Why the System Feels Rigged And How to Win Anyway
For years, we’ve been told the economy is booming. Job numbers are up, incomes are growing, inflation is cooling. But if you ask everyday Americans, the vibe is off. And they’re not wrong.
According to reports from Yahoo Finance, CNBC, and Northwestern Mutual, more people than ever feel like they’re falling behind—even though the data says otherwise. The truth is, there’s a growing gap between what looks good on paper and what people actually experience at the gas station, grocery store, or when trying to buy a home.
Let’s break down why this disconnect exists and what you can do about it.
Inflation vs. Income: The Real Story
Between 2020 and 2025, inflation went up 24.2%. Median household income? Just 22%. That gap may not sound like much, but it compounds every time you fill your tank or pay rent.
Over the last 50 years, the price of the average car jumped 840%. A median house? Up 1200%. Public college tuition? A staggering 2000%. But median income only increased by 600%.
Meanwhile, the S&P 500 grew by over 4000%.
If you’re relying only on income, you’re running a race where the finish line keeps moving. But if you’re investing, you’re not just keeping up—you’re getting ahead.
Why the System Favors Investors Over Workers
The U.S. economic system is built to reward capital, not labor. CEOs have a fiduciary duty to increase shareholder value, not employee wages. That means the person investing in a company—whether through stocks or real estate—is likely to get richer than the person clocking in every day.
Even the tax code is tilted. Top earners with W2 income pay up to 37%. Investors? Often just 20%. Add in depreciation, 1031 exchanges, and other real estate tax breaks, and the advantage becomes obvious.
And then there’s inflation. It acts like a hidden tax, quietly reducing your spending power—but also boosting the value of hard assets like property and stocks.
So what do you do in a system like this?
Rule 1: Work to Own, Not Just to Earn
If your only financial strategy is earning a paycheck, you’re playing defense in a game designed for offense. You need to own things—stocks, real estate, or a business.
It’s not about becoming the next Elon Musk. It’s about slowly accumulating assets that work while you sleep.
Rule 2: Don’t Live “Fake Rich”
Financing liabilities—cars, vacations, designer goods—may look like wealth, but it’s not. Follow the “rule of five”: if you can’t buy five of something in cash, you probably can’t afford one.
Save up. Then buy. That’s how real wealth is built—not through monthly payments, but by keeping your money and letting it grow.
Rule 3: Risk is the Price of Wealth
Most people avoid risk because they fear loss. But losses are part of learning. Every investor takes hits—what separates the successful ones is how they respond.
Start small, stay consistent, and use each mistake as tuition on your journey to financial independence.
A Simple Wealth Plan: 75/15/10
Want a framework to build on? Use the 75/15/10 plan:
- Spend 75% of your income.
- Invest 15%.
- Save 10%.
Treat saving and investing like mandatory bills. Automate transfers to separate accounts, and don’t touch them unless it’s a real emergency or investment opportunity.
Over time, those investments will begin to generate passive income. That’s when you shift from working for your money to having your money work for you.
The Government’s Role—and Why It Matters
In 2024, the U.S. borrowed $1.8 trillion. When that happens, the Fed often prints more money, diluting the value of the dollar. Who loses? Employees. Who wins? Investors holding assets like stocks and real estate.
It’s not a conspiracy. It’s just the way the system is structured. But understanding it gives you power. If you know the game, you can start playing it.
The Bottom Line
Most people aren’t poor because they’re lazy. They’re poor because no one taught them how money really works. The system doesn’t reward effort—it rewards ownership, patience, and discipline.
Financial education isn’t just useful—it’s survival. Start with one investment. One habit. One asset. And commit to never working just for a paycheck again.
Your future self will thank you.
Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
