Ah, Tiktok. The only place you can find dance videos, stupid life hacks, and grown-ass men ranting about mermaids from the front seat of their car. But hold on. There’s also economic analysis! A bunch of Tiktokers are claiming our economy is in something called a “Silent Depression.” WTF are they talking about and, more importantly, are they right?
Here’s Five Fast Facts About A Silent Depression:
- 😔 Silently Depressed - The “Silent Depression” they claim, is a depression that no one notices, especially because pricing is considerably higher than ever.
- 🤷 Sources? - They point to questionably-sourced data that shows big ticket items cost a much larger percent of your annual take-home income than they did in 1930. That’s when home prices were three times the annual salary and rent was a smaller amount.
- 📊 Break It Down - Their metrics include the average cost of a home ($3,900 vs. $460,000), monthly rent ($18 vs $2000), and car prices ($600 vs $48,000) on an average salary ($1,300 vs. $58,000).
- 🧮 Check Your Math - Real world experts point out that there’s more than a few flaws in their math. Reliable financial data doesn’t really exist before 1940. The U.S. Census Bureau puts the median household income at $75,000. Programs like Social Security didn’t exist. Modern amenities like iPhones didn’t exist.
- 📈 High Note - There’s one more catch that blows their claim to heck and back: the stock market is hitting all-time record highs and unemployment is also very low. Those do not qualify as “depressed” at all.
🔥Bottom line: Rule of thumb: if it’s on Tiktok, it’s probably not true. The same holds for Facebook (except for Paycheckology posts). It’s probably a bad idea to reference social media for any kind of advice, especially the financial kind.
Do you think we’re in a silent depression?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
