.
Hyperinflation of the dollar is practically impossible
What middle class ?
Yep .. noooo 😑
Well, if you think it is bad now, was for Trump's policies to kick in. Fewer will be able to afford to buy a home and more will go into foreclosure. No, problem, I shall wait to buy more properties at steep discount to turn into rentals. You people voted for Trump and now sit back and enjoy the results.
Sure,you can piss and moan at your heart contain,but what makes you entitled a home if you can’t pay for it !
Economic Ninja thinks there will be a housing crash- what a joke
In 20 years when the Boomers are gone and there's no replacements he'll be correct. But he prob won't be on TH-cam by then 🤣
You mean he's just clout chasing for views like every Crash Bro?
I think he is likely correct. It all depends what happens to interest rates. I think mortgage rates will be 8% again shortly and 9 or even 10% is not out of the question.
@@jonathantaylor6926 they will keep repeating crash crash crash for 20 years and then say see i told you so when there is a crash 20 years later 😆
@@hangguy209 that’s true. But there won’t been any supply. People with a 3% won’t be selling and there are no new starts. So no drop in value because even if there’s no demand there also won’t be any supply. And since real estate is the safest investment the price will probably go up as the market begins to go bear.
Butwaddabout my peasant class? 😂
Good ol recession would fix this mess!
What does China dumping massive amounts of treasuries recently meaning today mean?
Let them get a "VAN" down by the river.
How to out genius a genius in these streets 😆😂😆😂😆
So fear them into departing of their own accord.
My cousins from Saskatchewan were living 'illegally' in California starting in the late 70s. They had fake ID from the back of comic books :) In 1986 they got amnesty but they had to give up Canada citizenship.
Amnesty might be an option so there would be no deport costs.
Perhaps it's a way to 'Make Fake Work' -- from what you deduced that would create a whole bunch of jobs
Great vid. Thanks UE
Don't you wish you would have bought a home 10 years ago? You will say the same thing in 10 years. They aren't going to get any cheaper. There is no crash coming and if a crash comes, you won't be ready and banks won't be lending. Buy something you can easily afford now, then move up in 10 years with equity.
No, no, no…..
It’s cheaper to rent today.
You never own your home.
You still have to pay taxes.
You can’t spend that money.
I am entitled to live in the best locations I can’t afford.
Etc……
Too many Americans are just plain dumb, lazy and their own worst enemy.
Everyone complains nowadays. My dad grew up in the Depression and then went right into WWII.
Never heard him nor his friends ever complain about their situation.
It’s the interest rates duhhh
There's a middle class?
Do you get tired of sitting in that position? Lol
Is that a Dakota or s10
Removing the tax exempt status on religious organizations to pay for deportations sounds like a good idea.
You want the government stealing money from the church? 😳
@@soundsnags2001Why not they steal from the poor promising an imaginary after while living in misery here!
@gabrielmoody1708 you're definitely going to the wrong church, brother.
@@soundsnags2001I don't attend church period! I know a hustle when I see one!
👌
Bull dogs are some of the sweetest puppers. The only get viscous when they are abused. Sorry for your loss. I feel your pain brother.
The reality 😆😂😆