Gut Check America - Freeze-Frame Radio

garougal · Cleverly Disguised As A Responsible Adult

Gut Check America

garougal · Cleverly Disguised As A Responsible Adult

This was pretty interesting...

Generational shift

Comparing budgets for two typical, four-member families

"Tom and Susan," single-income family, mid-1970s (adjusted to 2004 dollars)

"Kimberly and Justin," dual-income family, 2004

Percentage change

Husband's income	$42,450	$41,670	-2 percent
Wife's income	$0	$32,100	+1,000 percent
Total family income	$42,450	$73,770	+74 percent
Tax rate (% of income: local, state & federal)	24 percent	30 percent	+25 percent
Taxes	$10,300	$22,280	+116 percent
After-tax income	$32,150	$51,490	+60 percent
Major fixed expenses
Home mortgage	$5,820	$10,250	+76 percent
Day care (7-year-old)	$0	$5,660	+1,000 percent
Preschool (3-year-old)	$0	$6,920	+1,000 percent
Health insurance	$1,130	$1,970	+74 percent
Automobile #1 (purchase, upkeep, insurance)	$5,640	$4,275	-24 percent
Automobile #2	$0	$4,275	+1,000 percent
Total fixed expenses	$12,590	$33,350	+165 percent

Source: Elizabeth Warren, co-author with Amelia Warren Tyagi of "The Two-Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke"

-- Edited by garougal at 16:08, 2007-11-28

ghostdancer · Ghost In The Machine

Interesting article G-gal!! I find it hard to believe that people earning $200,000 a year are classifying themselves as middle class......to me, that's well above middle class income, yet I suppose it would depend on where they live too. Major East and West coast cities have a much higher cost of living compared to us so that would bring their income more into alignment with our's.

But still.... $200,000, ....man I can only dream of having that for an income. hmm

garougal · Cleverly Disguised As A Responsible Adult

I know what you mean... $200K is very very upper middle class if it's middle class at all! What is sad is how many people qualify as lower tier middle class who can't even afford medical insurance or preventive care... the gap between economic groups just seems to get broader as the years go by.

MzHartz · Permanent Vacation

I was reading this article when a friend of mine called.

She started off with her usual question, "Whatcha doin'?"
I said, "reading an article about how we're all broke."
She said, "What?"
I told her, "It's an article about the economic situation of the middle class."
She replied, "You consider yourself middle class? I consider myself upper class white trash." (She's proud to be a redneck.)
I said, "Eh, I would consider myself lower middle class. Same difference, right?"

garougal · Cleverly Disguised As A Responsible Adult

That's a great perspective Mz! Reading this reminded me of an episode of 30 Days with Morgan Spurlock where he tried living on minimum wage...it was really shocking. I think about that on ocassion...if it can be such a struggloe for me to make ends meet, and I make a decent salary, what is it like if you're in that situation? The insecurity of it was all too frightening.

garougal · Cleverly Disguised As A Responsible Adult

The fnancial crunch on the middle class must be the hot topic lately - I read more and more about it as time goes by. I thought I'd share this link, there's a few articles here about the Middle Class Crunch that's pretty interesting:

http://articles.moneycentral.msn.com/Investing/HomeMortgageSavings/MiddleClassCrunchConundrum_SeriesHome.aspx?GT1=10825

I don't feel so bad about not buying a house right now after reading this!

garougal · Cleverly Disguised As A Responsible Adult

More middle class despair...this Middle Class Crunch article talks about why people of the middle class may never own a home. cry

http://articles.moneycentral.msn.com/Investing/HomeMortgageSavings/WhyYouWillNeverOwnAHome.aspx

Woo Hoo · The Chosen Woo

if that person can't afford it, I surely can't

I want something of my own that I can do as I please without asking if it's ok!
I want to be able to get the darn dog I want!
But I am scared to death of not being able to pay for repairs! There is no way we would have been able to afford for that furnace!

America of today just depresses me cry

JD The Jazz Doctor · Grand Poobah

I hear you both.
I like the idea of renting, maybe because I've always done it. It limits responsibility and liability. Look at how many people are losing their homes now due to that variable rate mortgage....no way. And woo, you are right. WHat if one day the furnace stops working or the roof caves in. Sometimes I'm lucky to break even when I pay rent. I can't imagine having a big azz mortgage and then something going wrong. I would not have the money or the credit line to fix it immediately.

Of course the payoff is neighbors, lousy 1/2 assed repairs etc. But in this day and age I really believe in limiting liability.

MzHartz · Permanent Vacation

In our town, it's more convenient and cheaper to rent. I wouldn't be surprised if there was more property in the city limits for homes that's rented than that's owned. And because so many people buy a house just to turn around and rent it, the house prices are higher than they probably should be. And people who buy a house within the city limits think of that. The process around here is to buy your house within city limits when you have to stay close to the city, and then rent it when you're able to get a house outside the city.

garougal · Cleverly Disguised As A Responsible Adult

I've seen so many people struggle in Milwaukee because they have a city property they are trying to unload. In addition to the seller's market being lousy, you have the unpredictability of the neighborhood. Around here the neighborhoods are in pockets - you have a great neighborhood and a couple blocks away you have a bad neighborhood (high crime, run down homes, etc.), and so on. Because of this, the desirability of a property can change by season. The crime and condition of an area can happen that fast. hmm

JD The Jazz Doctor · Grand Poobah

One thing I am very happy about for my parents, retired for a year, is that they have their home paid off. they did things like new roof, window and siding in the past few years , with the money that they were spending on the mortgage. they can ride things like economic rollercoasters out now with a bit more ease. That's nice and makes me happy. They worked all their lives. Go have some fun now.