There is a lot of discussion of economic class in America right now. As those on the left begin to target billionaires, many economists are arguing that upper middle class Americans are victims in today's economy, and even more people are raising their voices to protest the cycle of poverty many lower class Americans are trapped in. But how do you place yourself in the midst of this national conversation? Could you say definitively which class you fall into? How can you partake in this important national conversation if you don't know the facts.
While people often think of economic classes as lower class, middle class, upper middle class, and upper class, the truth is more nuanced. In reality, there are three socio-economic groups to be considered particularly in conversations regarding government benefits or taxation rates. The first is the infamous top 1%, a group whose income has grown significantly since 1980, increasing as much as 400%, a rate that is significantly faster than the growth rate of the economy in that same time period.
Then, there is the upper middle class who make $120,000 to $425,000 a year post tax, and fall into the 90th to 99th percentile of income distribution. Since 1980, this section has been growing at about the same pace as the economy, remaining mostly neck and neck with the GDP.
Finally, there is the bottom 90th percentile of households, that make up the entirety of the final class. Though this group is more encompassing than you probably assumed, this is indeed a more accurate picture of the reality of the American tax system. This class has increasingly trailed the growth of the economy since 1980, meaning that they have held less and less of American wealth as time has gone on.
So what does all of this indicate? First and foremost, the upper middle class is right where they need to be. Their income is growing steadily as the economy prospers and they're taxed at a rate that allows for reasonable upward mobility. Meanwhile, the top 1%, whose growth consistently outpaces the economy, needs to be taxed at higher rates in order to allow for wealth redistribution to the bottom 90%, whose stagnancy indicates bad things for the American economy. Essentially, rising out of that bottom 90%, given current tax rates and economic possibilities, is a near impossible task, meaning that it's time to cut the taxes of this sector of the American population. A healthy and successful country is not measured by the total amount of wealth, but the distribution of that wealth, and it's time lawmakers take this into account.
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Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.