Inflation may be increasing at a slower pace than expected, the markets might be cheering, and the Fed will likely soon be cutting, but Diane Swonk isn’t popping Champagne.
The veteran economist says the economy “looks better than it feels” because the very data used to measure it is eroding, and the illusion of resilience could shatter heading into the fourth quarter.
“The only groups that feel good about the economy now are making over $200,000 in the surveys and have large stock portfolios,” Swonk said.
Depends on if that money is assets or income. Also depends if you have any outstanding debts.
Yeah, I make well over $200k but between general COL, family medical things, a lot of past debts, and zero investments - I’m basically check to check right now. I’m also the only one in the house bringing in any money.
If you’re living paycheck to paycheck on a $200k household income, it sounds like you might want to rethink your budget.
Long story short I had to liquidate my retirement and go another half a mil into debt. Is what it is. Life happens.
If they live in the US, medical debt and/or student loans will eat away at anything they’d try to set aside swiftly.
Even in the screwed up US system there’s something wrong if you’re struggling to break even with a 200k income. That’s a household income in the 84th percentile for the US, or the top 2% globally (adjusting for PPP).
Yeah, that’s rough for you now, but once you pay those things off you’re going to be well off
My friend has a family of 6 in SF bay area (one kid in college) and he spends ~120K per year. That’s not abnormal when he has nothing to pay off anymore.
That’s the goal! Unfortunately it’s quite a few years off even if I can keep it up. I’d argue maybe by the time I’m 45-50 and I still have retirement to rebuild.