Hear Me Out - America Is Financially Confused

Have you heard any of these notions?

“It’s expensive to be poor.” Saw this,?here ?on Solo Funds IG.

“The Rich are finding more ways to keep their money longer, by going to stores like Dollar Tree and others.” Listened to this,?here ?- solid podcast by WSJ.?

Two things can be correct at the same time, but the undertone of these states is that financially the US is financially confused. It’s not just capitalism, but also how currency conversations continue to go in circles throughout the years. History repeats itself, especially when it comes to the economy. I mean, the cycles of how currency or money flows are scary to see happening (or spinning the block in different cars). I compare what we are seeing right now to be similar to what we saw in the 70s when it comes to the value of the dollar to even the 80s with just the societal experiences that?some?of us dealt with.?

The headlines go back and forth about if a recession is coming or not - if it will be like a hurricane or a regular wind storm, the thing is that no matter if one is declared, the money flow of this country (honestly, the world) is in shambles. Could stagflation help the economy by literally destroying it? Read more about that logic?here .?

From job reports being a bit misleading to just seeing how Americans are able to save - it’s not good. I hate to keep referencing Beyonce about how America has a problem, but it does. Here are a couple of areas in which I’m perplexed when it comes to how America seems to be confused when it comes to its economy:?

Job Market:?The last couple of job reports showcase that the job market is fine vs the realization that it might be all smoke and mirrors. There’s growth happening but in one way? Growth of layoffs or growth of jobs, two things can be true at the same time yet one side of the narrative isn’t being talked about as much as it should.?Economists say ‘You’re in a lucky position” when many are getting “we regret to inform you..’ in the same breath. I just don’t want the headlines to overshadow what’s going on. I’ve always been perplexed about the job report/readings since the recession of 2008 and how the UI or Unemployment numbers were reported while I was experiencing the actual report.

Spending:?Americans have been met with so many challenges when it comes to spending. CPI looks solid while many are still finding it hard to see their money go far due to that same inflation. And with a new bill (student loans) coming back into the budget chat, Americans are at a crossroads regarding how the battle between inflation and interest rates continues to drag the worth of their wallets. The Federal Reserve seems to be concerned about their wallets as much as the wallets of Americans. Even if people were to get a bonus or raise, with the rise of inflation being what it is - could they feel the boost??Consumer spending? is slowing due to that very reason, it’s expensive to live. It’s nasty work to see how home prices could drop but due to inflation, many find it too expensive to consider purchasing one.?

Saving:?You know the stat - 67% of Americans don't have enough money saved to cover an unexpected $400 expense. Oftentimes this is due to a combination of things: Cost-of-living or COL, lifestyle creep, or need more money to manage their livelihood let alone save money. Even with APY looking amazing for High-Yield Savings Accounts or HYSAs to CDs, Americans can’t take advantage of them due to the fact that not only can’t they save but they don’t have a strategy on how to save effectively.?

Retirement:?37% of workers have either taken a loan, early withdrawal, and/or hardship withdrawal from their 401(k) or similar plan or IRA, which is the same level that we’ve seen in 2022; while this number hasn’t really increased or decreased - could Secure 2.0 really help? I was listening to a podcast yesterday that talked about not only saving for retirement at the rate of 15% of income but how much folks should have saved by certain ages. While that information is good, inflation continues to halt that growth. Why? If people are finding it hard to spend and then hard to save, could it expect to look different when it comes to retirement? I don’t think so. Just like?61% of Americans say they're more scared of running out of money than of dying .?While I'm hopeful about Secure 2.0 and all of the great positioning it has for retirement, I’m still scared of how retirement will look in 20-30 years. Many statistics show that Americans can live in retirement for 30+ years. With SSI running out, Americans can’t save?- could we be seen waves of personal recessions heading into the golden years??

Between the monthly reports/readings about how America is trending in the right direction, the realization of it all is that it’s not really showing up the same for a lot of Americans. We as a country have been ethically confused as well as financially to the point we just keep riding the same narrative for decades. Could history be repeating itself due to the fact that systems aren’t allowing it to learn a new song?