Will million dollar salaries ever become the typical average income?

[sportage]

Considering many two income households can typically earn from $100,000 to $150,000 in todays economy.
And those families still struggle to make ends meet when you consider two car payments, a house payment, and raising two or more children. The cars most likely costing $30,000+ each, and the home $200,000 ups to $350,000 for a typical 3 or 4 bedroom with two car garage. An average family home.

I see the day coming when that typical two income family could easily earn around one million gross yearly, and still have a hard time making ends meet considering the cost of new housing and that huge family car for mom and the kids, and dads $30,000 car. Then add in the cost of a car for when the kid reaches 16 years, education costs, college savings, property taxes for that $300,000 home and that monthly mortgage payment.

A million dollar yearly income wouldn't seem like that much.
And could be typical with upper middle class families.

When you consider just 20 or 30 years ago the average family income for two wage earners was around 30 to 40 thousand a year, and considering mom probably earned half of what dad earned. Today mom easily earns the same as dad. And that $6000 car now costs $30,000, and the new home from $$50,000 to $350,000. Not to mention education costs and planning, plus current tax rates.
I'd guess within ten years, twenty years for sure, one million will be the typical gross wage for two income households. Companies won't be able to attract quality employees for less.

 

[Capt Caveman]

$350k will maybe buy you a condo around here.

 

[rcpratt]

This has got to be the stupidest shit that I have ever read.

 

[FleshLight]

Then everything else will go up 20x. $60 for a gallon of milk...

 

[Dr. Zaus]

to the title: yes

And those families still struggle to make ends meet

stupid.

People "struggle" as a function of how much they make to how much they spend. "living paycheck to paycheck" is a choice made by almost every family.

 

[Pray To Jesus]

When $1 is worth $.01 then of course.

Too bad at that time a loaf of bread is $300 bucks.

 

[Vic Vega]

...

 

[amish]

yup, in the year 2194.

 

[eldorado99]

In the year... 2525... If man is still alive...

 

[Imp]

to the title: yes
stupid.

People "struggle" as a function of how much they make to how much they spend. "living paycheck to paycheck" is a choice made by almost every family.

"You're not really living if you have money left over..."

That's what my idiot friends say.

 

[drebo]

I'm sorry, but a family of four making $100k is most definitely not going to struggle. Shit, we could live extremely well on that, even in California.

 

[coldmeat]

You mean they aren't already?

 

[RavenSEAL]

With inflation? In like 100 years maybe.

 

[Dr. Zaus]

"You're not really living if you have money left over..."

That's what my idiot friends say.

Time to find friends that will encourage you to actually live by having money instead of borrowing it.

 

[JulesMaximus]

With inflation? In like 10 years maybe.

Fixed that for you.

 

[Jaskalas]

With inflation? In like 100 years maybe.

Government spending is trying to bring that figure much closer to home.

 

[Baked]

In some countries, right now, that is the average income.

 

[Dr. Zaus]

Fixed that for you.

Just did the math; If we see (on average) the historic rate of 3% inflation. The 100k take-home-pay will be 1 million in take-home-pay in about 78 years.

What you fail to see is that as government debt expands the % of the economy that is public a similar % is deducted from the value of that which is private; thus limiting growth, production capacity and overall-inflation.

Further, our increases in productivity combined with our loss of population that will spend balances out to a net-outcome of lower costs for more things: thus, again, deflationary.

The price and cost of energy is going to go up as well; this means that as the base-unit of the economy goes up, employment and thus spending will fall: again, deflationary.

At the moment, the only thing keeping us from a deflationary spiral is super-cheep credit from the fed and insane government spending.

 

[alkemyst]

Considering many two income households can typically earn from $100,000 to $150,000 in todays economy.
And those families still struggle to make ends meet when you consider two car payments, a house payment, and raising two or more children. The cars most likely costing $30,000+ each, and the home $200,000 ups to $350,000 for a typical 3 or 4 bedroom with two car garage. An average family home.

I see the day coming when that typical two income family could easily earn around one million gross yearly, and still have a hard time making ends meet considering the cost of new housing and that huge family car for mom and the kids, and dads $30,000 car. Then add in the cost of a car for when the kid reaches 16 years, education costs, college savings, property taxes for that $300,000 home and that monthly mortgage payment.

A million dollar yearly income wouldn't seem like that much.
And could be typical with upper middle class families.

When you consider just 20 or 30 years ago the average family income for two wage earners was around 30 to 40 thousand a year, and considering mom probably earned half of what dad earned. Today mom easily earns the same as dad. And that $6000 car now costs $30,000, and the new home from $$50,000 to $350,000. Not to mention education costs and planning, plus current tax rates.
I'd guess within ten years, twenty years for sure, one million will be the typical gross wage for two income households. Companies won't be able to attract quality employees for less.

You are throwing out a lot of big numbers above as 'typical' and 'average' when they are not.

However, eventually barring any major shift in our politics/economic structure; $1,000,000 will be an average middle class salary probably within 40-50 years.

 

[JulesMaximus]

Just did the math; If we see (on average) the historic rate of 3% inflation. The 100k take-home-pay will be 1 million in take-home-pay in about 78 years.

What you fail to see is that as government debt expands the % of the economy that is public a similar % is deducted from the value of that which is private; thus limiting growth, production capacity and overall-inflation.

Further, our increases in productivity combined with our loss of population that will spend balances out to a net-outcome of lower costs for more things: thus, again, deflationary.

The price and cost of energy is going to go up as well; this means that as the base-unit of the economy goes up, employment and thus spending will fall: again, deflationary.

Yet the cost of just about everything continues to increase... gasoline, eggs, milk, food, everything except the stuff they use to measure inflation.

At the moment, the only thing keeping us from a deflationary spiral is super-cheep credit from the fed and insane government spending.

I'm sure that will last forever.

 

[PrinceofWands]

Considering many two income households can typically earn from $100,000 to $150,000 in todays economy.
And those families still struggle to make ends meet when you consider two car payments, a house payment, and raising two or more children. The cars most likely costing $30,000+ each, and the home $200,000 ups to $350,000 for a typical 3 or 4 bedroom with two car garage. An average family home.

I see the day coming when that typical two income family could easily earn around one million gross yearly, and still have a hard time making ends meet considering the cost of new housing and that huge family car for mom and the kids, and dads $30,000 car. Then add in the cost of a car for when the kid reaches 16 years, education costs, college savings, property taxes for that $300,000 home and that monthly mortgage payment.

A million dollar yearly income wouldn't seem like that much.
And could be typical with upper middle class families.

When you consider just 20 or 30 years ago the average family income for two wage earners was around 30 to 40 thousand a year, and considering mom probably earned half of what dad earned. Today mom easily earns the same as dad. And that $6000 car now costs $30,000, and the new home from $$50,000 to $350,000. Not to mention education costs and planning, plus current tax rates.
I'd guess within ten years, twenty years for sure, one million will be the typical gross wage for two income households. Companies won't be able to attract quality employees for less.

Let's consider:

55% of the population earns less than $30,000/yr. 85% earns less than $50,000/yr. That means only 15% of the population is earning enough to be part of a $100,000/yr household. That's why it's such a lie to look at household numbers instead of individual. Sure, if things stayed the same for another two hundred years we might get close to the levels you're talking about, but not much sooner than that.

Average home prices are still around $150,000 in most places. The gender gap is still .77, no where close to equal. While car prices are amazingly high on average, it's still a cake walk to get a brand new car for $10,000-15,000.

In short, I see you inflating pretty much everything, which I think is why you came to original conclusion. For the bulk of America, $1,000,000 isn't an annual salary, it's 40 years of retirement.

 

[mmntech]

$350k will maybe buy you a condo around here.

I lol when people tell me a house shouldn't cost more than double your income. Haha, I'd need to be making at least $125,000 a year.

 

[Dr. Zaus]

I lol when people tell me a house shouldn't cost more than double your income. Haha, I'd need to be making at least $125,000 a year.

Your house-payment should be, at most 1/3rd of your take-home; preferable 1/4th.

Let's say your combined house-hold take-home 60k/y and you do a 30 year fixed @4%(15 preferable).

Then you could stretch the budget and spend 1/3rd of your take-home, after saving 10ish down and get a 450kish house.

Alternatively, if you do 1/4th at 15 years (a much smarter/more conservative go) then you could afford about a 220k home.

So, as-long as the house is somewhere between 3 to 6 times your annual take-home you should be OK @ 4%.

Bring that housing loan rate up to 6% and it splits out 190-360k and you need to be within 3 to 5 times your annual take-home.

Yet the cost of just about everything continues to increase... gasoline, eggs, milk, food, everything except the stuff they use to measure inflation.

There are some shins being played with the CPI, no doubt.

I'm sure that will last forever.

Make your argument; it's probably a concurrently valid argument.

 

[DrPizza]

When $1 is worth $.01 then of course.

Too bad at that time a loaf of bread is $300 bucks.

And we'll STILL be stupid enough to still use pennies.

 

[SandEagle]

This has got to be the stupidest shit that I have ever read.

and everyone in here just got a little dumber after reading it