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"What does it take to be poor in America?
The federal poverty line says it’s $31,200 for a family of four. If that threshold sounds like a joke, it’s because the government measures poverty using economic data from the 1950s. This guarantees a massive undercount of poor Americans.
Recently, a hedge fund guy manager applied the government's formula to current economic data. The real poverty threshold he found is so high it would reclassify most of the American middle class as poor. Tune in to find out why."
~ Coin Bureau
The video argues that the official federal poverty line in the United States is severely outdated because it relies on spending patterns from the 1950s that no longer reflect modern economic realities. Strategist Michael Green suggests that when applying the original formula to current data—where essential costs like housing, healthcare, and childcare have far outpaced food inflation—the true poverty threshold for a family of four should be closer to 140,000 dollars. This discrepancy creates a valley of death for middle-class families who earn too much to qualify for government assistance but not enough to cover the rising nominal costs of participating in the 21st-century economy. The video further explores how this structural breakage leads to permanent wealth destruction for young families, as they are forced to spend their seed capital on basic survival rather than investments, ultimately widening the gap between asset owners and wage earners.
0:00 Intro
1:04 Background
4:18 The Cost of Participation
9:34 Green’s Survival Budget
15:26 Green’s Valley of Death
18:20 Asset Inflation and the Cost of Existence
Source - Coin Bureau Finance YouTube: https://www.youtube.com/watch?v=mCjbFI853UU
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
