“It is Impossible to Get by”- This Economy is Not Feasible for the Average American

Ask most Americans, and they will say that the current cost of living makes it almost impossible to save for the future. And now, an expert economist has validated their feelings with concrete statistics.

Professor St. Onge captioned the video, “Half of all American workers now make under $41,000 per year. That comes to $3,400 per month. Given the median rent is $1,978, and the used car payment is $528, that leaves precisely $894 for everything else.”

It’s important to understand that $894 doesn’t even begin to cover the necessary costs of literally staying alive such as heat, medical care, and food.

Professor St. Onge notes the average monthly car payment, even for a used car, is a whopping $528.

In the nearly four-minute clip, St. Onge goes on to explain that this is why young people, i.e., Millennials and Gen Zers, have found it “impossible to get by, even working full time.”

CNN tells the story of Rachael Gambino and Garrett Mazzeo, seemingly embodying the typical American Dream, however they are reevaluating their life choices. Having followed the conventional path of education, marriage, and homeownership, they now question its viability. 

Millennials, despite being the most educated generation in U.S. history, face significant financial challenges. The cost of attending a public four-year college increased by more than 200% between 1987 and 2017, as per information from CNN.

According to CNN, Millennials, now between 27 and 42 years old, confront a wealth gap when compared to previous generations. The economic prosperity of the 1990s they grew up in contrasted sharply with the Great Recession they faced as adults. 

According to U.S. Census Bureau data, half of Americans have made less than $40,000 in the last few years (via Snopes). The idea that younger Americans could save up enough to buy a home is essentially impossible.

For many, like Rachael and Garrett, homeownership has become a difficult goal. The couple’s experience, aiming for a substantial down payment only to face rising home prices and mortgage rates, illustrates the broader housing market issues. 

The traditional advice favoring buying over renting is now being questioned. In the current market, renting a three-bedroom home is more affordable than owning in almost 90% of U.S. local markets, according to data from Attom.

CNN also notes that the current housing crisis in America, characterized by a shortage of affordable homes and rental options, is a significant issue for Millennials. 

The economic impact of parenting is particularly pronounced for Millennials. Rachael and Garrett have had to reassess their family planning due to the high cost of childcare, according to CNN.

Child care expenses pose a significant challenge to American families. The U.S. government’s limited investment in child care, averaging $500 per child annually, contrasts starkly with the OECD average of $14,436. 

Despite economic indicators suggesting a thriving post-Covid America, public sentiment tells a different story.

Fox News reports that childhood poverty in the U.S. has hit alarming levels, with the U.S. Census Bureau reporting a record-high increase in 2022. The number of children living in poverty doubled, bringing the total to approximately 9 million. 

The poverty rate among older Americans has also seen a sharp increase, according to the U.S. Census Bureau. Using the supplemental poverty measure, which provides a more accurate reflection of income and spending, the rate of poverty among those over age 65 rose from 9.5 percent in 2020 to 14.1 percent in 2022. 

The New York Times reveals that in southwestern Virginia, the situation mirrors the national trend, with 20 percent of older residents living in poverty. The District Three Governmental Cooperative, which provides senior services, has assisted more than 3,000 low-income residents in applying for benefits in the 2023 fiscal year. 

While it’s certainly nice for Millennials and Gen Zers to feel supported in their frustrations, the bigger question on most people’s minds is, “How did we get here?”

St. Onge first explained that what “makes us richer is productivity, and ever since 2000, American productivity has been in free fall.”

“Between 1954 and 1999 real interest rates (that’s after inflation) were roughly 2%. Since 2000, they’ve been negative 1%” explained Professor St. Onge.

Next, he sheds light on what he calls “soaring government spending,” claiming that “the productive economy [has been] stolen by bureaucrats and used to chain the rest of us with regulatory mandates.”

In another one of Professor St. Onge’s videos on X, he notes a secondary issue that Americans are facing due to their current economic struggles.

Professor St. Onge has several more clips on his profile explaining the county’s current economic issues and how they affect average Americans. But concluded the viral clip about monthly spending with words of extreme warning that anyone who views it won’t soon forget.