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Americans now need to make $120K a year to afford a typical middle-class life and qualify to purchase a home, one expert discusses.

“I think most of us in America would define the middle class as somebody who can work a 40-hour-a-week career and can have the income to purchase the average home in America,” Freddie Smith, an Orlando realtor and TikTok creator, told Fox News Digital.

The TikToker, whose videos explore millennial and Gen Z struggles to afford a home and the general cost of living in today’s economic climate, dissected the common factors of living a middle-class existence.

“A lot of us grew up middle class, and we watched what middle class was in the 80s and 90s as millennials. And nowadays, what has moved the goalpost more than anything is the housing market,” the relator said.

Smith explained how, just a few years ago, $60-$70K a year would have been sufficient to qualify for a home. 

With the average cost of a house being around $400K-$420K in 2024, people’s salaries would need to be around $120K a year for people to even qualify, Smith explained.

The realtor highlights how this wage-to-housing gap has forced many people to rent for a longer period.

“Rent prices are taking up 30-40% of people’s income, making it harder for them to save for a house. So it’s this perpetual cycle that is keeping people out of the middle class,” he explains, noting this trend has been continuing at a rapid pace over the last few years.

Smith also explained how a $120K salary, even without children, becomes a far lower number when confronted with the crippling debt most Americans are facing today.

Is 100k salary the new middle class? ??

“Most people are carrying student loan debt, which is at an all-time high, and the average payment in the country is $500 a month for your college degree. [There are] some people I’m seeing in my comment section saying $500, I wish, it was $1,200 a month for me,” said Smith.

Credit card debt is also at a record high in America, and while Smith acknowledges that reckless spending could be a factor, he has learned from many Americans commenting on his posts that many are forced to use their cards for groceries because they ran out of money.

According to DQYDJ, the average American income in 2023 was roughly $69K a year, with only 18.8% percent of Americans reaching $100K or more a year. According to the same source, the top 10 percent of individual earnings started at $135,605 a year.

The middle class is in a segmented state, Smith argues, largely determined by how much debt one finds themselves in. 

“If you are someone who bought a house before 2020 and you have it paid off or you have a 3% interest rate, you are not burdened by the housing costs like the 2024 adults are now,” the relator said, explaining how debt, especially college debt, housing costs and childcare are burdening millennials and Gen Zers starting their lives.

“People are spending about $1,200 to $1,500 a month on daycare, and I’ve even heard it as much as $3,000-$4,000. So when you add in somebody who’s renting for $2,500, $2,000 for daycare, $1,000 for two college loans, just that alone, you need $100,000 as an income just for that,” said Smith.

For slightly older individuals who had a chance to pay off their debt and have grown-up children, $70K remains a comfortable middle-class wage to them.

“‘These millennials are whining. These Gen Zers just work harder.’ If you bought your house before and don’t have those other payments, that’s really the three-layered cake. Housing, college [debt] and daycare” explained Smith, highlighting these three factors greatly determine your middle-class placement.

As a result of high housing costs, many young people are choosing to stay at home with their families to save funds.

Smith explains how he is seeing communal living go even further in Florida, where separate families are choosing to live under one roof.

“Many families [with] 3 or 4 adults and [say] five children, they all split a big house, and they all take care of each other. You can see that they have a lot of toys and they’re pooling their money,” Smith detailed.

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The TikToker enumerates how millennials and older Gen Zers had a “difficult” hand dealt to them. Younger Gen Zers, however, have a lot of “opportunity” to “crush in today’s economy” if they plan carefully to avoid debt and make smart financial choices.

“The millennials, they’re the pinched generation where college essentially stopped working for most. The debt piled up, and the old American dream died, and we got left holding the bag,” he said.

The creator said that through posting on TikTok, he has learned a tremendous amount about the everyday struggles real Americans are facing through his comment section.

“People in America, real society, are sharing all this with me. And I’m learning at a rapid pace from all different individuals. It’s not just googling it, or asking 100 college students what they think. It’s thousands and thousands of people sharing what’s going on,” said Smith.

The realtor discussed how there is a “bigger conversation” around an evolving American Dream that we’re likely to see take place over the next few years.

“We’re basically redefining the American dream from top to bottom, like the way that we see work and work-life balance,” said the creator, explaining how the idea of owning a home might grow old alongside past generations.

“I don’t even know if millennials and Gen Zers want to follow that path of buying a house and living in it for 40 years and staying at the same job for 40 years. I don’t think creatively, work-life balance wise, is also what our long-term play is,” he said.

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Judge: 23XI, Front Row can’t keep using charters

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Judge: 23XI, Front Row can't keep using charters

CHARLOTTE, N.C. — A federal judge on Thursday rejected a request from 23XI Racing and Front Row Motorsports to continue racing with charters while they battle NASCAR in court, with the teams saying it puts them at risk of going out of business.

The ruling means the teams’ six cars will race as open entries this weekend at Dover, next week at Indianapolis and perhaps longer than that.

U.S. District Judge Kenneth Bell denied the teams’ bid for a temporary restraining order, saying they will make races over the next couple of weeks and they won’t lose their drivers or sponsors before his decision on a preliminary injunction.

Bell left open the possibility of reconsidering his decision if things change over the next two weeks.

After this weekend, the cars affected may need to qualify on speed if 41 entries are listed — a possibility now that starting spots have opened.

23XI, which is co-owned by retired NBA great Michael Jordan, and FRM filed their federal suit against NASCAR last year after they were the only two organizations out of 15 to reject NASCAR’s extension offer on charters.

The case has a Dec. 1 trial date, but the two teams are fighting to be recognized as chartered for the current season, which has 16 races left. A charter guarantees one of the 40 spots in the field each week, but also a base amount of money paid out each week.

Jordan and FRM owner Bob Jenkins won an injunction to recognize 23XI and FRM as chartered for the season, but the ruling was overturned on appeal earlier this month, sending the case back to Bell.

Three-time Daytona 500 winner Denny Hamlin co-owns 23XI with Jordan and said they were prepared to send Tyler Reddick, Bubba Wallace and Riley Herbst to the track each week as open teams. They sought the restraining order Monday, claiming that through discovery they learned NASCAR planned to immediately begin the process of selling the six charters which would put “plaintiffs in irreparable jeopardy of never getting their charters back and going out of business.”

“This is a fair and significant fear; however, NASCAR has agreed that it ‘will not sell any charters before the court can rule on plaintiffs’ motion for preliminary injunction,'” Ball wrote. “Similarly, plaintiffs worry that denying them guaranteed entry into the field for upcoming races could adversely impact their competitive standing, including their ability to earn a spot in the playoffs. Again, a legitimate, potentially irreparable harm. Yet, akin to the sale of charters, NASCAR represents to the court that all of plaintiffs’ cars will qualify (if they choose to race) for the races in Dover and Indianapolis that will take place during the next 14 days.”

Making the field won’t be an issue this weekend at Dover as fewer than the maximum 40 cars are entered. But should 41 cars show up anywhere this season, someone slow will be sent home and that means lost revenue and a lost chance to win points in the standings.

Reddick was last year’s regular season champion and raced for the Cup Series championship in the season finale. But none of the six drivers affected by the court ruling are locked into this year’s playoffs.

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UK

One child dies after coach crashes in Somerset on way back from school trip

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One child dies after coach crashes in Somerset on way back from school trip

One child has died after a coach bringing children back from a school trip crashed and overturned near Minehead, Somerset, police have said.

A major incident was declared after the vehicle, which had 60-70 people on board, crashed on the A396 Cutcombe Hill, between Wheddon Cross and Timbercombe, shortly before 3pm on Thursday afternoon.

The coach was heading to Minehead Middle School at the time.

At a news conference on Thursday night, officials confirmed one child died at the scene.

A further 21 patients were taken to hospital, including two children who were transported via air ambulance. “Several” other people were treated at the scene, they added.

A police officer near the scene of a coach crash in Somerset. Pic: PA
Image:
A police officer near the scene of the coach crash in Somerset. Pic: PA

“This has been an incredibly challenging scene for all emergency services,” Chief Superintendent Mark Edgington said.

“Today’s events are truly tragic, we know the whole community and wider area will be utterly devastated to learn of this news.”

An investigation into what caused the crash will be carried out, he added.

Gavin Ellis, the chief fire officer for Devon and Somerset Fire & Rescue Service, said the coach “overturned onto its roof and slid approximately 20ft down an embankment”.

He praised an off-duty firefighter who was travelling behind the vehicle for helping at the scene, before crews then arrived to carry out rescues “in extremely difficult circumstances”.

“I’m grateful for the tireless effort and actions of the crews in doing everything they could for those who were trapped and as quickly as safely as possible,” he said.

“I’m extremely proud of the efforts that my firefighters took today at this tragic event.”

Eight fire engines were sent to the scene, with two specialist rescue appliances and around 60 fire personnel, Mr Ellis said.

A total of 20 double-crewed ambulances, three air ambulances and two hazardous area response teams were also sent to the scene, a representative for the South Western Ambulance Service said.

Emergency services near the scene in Minehead
Image:
Pic: PA

Ch Supt Mark Edgington said: “Many passengers either sustained minor injuries or were physically unharmed and were transferred to a rest centre.

“Work to help them return to Minehead has been taking place throughout the evening.

“An investigation into the cause of this incident will be carried out.”

Minehead Middle School has pupils aged between nine and 14, and is five days away from the end of term.

‘I don’t have words,’ says local MP

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‘From one mother to another, I feel your pain’

Rachel Gilmour, MP for Tiverton and Minehead, has said the road where the coach crashed is “very difficult to manoeuvre”.

Speaking to Sky News chief presenter Anna Botting, Ms Gilmour said she visited Minehead Middle School recently, where she “met the children and they were full of joy, enthusiasm and were very positive”.

“I know many of their parents,” she said. “I don’t have words.”

Describing the scene, Gilmour continued: “You have a very difficult crossing at Wheddon Cross, and as you come out to dip down into Timbercombe, the road is really windy and there are very steep dips on either side.

“If the coach, as the police are saying, went 20ft off the road, you are literally on a really, really steep bank.”

The MP, whose constituency is partly in Devon and partly in Somerset, said there is a “really, really close community”.

“We will pull together, but it would be crass of me to say to a parent who’s just lost their child that I could make things better, I can’t,” she said.

“All I can say is that from one mother to another, I feel your pain.”

Cutcombe Hill near Minehead, where the accident took place. Pic: Google Maps
Image:
Cutcombe Hill near Minehead, where the accident took place. Pic: Google Maps

Sir Keir Starmer said in a post on X: “There are no adequate words to acknowledge the death of a child. All my thoughts are with their parents, family and friends, and all those affected.

“Thank you to the emergency workers who are responding at pace – I’m being kept up to date on this situation.”

Education Secretary Bridget Phillipson wrote: “It is heartbreaking to hear that a child has died and others are seriously injured following the incident in Minehead earlier today.

“My thoughts are with their friends and families, and all those affected by this tragic event.”

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Technology

Elon Musk’s Neuralink filed as ‘disadvantaged business’ before being valued at $9 billion

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Elon Musk's Neuralink filed as 'disadvantaged business' before being valued at  billion

Jonathan Raa | Nurphoto | Getty Images

Elon Musk’s health tech company Neuralink labeled itself a “small disadvantaged business” in a federal filing with the U.S. Small Business Administration, shortly before a financing round valued the company at $9 billion.

Neuralink is developing a brain-computer interface (BCI) system, with an initial aim to help people with severe paralysis regain some independence. BCI technology broadly can translate a person’s brain signals into commands that allow them to manipulate external technologies just by thinking.

Neuralink’s filing, dated April 24, would have reached the SBA at a time when Musk was leading the Trump administration’s Department of Government Efficiency. At DOGE, Musk worked to slash the size of federal agencies.

MuskWatch first reported on the details Neuralink’s April filing.

According to the SBA’s website, a designation of SDB means a company is at least 51% owned and controlled by one or more “disadvantaged” persons who must be “socially disadvantaged and economically disadvantaged.” An SDB designation can also help a business “gain preferential access to federal procurement opportunities,” the SBA website says. 

Musk, the world’s wealthiest person, is CEO of Tesla and SpaceX, in addition to his other businesses like artificial intelligence startup xAI and tunneling venture The Boring Company. In 2022, Musk led the $44 billion purchase of Twitter, which he later named X before merging it with xAI.

Jared Birchall, a Neuralink executive, was listed as the contact person on the filing from April. Birchall, who also manages Musk’s money as head of his family office, didn’t immediately respond to a request for comment.

Neuralink, which incorporated in Nevada, closed a $650 million funding round in early June at a $9 billion valuation. ARK Invest, Peter Thiel’s Founders Fund, Sequoia Capital and Thrive Capital were among the investors. Neuralink said the fresh capital would help the company bring its technology to more patients and develop new devices that “deepen the connection between biological and artificial intelligence.”

Under Musk’s leadership at DOGE, the initiative took aim at government agencies that emphasized diversity, equity and inclusion (DEI). In February, for example, DOGE and Musk boasted of nixing hundreds of millions of dollars worth of funding for the Department of Education that would have gone towards DEI-related training grants.

WATCH: DOGE cuts face congressional test

DOGE cuts face congressional test. Here's a breakdown

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