We are Worse off NOW vs The Great Depression Era??

Is today's economic climate just as bad as the Great Depression??

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The video then delves into a detailed comparison of housing costs from the Great Depression era to today, factoring in the average earnings of Americans in both periods. Through this comparison, the video provides an insightful perspective on whether home ownership has indeed become more challenging now as compared to the Great Depression era.

Apart from the financial analysis, this video also considers the considerable lifestyle differences between the 1930s and today, with a focus on the modern conveniences that have become standard in our lives. The impact of these factors on personal finances, and consequently, the overall economy, is thoroughly examined.

A cornerstone of the video is the emphasis on developing a critical mindset, encouraging viewers to question information they come across, be it on social media or elsewhere. It urges viewers to examine the facts and dig deeper into any claims about our current economic situation, fostering a more nuanced understanding of economic realities.

In the end, this video delivers a comprehensive exploration of whether our current economic situation is truly as dire as the Great Depression. A critical examination of various economic indicators combined with a nuanced discussion of the lifestyle differences between then and now provides viewers with a thought-provoking and enlightening narrative.

Educational, insightful, and immensely relevant in the current economic climate, this video is a must-watch for anyone interested in understanding the complexities of the economy. It's not just a historical exploration of the Great Depression era; it's a teachable moment for all of us, as we navigate through the economic landscape of today.

Chapters of Today's Video:
00:00 The Great Depression TikTok
01:19 Income Tax Rules in 1930
02:23 Worst Financial Time Since Depression?
03:40 Average Income of the 1930s
04:37 Bob Sharpe is Missing A Point About COSTS
05:09 Average Home Cost in 1930 vs Today
06:38 There Actually IS Something Wrong Today
08:06 A Roller Coaster Ride
08:21 More Choices Today?

*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[djvegachicago]

The math here for the average income compared to average home price does not make sense. With the average income in 1930 you can more easily pay back the home, almost twice as fast when compared to todays averages.

[JustAverageJeff]

The cost of living and goods went way further back then compared to now even though we make more money but everything is a bigger chunk of your income. You could make $1 feed a family of 4 for almost a week back then now $100 doesn't feed my dogs or my wife and I for even a week we maybe get 5 days out of $100. Plus nothing lasts long with planned obsolescence that is so prevalent today tools used to last a lifetime and you could pass things down to your kids, you can't really do that anymore. So yes I would so we are worse off because the value of goods doesn't match the rise of inflation it's way way way higher because Nixon took us off the gold standard in the 70's and ever since then the value of the dollar has been drained away by the government.

[joshymcdaniel]

Agree on the point google says to be able to “make it” and be middle class is around 60k-68k
68k converted to hourly is $32.69 an hr….
There are very few jobs in my area that pay that’
If you work at the coal mine it starts $28-29
Below what’s needed to be “middle class”

90% of jobs Wal-Mart gas stations etc are starting “up to” key word up to $16.50 hr
Well that’s 50% less than what’s needed just to survive’

Meanwhile jobs in same area 10 years ago were starting at not up to AT $12-13 hr
So I’m 10 years they now pay “up to” $3 more an hr…..

Yes some make bad choices like streaming or getting a car every 3 years but that’s not the issue in the big picture’

Companies continue to raise prices while still paying wages from 10 years ago’
It’s impossible to get ahead with the motto “work harder” no that’s no it ppl don’t seem to understand companies pad their pockets more each year while increasing prices and pay you less

[delbomb]

Your point about them not paying taxes helps his point.

Neither of you are counting productivity, which when factored we're getting royally screwed.

I'm not sure if you're factoring "flyover" states. I know very few jobs in my county that pay over 15 an hour. I know most gas station, fast food, and retail MANAGERS make less than 15 an hour. But 🤷‍♀️ my TOTAL monthly expenses average around 700 give or take 50 bucks pending heat. Last i saw 30% of working adults make less than 40k. Regular job wages aren't what you think they are

[silverback]

When I was 16 yrs old (in the 80s) I got a job making $13 an hour which then was great money. A single income family normally had nice cars, home and had no problems paying the bills at $13 an hour. Today....If you are making $13 an hour you are struggling to make ends meet and put food on the table.

People will tell you that our economy is doing great but it's a load of bull. The markets are way over stimulated, foreclosures on housing is still high, aution lots are over flowing with repossessions, dealerships are filled with new cars they can't sell because people can't afford them. Have a look at sporting events, notice all the empty seats?

People are in complete denial when it comes to the health of our economy. That massively fat stock market, when it collapses will make the great depression seem like a pebble on a super highway!

[swparker]

I may have heard you wrong, but home prices in 2023 are more expensive in relation to income than in 1930. In 1930, if you spend every penny of your $1368 annual income on a $7200 house (not realistic, but I am creating an apples to apples example), it would take 5.25 years to pay it off. But in 2023, if you spent every penny of your $58563 annual income on a $737900 house (again, not realistic, but keeping to the apples to apples example), it would take 12.6 years to pay off. Income has not risen as quickly as the cost of goods and services, but we are definately better off now than those in the great depression.

[andreblair]

Housing cost, fuel cost, and the cost of food is eating up our income...thats what the major complaints are, not technology and audi cars. Many have old cell phones and raggady cars and still struggling due to housing, fuel, and food prices.

[ANTIFASUPERSOLDIER]

Median is better to use than average in this situation bud

[brizzybones]

People in depression didn’t have technology we have to spend on like our cars, phones, subscriptions, and car insurance . They just needed money for food lol

[august]

for the people saying that most people struggling to pay bills these days is bc of "poor spending habits" y'all are genuinely dumb. if you make $15/hr (which is generous for a starting wage unless you're in a more urban area) that's a GROSS of $2400/month. that's DIRT. rent ALONE averages over $1700/month in this country! and the golden ratio everyone loves to talk about is "you should spend 1/3 of your income on rent" THEN WHAT IS THAT?? that's 70% of your income on JUST RENT. and most places WILL NOT let you rent there if you don't make at LEAST double or triple rent every month. plus the cost of groceries going up like crazy. not to mention, functioning in daily life these days WITHOUT something like a car or smartphone is almost IMPOSSIBLE to do. that's why Americans are on average still living with their parents until they're almost 30!! bc living on your own is almost impossible!! you need at LEAST two incomes these days to live, and that is BEYOND ridiculous considering some people can't find a partner, or DON'T WANT TO. y'all, your financial privilege is showing and it's gross. the lower and upper classes are growing and the middle class is shrinking and you really see nothing wrong with that? just "people don't know how to spend money" instead of "maybe there's something inherently wrong with the system here"?? incredible.

[poda]

why not compare Median if you want apples to apples? This is a better measure for the bulk of the population than comparing Averages. What about CPI/ cost of living? couple missed opportunities

[scottthomson]

Average home cost in California being 700k 😱

[joshymcdaniel]

Yes we make more mo wy wise what you failed to account for is that everything is 30x more expensive even after converting 1932 to 2023 dollars

[EKuernito]

How are we making this video ignoring cost of living? Number are irrelevant without that

[mohammedjeffali]

Im kinda old, and ive asked many older ppl about the great depression. They always say, "we did not have much but we always had food, there was always something to eat." That is not as true for people today.

[Astral_Dusk]

It's estimated over 25% of the working population in America is not employed full-time and is actively applying to jobs.
Then there are statistics that 80%+ of full-time employed people are unhappy with their job are thus potentially also job hunting (perhaps around half of them). Then there are billions of global applicants applying with visas. Competition seems pretty high.

[jonathanross]

First off it's not that "median" isn't actually an average, rather, it is a type of average. What you're referring to when you say the "actual average" is called "the mean". Both are types of "average" You wouldn't look at a Ford mustang and say "thats not a Ford, it's a mustang. Let's look at an actual Ford..." *Shows an F-150.

Now, there are certainly instances where it's better to use mean over median, but that's a different conversation.

Next, the measure of economic instability should never be expressed in terms of the ubiquity of iphones. That's a ridiculous metric. Of course people in the 30s didn't have technology that wouldn't be invented for another 75 years and the fact that most people today own a smartphone is not an indicator of economic success or stability. Pretending like everything is just fine with the economy because people own phones or that the only reason a person might experience financial hardship is that he bought an Audi when he should have bought a Honda is completely asinine.

Even if average income in the 1930s was the equivalent of 25k today, a much more important question would be, "how much purchasing power did an average income in the 1930s provide compared to today, specifically with respect to the most vital expenses ie: housing, food, and healthcare"?

[tropospherical]

Comparing cost of living =/= comparing incomes. I'd like to see a comparison of taxes, medical, utilities, gas, food, etc, and other required fees we are forced to carry by our lovely government. Therein lies the difference.

[krishirlee]

Yeah you did talk about some of the “optional” things, how about compare the cost of essentials. Food, house, car, gas, and on and on. Average then vs now. Sure we don’t have to have an I phone, 72” screen tv etc. There is a lot more creature comforts today and life is generally easier but the power of the dollar today isn’t what it was then, hell it isn’t what it was pre 2021.

[toddboward]

Funny how your Tax argument only makes it worse. Because we make less now comparatively AND, depending on where you live, pay more than HALF our income in taxes.

You didn't prove him wrong. You proved him MORE RIGHT. 😂