Lower-priced new cars are gaining popularity, and not just for cash-poor buyers

[rcjordan]

https://triblive.com/business/lower-priced-new-cars-are-gaining-popularity-and-not-just-for-cash-poor-buyers/

[rcjordan]

Exhibit B:

"Figures revealed that Starbucks' customers have cut back on spending as the rising cost of living squeezed budgets, particularly in China."

https://www.bbc.com/news/articles/czxgxjrdy80o

Starbucks boss shakes up menu to win back customers

[rcjordan]

Exhibit C:

https://www.businessinsider.com/financial-insecurity-cost-of-living-inflation-housing-retirement-crisis-bofa-2024-10

More Americans Are Living Paycheck to Paycheck, BofA Says - Business Insider

[rcjordan]

Exhibit D:

https://www.cnbc.com/2024/10/15/american-consumers-are-increasingly-underwater-on-their-car-loans.html

American consumers are increasingly underwater on their car loans

[ergophobe]

"This economic myth needs to go away"
Sixty percent of Americans are not struggling to get by

https://www.slowboring.com/p/this-economic-myth-needs-to-go-away

[rcjordan]

>Sixty percent of Americans are not struggling to get by

IIRC, 26% actually live paycheck-to-paycheck yet 50%+ say they are.  The problem is their perception of "getting by."

[rcjordan]

> The problem is their perception of "getting by."

Debbie says this is part of the housing crisis, as well.  Young adults want homes & amenities like their parents' homes.  But have rat-hole incomes.

[Brad]

>perception

I think past generations had different definitions between what was a necessity and what was a luxury compared to present generations.  My parents grew up during the Great Depression and my grandparents were adults during the Depression and were under the gun to provide food and shelter for their families.  Their perspective about these was a lot different from mine.

[ergophobe]

You're both onto something, but it's the small part of the story, I think

My father grew up with 2 bedrooms for 10 people (9 after his mother died). Of course, most of the kids decided to get out pretty young.

My brother and I shared a room. He, of course, was in a hurry to get out. I, with my own room, was in a less of a hurry to get out. But my parents' home had few luxuries that my rundown apartment didn't have except for a fridge that magically filled for free (thanks mom and dad). The thought of still being there at 30 was inconceivable. There was that one super odd guy who still lived with his parents. It only took a few minutes of talking to him to realize why he couldn't make it on his own.

But now, homes have become so big and fancy for even middle class Americans, that there are a lot of negative incentives to moving out and the cost of moving out is astronomically higher. They get it from both ends.

Cost of housing is still the bigger driver than parental luxury though. To bring up my old tale... I looked up the house my dad bought in the 1950s for 2.5X his annual teacher's salary. For a teacher with the same job in the same school, that same house is now 11X annual salary.