At times, we blame the currency’s depreciation for making everything seem several times more expensive than they were a decade ago. However, the truth is that the dollar’s value is not the main factor, and instead, the cost of living in the United States has actually gone up by many folds over the past few years.
According to William Schantz, life for a young average American citizen or student is significantly more expensive than what it was for their parents. This is why the American parents of today’s generation managed to purchase real estate, while the young American adults of today are struggling with affording a one-bedroom apartment despite their high wages.
Why Life Is So Expensive Today According to Schantz
1. The Cost of Education has Multiplied
There is no doubt that the cost of education has gone up across the world over the years. However, according to William Schantz
, the cost of receiving a quality education or paying for college tuition in the United States has increased by alarming percentages. This is one of the main reasons why many young Americans choosing to attend and complete college continues to go down.
For instance, the cost of getting a college degree from Harvard has gone up by 1550% from 1971 to 2017. While the average annual tuition cost at Harvard was around 2600 USD in 1971, it had increased to almost 60,000 USD per year by 2017.
In order to avoid the high college loans and student debt, a high percentage of students across America simply choose to start their careers right after graduating from high school.
2. Cost of Basic Consumer Goods Continue to Go Up
Although the price of basic consumer goods is set to be easily affordable for a majority of the population, this is unfortunately not what is happening in the United States now.
According to Schantz, an average American family in 1973 allocated 50% of their total income to afford food, housing, health care, and education. Now, the percentage has gone up to an alarming 75%. As a result of this, average American families are living a life with bare minimum facilities and do not have the budget for recreational activities or traveling.
3. Fewer American Individuals Are Now Able to Afford Property
Owning your own house or land in America is becoming more unrealistic every passing year. The average rate of American residents owning their own property has significantly dropped in the past few decades, while the rate of relocating to a different, cheaper American state and even outside America has gone up.
As a result of this, Schantzsuggests that the average age of homeowners has increased from 25 to 44 from the year 1981 to 2020.
Final Thoughts by Schantz
Although the average income and national minimum wage rate have gone up, William Schantz states that the cost of affording life in the United States has increased significantly more. In just 5 to 6 decades, the income power of an American citizen has decreased, making a necessity like a college education a luxury for many.