Warren even stated in her video that it is actually the parents who are driving up their OWN cost of housing by all flocking to the same properties on the market which are situated in a particular school attendance area. They are driving up their OWN COST OF LIVING by bidding off one another for the few available properties and rentals in these particular school boundaries. She also stated that some mothers of young and school-age children are currently working (who otherwise wouldn’t) JUST to pay the additional housing costs for a property in a particular school attendance area or private school tuition.
.[/quote]
Sure, “people” drive up home prices this has been greatly encouraged by the financial industry and we have become systemically dependent on elevated RE(and other asset) prices. How many pensions are based on RE? This has also been enabled by easy money which has also driven the construction industry – it’s all connected
[quote=bearishgurl]
In short, Warren stated that the “two-income” family of late systematically and deliberately GREW into the second income VERY quickly due to their insatiable appetites for MORE, NEWER and FASTER. This second income DID NOT increase their savings or improve their quality of life. In many cases where there were 2+ children, it only caused the parents to be more stressed, frenetic and in deeper debt. [/quote]
I don’t think she said exactly that – I believe that she stated the two incomes is less than the 1 income of 1975. Yes, the insatiable need for more is our culture and drives our consumption based economy. I am starting to call it a junky economy. If that was not instilled(and enabled with decades of debt) in people it would have floundered long ago.
[quote=bearishgurl]
I’m all for both parents working and sharing in child care. But if that extra income is going to $1000+ month daycare for ONE child, to purchase a gas-guzzling SUV, boat or other toy and/or to an exorbitant MR/HOA combination, then what’s the point? Why not just live on one income in a cheaper home and area, like your parents likely did, and be happy??[/quote]
I agree, there a lot of life-style choices people could make to be less stressed. But I always go back to the fact that these choices drive economic activity and support employment. I actually advocate people don’t take out debt and consume very little. Starve the beast! If enough people did that(individual survival) there would be problems. Meaning a much deeper philosophical problem – often times individual “financial” survival runs contrary to social “financial” functionality and hence survival. And on a different level, people are conditioned to serve the needs of the economic system rather than the economic system being there to serve the needs to the people.
[quote=bearishgurl]
The properties located in a lot of these “coveted” school attendance areas are NOT better designed, better built or more conveniently located than those located in closer-in established areas. Nor are the properties in established areas as heavily encumbered due to high HOA/MR. A good portion are situated on “substandard lots.” I think a lot of “middle class” families today did it to themselves in their quest to appear “upper middle-class.” The were enabled by easy credit. If some of these families DO end up being forced to adopt a much lower standard of living in the future, it will come as a shock to many (who have never had to economize in their lives).[/quote]
There is a big difference between looking at things systemically in society and at compartmentalizing individual problems. I agree people “did it to themselves” on some levels on other levels some things were out of their control , but ironically, what they did to themselves drove the economy and supported employment.
We are reaching a time when people are going to turn inward and they will start to “economize” and that is what a depression is all about. Then we will have new problems.
I’ll tell you what. This “they did it to themselves” has a lot of truth to, on the other hand, it will become like social poison in the environment I see coming.
