ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Man uses mind-boggling math to argue we’re living through a worse crisis than the Great Depression

He alleges that Americans are being gaslit into thinking that they are lazy or expect too much. 
PUBLISHED SEP 4, 2024
Screenshot from the TikTok Video @averagejoegam3 | Representative image from Unsplash @Emil Kalibradov
Screenshot from the TikTok Video @averagejoegam3 | Representative image from Unsplash @Emil Kalibradov

The Great Depression is referred to as "the worst economic downturn" in history not just for America but for the entire industrialized world. However, as per the math done by a TikTok creator, the current battle with inflation and poor wages marks the worst economic crisis of all time. Average Joe @averagejoegam3 on TikTok, compared income levels from back in the day and 2023, to further illustrate the issue. 

Screenshots from the video | TikTok | @averagejoegam3
Screenshots from the video | TikTok | @averagejoegam3

In the viral video, the creator cautions that he is not sharing the information to hurt anyone or make anyone depressed. He alleges that Americans are being gaslit into thinking that they are lazy or expect too much. 

He then says that the Great Depression has been referred to as the greatest economic downturn but he can show that things are worse in the current economic environment. To prove his point, he says he is going to take income figures from the worst year of the Great Depression, that is 1930, and compare them to the current income figures (2023). 

He finds out that even in the worst economic crisis, an American made about $4,887 on average per year. He then feeds the number to an inflation calculator to find out how much that would be in 2023. To his surprise, the number turns out to be $88,888 after adjusting for inflation. 

Screenshots from the videos | TikTok | @averagejoegam3
Screenshots from the videos | TikTok | @averagejoegam3

Joe then looks up the actual average income of an American which turns out to be $31,133 as of 2019. Adjusting the same for inflation, the average income stood at $38,066, about $50,000 less in value than the income of an average American during the great depression. 

With the numbers in front of him, the creator claims that it is the current economic situation is the worst in America's history and not the Great Depression. "We have the lowest purchasing power in history," he says. In the end, he goes on to appreciate everyone who is working hard full-time, putting food on the table, driving a car, and taking care of their family. 

Screeshots from the video | TikTok | @averagejoegam3
Screeshots from the video | TikTok | @averagejoegam3

Viewers in the comments echoed Joe's sentiments and added their own observations to it. "the difference is, in the great depression, the rich lost everything too. now, the rich are fine, so it doesn't need recognizing," wrote user @budtheclyde

Screenshot from the comments | TikTok | @josiahhehman
Screenshot from the comments | TikTok | @josiahhehman

Several others continued to point out the differences between the 1930s and today. "and back then, most households only had 1 income.... nowadays you need 2 people making 2 incomes each," suggested user @theseeinghealer

For more such interesting analysis and content follow Average Joe @averagejoegam3 on TikTok.

Despite easing inflation and relatively low unemployment rates, consumers feel things are as bad as they could be. Creators and users on social media have shared several theories and coined the term "silent depression" for the current situation. 

However, experts and journalists have dug into their claims and found their comparison to be flawed. In an article from the New York Times, reporter Jeanna Smialek pointed out that solid, reliable government data didn't really exist before 1940, thus, the numbers used by creators are from unreliable sources. 



 

Jack Kelly, senior editor at Forbes, also noted that there are several factors to consider before comparing the standard of living as well.  Kelly argued that back then, things like Social Security, welfare, food stamps, and other such safety nets didn't exist and the lifestyle of people has also changed for the better.

MORE ON MARKET REALIST
The "Pawn Stars" were aleft impressed by the only basketball signed by the OGs Jordan, Phil Jackson, and Kobe.
15 hours ago
Turns out that Mr. Wonderful was ordained by the state of California to do the job.
16 hours ago
Fans did not expect to see a person with such a striking resemblance to the former Vice President.
19 hours ago
Rick Harrison wasn't trying to this item for a low price as it was historically significant.
21 hours ago
Despite offering $1.5 million, Harrison was unable to make a deal for the historic item.
1 day ago
Kevin O'Leary hailed their salesmanship after coming to a $600,000 valuation.
1 day ago
The star also followed it up with a second shoutout seeking another chance for her on the show.
1 day ago
The clock was a piece of art and its mechanism was as intriguing as it gets.
1 day ago
The company wasn't profitable and this alone had turned away most sharks in the first place.
1 day ago
All three contestants were unable to make the right guess, and fans pointed out what was wrong online.
2 days ago
The guest was enthusiastic about the painting and the expert was marvelled by its story.
2 days ago
Even the contestant lost his balance as he laughed at his answer immediately.
2 days ago
The Duke of Wellington gifted them the table and a set of willow-patterned tea sets to go with it.
2 days ago
Her product could help a lot of people protect their homes and loved ones from deadly fires.
3 days ago
A lot of the sharks were unsure about the product due to unfortunate incidents in the past.
3 days ago
“He seems like a lot of fun as a dad,” Seacrest admired Tony and Mike Nunes' relationship.
3 days ago
The painting was made by Francois Gilot, the ex-lover of the famous Pablo Picasso.
3 days ago
However, few fans loved their coordinated moves, "Steve Harvey be sharp all the time!"
3 days ago
The founder of Chirp scored a creative deal with Lori Greiner after much deliberation.
4 days ago
“Read the room, Ken, not the time to joke when his dream just got crushed,” a viewer slammed.
4 days ago