Home › Forums › Financial Markets/Economics › The end of the world (or at least the US middle class) as we know it….
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September 14, 2008 at 5:55 PM #13826September 14, 2008 at 6:58 PM #270169AecetiaParticipant
That should be mandatory viewing for the candidates.
September 14, 2008 at 6:58 PM #270405AecetiaParticipantThat should be mandatory viewing for the candidates.
September 14, 2008 at 6:58 PM #270408AecetiaParticipantThat should be mandatory viewing for the candidates.
September 14, 2008 at 6:58 PM #270457AecetiaParticipantThat should be mandatory viewing for the candidates.
September 14, 2008 at 6:58 PM #270483AecetiaParticipantThat should be mandatory viewing for the candidates.
September 14, 2008 at 11:48 PM #270371HarryBoschParticipantThis is scary stuff. Here’s some quick notes:
Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.
Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxesdown expenses are smaller purchases, flexible, controllable
up expenses are big fixed expensesbig fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their incometwo incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment instwo income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less riskThe thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.
September 14, 2008 at 11:48 PM #270605HarryBoschParticipantThis is scary stuff. Here’s some quick notes:
Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.
Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxesdown expenses are smaller purchases, flexible, controllable
up expenses are big fixed expensesbig fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their incometwo incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment instwo income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less riskThe thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.
September 14, 2008 at 11:48 PM #270609HarryBoschParticipantThis is scary stuff. Here’s some quick notes:
Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.
Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxesdown expenses are smaller purchases, flexible, controllable
up expenses are big fixed expensesbig fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their incometwo incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment instwo income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less riskThe thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.
September 14, 2008 at 11:48 PM #270657HarryBoschParticipantThis is scary stuff. Here’s some quick notes:
Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.
Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxesdown expenses are smaller purchases, flexible, controllable
up expenses are big fixed expensesbig fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their incometwo incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment instwo income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less riskThe thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.
September 14, 2008 at 11:48 PM #270684HarryBoschParticipantThis is scary stuff. Here’s some quick notes:
Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.
Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxesdown expenses are smaller purchases, flexible, controllable
up expenses are big fixed expensesbig fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their incometwo incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment instwo income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less riskThe thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.
September 15, 2008 at 12:06 AM #270376jonnycsdParticipantThis is a really well documented presentation. Scary but true.
This country needs to take the hard choices – school choice vouchers, reduced (eliminated) government transfer payments, smaller government.
If not, we will become the demographic twin of Brazil.
September 15, 2008 at 12:06 AM #270610jonnycsdParticipantThis is a really well documented presentation. Scary but true.
This country needs to take the hard choices – school choice vouchers, reduced (eliminated) government transfer payments, smaller government.
If not, we will become the demographic twin of Brazil.
September 15, 2008 at 12:06 AM #270613jonnycsdParticipantThis is a really well documented presentation. Scary but true.
This country needs to take the hard choices – school choice vouchers, reduced (eliminated) government transfer payments, smaller government.
If not, we will become the demographic twin of Brazil.
September 15, 2008 at 12:06 AM #270662jonnycsdParticipantThis is a really well documented presentation. Scary but true.
This country needs to take the hard choices – school choice vouchers, reduced (eliminated) government transfer payments, smaller government.
If not, we will become the demographic twin of Brazil.
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