Americans are big on appearances. Gotta seem religious. Gotta seem rich. Gotta seem happy. Gotta seem free.
Seem
Propaganda of American exceptionalism.
crazy how people in brazil used to look up to American living standards, but it turns out americans have more inequality, violence, worse education, health system, worse food, and the list goes on
I swear the biggest lie is that America is somehow a better country because it has houses that are expensive and fast food so that it can import what essentially accounts to slave labor when they finally come over excited to work for lower wages and live in cramped housing without their social networks other than the other slave laborers.
Its probably how we make it how people not climbing financially can still feel superior. No one has to pay the debt if you can keep getting new people on a lower rung.
Americans rarely have access to real bread
The US is big on wealth inequality, like most third-world countries. Yeah, lots of people are broke, but lots of people are also making 200k/year. Overall we’re definitely struggling, but that doesn’t mean everyone is struggling.
Lemmy also leans both older and into the tech demographic, which tend to be higher paid.
Cries in near minimum wage UK tech work. The only upside is minimum wage is actually pretty good
Yeah, close to 6% of the population is making unfathomable amounts of money and the crazy thing is that just 6% of the population is still 20 Million people. You could replace the entire population of Tokyo with American millionaires and still have more to spare to claim New York too.
Tokyo metro area is more than 36 million people.
True but I think the rich are about 10% so I think that’s number should be closer to like 30-35m
Either way, US has a mega city or canada sized country of pure high income and or asset owner.
These people are true benefecies of the empire. They essentially enforce regime orthodoxy on political level while providing their professional services to the owner class. For this they are permitted to thrive, while the rest of working class is being driven into more poverty with each generation.
Yeah but the tokyo metro area is an insanely large sprawl only rivaled by the tristate area of New York, New Jersey, Pennsylvania, Connecticut.
I kinda meant just the dense city lines of both which is still an insane amount.
That entire tristate area is also 20 million people so its more people than that that are wealthy enough to think the empire as a truly good thing.
The US is big on wealth inequality
You misspelled “built”.
Because being poor means you’re weak, and weakness makes you’re a piability to your friends, useless, and prey.
Ego
Bad education
Broke, poor, and in debt are three different things.
Broke just means no cash on hand. You can have tons of cash flow and assets but at the moment you are lacking liquidity to pay cash for things. You may or may not have debt. You might have just blown all your cash on a big purchase.
Poor means you have little and earn little and can do little. Debt is often a factor here but you can be poor and not in debt.
People in debt owe money. They might not be struggling at all. Sometimes rich people borrow money because it costs them less than the interest they receive on the cash they have. Or it could be the opposite, it could be crippling every aspect of their lives.
Americans carry a lot of debt on average. My only debit is my mortgage plus the last two weeks of credit card spending. I pay off my card in full every month. I only use the credit card because it offers purchase protection and I get rewards. Not all debt is bad debt, but a lot of it is.
I used to be comfortably poor with no debt. My income, expenses and living standards were low.
Now earning a little over minimum wage and fucking hell life is easy, but largely because I was poor and just got used to not having things. I continue that now.
Once you learn how to live on very little money out of necessity, living comfortably within your means as your wages increase doesn’t feel like such a bad thing.
And anyone who has been without a safety net understands that keeping a buffer in their bank account feels way better than splurging on impulsive luxuries.
My buffer started at treat £2k as zero. As my wages went up I quickly started going over £5k and then £10k, didn’t even know how to spend it. So I didn’t spend it.
Within a few years of saving like £5-10k a year I had enough for a pretty good deposit on a house, like 15% or so. The house we got wasn’t even at the higher end of what we could borrow. I don’t want to min/max wealth, I want to live comfortably, and there are allotments across the road from us.
Who’s pretending?
We’re all broke. Unless you’re a boomer trying to sell a $0.50 house you bought in the 50s you paid for on a gas station cashier salary. They’re ok for the moment. But even a lot of them are going broke now too. Highest demographic of newly homeless last I heard.
Because those boomers who are broke were attempting to keep up with those who actually had money. I know a few examples…
Toxic capitalism, instagram
We have a very materialistic and consumeristic culture and we shame the poor.
Or more specifically, we are ashamed when we can’t afford things we need. We are saturated by right-wing propaganda that says if you don’t succeed, it’s your fault. So, like abuse victims, we internalize the shame of what is done to us.
It’s a message tailored so we don’t question the rich, and as an added benefit to them, trains the poor to not seek government systemic solutions to the inequality that creates their poverty.
Homeless people are more financially rich than most of this country.
Do you see the problem yet
It’s actually curious to read this comment while several others state how they could manage to pay their debt, but they choose to be in debt because it’s somehow convenient for them. I believe them, it’s just curious because anyone could say the same.
Part of that has to do with how our economy is built around credit cards and debt itself. They don’t want you to fully pay off your credit card debt, and will reduce the amount you can borrow if you do. And if you try to opt out of the debt system entirely, it hurts you as well because you have no credit score from the credit card companies and no history of paying off you debt on time, which hurts your chances to get things like loans and mortgages. I hate debt, and ran into this issue the first time I went to buy a car because I had always used debit cards to buy stuff. Despite the cards being Visa cards that just got paid off immediately by charging my bank account instead of being paid off over time, I didn’t have any debt history as a result and had to have somebody cosign my car loan to vouch for me that I’d actually pay the loan.
and will reduce the amount you can borrow if you do.
This is not true.
are you talking about the comment mentioning it makes financial sense to not pay off their mortgage?
America is a third world occupied country but everybody is in denial, obese and wearing nice clothes 😌
I’m guessing not admitting your finances are shit is pretty universal, no need to pick on 'Murica.
There is some truth to what you’re saying but the USA are special about it. It’s like, they try to (badly) act as if they had more than enough money but it’s obvious they’re struggling badly. Like a functional addict thinking he’s hiding it well but in fact everyone knows and there’s a shared social discomfort in the charade
It’s part of our culture. It dates back to when America was new. Plantation owners wanted to pretend we had a rich and powerful economy and history and culture. They made everything pristine and gaudy and exp wove looking but there was no substance. Look at the architectural decisions made in plantation houses and how the elements are still used in homes today.
We pretend we are better than we really are.
Being in debt isn’t synonymous with being broke.
I could pay off my house tomorrow if I wanted, but financially it doesn’t make sense - so I keep the debt. That doesn’t mean my net worth is negative or that I don’t have disposable income.
Sorry, I’m dense. For me being in debt and paying off something like a loan on a house has the purpose of paying something you do not have the funds for to pay off in one go. Seeing as the longer you take paying it off, the more you actually pay since rates increase or whatever, depends on contract specififcs.
How is it not a smart thing for you? Is this about US credit rating system or something else.
Edit: thanks to all replies, not gonna spam thank yous to you all. Didn’t consider those options.
My savings are invested in the stock market, and the returns I get from that are higher than the interest on my mortgage. If I liquidated my investments to pay off the house, the savings from not paying mortgage interest would still be less than what I’d make from the market over the same period. I’d rather use the profits from my investments to cover the mortgage interest - that way I still have money left over. If I did the opposite, I’d lose that extra money.
Your personal financial situation is not really representative of the financial situation of Americans in general though.
No, even regular savings accounts have ~4% interest, so it makes sense for anyone who got a mortgage more than 2-3 years ago when the rates went up. Any extra money shouldn’t be going to pay down old debt faster, it should be in savings or other high yield accounts.
What would happen if stock market dives?
The value of my portfolio dips too, but I don’t actually lose anything unless I sell. I just hold and wait for prices to recover - as they always have so far. In fact, when the market drops I buy even more, because the same money gets me more shares. People don’t lose their savings because of a crash; they lose them because they panic and sell for less than they paid.
We’re talking about an average over 30 years. The market will dip multiple times through that period, but it will likely average ~10% per year gains as it has for more than a century.
I meant more like something akin to the great depression, but I get the point, if you have a buffer to wait out bad times you can enjoy some extra money for less price
I have enough to pay off my house right now but I’m not because the interest rate is both lower than inflation and what I earn from interest, and other invesents, plus the increase in home values. If I paid off the house today then I also wouldn’t have as much in my emergency fund. I have 5 years left of the mortgage, I’m paying roughly $50/mo interest which goes down every month.
Besides what others have said, there is a mortgage interest deduction on taxes in the US. It’s basically the government saying “we want you to buy a house, so for the interest you pay on a home loan, you don’t have to pay taxes on it.” So combine that with a low rate, and it absolutely makes sense to have that debt and put the money to work elsewhere.
That is still technically true, but it requires filing your taxes with “itemized deductions” wherein you provide a complete list of all the things that you can deduct from your taxable income before calculating the tax owed. Stuff like mortgage interest, charitable donations, medical and education expenses. Back in 2013 up to 30% of tax filers did that. Mostly this was done by higher income people who had enough income and deductions to put them over the default standard deduction.
The “standard deduction” was increased in big changes to our taxes in 2018, and since then only about 10% of filers itemized. So mortgage interest isn’t usually paid with pre-tax money anymore by up to two thirds of those who did it before.
The other reasons for carrying a low interest rate mortgage are still true.
I didn’t realize the rate was so low now for people who itemize. I guess I’m outing myself when I say we still do it? I’m not loaded or anything, but we do enough giving and have mortgage interest to make it worthwhile.
It could just be that you are in a higher cost housing market, or have big charitable donations. But also, yeah, you’re probably also kinda loaded. 🙃
(at least when compared with the median American)
Well, we’ve been living the DINK lifestyle for a long time. It would be a very different story if we had only one income, or kids, or both. But yeah houses are pretty expensive where we are. Though from what I can tell, houses are expensive everywhere now 🫥
houses are expensive everywhere now
True 💀
I’m not who you are responding to, but I’m in the same position.
Interest rate on house mortgage is around 2%, currently looking to invest in an apartment in Europe. The current rates are ~4% here, so it makes more sense to keep the cheap money from the house mortgage than to trade it for more expensive money.
I wish I had learned this nuance earlier. I started out throwing all the money I could at whatever I was trying to pay off as fast as possible because I had it hammered into me as a child that all debt is a personal moral failing.
I’ve since learned that having cash on hand and a relatively low interest loan like a mortgage or a car loan, is better than a slightly lower balance on said loan and having to use a high interest credit card when an emergency inevitably pops up because I didn’t have any cash.
I could pay off my house tomorrow…
That’s not what being in debt is
Is it not debt when you owe money to the bank?
I’m just telling you the meaning of the phrase ‘to be in debt’ vs having some debt. I didn’t invent it.
How else are we supposed to know who’s better than who?
I thought you guys used race and gender for that?
Oh that too. We make sure to remind the poor white folk they are still better than rich black people
As President Lyndon B(ig dick) Johnson once said
“If you can convince the lowest white man he’s better than the best colored man, he won’t notice you’re picking his pocket. Hell, give him somebody to look down on, and he’ll empty his pockets for you.”
You said people and folk, but I think you meant men.
My apologies. In my attempt to be horrifically racist, I forgot to also be sexist. It won’t happen again.
God damn lazy modern bigots. Back in my day there was a word for people like you, but using it will get me banned on half the fediverse.
Its implied.
With a star on your belly.
The Jones’s are a bunch of chatty kathy pricks.
Yeah, but they have a hot tub.
I mean, I have a hot tub. Granted, it been sitting on its side for about 5 years, the critters have claimed it as their own and now live inside, and the siding is rotted to hell, but it’s there.
Sounds to me like the critters are the Jones’s now!
