Posts Tagged ‘cost of housing’

Why We Keep Getting Poorer: High-Cost Housing

Why We Keep Getting Poorer: High-Cost Housing  

Courtesy of Charles Hugh Smith Of Two Minds

Do It Yourself

The reason why we’re poorer: more of our income goes to housing than it did 35 years ago.

Simply put: housing costs have far outpaced household incomes over the past 35 years, making the high cost of housing the primary driver of declining discretionary income: what’s left after paying taxes and housing.

You might want to refill your coffee or tea cup because we have to slog through some potentially confusing numbers to root out the truth.

There is information in the difference between median income and mean/average income.

Median is the number at the 50% line, e.g. first half of households earning less than the median household income and the other half earning more. (wikipedia on median/mean)

Mean income (average) is the amount obtained by dividing the total aggregate income of U.S. households by the number of households.

Consider that the median income of U.S. households in 2008 was $50,303 while the average income was $68,424. (Source: U.S. Census Bureau Table H-6. You have to download the h06AR Excel file to obtain 2008 data.)

Why the big difference? The higher income households earn a much greater income that the lower 4/5 of households. That preponderance of income in the top 5% and top 20% causes the average income to be much higher than the median.

We need to ask not just much more do higher-income households earn that middle-income households, but how much has each group’s income risen in the past 35 years? In other words: has income risen equally across all incomes, or has it risen more in one group or another?

The Census Bureau divides the households into quintiles--20% each, with a special category for the top 5%. (income by quintile.)

The numbers are remarkable. I am not making a judgment here, i.e. that incomes "should be" different from these facts; we all know wages for low-skill jobs have stagnated while high-pay, low-skill factory positions have declined due to global wage arbitrage and broad post-industrial trends.

Nonetheless, it is clear that the vast majority of income increases have accrued to the top 20% and top 5%. Here are the numbers, adjusted into 2001 dollars (data ends at 2001):

Bottom 20%
1975: $12,664
2001:…
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Phil's Favorites

Momentum Monday - Liquidity, Liquidity, Liquidity...The Startup Multiplier Effect and The SPAC is Back?

 

Momentum Monday – Liquidity, Liquidity, Liquidity…The Startup Multiplier Effect and The SPAC is Back?

Courtesy of Howard Lindzon

Good Monday morning everyone.

I will get right to it…here is this weeks Momentum Monday episode with Ivanhoff and I talking markets and momentum. We share a few new ideas – take a look at $JAMF (Apple has finally come for the Fortune 1000) and $EBAY (the long tail winner of collectibles boom) and let us not forget Tesla back at all-time highs. You can watch/listen to thi...



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Zero Hedge

German Official Warns Risk Of Electric Vehicle Fires Is "Completely Unaddressed" 

Courtesy of ZeroHedge View original post here.

Last month, a massive fire broke out at a German bus depot, destroying 20 electric buses. First responders weren't prepared nor properly trained in extinguishing lithium-ion fires. The fire prompted one German official to question the zero-emissions vehicles as the "spontaneously" combustion of the batteries "is completely unaddressed," according to RT News

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Politics

Trump wants the National Archives to keep his papers away from investigators - post-Watergate laws and executive orders may not let him

 

Trump wants the National Archives to keep his papers away from investigators – post-Watergate laws and executive orders may not let him

Nixon resigned after tapes he had fought making public incriminated him in the Watergate coverup. Bettmann/Getty

Courtesy of Shannon Bow O'Brien, The University of Texas at Austin College of Liberal Arts

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Biotech/COVID-19

An infectious disease expert explains new federal rules on 'mix-and-match' vaccine booster shots

 

An infectious disease expert explains new federal rules on ‘mix-and-match’ vaccine booster shots

Discuss with your doctor whether or not you need a booster – and if so, which vaccine will work best for you. Justin Sullivan/Getty Images News via Getty Images

Courtesy of Glenn J. Rapsinski, University of Pittsburgh Health Sciences

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Digital Currencies

Bitcoin: why its value has rocketed once again

 

Bitcoin: why its value has rocketed once again

Shutterstock/rzoze19

Courtesy of Andrew Urquhart, University of Reading

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Chart School

Price and Volume Swing Analysis on Bitcoin and Silver

Courtesy of Read the Ticker

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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

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It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

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ValueWalk

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By Anna Peel. Originally published at ValueWalk.

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Q4 2020 hedge fund letters, conferences and more

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Mapping The Market

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The Technical Traders

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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

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