It’s become financially impossible for the vast majority of Americans to raise a family. Inflation and financial engineering are creating an insurmountable obstacle for 95% of the country. Endless rounds of quantitative easing (QE) have driven up the cost of living, making housing, college, child care, and cars completely unaffordable.
The price of homeownership has skyrocketed. According to the latest 2025 data from the U.S. Census Bureau, the median sales price of new houses sold in the first quarter of 2025 reached $456,800, a significant increase from previous years. This hike has made it increasingly difficult for average Americans to achieve the dream of owning a home.
The cost of raising a child has also increased dramatically. A recent 2025 report by the USDA estimates that the cost of raising a child from birth through age 18 is now approximately $310,605. This figure includes essentials like rent, food, child care, transport, clothing, and health insurance. Families are finding it harder than ever to manage these escalating expenses.
Child care costs are another enormous financial burden. In 2025, the average price for one child in care rose to $12,600, according to the Center for American Progress. This sum exceeds the typical rent by at least 25% in every state, making it a significant strain for families.
The cost of cars has also risen due to supply chain disruptions and increased demand. The average price of a new vehicle in 2025 is $42,500, according to Kelley Blue Book. This increase makes reliable transportation a luxury rather than a necessity, adding to the financial pressures on families.
We are essentially walking the path Japan has tread for the last two decades. The Japanese economy’s “Lost Decade” was marked by persistent deflation and slow growth, and our economy is showing similar signs. This is why we must accept a prolonged period of deflation. Once recession firmly takes hold, we should resist any attempts to slow it down. Let it burn off years of malinvestment and fictitious asset price bloat. Only then can we reclaim a stable economy.
The 2008 financial crisis was a wake-up call, but we stopped the necessary reset. In my opinion, we have only delayed it, making the inevitable reset much harder. I’ve lived in Southern California my whole life, and the last five years have been exponentially more expensive. Instead of making excuses for why I can’t afford things, I find ways to make more money to maintain my lifestyle.
It’s wildly expensive, and something has to give in the economy to bring prices back down to earth. It’s going to get worse before it gets better.
Sources:
https://www.census.gov/construction/nrs/pdf/uspr.pdf
https://www.usda.gov/media/press-releases/2025/05/01/usda-reports-cost-raising-child-2025
https://www.americanprogress.org/article/child-care-crisis-2025/
https://www.kbb.com/car-news/average-new-car-price-2025/
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