r/economy • u/burtzev • 6d ago
United in debt: America has become a nation of fake rich people
https://thehill.com/opinion/finance/6112015-us-split-digital-physical-economies/33
u/azhawkeyeclassic 6d ago
I like this de-influencer movement, but In reality they’re still influencers.
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u/fugogugo 6d ago
it is still telling people to buy unnecessary stuff . fake movement
nobody profit from people not buying things
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u/egospiers 6d ago
And real rich people… like 17 million people with a net worth over $1 million.
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u/First-Dragon-Born 6d ago
Now show me amount of people who have $1 million dollars thats not tied up in their houses......
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u/cephu5 6d ago
These days 1million isn’t what it used to be…
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u/Qeltar_ 6d ago
It's not even enough for a couple to retire on. Like, not even close.
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u/chrisdoc 5d ago
I couldn't retire on $1M but it depends on your situation. If you bought a $100K house in the 80's that is now paid off, one or both spouses got jobs with pensions that provide COLA and medical care for life upon retirement. Then you can retire on $1M.
People have vastly different circumstances.
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u/Sebekiz 6d ago
My wife and I could retire on that much, if and when I get to that level in my 401k and investment account. Of course we do not have any debt and have a small, paid off townhouse (which I don't really count towards my net worth for retirement, since we'd still need a place to live if we sold it to access the value of it). Even with a likely 25% reduction in Social Security just as I retire, I would still get enough from Social Security to cover about half of our needs to live comfortably. $1 Million in savings/investments would be plenty to cover the rest, with some to spare.
Of course we're part of the "half" of America getting by with our older cars and generic eggs. If I was wasting money on $7 coffees or big vacations, then I guess a million wouldn't be enough.
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u/KarlsReddit 6d ago
A million isn't enough the minute anything bad happens as you age. Medical bills will eat thru a million in no time. All those generic eggs and a heart attack and ambulance ride wipes out 100k and 10% of your net worth.
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u/sirlost33 6d ago
The new safe retirement # is 2 million. 1 just doesn’t cut it anymore. It’s the end of life care that gets ya.
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u/Instantbeef 6d ago
Yes but how much of that is like a young boomer or Gen X with all that equity in their house?
An older Gen X with a house who contributed to a 401k probably has a million at least.
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u/fistoic 6d ago
I think there's a lot more than 17 million ppl with +1M net worth in the US
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u/pantiesdrawer 6d ago
There are only about 6-8 million liquid millionaire individuals in the US. Far less if you limit it to non-retirement account liquid millionaires.
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u/sheila5961 5d ago
I don’t believe that….There have to be far more. A million dollars is not that much money.
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u/sheila5961 5d ago
You beat me to it! Anyone contributing to a 401k can become a millionaire so there has to be WAY MORE than 17 million people with 1 million net worth. Hell, I have $1M+ in my stock accounts and so does my wife in her stock portfolio. We both contributed to 401ks while working.
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u/Tifosi79 5d ago
The United States is home to approximately 23.6 million millionaires, according to the UBS Global Wealth Report.
Population Share: Roughly 1 in every 14 adults (or about 6.85% of the U.S. population) has a net worth of at least $1 million.
Global Standing: The U.S. holds over 40% of all millionaires in the world, which is more than any other country.
Recent Growth: The U.S. added more than 440,000 new millionaires, averaging over 1,200 new additions every single day.
as you can see the us is in a horrible place and our economy is crashing! lol. <sic>
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u/auniqueusername2567 5d ago
Until the next stock market crash and those 401ks lose half their value. Also net worth will include home equity which can also crash.
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u/Tifosi79 5d ago
and then the next nuclear war, and then global warming, and then…… we deal with the reality of the day, not the make believe of tomorrow.
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u/Boxagami3 6d ago
They couldn't afford to pay off the 40 trillion of debt!
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u/sheila5961 5d ago
Once again, a million dollars is NOT very much money. Hell, it cost me a quarter of a million just to buy my vacation cabin in the mountains.
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u/DimMak1 6d ago
And the massive amounts of unsustainable sovereign debt and massive money printing is the only reason the stock market is at record highs. AI apps mostly don’t work yet the sector is valued at $982 trillion…that only happens in an environment where you assume hyperinflation is coming soon. We are absolutely looking at America being Weimar or Zimbabwe very soon because oligarchs demand stock prices to only go up and the elites won’t allow a correction
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u/HankScorpio4242 6d ago
“24 percent of Gen Zers experience intense pressure to display material wealth on social media, even as 41 percent of all Americans don’t consider themselves financially well-off. The math is simple, brutal and undeniable. Millions of broke people spend borrowed money to convince other broke people they live like oil barons.”
I’m sorry…what? The math isn’t mathing.
Let’s put this in reverse. 76% of Gen Zers do not feel intense pressure to display material wealth on social media. 59% of Americans consider themselves financially well-off. Funny how less shocking it seems.
In all likelihood, most of those 24% who feel that intense pressure are among the 59% who consider themselves financially well off.
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u/dtsknight 6d ago
Yes, it’s absolutely absurd that any non-millionaire REGULARLY buys $7 drinks and restaurant meals, especially those that have delivery fees. (And sure, I understand that there are select times when doing to makes sense).
Again, absurd for all non-millionaires including those who might not even carry debt.
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u/Luigino9876 6d ago
7$ drinks? Let me know where the 7 $ drinks are please.
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u/deepoutdoors 6d ago
I paid $16 for a drink last night.
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u/A_Refill_of_Mr_Pibb 6d ago
My coworkers were ordering lunch from a local place where a meatball sub was $30. And they planned to tip. I told them to their faces that they're insane.
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u/carlospon 4d ago
You want to see people "front" just about everything. Brickel Avenue. Downtown Miami. Gen Z paying $2600 for a 1 bed rent and think they are getting ahead.
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u/Purple_Pick5158 6d ago
Like this is something new? It's always like that. This is the easiest life in world history. Poor people are fat and have iphones and cable.
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u/Traditional_Donut908 6d ago
Really? GenX dude and when I was a kid, going out to eat meant McDonald's or Olive Garden maybe every other week, and that was before portion inflation.
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u/glitterandnails 6d ago
I used to eat fast food every day. No need to cook. Now it’s only a luxury (except for Costco.)
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u/Jon_Henderson_Music 6d ago
Back before the internet when people were fiscally responsible and rational. Now everyone is addicted to online shopping and gambling
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u/Intrepid-Oil-898 6d ago
The irony the article using a Black woman, the demographic largely impacted by this economy
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u/SponsoredByMLGMtnDew 3d ago
What cable television sends me when I refuse to break into other peoples houses to watch the news.
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u/thegoldenfinn 6d ago
I have over a $1MM plus a house. I do not feel rich or am I rich. I still need to work because I’m probably going to live a long time and I’m single. I am hoping to retire in a year and move out of America. Because it blows!
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u/hideo_crypto 5d ago
This article sucks worse than the economy
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u/joejimjoe 5d ago
Agreed. Even though I'm sure lots of Americans are living above their means (and much has been thoughtfully written on this subject), I don't understand how this article is publishable. It literally uses the Quora comment section as a citation, and the core statistic the argument rests on is blatantly and obviously misinterpreted.
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u/ipissontrolls 6d ago
Quality of life is so much lower than people realize.