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The State of Your Union: Middle Class Economics

January 21, 2015 10 Comments

Last night in The State of the Union Address our president said that the state of the union is strong. Get yourself and your family out of the middle. Pick the worthy goal of no longer being average, but being great in your field so that the marketplace throws money, freedom, opportunity and choices your way. You deserve more than the middle or just getting by. And don’t be confused by those that suggest you should just be satisfied as they are the one’s that have given up. God could have stopped at blue skies, butterflies, sunsets and rainbows—but He didn’t. Here is part of the presidential transcript: “Tonight, after a breakthrough year for America, our economy is growing and creating jobs at the fastest pace since 1999. Our unemployment rate is now lower than it was before the financial crisis. More of our kids are graduating than ever before; more of our people are insured than ever before; we are as free from the grip of foreign oil as we’ve been in almost 30 years. America, for all that we’ve endured; for all the grit and hard work required to come back; for all the tasks that lie ahead, know this: The shadow of crisis has passed, and the State of the Union is strong. At this moment—with a growing economy, shrinking deficits, bustling industry, and booming energy production—we have risen from recession freer to write our own future than any other nation on Earth. It’s now up to us to choose who we want to be over the next fifteen years, and beyond. So the verdict is clear, Middle-class economics works.”

Did you buy President Obama’s sales pitch? This is not an attack on President Obama, but is an attack on anyone that suggests to YOU that the middle class is anything more than a trap. Strategy of the Week The State of the Union Address Middle Class Grant Cardone Consider the facts about the middle class in America:

  • 76% of them are living paycheck to paycheck
  • Wages are flat or declining for 20 years
  • Middle 60% of households earn less than 50% of all income
  • Debt for the middle class is $84k, a 161% increase from 1992
  • 50% of college graduates don’t get a job in the field they studied
  • 28% of Americans have no savings, 43% have enough for 3 months of expenses
February 20th, 2015 UPDATE: I went to New York yesterday to sit with Jeff Macke for Yahoo! Finance to talk about the myth of the middle class. Watch the video below. My mission in life is to help people be successful, and that becomes impossible if you are not dealing with the facts. The middle class that made America the envy of the world no longer exists today—it only exists in name. But I ask you, what does it mean to you to be in the middle class? What it is today—I think you’ll agree—is different than what it once was. The middle class emerged in America from a combination of the industrialization of the country, the end of World War II, a housing boom, the expansion of unions, and growing higher-paying jobs. People had enough money to buy a home, settle down, build a family, send them all to college, and trusted that their job would be dependable all the way to retirement.

Elena and I also did a show today on this topic. Watch it here.

None of those things exist today. Those jobs have been shipped overseas to people that will work for one-twentieth of the wages we get here in America. Entire industries are wiped out due to technological advances. The home investment that your parents believed in to be a great investment as retirement planning, and a savings instrument, have only returned an average of 1% a year for the last 50 years. And consider that the American Dream—the home—turned into a nightmare to millions of people in 2009. They found their mortgages underwater, tied in for 30 years, with no job in their town and the inability to relocate. The unions broke by the pension commitments. The USA was building no products. The only way to get a pay raise was to move to other parts of the country or other parts of the world. Why am I telling you all this? You must get out of the middle class. Get to the front with everything. If 76% of Americans are living paycheck to paycheck, and most only have 3 months of savings, you need to get yourself out front and above that kind of threat. Do Whatever It Takes to get your income up, your savings up, and get yourself in a position to be nimble—move to opportunities that can create freedom for your family. The president says the State of the Union is strong, while most American’s are in no better shape than they were 10 years ago. Are we better educated? Maybe. But what does an education matter if it doesn’t get us better choices and more freedom? Be great, never settle for the middle. GC

10 Responses

Bob O'Brien
Bob O'Brien

November 01, 2016

I am Great!

ConsultU
ConsultU

November 01, 2016

Well said, Grant!

Gunter Raffel
Gunter Raffel

November 01, 2016

Average Middle-Class Incomes – what does that graph look like adjusted for inflation, or is it adjusted for inflation? That would tell the true story. The overall trend is down since 2000.To extend the graph, what is the data for 1011, 1012, 1013?

Breeze
Breeze

November 01, 2016

I just don’t know where to start.

Alex Malone
Alex Malone

November 01, 2016

Grant thank you for keeping it real!

Allen Eubank
Allen Eubank

November 01, 2016

Don’t be okay with just getting by, take it to the next level. Great post, Mr. Cardone.

Gunter Raffel
Gunter Raffel

November 01, 2016

… correction, I meant for 2011, 2012, 2013.

Jon
Jon

November 01, 2016

This is a very nice and wonderful delusion Grant! Yeah, just leave the middle class and move to the upper classes! Why didn’t everyone think of that? “Just do it”!….. Right?….. Wrong!!! For one thing, it’s physically impossible to fit everyone into the upper classes. The Rich folks need serfs in the lower classes to support their wealth. The wealthy wouldn’t exist except for the exploitation of the lower classes. That’s how the wealth pyramid is shaped……Keep your delusions to yourself Grant………..

William Ballard
William Ballard

November 01, 2016

Great stuff Grant!

I have said good bye to the middle class along time and ago and have no plan on going back.

Ryan
Ryan

November 01, 2016

I would like to see Grant’s info on why buying a home is a bad idea.

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