US Happiness PLUMMETS As Youths Say American Dream DEAD

Summary

The transcript discusses the high costs associated with achieving the American Dream, including raising a family, housing, and healthcare, which have significantly increased over time. It highlights how these financial pressures have contributed to a decline in national happiness, particularly among younger generations in the United States. The conversation also touches on the contrast with social democracies like Finland, where a stronger social safety net and lower costs for essentials correlate with higher reported happiness levels.

Takeaways

• 📉 The American Dream is now estimated to cost $3.4 million, including expenses like marriage, children, homes, healthcare, cars, and education.
• 💰 The cost of raising two children to the age of 18 is reported to be $576,000, not including other expenses like a down payment on a house or a 30-year fixed rate mortgage.
• 🏠 A significant portion of the lifetime expenses is attributed to housing, with an average 30-year fixed rate mortgage costing around $800,000 at 7% interest rate.
• 🚗 Car purchases over a lifetime are estimated to cost around $270,000, reflecting the substantial expenditure on transportation.
• 🏥 Healthcare costs are notably high, with an average family premium for a family of four totaling $93,400 over 39 years, excluding hospital birth costs.
• 📉 The US has dropped out of the top 20 nations in overall happiness, with a significant decline in happiness among young people being a contributing factor.
• 🌍 Finland ranks at the top for overall national happiness, with the US ranking 10th for people over 60 but 62nd for people under 30.
• 🤔 The decline in young happiness is linked to concerns about the future, such as climate change and the changing trajectory of traditional life paths.
• 📈 The cost of basic components of the American Dream, like education, healthcare, and housing, has significantly increased over the past decades.
• 🌐 Nordic countries, known for their social democracies and strong social safety nets, consistently rank high in happiness indices.
• 🤷‍♂️ The script raises questions about whether the Nordic model could work in a large, diverse, and dynamic country like the US, which values entrepreneurialism and innovation.

Q & A

What is the estimated cost of the American Dream according to the Yahoo news report mentioned in the transcript?

The estimated cost of the American Dream is $3.4 million, which includes expenses related to marriage, two kids, homes, healthcare, cars, and education over a lifetime.

How much does it cost to raise two children to the age of 18 in the United States, as per the Investopedia study from December 2023?

The cost of raising two children to the age of 18 is estimated to be $576,000.

What is the significance of the 7% interest rate mentioned in the transcript?

The 7% interest rate is significant because it affects the cost of a 30-year fixed-rate mortgage, which is a major component of the American Dream, with an estimated cost of $800,000.

What is the average lifetime cost for a family of four to have health insurance in the United States?

The average lifetime cost for health insurance for a family of four is $934,000, which does not include out-of-pocket expenses for hospital births or medical treatments.

How has the cost of living in the United States impacted the national happiness ranking?

The increasing costs of living, particularly in areas such as housing, healthcare, and education, have contributed to the United States slipping from the top 20 nations in overall happiness, with a significant drop in happiness among younger people.

Which country ranked as the happiest according to the report discussed in the transcript?

Finland was ranked as the happiest country.

What is the rank of the United States for people over 60 years old in terms of happiness?

The United States ranked 10th for people who are 60 and older in terms of happiness.

Which country ranked below the United States for happiness among people under 30?

Countries like Guatemala, Bulgaria, and Saudi Arabia ranked below the United States for happiness among people under 30.

What are the core components of the American Dream that have increased in price over the past several decades?

The core components of the American Dream that have increased in price include housing, healthcare, and education.

How does the transcript suggest social media reflects the current living conditions?

The transcript suggests that social media reflects the actual living conditions by sharing and going viral about the struggles people face in affording life, rather than being the cause of unhappiness.

What role does the social safety net play in the happiness levels of countries like Finland, according to the transcript?

In countries like Finland, the social safety net plays a significant role in happiness levels by providing universal healthcare, more subsidies for housing affordability, and a stronger social safety net, making people feel more secure and less susceptible to divisive tactics.

Outlines

00:00

🌟 The American Dream and Happiness

This paragraph discusses the concept of happiness in the United States and questions its existence due to the high costs associated with achieving the American Dream. It references a Yahoo news report stating that the American Dream now costs $3.4 million, including expenses for marriage, children, homes, healthcare, cars, and education. The paragraph highlights the significant costs of raising children, interest rates affecting mortgages, car purchases, and especially health insurance premiums. It contrasts these financial burdens with the fixed nature of health insurance, which is a necessity in the U.S. The paragraph also notes the decline in the U.S.'s ranking in national happiness, attributing this largely to younger people, and contrasts the situation with countries like Finland, which ranks higher in happiness despite its perceived lack of joy in daily life.

05:03

📈 Inflation and the Changing Cost of Life

The second paragraph delves into the impact of inflation on the core components of the American Dream, such as education, healthcare, and housing. It discusses how these costs have skyrocketed over the past decades, leading to a sense of precarity among younger generations. The speaker argues that this financial strain contributes to the decline in young people's happiness and the perception that the American Dream is no longer attainable. The paragraph also compares the U.S. to other countries like Guatemala, Bulgaria, and Saudi Arabia, which rank higher in happiness despite their apparent shortcomings. It suggests that social media might reflect the real struggles faced by young people rather than causing their unhappiness.

10:04

🌐 Cultural and Economic Factors in Happiness

The final paragraph explores the cultural and economic factors that contribute to happiness levels in different countries. It contrasts the social democracies of Nordic countries, where healthcare and other social safety nets are more comprehensive, with the dynamic and entrepreneurial spirit of the United States. The speaker questions whether the Nordic model could succeed in a diverse and large country like the U.S. and reflects on the historical period of the New Deal when America experienced high levels of happiness and economic prosperity. The paragraph concludes by suggesting that social democracy could provide a balance between ensuring everyone's well-being and fostering innovation and creativity in American society.

Keywords

💡Happiness

Happiness in the context of the video refers to the self-reported well-being and contentment of individuals, particularly in the United States. It is explored in relation to economic factors and societal changes, with the video highlighting a decline in happiness among young Americans due to increasing costs of living and uncertainty about the future.

💡American Dream

The American Dream is traditionally the belief that anyone can achieve success and prosperity through hard work in the United States. In the video, it is associated with financial milestones such as owning a home, getting married, having children, and retiring comfortably. However, the increasing costs of these milestones have led to a perception that the American Dream is becoming unattainable for many, particularly younger generations.

💡Cost of Living

The cost of living refers to the amount of money needed to sustain a certain standard of living, including housing, healthcare, food, and other expenses. In the video, it is emphasized that the cost of living in the United States has significantly increased over time, particularly in areas such as housing, healthcare, and education, contributing to a decline in happiness among young people.

💡Healthcare

Healthcare refers to the services provided by medical professionals for the maintenance or improvement of health. In the context of the video, healthcare costs are highlighted as a significant and growing expense for Americans, with the average family premium cost being a substantial part of the overall cost of living. The video also notes that healthcare costs have been increasing at a rate that outpaces general inflation.

💡Interest Rates

Interest rates are the percentage of a loan that a borrower must pay to the lender, typically expressed as an annual percentage rate (APR). In the video, interest rates are discussed in relation to the cost of mortgages, with the current rate at 7% significantly affecting the affordability of housing. High interest rates increase the overall cost of borrowing, making it more expensive to purchase a home.

💡Inflation

Inflation refers to the rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power over time. In the video, inflation is discussed in the context of increasing costs of essential aspects of life, such as housing, healthcare, and education, which have risen significantly over the past several decades, outpacing the Consumer Price Index (CPI) inflation.

💡Social Media

Social media refers to websites and applications that enable users to create and share content or participate in social networking. In the video, social media is discussed as a potential reflection of the real-life concerns and feelings of people, particularly young individuals, about their economic prospects and overall happiness. It is suggested that the content shared on social media goes viral because it resonates with the experiences of many.

💡Social Democracy

Social democracy is a political and economic philosophy that advocates for a balance between a capitalist market economy and strong state intervention to promote social justice and welfare. In the video, social democracies like Finland and other Nordic countries are noted for their high happiness rankings and are contrasted with the United States, suggesting that their social safety nets and policies contribute to higher self-reported happiness levels.

💡Economic Trends

Economic trends refer to the general direction or pattern in which an economy is developing over time. In the video, long-term economic trends are examined as significant factors influencing the happiness and life prospects of young Americans, with the increasing costs of housing, education, and healthcare being particularly impactful.

💡COVID-19

COVID-19, also known as the coronavirus, is a global pandemic that began in late 2019. In the video, the impact of COVID-19 on mental health and overall well-being, especially among young Americans, is mentioned as a contributing factor to the decline in happiness levels.

💡New Deal

The New Deal refers to a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s in response to the Great Depression. In the video, the New Deal is mentioned as a period in American history when self-reported happiness was high, due to the sense of security and opportunity provided by the social and economic policies.

Highlights

The American dream is now estimated to cost $3.4 million, based on expenses like marriage, children, homes, healthcare, cars, and education.

The cost of raising two children to the age of 18 is now estimated at $576,000.

A 30-year fixed rate mortgage at approximately 7% interest rate can cost around $800,000.

The average lifetime cost for a family of four to maintain health insurance is $934,000.

The US has dropped out of the top 20 nations in overall happiness, with young people's happiness ranking dropping significantly.

The unhappiest country is Afghanistan, while the US ranked 10th for people aged 60 and older but 62nd for people under 30.

The cost of the American dream has significantly increased over the past several decades, affecting core components like housing, education, and healthcare.

The decline in young people's happiness in the US coincides with the COVID-19 pandemic, impacting anxiety and mental health.

Finland and other Nordic countries consistently rank high in happiness, often attributed to their social democracies and strong social safety nets.

High levels of immigration and diversity in the US may present unique challenges compared to more homogeneous societies.

The US's dynamic and entrepreneurial nature may make it difficult to directly apply social democratic models from smaller, more homogeneous countries.

During the New Deal era, the US saw high levels of self-reported happiness, suggesting a balance between social safety nets and economic prosperity is possible.

Wages have not kept up with the increased productivity of American workers, contributing to economic challenges.

Social democracy might offer a balance between ensuring everyone's well-being and fostering innovation and creativity.

The Finnish model of alternating between heat and cold, such as in saunas, is recommended as a cultural experience.

The discussion raises questions about the sustainability of the American dream and the need for a new model that balances economic growth with personal well-being.

Transcripts

let's talk about happiness let's talk

about happiness and uh does it even

exist anymore here in the United States

and to what extent let's go a and put

this up there on the screen there was a

very interesting report here from Yahoo

news and it was a write up specifically

about how the American dream now costs

$3.4 million and the overall way that

they arrived at that math was that

between marriage two kids homes

healthare cars and education an

estimated $3.45 million over over the

course of a lifetime a new Investopedia

study has found this is from December of

2023 but has actually been readjusted

now at this point they say that the cost

of raising children in particular just

two to the age of 18 now totals

$576,000 per down payment on average and

a 30-year fixed rate mortgage of

approximately 7% which is where we at

right now is

$800,000 that's actually possibly the

most stunning part to me because it

really shows us where uh how the massive

impact of interest rates can affect this

car purchases Lifetime on average given

how people are spending it's about 2

$270,000 another very very significant

chunk but let me tell you guys the one

that hurts more than any of this in the

breakdown is average family premium cost

39 years of annual for a family of four

93400

out of pocket just for health insurance

out of pocket and the craziest part is

that doesn't even include the hospital

birth that they list here at the top

which is 5700 because that's what people

are paying out of their damn deductibles

yeah and that doesn't that doesn't

actually include your medical that is

just your premium yeah like just a

premium not MediCal G so it's insane

it's funny because uh retirement in this

is less than Lifetime Health insurance

cost that is what outraged me actually

most about this the Topline figure you

know we can debate and spend some time

on that and a lot of this is fungible

like you can you know you can buy

cheaper cars you can buy a smaller house

you can choose to go to state college

and all that but you really can't choose

to not have health insurance in this

country that's one of the most fixed

costs in this entire thing is the single

biggest chunk of your overall lifetime

uh of your overall lifetime expenses and

what do we know is that this currently

is just based on 2018 the 2020 costs

there's actually been an inflation huge

inflation in health insurance cost

health insurance costs inflation far

outstrips normal CPI inflation and I

haven't even mentioned food and cost of

living and all this so the likely number

is probably higher so the pro point of

all this is just that the cost has gone

significantly up from where it was

previously and then lo and behold uh it

turns out that the US has slid down in

the ranking of overall National

happiness let's go and put this up there

on the screen Finland for some reason

and we'll talk about this in a second

let me focus on the us part at least

right now the US has now slipped from

the top 20 of nations in overall

happiness but what they particularly

noteworthy is that inside of the report

what we find is that it is largely

attributable to young people it's that

the people who are over the age of 30 uh

their overall happiness ranking has not

really gone and by the way this is all

self-reported their overall happiness

ranking has either remained static or

has gone up but that the drop in the

young happiness has actually slid all of

the US below the top 20 for the first

time in quite a long time so they

surveyed 143 countries um the unhappiest

country by the way is Afghanistan which

we obviously have a significant hand in

way to go guys um the US ranked 10th for

people who are 60 and older they still

feel pretty good about things but

62 for people under 30 6c

for people under 30 um they quote an

economist uh in one report they who said

I have never seen such an extreme change

talking about the drop in happiness

among younger people this has all

happened in the last 10 years it's

mainly in English language countries

there isn't this drop among young people

in the world as a whole and uh this

report I looked at also talked to a

young person who is not feeling too

happy who said listen we have less to

look forward to in the future there's

going to be climate change that will

affect the way we live there's less of a

clear-cut trajectory for our life paths

because for so long it was so easy just

to know you could get married have your

2.5 kids pay for your house now that

path is a lot more closed and going back

to some of those components that make up

the $3.5

million that you need just to do the

basics of the like you know middle class

American dream life have a house go to

College get married have kids be able to

retire have health

insurance those pieces those core

components have gone up in price wildly

over the past several decades so you

know we've talked a lot about inflation

in terms of uh near-term cost of living

those things obviously incredibly

important but part of why you see this

overall trajectory of people saying

we're on the wrong path of people saying

the American dream is no longer reality

of young people feeling so depressed

about their the current state of their

lives and their possibility for the

future is that long-term massive price

spike in

Education Health Care and housing that

has made life so much more precarious

for younger Generations yeah so again I

mean just to be 62nd some of the

countries that uh beat us are Guatemala

Bulgaria and Saudi Arabia which is

pretty crazy especially Saudi Arabia

because if you're a female in Saudi

Arabia don't even have any rights and

it's like you're happier than people are

here in America that that doesn't sound

right well look what we can gleam from

this is that I think almost all of it

comes back to housing and that is one of

the just because housing is the biggest

expense you're going to make in your

entire life so if you're not able to

make that is more well well yes uh

whenever so housing and Healthcare I

guess housing because it's the biggest

upfront cost you're going to make in

your entire life right in terms of the

largest purchase unable to save for that

that is what delays marriage people

having kids America is one of the very

few countries in the world where people

report having to having wanting more

children than they're able to afford

some countries like Japan and others

it's not like they don't have the money

to have kids they just genuinely don't

want to have children but America is one

of those places where people want to

have 2.2 between 2.5 kids which is

replacement rate and so they just simply

can't afford it and we just read

everybody the the numbers there and they

feel it would be irresponsible or they

wouldn't be able to have a reasonable

quality of life if they were able to do

so I have always found that very very

sad statistic because it's one of those

where that's the exact reason why people

are supposed to work hard it's not

supposed you can have nice cars or

whatever it's supposed to you know being

able to raise kids have family that's

largely where you're going to derive the

vast majority of happiness in your life

and there's reams of data to back all of

that up the problem uh that we can see

inside of this is both from the very

very early level and this is where I'm

curious to what you think everyone keeps

blaming social media but I'm like you

know I just think social media is a

reflection of what people accurately

feel it's not Tik Tok Instagram reals

and other things that go viral about

people being unable to afford life

that's not a fake circumstance like in

my opinion it goes viral and it gets

shared because people can resonate with

the themes and you know kind of what

people are talking about there's a big

debate right now as to whether it's

causal in terms of social media but I

still genuinely believe that it's very

just reflective of what the actual

living conditions are I mean when you

look at the fact that young people

around the world have social media and

they're not all seeing this precipitous

Decline and how they feel about you know

their life and their level of happiness

I think that is you know pretty decent

proof in your direction I mean I I would

be remiss if I didn't point out that

consistently places like Finland other

Nordic countries you know Denmark

Iceland is another one that does well in

these happiness rankings these are all

social democracies where things like

you're not going to be paying a million

bucks of the course of your lifetime for

health insurance you're going to have

healthare universally it's not going to

be something that you worry about they

have more of a solid social safety net

um more subsidies in terms of you know

housing making housing more affordable

and paying more attention to that as

well so I don't think it's an accident

that those are consistently the places

where people self-report the highest

levels of happiness um I also think we'd

be remiss if we didn't point out that

part of this you know catastrophic

decline for young people in

self-reported happiness also coin inides

with Co and you know we we know that

that had a tremendous impact on levels

of anxiety and overall mental health for

young Americans uh so you know I I don't

think that I don't think we can ignore

that piece as well even as I do think

that these long-term economic Trends are

incredibly significant in terms of how

people feel about the direction of their

own lives and the direction of the

country yeah no that's a good point I

hadn't thought about that I think you're

absolutely right okay this is the only

thing about Finland I've been in Finland

man Finland is is dark as hell people

there are not smiling I I'm just not

sure I buy it like maybe they

self-report happiness but from having

traveled all the Nordic countries these

are some of the most like closed off

folks that you will ever see in your

entire life they even they joke about it

about how Americans are too smiley and

they talk all the time and so I'm like

are you guys really that happy like be

honest let leave us in the comments also

the food let's all be real there's not a

scrap of flavor in any of the food

that's up that's the power of social

democracy can overcome

food terrible climate rotten fish gou

all day long in the winter that's how

powerful social democracy is no I don't

think so I I would say there is some

argument about that though Crystal about

whether we could even have so I mean

this is a a more important question kind

of relates back to immigration but you

know these are very highly homogeneous

societies where look what are the real

differences when you all look the same

talk the same language you have very

very low levels of immigration in terms

of their uh tax and you know capital in

terms of their innovation and all that

what's the last thing Finland really

invented so I'm not going to put it down

uh and say that that's not a worthy

model the question is can it ever

actually succeed in a country of

3 million we have social security it's

one of the most it is one of the most

successful and popular Universal social

safety net programs in history and I

would argue the exact counter that when

you have the level of rapacious

predatory State captured capitalism that

creates this zero some seeming game and

high stakes that's exactly what

exacerbates and opens up an opportunity

for unscrupulous self-serving

politicians to stoke these divides where

if you have a social safety net where

people feel more secure and more stable

then they're less susceptible to those

type of divide and conquer tactics which

are so effective and so ever in terms of

our politics I don't even disagree it's

more just a question of like what is

America like for example the largest

company in Finland by market cap is like

42 billion like that's a freaking joke

like they they they this is not a

country that's because they have free

healthcare no I have no idea why I don't

even think it's necessarily because they

have free healthcare there's a lot of

crappy European countries that also have

very very little business my only

question is about America is a very

Dynamic country make a lot of money here

people like

entrepreneurialism it's a huge country

there 330 million people people from all

over the world we have very different

ideas we have very uh you know finnished

politics I'm not 100% familiar but as I

understand it in general the way that

ours functions and the way that we kind

of go at it like that it doesn't really

exist in the same way in a lot of these

places I don't know though whether

that's because of our economics or not

right so even in times of uh High

economic Prosperity I was looking at

this fascinating graph the uh top

earning cities in America in 1949 were

like Cleveland Detroit it was all in the

American Heartland from industrial

manufacturing from the postor War II era

and I was thinking about how different

of a country it was whenever the richest

people in America were also the people

who actually produced stuff this is all

just kind of me trying to wrap my head

around whether any of this is even

possible in America like the I lived in

Denmark it's a tiny ass little country

they don't have a lot of people there I

mean but also you're ignoring the fact

like the time period in American history

when probably we had the highest levels

of self-reported happiness was during

the New Deal and when you had you know

and partly this was just because of post

World War II Global circumstances that

we overwhelmingly benefited from but you

had a middle class that was expanded

expanding you had people who felt like

they were able to you know achieve the

American dream and this idea of we're

able to work hard and we're able to get

ahead was more present um and seemed

more realistic and you know the numbers

in terms of the cost of housing then

versus now the cost of healthcare then

versus now uh the cost of education then

versus now also bear that out not to

mention the way that wages have not even

come close to Keeping Up With The

increased Pro uh productivity of the

American worker so you know of course we

can that's why I'm not advocating you're

right that there's a balance right you

don't want to lose that creative spark

and that Innovation that at its best we

all you know have so much pride in As

Americans you don't want to lose that

that's why I'm not like out here asking

for capit for communism I understand um

that's why I think social democracy is

you know has proven to be a good balance

of some of those competing priorities of

making sure everybody's good especially

in a wealthy prosperous Society but also

allowing for Innovation creativity and

that like you know fruitful hum that we

again at our best get here in America

that's one thing we should steal from

the fins is sauna finish saas are

awesome I I hate saas but oh man no hey

everybody anyway I just I listen I'm a

sweaty person to start with I don't need

a freaking sauna that's like my worst

nightmare so no but the Finish model is

great it's like you get hot then you get

cold and you get hot and you get cold

again it's a lot of fun if you ever go

to Finland I highly recommend it fins

you can keep that you can keep that part

to yourself hey guys if you like that

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