Posted on 08/31/2017 7:30:43 AM PDT by rightwingintelligentsia
Middle class benefits are being revoked in the name of affordability. Because of several factors including stagnant wages, rising costs, and politics, being a member of the American middle class is quickly losing what little prestige it has remaining.
Are you middle class? In its discussion of historical middle class societies, The Economist reports, “Their members are neither rich nor poor but somewhere in-between…’Middle-class’ describes an income category but also a set of attitudes … An essential characteristic is the possession of a reasonable amount of discretionary income. Middle-class people do not live from hand to mouth, job to job, season to season, as the poor do.”
Some argue that the most sensible income amount to attach to the middle class would be the median household income, around $54,000. Perhaps, anyone who earns between the 25th percentile and 75th percentile is a member of the middle class.
Diana Farrell, once Deputy Director of America’s National Economic Council, told The Economist she thinks a middle class income begins at the point where a person (or family) has one-third of their income left over for discretionary purposes after they’ve provided themselves with food and shelter. In other words, someone who earns $3,000 per month would have $1,000 left after they’ve paid their mortgage or rent, utilities, and grocery bills.
Discretionary income is not so easy to find. We’ve created a list of ten things the middle class can no longer really afford. We’re not talking about lavish luxuries, like private jets and yachts. The items on this list are a bit more basic, and some are even necessities.
(Excerpt) Read more at cheatsheet.com ...
She uses it as her internet, she pays for my brother’s phone and plan and it pays for her new iPhone. But basically, she just is easily taken.
They're not interested in what they can afford. Here in the north Texas area is a local car dealer that runs ads showing fancy cars while loudly proclaiming "Get the car you deserve!!".
Government, that's what happened.
We are in a similar situation. My dad worked, my mom stayed home. We weren't doing great, but we had what we needed.
Today we homeschool. I work. My wife stays home and teaches. We have been frugal to the max. I have no idea how my dad did it.
When I talk about it with friends, they just don't see that both parents needing to work (versus wanting to work) is a new thing.
Definitely not pocket change, but last time I ran the numbers on Rent VS Buy, I needed to fly at least 15 hours a month to break even on a decently equipped 172.
I’m lucky if I get in 4-5 hours per month, so I’ll rent for now. haha
Housing costs are mentioned in the lead up. They talk about how much money is left after taking care of necessities like housing, utilities and food. As housing costs go up the discretionary money is what gets squeezed.
That said when I lived in the SF Bay Area I had what would be considered by most standards a very good income and thought about buying a house. I gave up that idea when I realized there wouldn’t be enough of my paycheck left over to afford enough gas to drive to work and back after I paid just the interest, taxes and insurance on a decent house. I rented a house at less than a third of the monthly cost for an interest only mortgage payment would have been for the same house. This was back before the 2008/2009 crash and I understand it is even worse out there now. Housing prices have doubled from 2009 to now. Almost makes me wish I had bought during the crash and held instead of moving to the heartland.
You could have taken the $4K from a sale + the $4K you were gong to spend and have $8K to buy a 7 year old car.
I could. But that wouldn’t replace what I have. It wouldn’t be what I need.
I need a seven-year-old truck or SUV similar to the 12-year-old SUV that I have. One that will tow my trailers. And because I don’t want one with already 100,000+ miles. I am still looking at $30,000.
I've lived below my means most of my life so I have considerable savings and investments with my only debt being the mortgage on my house and a car payment. Therefore, I consider myself wealthy. Even though people scoff at that claim when they realize my actual income.
Trucks are even worse. Trucks have gone up in price far more than cars.
I’m on my last new vehicle.
The old Jeeps and Blazer are getting some resources thrown at them.
Parts are murder. Some tools have gotten there too.
I’m glad I took the three years of HS auto mechanics. All but the big jobs I can do.
Not a family of 6 like myself. We drive for our vacations. Can’t afford to put 6 people on a flight.
There never was any benefit for the middle class,consumers and taxpayers from globalization. It’s bankrupted the treasury, destroyed entire communities, caused huge unemployment and a loss of manufacturing know how.
the so-called “china benefit” is now history.
the chinese laborers are demanding higher wages these days....china will cease to be, and in some cases, already has ceased to be..the low cost manufacturer for many things that they previously owned the markets on. since the chinese government censors all communication to the rest of the planet, you dont hear about the unrest among the unwashed masses over there...
the new low cost supplier...india
watch for more and more stuff to be imported from india..
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