Feeling Depressed: the Struggling Middle Class and Who to Blame

[Seamster]

Many have misunderstood this post. It's about how people are going into debt buying stuff they don't need. In the second post of this thread MJ DeMarco posted a nice visual of what I try (and fail) to explain below. I see these people suffering and it makes me sad (I'm not suffering personally. It's not about me. I'm financially free). The corporations need to keep brainwashing the middle class to keep spending money. I have no power over these people. They're going to buy the Range Rover regardless. Still, I feel for them. Misunderstood--yet unedited--essay remains below:

Daily I notice brand-new $60k pickup trucks speeding past me going 90 on the highway, rushing home to their 3-car garages in $450k McMansions, as their owners slave away for 40 years, >40 hours a week, just to pay for these things.* They blindly believe they're getting 25 MPG.** I work with these people. I used to use them as a reminder of what not to do. Now, I feel sorry for them when they can't afford to go out to lunch on Fridays. In the 60s, a man with a normal job was able to provide for a family of 4, in a normal neighborhood, owning a normal car, with a color TV. Today, the same is not possible, due to several factors. We are slaves. I'm doing ok, but I'm depressed because I know most people don't have the entrepreneur mindset.

First, let's look at how we got here. I'll use General Motors and Telsa as examples, as I'm in the industry. GM went bankrupt in 2009. The middle class is still paying for that bailout in the form of price inflation (the US Fed just created the money out of thin air). Why did the government agree to bail out GM? Because GM is legally able to bribe government officials.# These officials are not public servants in a capitalist economy: they are employees of the giant corporations (corporatocracy: a society controlled by corporations). And, our current monetary system, championed by the likes of Bernie Sanders, is Modern Monetary Theory (MMT). This says that the government can just print as much money without repercussions. Tesla: the company is not profitable on its own. However, since saving the planet is now political, Tesla is given carbon credits from the government, which Tesla then sells to Ford, who is basically buying the privilege to pollute (making Tesla profitable).## But Ford need not worry about spending this money or, doing anything right, because, just like all the big lenders who failed (Fannie Mae, Leeman Brothers, etc) and were bailed out by the middle class in 2009, Ford has an implied government bailout guarantee.

Conclusion 1: the above is the government's fault for letting the corporations takeover. We cannot 100% blame the corporations for trying to make a profit. If the product they are making is dangerous and kills people, but if it's legal to sell, then we need to blame regulators. But the regulators are essentially employees of these same corporations.

Individuals of the middle class are the ones struggling, yet I feel we need to take some responsibility for ourselves here:

• Ignorance - the corporations/government want us to work 40 hours a week and drive 1 hour back and forth to work to a house that costs only $300k where we can afford to live on our $80k salary. Why? Because we stay ignorant. But, how can we study economics and politics when we're gone 12 hours a day?
• Inflation - Most people think prices are going up because of shipping shortages, COVID, etc. Wrong: the currency supply has been inflated. That's the ONLY reason, by definition. 90% of this money went to the giant corporations. Yet, due to ignorance, we were all so happy with our stimulus checks, which, since everyone got the same amount, means that everyone got exactly $0.00. (US govt reports 7% inflation but they don't include the extra appx 7% increase on food and energy.)
• Status - From my own studies, I believe that status-seeking is driving approximately 50% of our economy. Don't believe me? Add up the sales of Cadillac, Lincoln, Audi, Lexus, Infinity, Acura and compare to those of Chevy, Ford, VW, Toyota, Nissan, Honda. Add up the cost of money spent on median priced houses (varies by city) vs the average price of houses minus median. Around here, you can live in a nice house for $150k only 45 min from the outskirts of the city and drive a $23k Honda Civic to get there. But no, we want to live 20 min away in a $400k house and drive a $50k car to get there. And we want the $1800 Apple computer, not the $500 one at Best Buy.
• Influence - the big corporations run the media. Why do you think you see the Kardashians and other flashy things all over TV? It's advertising! You think celebrities went out and bought that iWatch? No, companies send them that stuff for free. And here we are thinking we need to have that $1200 phone too; and a new one each year! And they totally have us convinced on housing too. Interest rates used to be around 13% in the 80s, so people could only afford 1200 sq ft. Now rates are 3-4%, so we can all buy 5000 sq ft homes. And we did! With a camper and jetski to match. Bought on credit, of course. Now we must really slave away and not get fired to be able to afford those payments.

I see this daily. I hear how broke people are. How much of their own fault is it? I still can't believe it but I have had many highly intelligent individuals try to convince me that a $45k Tesla is cheaper and better for the earth than a $23k car (there's a thread on this forum on it, actually). And let's not forget how much the average person spends on Amazon. This is a classic case of people being so brainwashed, in so many ways, that we are actually handing our hard-earned money over to, and sticking up for, the same exact companies that oppress us! And beyond all this we're only bringing home less than 70% of what we make. Then there's property taxes, gas tax for the roads, cigarette taxes, then all the charges on your phone bill or AirBNB, etc. It's safe to say that we're already paying 50% of our money in taxes. But that's still not enough for our corporate masters, because the Fed inflating our currency supply is the biggest tax of all: the US Dollar has already lost 90% of its value since inception. It's lost 50-75% in just 40 years. And. No. One. Is. Talking. About. It.

So, buy silver. Buy Bitcoin. Start a business. Move to Thailand. Don't be depressed. Don't start a revolt (though I think someone will in our lifetimes). But definitely, get the word out that corporations control the middle class like this: middle class spends money > corporation gets rich > corporation buys politician > politician lies to get votes > middle class votes for politician > politician prints money and gives to corporation > middle class pays for it through inflation and pollution > middle class continues spending money at the same corporations that stole from us (yes, you driving that Chrysler Grand Cherokee are part of the problem!!). And for God's sake, remind people of the dangers of the phrase: "Buying that will save me money." Buying anything will almost never save you money. Especially status items. Don't be a part of the system!


* Contrary to common belief, most people driving $50k+ vehicles are not wealthy
** Most pickup trucks, even if they're new and V6, don't average more than 18-19 MPG
# Thanks, Reagan
## Electric cars cost double, use more rare earth elements, require mining in countries that abuse child labor and pollute the area, run >80% on fossil fuels anyway, don't pay road tax like gas cars do, have horrible resale value, have no one who can fix (Tesla won't release the data to mechanics), weight 25-100% more, burn through tires faster, require $5000-20,000 battery replacements eventually, only get 75% of the stated range because of lying, only get 75% of that range because you're not supposed to charge past 90% and not let go below 20%

 

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[Guest-5ty5s4]

Focus on yourself and stop blaming everybody else.

This was a typical home in 1960. They still exist and in my area can be had for low $100,000's or even less ($50-90,000).

(image might not load, but we are talking no brick, often on blocks or pier & beam, and 1000 sq. ft or less. Usually 1 bathroom, often no garage or 1 car garage)

If you really want to know why everything keeps getting more expensive, go read about quantitative easing and how inflation works.

Yes, we are tax slaves and your debt is your government's best asset. But...

The rest is self-inflicted and up to YOU.

 

[Seamster]

Focus on yourself and stop blaming everybody else...

....If you really want to know why everything keeps getting more expensive, go read about quantitative easing and how inflation works.

The rest is self-inflicted and up to YOU.

Can you please delete your post? You didn't read the original post. If you had, you would see that a) I'm not talking about myself at all here and b) I'm explaining how the economy works, not requesting what I should study.

I would be happy if your reaction was, "Hey, I need to spread the word about why the middle class is getting poorer!" or "Seamster, I feel you bro, but you can't help everybody." But commenting on a post without reading it is not fair to the thread's OP. You are essentially shutting down a thread that I worked over an hour on.

 

[Guest-5ty5s4]

Can you please delete your post? You didn't read the original post.

No... And I did. This post isn't even productive or helpful to the forum.

We are all trying to *start* corporations. We *are* corporations and we *own* corporations.

This is kind of like the meme thread where the OP started something and then got upset and told everyone else to delete their replies. IDK man, this thread might even get removed or something.

Starting a thread and asking for the only reply to delete their post sure is an odd request...

EDIT: yes, the lobbying and government do cause this problem, exactly like in Unscripted . The biggest problem is not a particular politician though (waaah, Reagan!!) - it's the whole mechanism of printing money, taxing people's earnings away, and stealing all of the value they produce. Unless, of course, you want to go alllll the way back to when that really started...

 

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[MJ DeMarco]

But definitely, get the word out that corporations control the middle class like this: middle class spends money > corporation gets rich > corporation buys politician > politician lies to get votes > middle class votes for politician > politician prints money and gives to corporation > middle class pays for it through inflation and pollution >

 

[Silverfox148]

My advice, forget/ignore all that stuff and focus on your self.

All that stuff is just distractions, it's not going to change anytime soon, it's just human society.
Look at MJs illustration above and do your best to avoid all those things in the illustrations and you will have a good life.

Or not, and spend the next 10-20 years wasting time and coming to the same conclusion others are trying to outline for you but 10-20 years older. It's up to you.

 

[Guest-5ty5s4]

My advice, forget/ignore all that stuff and focus on your self.

All that stuff is just distractions, it's not going to change anytime soon, it's just human society.
Look at MJs illustration above and do your best to avoid all those things in the illustrations and you will have a good life.

Or not, and spend the next 10-20 years wasting time and coming to the same conclusion others are trying to outline for you but 10-20 years older. It's up to you.

You're right.

It's a hard balance @Seamster , I totally get it. Spreading the message is good. I want to champion some causes too, especially people's rights and things like that.

That's why someday I might run for office. Till then, just gotta get uber successful to be in the rooms full of politicians and say "HEY. WTF. Stop treating people like cattle and do this instead..." Endorsements and letters to the editor carry a lot more weight when you're rich. It might be sad but it's true.

Also influence, so that people actually listen to you when you give a speech, make a video or public statement... Or even change the hearts and minds of your own community.

As for this forum, people here SHOULD get it. We've read the books. It's one reason I love this place: most understand these issues, want their freedom, want to be in control of their lives...

 

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[socaldude]

The cool thing is you can sit in your parents basement and think about the maximization of utility better than the established profit or power structure. LOL

So there’s ton of potential and opportunity. Nothing to give up on.

 

[WJK]

Daily I notice brand-new $60k pickup trucks speeding past me going 90 on the highway, rushing home to their 3-car garages in $450k McMansions, as their owners slave away for 40 years, >40 hours a week, just to pay for these things.* They blindly believe they're getting 25 MPG.** I work with these people. I used to use them as a reminder of what not to do. Now, I feel sorry for them when they can't afford to go out to lunch on Fridays. In the 60s, a man with a normal job was able to provide for a family of 4, in a normal neighborhood, owning a normal car, with a color TV. Today, the same is not possible, due to several factors. We are slaves. I'm doing ok, but I'm depressed because I know most people don't have the entrepreneur mindset.

First, let's look at how we got here. I'll use General Motors and Telsa as examples, as I'm in the industry. GM went bankrupt in 2009. The middle class is still paying for that bailout in the form of price inflation (the US Fed just created the money out of thin air). Why did the government agree to bail out GM? Because GM is legally able to bribe government officials.# These officials are not public servants in a capitalist economy: they are employees of the giant corporations (corporatocracy: a society controlled by corporations). And, our current monetary system, championed by the likes of Bernie Sanders, is Modern Monetary Theory (MMT). This says that the government can just print as much money without repercussions. Tesla: the company is not profitable on its own. However, since saving the planet is now political, Tesla is given carbon credits from the government, which Tesla then sells to Ford, who is basically buying the privilege to pollute (making Tesla profitable).## But Ford need not worry about spending this money or, doing anything right, because, just like all the big lenders who failed (Fannie Mae, Leeman Brothers, etc) and were bailed out by the middle class in 2009, Ford has an implied government bailout guarantee.

Conclusion 1: the above is the government's fault for letting the corporations takeover. We cannot 100% blame the corporations for trying to make a profit. If the product they are making is dangerous and kills people, but if it's legal to sell, then we need to blame regulators. But the regulators are essentially employees of these same corporations.

Individuals of the middle class are the ones struggling, yet I feel we need to take some responsibility for ourselves here:

• Ignorance - the corporations/government want us to work 40 hours a week and drive 1 hour back and forth to work to a house that costs only $300k where we can afford to live on our $80k salary. Why? Because we stay ignorant. But, how can we study economics and politics when we're gone 12 hours a day?
• Inflation - Most people think prices are going up because of shipping shortages, COVID, etc. Wrong: the currency supply has been inflated. That's the ONLY reason, by definition. 90% of this money went to the giant corporations. Yet, due to ignorance, we were all so happy with our stimulus checks, which, since everyone got the same amount, means that everyone got exactly $0.00. (US govt reports 7% inflation but they don't include the extra appx 7% increase on food and energy.)
• Status - From my own studies, I believe that status-seeking is driving approximately 50% of our economy. Don't believe me? Add up the sales of Cadillac, Lincoln, Audi, Lexus, Infinity, Acura and compare to those of Chevy, Ford, VW, Toyota, Nissan, Honda. Add up the cost of money spent on median priced houses (varies by city) vs the average price of houses minus median. Around here, you can live in a nice house for $150k only 45 min from the outskirts of the city and drive a $23k Honda Civic to get there. But no, we want to live 20 min away in a $400k house and drive a $50k car to get there. And we want the $1800 Apple computer, not the $500 one at Best Buy.
• Influence - the big corporations run the media. Why do you think you see the Kardashians and other flashy things all over TV? It's advertising! You think celebrities went out and bought that iWatch? No, companies send them that stuff for free. And here we are thinking we need to have that $1200 phone too; and a new one each year! And they totally have us convinced on housing too. Interest rates used to be around 13% in the 80s, so people could only afford 1200 sq ft. Now rates are 3-4%, so we can all buy 5000 sq ft homes. And we did! With a camper and jetski to match. Bought on credit, of course. Now we must really slave away and not get fired to be able to afford those payments.

I see this daily. I hear how broke people are. How much of their own fault is it? I still can't believe it but I have had many highly intelligent individuals try to convince me that a $45k Tesla is cheaper and better for the earth than a $23k car (there's a thread on this forum on it, actually). And let's not forget how much the average person spends on Amazon. This is a classic case of people being so brainwashed, in so many ways, that we are actually handing our hard-earned money over to, and sticking up for, the same exact companies that oppress us! And beyond all this we're only bringing home less than 70% of what we make. Then there's property taxes, gas tax for the roads, cigarette taxes, then all the charges on your phone bill or AirBNB, etc. It's safe to say that we're already paying 50% of our money in taxes. But that's still not enough for our corporate masters, because the Fed inflating our currency supply is the biggest tax of all: the US Dollar has already lost 90% of its value since inception. It's lost 50-75% in just 40 years. And. No. One. Is. Talking. About. It.

So, buy silver. Buy Bitcoin. Start a business. Move to Thailand. Don't be depressed. Don't start a revolt (though I think someone will in our lifetimes). But definitely, get the word out that corporations control the middle class like this: middle class spends money > corporation gets rich > corporation buys politician > politician lies to get votes > middle class votes for politician > politician prints money and gives to corporation > middle class pays for it through inflation and pollution > middle class continues spending money at the same corporations that stole from us (yes, you driving that Chrysler Grand Cherokee are part of the problem!!). And for God's sake, remind people of the dangers of the phrase: "Buying that will save me money." Buying anything will almost never save you money. Especially status items. Don't be a part of the system!


* Contrary to common belief, most people driving $50k+ vehicles are not wealthy
** Most pickup trucks, even if they're new and V6, don't average more than 18-19 MPG
# Thanks, Reagan
## Electric cars cost double, use more rare earth elements, require mining in countries that abuse child labor and pollute the area, run >80% on fossil fuels anyway, don't pay road tax like gas cars do, have horrible resale value, have no one who can fix (Tesla won't release the data to mechanics), weight 25-100% more, burn through tires faster, require $5000-20,000 battery replacements eventually, only get 75% of the stated range because of lying, only get 75% of that range because you're not supposed to charge past 90% and not let go below 20%

I don't know how old you are, but your idea of our past lifestyles is totally different from the way I remember it.

 

[Kevin88660]

In the 60s, a man with a normal job was able to provide for a family of 4, in a normal neighborhood, owning a normal car, with a color TV. Today, the same is not possible, due to several factors. We are slaves. I'm doing ok, but I'm depressed because I know most people don't have the entrepreneur mindset.

First, let's look at how we got here. I'll use General Motors and Telsa as examples, as I'm in the industry. GM went bankrupt in 2009. ppy with our stimulus checks, which, since everyone got the same amount, means that everyone got exactly $0.00. (US govt reports 7% inflation but they don't include the extra appx 7% increase on food and energy…..

Life is supposed to be hard.

Good times for the middle class are exception not the norm.

There are not enough high margin industries with high paying jobs that can be sustainable for a long time.

Middleclass value demands predictability in a dynamic and uncertain world, which itself is delusional.

Most salaried employee do not save much money and that is true. That is because their lifestyle and liability grow “proportionally” with their wage increases, so when a jobless crisis hits it is actually the high paying job holders who get hit hard most financially.

 

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[Cool_Llama]

I like your post.

You have fake-people living fake-lives. They have a $1,000,000 McMansion but have a $1,000,000 mortgage.
They drive a $80,000 Mercedes/BMW/Audi but have a $80,000 car loan. The LV, Prada, Gucci that they wear? All on their credit card. I know and have seen these people. I work as a self-employed handyman and have see these how these people live. It's very rare to come across someone who is ACTUALLY wealthy and pay for their stuff cash. These people live miserable lives. Working their crappy jobs to pay for their stuff they cannot afford. They do not have the luxury to quit their jobs because they have so many bills and debt. They are the definition of "The Rat Race".

It's sad because most people think that stuff makes you truly happy, and maybe it does, but only for a short while. That happy moment when you bought a new car, house, clothes, or phone eventually goes away. And they are still in debt for those purchases. These people fall for the marketing of the companies selling this stuff. “If you buy this you’ll be be admired by your peers!” When actuality nobody cares except your bank account.

I found that having fun-experiences with other people that you love brings true happiness. When I'm on death bed, these experiences are the ones I will reminisce. Not when I bought the iPhone 69.

As far as politics go, I don't suggest anyone to worry about that. Yes, a lot of stuff is really messed up and you can be 110% correct on your politics and how the world should be, but so what? You cannot change anything if you don't have a military(force). Yes, you read that right, a military. With money you can change small-time stuff but real change requires force. And even then, it’s hard to compete with current government’s military. They don’t take kindly to this kind of stuff. Why do you think violent-related crimes are the most punishable? Because someone capable of violence is a threat to the government’s monopoly on force; and force is what actually changes things.

I get your post though, you want to spread the message. Just live the happiest live that YOU can. I found out that is hard to change people. Most people are meant to live as sheep for the system.

 

[nothingness]

Being a slave, to anything, in this web 2.5 age, is only your own fault. You're literally on a forum based on 3 books that explain how to become a commander of life instead of a slave of circumstance and yet you're blaming your government for your life?

Just because everyone else does something doesn't mean you have to. Just because a few people you know are debted to their eyeballs to own their $60k truck and $500k house doesn't mean everyone you see in a $60k truck is, either. Some of those will be fastlane millionaires. Since the internet and web 2.0, there's literally thousands of "millionaires next door" who blend in amongst the wageslaves, because standing out from a class who are told to hate those richer than they are is not a great survival strategy.

Take responsibility for your life and stop comparing yourself to others. The only reason to look at other people is to see a need you can fix whilst making $$$ from doing so.

 

[Guest-5ty5s4]

Being a slave, to anything, in this web 2.5 age, is only your own fault. You're literally on a forum based on 3 books that explain how to become a commander of life instead of a slave of circumstance and yet you're blaming your government for your life?

Just because everyone else does something doesn't mean you have to. Just because a few people you know are debted to their eyeballs to own their $60k truck and $500k house doesn't mean everyone you see in a $60k truck is, either. Some of those will be fastlane millionaires. Since the internet and web 2.0, there's literally thousands of "millionaires next door" who blend in amongst the wageslaves, because standing out from a class who are told to hate those richer than they are is not a great survival strategy.

Take responsibility for your life and stop comparing yourself to others. The only reason to look at other people is to see a need you can fix whilst making $$$ from doing so.

This is also so true: a lot of those people actually AREN'T slaves - there are plenty who really own their stuff.

I remember when my barely-scraping-by history teacher started ranting to our class in 9th grade about this one neighborhood in town: "those people are all mortgaged to the hilt! Up to their eyeballs! They have no idea what they're doing."

Well, I had to grind my pencil into the desk to not say anything, since I knew someone who paid cash for his house from business proceeds, and I knew many of the families out there and most were business owners.

On another thread I mentioned a gas station brand where they own two private jets. One of the two owners lives out there in a super nice house. Think he can afford it? Well, they just built gas station #33 or something, and their revenue is above $100 million. I'm actually surprised he doesn't live somewhere much fancier. He could live someplace 10 times nicer.

There is a family who does pest control, a slew of real estate brokers, some bankers, some stock brokers, vets, electrical contracting business owners, HVAC owners, etc... They're EVERYWHERE. People you would never expect.

The CEO here wears overalls on a daily basis.

Of course, then there's the city councilman married to a teacher, who live next door to big gas station guy and are struggling.

Just don't compare yourself to others. You'll often find out your assumptions were wrong.

 

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[WJK]

This is also so true: a lot of those people actually AREN'T slaves - there are plenty who really own their stuff.

I remember when my barely-scraping-by history teacher started ranting to our class in 9th grade about this one neighborhood in town: "those people are all mortgaged to the hilt! Up to their eyeballs! They have no idea what they're doing."

Well, I had to grind my pencil into the desk to not say anything, since I knew someone who paid cash for his house from business proceeds, and I knew many of the families out there and most were business owners.

On another thread I mentioned a gas station brand where they own two private jets. One of the two owners lives out there in a super nice house. Think he can afford it? Well, they just built gas station #33 or something, and their revenue is above $100 million. I'm actually surprised he doesn't live somewhere much fancier. He could live someplace 10 times nicer.

There is a family who does pest control, a slew of real estate brokers, some bankers, some stock brokers, vets, electrical contracting business owners, HVAC owners, etc... They're EVERYWHERE. People you would never expect.

The CEO here wears overalls on a daily basis.

Of course, then there's the city councilman married to a teacher, who live next door to big gas station guy and are struggling.

Just don't compare yourself to others. You'll often find out your assumptions were wrong.

I wear my overalls every day. Dressing simply helps me to both "fit in" in my little world, and to fly under the radar. I'm big on keeping my privacy. Showboating is for people who are trying to impress others. Not only that, I don't want to love, kiss, clean, insure, house, or dust that shiny object. The slavery issue goes way past the debt service and required job -- there are a lot of other costs associated with excess.

We drove to Anchorage yesterday, which takes a few hours each way. We drove through a community that is mostly vacation and summer homes for people. Only about 300 people live there during the winters. During the summers, it is a bustling world-class destination. (I have owned multiple personal homes in the past. I never got to enjoy them because I was too busy paying for them, paying their associated bills, and taking care of them.) I like that community, but not enough to take on one of those year-round money pits and headaches.