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Correct. It just shows how difficult it is to make it in the middle class. Somehow when someone finally gets a good job offer at 25 that requires them to move across the country, they are supposed to also be an expert in the local zoning laws. I have had to move a lot in my life for my career and I rarely had enough time to thoroughly research the market. I lived in NYC and SFO and while the housing prices were insane, they were important career moves for me and my wife. Sure, we could have stayed in CVG where our rent was cheaper, but good jobs and cheap houses rarely line up.Originally Posted by NE_Pilot
If there is not enough housing, or enough affordable housing, that is generally the result of zoning laws...
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In 2007, the average American was saving 3.7% of their income. The great recession showed the importance of savings and as a result, Americans started saving more of their money. That was one of the reasons the recovery felt longer than it was - people weren't spending as much. By 2019, the average savings was 8.2%. Even 8.2% isn't that much, but the Fed and many economists were worried that if Americans continued to save, we'd enter a deflationary market. Economists started floating around the idea of negative interest rates to penalize Americans who were saving "too much."Originally Posted by NE_Pilot
Can you please elaborate on how the “stock market” and the Fed do not want you to save more than 8%? I do not understand what you mean by that.
Our economy is built on reckless spending. Our economy requires the bottom 70% to spend nearly all of their paychecks. And while those of us above that line can easily criticize them for living too lavishly (you know, like a family of 4 in CVG living in a 750 sq ft one bedroom apartment without a roommate ), if the working poor adopted Dave Ramsey's method, our economy would come to a screeching halt and the same people that criticize the working poor would be panicking because their 401ks would take a massive hit.