two income trap

Yesterday I watched a really interesting video posted by Meredith at Like Merchant Ships. It is Elizabeth Warren’s presentation of her researching findings comparing spending in the 1970s and now. In a nutshell, she discovered that middle class families are living on two incomes much more now, not because they are spending more on things like clothes and food and entertainment (in actuality this spending has gone down, taking inflation into account). But instead spending has drastically increased in the areas of housing, health insurance and education. So, in a one-income family these areas become even more challenging.

Meredith posted again to get responses on what families are doing to beat the two-income trap.  I definitely agree with these ideas! We had a really interesting discussion about this over dinner last night. We definitely saw the impact that health insurance can make when we changed jobs recently. And working in higher education the rising costs are very evident to us… though I feel like the affluence of students attending has also gone up (we are continually shocked by the number of students driving Lexus, Corvettes, BMWs, etc. on a college campus).

Anyway, the video really had some surprising info in it to me and the follow-up post is also interesting, worth a look!

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