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Reply #6: More from Warren on "income volatility" [View All]

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Elspeth Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Apr-13-08 06:14 PM
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6. More from Warren on "income volatility"
In 1970, a family needed 52 paychecks (one income) to meet all its bills, including fixed expenses.
In 2004, a family needed 104 paychecks (two incomes) to meet these same bills.

Unemployment: In a two income family, there is theoretically twice as much of risk of unemployment occurring as in a one income family. While the two-income family will have some money coming in (about half), it still may not be able to meet its mortgage or fixed expenses. In a 1970's one-income family, there is another person (usually the wife) who can go out to work in her husband's place temporarily. She would not make what he does, but the fixed expenses are lower and they have a better chance of at least making the mortgage.

In other words, the two-income family carried inherently MORE risk than the one income family, considering the whopping fixed expenses of our times.

This is all BEFORE taking into account job volatility, the stability of workers' jobs. In 1970, the stability of jobs was far stronger, and there was far less likelihood of losing a job. In 2004, jobs are much more unstable and there is far more of a likelihood of losing a job (per person).

Hence, our current two-income families are actually LESS stable because of current market conditions.


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  -MIDDLE CLASS SPENDING: Not what you think! Elspeth  Apr-13-08 05:32 PM   #0 
  - Two recommends and no comments  Elspeth   Apr-13-08 05:47 PM   #1 
  - Yup.. that's a favorite of mine too  SoCalDem   Apr-13-08 05:49 PM   #2 
  - In 1970, 32k would put someone in the upper middle  ikojo   Apr-13-08 07:41 PM   #22 
     - I think she means 32k in 2005 dollars.  HughBeaumont   Apr-14-08 08:37 AM   #36 
  - I'll be watching that one tonight.  progressoid   Apr-13-08 05:57 PM   #5 
     - Can someone send this to our candidates?  Elspeth   Apr-13-08 07:20 PM   #17 
  - That's why an increase in food and gas is so bad.  knitter4democracy   Apr-13-08 05:50 PM   #3 
  - That's exactly right.  Elspeth   Apr-13-08 05:51 PM   #4 
  - More from Warren on "income volatility"  Elspeth   Apr-13-08 06:14 PM   #6 
  - And on health  Elspeth   Apr-13-08 06:28 PM   #7 
     - "Special risks for families with children" (Warren on Single parents)  Elspeth   Apr-13-08 06:39 PM   #8 
        - What happened to the safety net??  Elspeth   Apr-13-08 06:58 PM   #11 
           - What's happened with BANKRUPTCY? (Families with children at special risk)  Elspeth   Apr-13-08 07:11 PM   #13 
  - K & R.  HughBeaumont   Apr-13-08 06:42 PM   #9 
  - 40 years, not 28  izquierdista   Apr-13-08 07:02 PM   #12 
  - I've watched about half of it and I still can't wrap my head around it.  crispini   Apr-13-08 06:54 PM   #10 
  - Housing and health insurance ALONE are enough to be a problem  Elspeth   Apr-13-08 07:17 PM   #15 
  - Ok that's a good point.  crispini   Apr-13-08 07:26 PM   #20 
     - No kidding.  Elspeth   Apr-13-08 07:57 PM   #25 
  - How old are you?  izquierdista   Apr-13-08 07:20 PM   #16 
  - Wow! $200 for a calculator? I can get one for a few bucks  Elspeth   Apr-13-08 07:21 PM   #18 
  - Now that you mention it....  crispini   Apr-13-08 07:25 PM   #19 
  - My aunt about killed my uncle when he bought a new gadget.. (late 60's)  SoCalDem   Apr-13-08 10:19 PM   #30 
  - I was ten. But I got my first calculator in 1976. I think it was around $25-30  Lorien   Apr-14-08 06:43 PM   #54 
  - Hey, the "fancy ones" back then cost 325 - 350 dollars. I remember that clearly.  calimary   Apr-14-08 05:31 PM   #49 
  - not really  Two Americas   Apr-13-08 07:27 PM   #21 
  - Expenses are up  Juche   Apr-13-08 08:46 PM   #27 
     - You're right about healthcare.  knitter4democracy   Apr-14-08 09:33 AM   #38 
  - There is no place for the poor to go; the middle class is strapped  Elspeth   Apr-13-08 07:15 PM   #14 
  - her book "The Two-Income Trap: Why Middle-Class Parents are Going Broke" is not to be missed!  nashville_brook   Apr-13-08 07:51 PM   #23 
  - Schooling is a big issue. Warren makes it clear that  Elspeth   Apr-13-08 07:57 PM   #24 
     - it's amazing the difference in cost of similar houses in 2 different school districts.  nashville_brook   Apr-13-08 08:35 PM   #26 
        - But not in the interest of the Department of Education  Elspeth   Apr-14-08 02:34 AM   #33 
  - I figured out the solution  Juche   Apr-13-08 09:09 PM   #28 
  - I didn't want my family to die off. Is that so terrible?  Perragrande   Apr-13-08 11:19 PM   #31 
     - I think the poster was being sarcastic  Elspeth   Apr-14-08 09:58 AM   #44 
        - The main cost of having a child in my case  Perragrande   Apr-14-08 09:00 PM   #55 
           - I am so sorry to hear about that  Elspeth   Apr-14-08 10:01 PM   #56 
  - I can't wait to see which right-wing think tank...........  PaDem   Apr-13-08 09:14 PM   #29 
  - Probably a wonk with a PhD from Pat Robertson's university  Elspeth   Apr-14-08 04:08 AM   #34 
  - Maybe "Popular Mechanics" can do it.  HughBeaumont   Apr-14-08 08:29 AM   #35 
     - This is a Harvard professor who specializes in bankruptcy and contract law  Elspeth   Apr-14-08 09:50 AM   #43 
        - Um, I don't know where you interpreted that reply as anything but sarcastic.  HughBeaumont   Apr-14-08 10:55 AM   #45 
           - Considering the general tenor of DU these days, it was very possible your post wasn't sarcasm  Elspeth   Apr-14-08 02:22 PM   #47 
  - I Listened To A Video Of Warren  Johnny Harpo   Apr-13-08 11:31 PM   #32 
  - Yes, Obama needs to know about her.  Elspeth   Apr-14-08 09:46 AM   #41 
     - Edwards & Clinton know her  Juche   Apr-14-08 05:58 PM   #51 
  - I haven't bookmarked a DU thread in five years  Robb   Apr-14-08 08:38 AM   #37 
  - You need to thank Swag, who put up the video on DU (in the video forum)  Elspeth   Apr-14-08 09:45 AM   #40 
  - I want to see the stats for 2005 & 2006  Dont_Bogart_the_Pretzel   Apr-14-08 09:35 AM   #39 
  - Because of the big 5: Housing, up over 75%, Health Insurance, Child Care, Taxes, Car Expenses  Elspeth   Apr-14-08 09:48 AM   #42 
     - Where's the cost of energy to light and heat our homes and run our cars?  sicksicksick_N_tired   Apr-14-08 06:07 PM   #52 
  - K&R NT  PurgedVoter   Apr-14-08 12:58 PM   #46 
  - Here's a story from today's NYTimes--it's getting worse  Elspeth   Apr-14-08 05:14 PM   #48 
  - Thank you Elspeth  druidity33   Apr-14-08 05:48 PM   #50 
  - "Mothers in the workforce"  Lorien   Apr-14-08 06:27 PM   #53 
  - KICKED  Champion_Jack   Apr-17-08 08:01 AM   #57 
 

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