We are witnessing the destruction of the American middle class
Taking stock of where we are currently:
Highest inflation in 40 years. Cost of rent, food, and gasoline is sky rocketing.
Falling asset prices. Investment accounts and 401ks getting crushed.
, layoffs commencing, likely more unemployment to come. Those who remain employed will not see their wages increase commensurately with inflation.
Median home price sale is still 40% higher than April 2020, and now mortgage rates are on the rise. Home ownership, which historically has been the best vehicle for normal people to build wealth, is increasingly unattainable for many.
This is the max pain scenario for the middle class, and I can't help but reach the conclusion that Fed and government policy is largely responsible for it. They pumped trillions of dollars into the economy, paid out massive stimulus to consumers, and kept interest rates at zero for way too long. Business leaders were predicting inflation a full year before the Fed caught on. Can anyone really argue that this cost of living crisis is not the fault of Fed and gov't?