A.I. Warns: America’s Inflation Spiral Has Begun – Here’s Your Escape Plan

What's up guys, John here. What is going to happen in America over the next 5 years is something that I believe will change this country. It'll be the biggest change we've ever seen. That's saying a lot. You know, America was founded in 1776, we've lived through a lot of change. But I believe the next 5 years, that change will be greater than anything we've ever lived through in our lifetime, to say the very, very least. And 5 years is going to fly by, it's going to be like a blink of an eye. Now what the media is saying that we should pay attention to is political drama, is tariffs, is what this country's doing, what that celebrity's doing. But what they're not telling you to look at is what's happening to the U.S. consumer, what's happening to America, and where smart money's going, where the real opportunity is. Well, I had a conversation with Chad Chappitie about all this, and I was saying, well, look at the cost of living here, look at how much a house was, a car, average household, you know, earnings. What were they back then, and where were they today, and how is this all going to shake out? Where are these corporations going to invest, and how is this going to, you know, basically impact all of us? Well, they give us a full breakdown and tell you exactly where to invest and how to do it, and how to escape this big, what I believe, I would call crisis. You know, when people can't afford their homes, they can't afford food. Most Americans are not making enough money to afford the basic costs of living. A new report found a quote, minimal quality of life is out of reach for the bottom 60% of American households. They're financing burritos from DoorDash using, you know, buy now, pay later services. More Americans are taking out short-term loans just to buy their groceries. They're eating now and paying later. 25% of Americans who have buy now, pay later loans are using them to help afford groceries, and that number is up from 14%. This is a crisis. Like, this is a real problem. So in this video, I'm going to break it down. I think it's a lot more important than any single current event that will likely be forgotten in a day or two. This is something that's going to, without doubt, without doubt, impact all of us. And if you're in the top 10%, you know, it's going to impact you in a good way. Please hit the like button. When you do, YouTube will share the content, educate more people about what's really going on. Today's video is sponsored by my company, SingleFamilyInvestors.com. That's SingleFamilyInvestors.com. If you have $100K or more and you're interested in learning about Section 8 real estate investing, I believe we're going to see a lot more government control of the future. I think we're going to see stimulus checks, universal basic income will be probably, you know, a few years out, and we're going to see Section 8 grow. Now, some people are saying, look, they're going to pull back on Section 8. The largest homeowner in America. Procter & Gamble Partners, they own 97,500 houses, just announced. They are now buying 2,500 more homes exclusively for Section 8. So you have Elon Musk saying that we're going to see a universal basic high income. We're moving into a different type of world. Sometimes in AI, they talk about universal basic income. I think it's actually going to be universal high income. Stimulus checks, I believe, were just the beginning. It was kind of a test. And I would say it was more of an exercise. The future, we're going to see a lot more things just like that. Please hit the like button when you do. YouTube will share the content to give more people what's going on. Take a look there. So inflation rates slipped to 2.1% in April, lower than expected. Now, people will see that and say, wow, 2.1%, that's really low. You know, this isn't bad. But anyone that really thinks about it and they go to the grocery store and they pay their, you know, their energy bills, utility bills, home insurance bills, they pay their rent. They realize inflation might be higher than 2, 3, 4, 5%. In fact, inflation might be north of 10, 15%, maybe even higher than that in some areas. Now, what they say here is that they they're excluding food and energy. So CPI is based on a basket of their goods, not a basket of yours. Now, they're saying food and energy prices are excluded because of the volatility or high prices, because 23.6% is how much food prices have increased from 2020 to 2024. 39.8% is the price of energy, just the increase since 2020. Now, rent also up 30%. Now, what I find fascinating here is just look at the cost of a home in America, the average home. In the United States, the median value of a home in 2000 was $119,600. This was 18, an 18% increase since 1990, right? The value is a hundred grand now at over $400,000, $438,000. Think if you bought a home in 2000 for $119,000, that home now is a retirement plan, right? That home now is probably one of the best investments that most people have ever made is buying just the house. But at $438,000 with today's interest rates, most people can't afford to buy a house. So they're not, they're renting it. Now, when you look at the median household income back then in 2000, it was $42,000, $42,148. Today it's $80,000. So home prices went up four times, wages only went up two times. Gas back then also was $1.51. Gas today is $3.17, unless of course you live in California, it's $5 or $6 a gallon. Or New York or an expensive location, you're probably spending more than five bucks a gallon. Health insurance was only $564 a month for a family. Today, you're looking at $1,437 per month, right? That's like a mortgage payment. $1,437 for some people. Average used car price in 2000 was $8,896. Now it's $30,000. So what does this say about the value of the dollar for holding purchasing power? It's not a great long-term investment. In the short term, sure. But you want to have plenty of cash to make smart investments. But holding cash for 5, 10, 15, 20 years is a surefire way to lose purchasing power. Now, when you look at 2019, they said the average household income was $81,210. $81,000. Now in 2023, they're saying it's $80,610. So everything has basically increased 30 to 50% since 2019. But yet real wages have not moved at all, right? Real wages, they're saying here, it's $80,000. So it's not even $81,000, it's $80,610, 4% increase. The previous year. So what does this mean? It means US consumers are struggling in a very, very, very big way. They say inflation is 2%, 3%. Meanwhile, most people, they would disagree with that. I mean, when you're financing burritos, Buy Now, Pay Later has entered a deal with Klarna and DoorDash. And basically, if you can't afford your pizza, you can't afford your burrito, you can pay for it in installment plans. Couple of burgers and fries and then splitting the cost into multiple payments. That's about to become a reality for DoorDash users, thanks to a Buy Now, Pay Later service. Who would have believed that would be our reality in 2019? Financing everything from shoes. If you've ever bought anything online today, you go to Best Buy, they're asking you on the website, do you want to pay this installment? You could pay $49 for the next 36 months. This is now the normal. People are going to be leasing everything. And so I asked ChatGP about this and I'm like, well, based on everything that's happening, where do you see all this going? What can people do? How is this all going to shake out? I said, what will the future look like? Given the cost of living has radically increased in many cases, items, real estate, cars, college, all three to five X, and price since 2000 to today, yet real household income has only doubled. This is happening as we're entering a period of major disruption with AI and tech, will it become more common to have roommates? Will living standards change? And then I said, what is your perception on this situation? And how do you see all this shaking out from now until 2030? What is the most likely scenario? And he said, you're touching on one of the most important and under discussed shifts happening right now, the decoupling of costs from income, compounded by rapid technological disruption. Let's break this down and look at the most likely scenario. Between 2000 and 2025, home prices up three to five X in many markets, college tuition up two to four X, car prices, two to three X, childcare, healthcare, also dramatically increased. Meanwhile, household income only up about two X, barely keeping up with core inflation. This means the cost of middle-class life has far outpaced earnings, and we are now breaking at the breaking point for millions of households. Later in AI and tech disruption from 2024 to 2030, we're going to see mass automation of knowledge, work, legal, design, media, finance, even aspects of healthcare and software, remote work and AI agents making large parts of white color work obsolete or lower paid, a new form of digital productivity that rewards owners and operators of platforms and IP, not workers. This means higher unemployment, higher underemployment in many skill industries, pressure on wages for jobs that are human-led, teachers, trades, caregiving, a two-tier economy, those who own IP, real estate, and tech. Real estate's key here because real estate values since 2000 have increased 400% versus those who work for it. If you look at Facebook and Google and a lot of online advertising, 10 to 12 years ago, you could advertise millions of people for free. It was so inexpensive. But as these corporations got more and more and more control over the shopping experience, prices skyrocketed. What do you think will happen to home prices in affordable markets as corporations continue to expand the reach and get out of depreciating fiat and into hard real assets? What rents are going to be going up? Everything is going to become a subscription. And so here's the most likely scenario by 2030, the rise of neo-frugality. More roommates, co-living, multi-generational homes, delayed homeownership, smaller homes, tiny homes, leasing everything, cars, devices, even appliances or furniture, return of the company-town model, more people working, for platform-style companies, Amazon, Google, Walmart, Tesla, open-AI-style organizations, and subsidized housing, food, and healthcare. Corporate campuses, so people are going to be literally living at their job, you know, like they used to do, you know, many, many, many, many years ago. Built housing, loyalty tied to employment. East-shrinking groups, investors, entrepreneurs, tech founders capturing outsized gains from AI tools, widening wealth gap, even if prices stabilize. Millennials and Gen Z moving to lower cost cities, Midwest, South, excerpts. Now, I relocated my entire family to Cleveland because I saw this coming. I believe these lower cost cities, we can buy a home for 80, 100, $150,000 in quiet, nice, safe suburban neighborhoods. That's going to be in demand. You got tens of millions of retirees looking to retire. You got a lot of people that can be losing their jobs. A lot of people simply just can't afford to live in the expensive city. They're going to be moving to these affordable markets. It's this boom in remote friendly cities as people leave high cost metros. And they also look at, you know, rising cost of insurance. If you live in a high cost metro and insurance continues to get more expensive, well, it's going to get harder to afford it. And if that happens and interest rates don't go down substantially, and people continue to get, you know, pinched financially, well, what are you going to have? People don't have a job to go to in that local market. You're going to have less demand for that inventory. You're eventually going to have more motivated sellers and you're not going to see a decline in pricing, but housing still tight due to under building and zoning restrictions, mental health and cultural shifts, anxiety, burnout, identity crisis, as jobs become more insecure and life feels more competitive. New status symbols, peace, time, mental clarity, land, community, rather than luxury goods. New economic thinking with slowly rising support for UBI. Universal basic income. Now, this isn't just Elon talking about this, Zuckerberg, it's, you know, Jack Dorsey, it's all the billionaires, all the tech founders talking about how UBI is going to be a big role. It's going to take a really, really big role in our future. Now, there are some people are saying, look, they're going to be, you know, issuing cuts to section eight. Some people are saying that. But then you have the largest homeowner in America, Pretium Partners. They own 97,500 homes. They just announced they are going to be buying 2,500 homes exclusively for those on the section eight voucher program. So universal basic income, I think, you know, the stimulus checks in years ago, that was kind of a tester. It's going to go from that. It's going to get more and more and more normalized. Even Kathy Hochul in New York, they just rolled forward a short term, you know, UBI, little stipend offered hundreds of dollars to people. This is the normal. There's going to be the norm. Where UBI is going to get rolled out next couple of years and section eight is going to continue to expand. They say AI taxes, safety nets, student debt relief, housing subsidies, experimental zoning changes, but policy always lags. Expect pain before adaption. Well, you need problem, reaction, solution, right? The problem needs to be more clear and there needs to be some reaction and the solution is going to be further control. So if you're reading this as an entrepreneur, investor, planner, the people who will thrive are those who own assets, real estate, especially real estate, if you have no debt on it or fixed rate debt that you can manage and operate effectively. You can factor in for rising insurance costs to make sure there's enough cashflow to offset that. Leverage AI, not fear it. Outsourcing 90% of tasks to tools while staying lean. Solve problems related to housing, education, local services and productivity, build real communities, both digital and physical. Bottom line, more people renting than owning. More people sharing homes, more people working for tech or gig platforms, more pressure on families, but also more opportunity for people who adapt quickly and strategically and focus on creating value in this new world. Now I moved to Ohio about five and a half months ago. Now I'm the third largest home buyer advertising throughout the city. So we have billboards all throughout the city. I mean, when I say the third largest, I'm advertising more than the city of Cleveland is advertising right now. Only getting beat out by one accident attorney and one other company, right? That's it. And they're not in the home buying space. So we're getting millions of impressions and the billboards say that we buy homes cash. We look to acquire properties in nice neighborhoods, neighborhoods we would personally want to own in. We buy them for a price in which we find and we believe is fair. We fix them, we rent them, and then we manage them. And I'm all in on Cleveland, all in on it because I believe this affordability crisis is going to worsen and these affordable markets are going to be the beneficiaries of this change. Now, if you'd like to learn more about what we're doing, go to singlefamilyinvestors.com. That's singlefamilyinvestors.com. Click the link in the description just below this video. I believe the next 24 to 36 months will be huge for those that take action. Word of advice, if you live in an expensive city right now, and you're struggling to live in that city, you have a nice shiny apartment that you can barely afford. Now's the time to downsize. Now's the time to reduce your expenses, invest in your own education, invest in real estate that you will own over the long term and position yourself for this future. You want to own hard wheel assets. You definitely don't want to have yourself in a position to where you're struggling now and you don't see a way out because the future is going to be harder than the past and the current. Let's have a conversation below. If you'd like to learn more about what we're doing, go to singlefamilyinvestors.com. That's singlefamilyinvestors.com. Click the link in the description just below this video. Schedule a free call. Catch you next video.