Struggling to buy a house with dual incomes compared to your parents' ability with one? Here's an explanation.
In 1971, a significant economic decision was made that would forever change the financial landscape of America. This decision, made by President Richard Nixon, severed the dollar's link to gold, a move that would have far-reaching consequences for the American middle class.
Dave Erickson and Paul Stone, co-authors of the upcoming book "1971: How All of America's Problems Can Be Traced to a Singular Day in History", argue that this policy shift was the turning point that set the stage for many of the economic issues America faces today.
The financial foundation of the American middle class was destroyed in 1971. After this date, wages stagnated, the cost of living soared, and the price of housing increased significantly. Before 1971, a single breadwinner's salary was sufficient to buy a home and provide for a family. Today, homes cost eight times what most families earn, making the dream of homeownership a relic of previous generations.
The post-1971 era also allowed banks to flood the market with easy credit, driving home prices to high levels while real incomes remained stagnant. This, combined with the unshackling of the government from fiscal discipline, made American savings vulnerable to runaway inflation.
Germany, on the other hand, has taken various measures to moderate housing prices. Since 1971, the German federal government has promoted social housing construction, implemented subsidies and tax incentives for homebuyers, and regulated the housing market to increase supply. However, despite these efforts, housing prices, especially in metropolitan areas, have generally continued to rise due to persistent high demand and limited available housing stock.
Paul Stone, a proud Air Force veteran and a frequent guest on national news programs, is known for his sharp insights and unapologetic defense of American values. He co-authored the book with Dave Erickson and has a foreword by Judge Jeannine Pirro. The book is set to be released on Thursday, Sept. 18, 2025.
The statement "Gold might glitter, but it's still money. Taxes should treat it that way" suggests a call for taxes on gold to be treated similarly to other forms of income. This is just one of the many insights that the book promises to offer, shedding light on how the events of 1971 have shaped America's economic woes.
Today, many American families are poorer than previous generations, despite working harder and longer. The book aims to provide a comprehensive understanding of how this state of affairs came to be and offers potential solutions for a brighter future.
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