That should be mandatory viewing for the candidates.

That should be mandatory viewing for the candidates.

This 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 taxes

down expenses are smaller purchases, flexible, controllable
up expenses are big fixed expenses

big fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their income

two 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 ins

two income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less risk

The 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.

This 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 taxes

down expenses are smaller purchases, flexible, controllable
up expenses are big fixed expenses

big fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their income

two 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 ins

two income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less risk

The 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.

This 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 taxes

down expenses are smaller purchases, flexible, controllable
up expenses are big fixed expenses

big fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their income

two 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 ins

two income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less risk

The 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.

This 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.

This 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.