Why a $100,000 income no longer buys the American Dream in most places
https://www.cnbc.com/2024/04/16/why-a-100000-salary-no-longer-buys-the-american-dream-in-most-places.html
by cnbc_official
Why a $100,000 income no longer buys the American Dream in most places
https://www.cnbc.com/2024/04/16/why-a-100000-salary-no-longer-buys-the-american-dream-in-most-places.html
by cnbc_official
2 comments
The [American Dream](https://www.cnbc.com/2023/10/27/achieving-the-american-dream-a-lot-of-it-depends-on-where-you-grow-up.html) — which for many people involves some combination of owning a home, getting married, [having kids](https://www.cnbc.com/2023/12/21/what-dink-dual-income-no-kids-trend-means-for-your-money.html) and making enough after expenses to [save for retirement](https://www.cnbc.com/2024/03/01/many-workers-believe-pensions-are-key-to-achieving-the-american-dream.html) and spend on leisure — is becoming increasingly expensive.
“The benchmark of a six-figure salary used to be the gold standard income,” Sabrina Romanoff, a clinical psychologist, told CNBC. “It represented the tipping point of finally earning a disposable income and building savings and spending based on your wants, not just your needs.”
More than half (52%) of Americans say they would need at least $100,000 a year to [feel financially comfortable](https://www.cnbc.com/2023/09/07/52-percent-need-a-six-figure-salary-to-be-financially-comfortable.html), with 26% saying they would need a salary in the range of $100,000 to $149,000 per year, according to a 2023 CNBC Your Money survey conducted by SurveyMonkey.
“Unfortunately, what has happened is that wages haven’t kept up with the cost of living, by and large, for the last 50 years or so,” said Elise Gould, senior economist at Economic Policy Institute.
“It becomes increasingly hard for many families to be able to attain that sort of middle-class lifestyle, that American Dream,” Gould said.
Watch the full video here: [https://www.cnbc.com/2024/04/16/why-a-100000-salary-no-longer-buys-the-american-dream-in-most-places.html](https://www.cnbc.com/2024/04/16/why-a-100000-salary-no-longer-buys-the-american-dream-in-most-places.html)
Nothing shocking here, but what is to be done about it?
Interest rates are higher than they have been in 20 years, housing market is already tight and getting tighter (just about everywhere), Covid-related inflation walloped the wide majority of wage-earners and is still stinging, minimum wage is so far behind what it takes to live that it’s practically a joke at this point, corporations do their best to dodge taxes and paying a reasonable wage (sans their executives, of course).
The dollar does not do what it did before COVID happened. What will it take to get us back there?