> The reality is that Russia is losing the economic war, just as it is losing the war on the battlefield. Real incomes in Russia are already estimated to be 10 per cent lower today than in 2014, when Putin first invaded Ukraine.
I imagine the average American is doing worse than that since then.
In 2014 USA, things for me and my peers were finally stabilizing after 5 years of financial crisis, housing busts, horrible job market, etc.
Inflation was low, I'd finally found a fair employer at a decent salary, had bought a late model car (3 year old Acura) for about $25K, and my investments had recovered and were now growing again in the stock market. Housing was still modestly priced after the bubble crash, interest rates were low for buyers, but rent prices were doable, with plenty of inventory, too, for those not yet ready to buy.
And there were dozens of 2nd and 3rd tier cities in which any standard worker would be able to move to and likely obtain the "American Dream" of home ownership, a couple cars, etc.
Let's compare that to now:
My salary has grown by about 25% in absolute dollars (2-3% corporate raises don't add up so quickly). Meanwhile, I still own my 2010 car, and it would cost about $40K today to replace it with a similarly low-miled used one, or $50K+ if new. That's if I could even get one since it seems there is now a perpetual "chip shortage."
The same apartment I rented in 2014 would cost at least 50% more now, though probably closer to double with all the extra fees. The same starter homes I looked at then are double in absolute dollars, and at current 7%+ interest rates, might be closer to 3x as expensive per monthly payment. And this isn't just in places like NYC or Bay Area or Miami Beach. Once "cheap" cities like Phoenix and Nashville are now just as expensive, relative to salaries, as the over-crowded and desirable coastal areas were last generation.
Everything else is way MORE expensive, especially food. I eat out less. Food quality is generally lower or smaller portioned.
I take less vacations as airfare seems to have doubled in price in the last 5 years. And let's not even get into health insurance, which has also doubled in price since 2014 (I now have a $3K deductible with the same premium costs as before, thanks to Obamacare).
My retirement savings have lost over 1/3 of their value in the last year.
So Russians should know that it's not just them suffering. Most of us in the west have taken a 10% hit to standard of living in just the last 3 years, IMO.
I imagine the average American is doing worse than that since then.
In 2014 USA, things for me and my peers were finally stabilizing after 5 years of financial crisis, housing busts, horrible job market, etc.
Inflation was low, I'd finally found a fair employer at a decent salary, had bought a late model car (3 year old Acura) for about $25K, and my investments had recovered and were now growing again in the stock market. Housing was still modestly priced after the bubble crash, interest rates were low for buyers, but rent prices were doable, with plenty of inventory, too, for those not yet ready to buy.
And there were dozens of 2nd and 3rd tier cities in which any standard worker would be able to move to and likely obtain the "American Dream" of home ownership, a couple cars, etc.
Let's compare that to now:
My salary has grown by about 25% in absolute dollars (2-3% corporate raises don't add up so quickly). Meanwhile, I still own my 2010 car, and it would cost about $40K today to replace it with a similarly low-miled used one, or $50K+ if new. That's if I could even get one since it seems there is now a perpetual "chip shortage."
The same apartment I rented in 2014 would cost at least 50% more now, though probably closer to double with all the extra fees. The same starter homes I looked at then are double in absolute dollars, and at current 7%+ interest rates, might be closer to 3x as expensive per monthly payment. And this isn't just in places like NYC or Bay Area or Miami Beach. Once "cheap" cities like Phoenix and Nashville are now just as expensive, relative to salaries, as the over-crowded and desirable coastal areas were last generation.
Everything else is way MORE expensive, especially food. I eat out less. Food quality is generally lower or smaller portioned.
I take less vacations as airfare seems to have doubled in price in the last 5 years. And let's not even get into health insurance, which has also doubled in price since 2014 (I now have a $3K deductible with the same premium costs as before, thanks to Obamacare).
My retirement savings have lost over 1/3 of their value in the last year.
So Russians should know that it's not just them suffering. Most of us in the west have taken a 10% hit to standard of living in just the last 3 years, IMO.