A couple of interesting articles caught my eye this week on the subject of what constitutes a livable income. One is entitled "America’s Feast-or-Famine Reality: When $100,000 Feels Like Poverty," and it's an analysis of a more in-depth discussion called "My Life Is a Lie" by Michael W. Green, which breaks down the "real" definition of America's middle class. (For the second article, skip the top section and scroll down to the heading "How a Broken Benchmark Quietly Broke America." That's where the interesting stuff begins.)
Apparently the definition of poverty in America is wildly outdated; and as a result, so is what defines the middle class. Using "conservative, national-average data," Green argues that a family of four (two working parents, two kids) must earn a minimum of $136,500 per year to qualify as middle class. This is the financial breakdown (read the article for the explanations):
• Childcare: $32,773
• Housing: $23,267
• Food: $14,717
• Transportation: $14,828
• Healthcare: $10,567
• Other essentials: $21,857
• Required net income: $118,009
• Add federal, state, and FICA taxes of roughly $18,500, and you arrive at a required gross income of $136,500.
Phew.
I would imagine there are vast discrepancies between urban and rural costs for these categories, but they still seems crazy-expensive.
Since the vast majority of us don't make anywhere near $136,500 per year, the author makes some very compelling arguments for why those in true poverty (at or below $35,000/year) do better – because of government assistance programs – than those whose income exceeds the poverty threshold but doesn't reach "middle class" levels. Green terms this position the "Valley of Death" because it's so hard to escape or get ahead.
I strongly urge you to read the entire article – actually, both articles. Then feel free to share where you fall on this financial spectrum.
Patrice, the "baseline" of $140,000 for poverty resonates with me.
ReplyDeleteWe made the decisions (20 plus years ago now) to have my wife stay home to be with our children. The loss of the second income hurt, but we did the numbers and realized (as noted in the article) that effectively we would have been working to pay for child care. There are other benefits from that decision of course, but purely financially it made sense.
The numbers from the article (with the exception of childcare, which I have no idea about now) look pretty spot on based on living in urban environments for the last 30 years. There is some difference - we pay more in rent now, but less in transportation - but I think the base numbers are sound.
It would be a fascinating discussion to know what percentage of the population would fall into under the poverty line if the line was raised to $140,000.
It's been said the fastest way to go bankrupt is an uncovered medical procedure.
ReplyDeleteOr today have an Obamacare health plan.
It is a sad commentary that Obamacare "you can keep your plan and Dr." never was affordable as the ever increasing screams to have the Government pay for it.
We need badly to eliminate the middleman of managed care and have open and plain pricing at hospitals.
When my tax preparer has run the numbers years ago and decided it was better for her and her kids to stay a "single mom" with an income below the Obamacare line she's just doing what is needed for her family.
A single mom I know from Walmart I was chatting with this afternoon is going to visit her parents in California (parents paid the tickets) as she CANNOT afford Daycare to work at Walmart while the kids are out of school.
So, Daycare is a real issue. We chatted about when Grandma was daycare, but her family is 3000 miles away. What we LOST when America abandoned the extended family decades ago.
So yes the article about how expensive "middle class is" is not that far off.
"Middle-class" used to mean business owners, bankers, doctors and lawyers. If you worked for a wage, you were not "middle-class".
ReplyDeletePoliticians found they got votes when they told wage-laborers that "You deserve a middle-class lifestyle".
You might look up the term "Welfare Cliff". Be sure to look at the images. They show all of the benefits that get "shut off" and at what wage levels. The images vary slightly by state.
It is confusing to me to consider that our family could be considered below the poverty line. We are rich, so rich, compared to my grandparents who got married right after the Depression and basically had one piece of real furniture, her sewing machine cabinet. Everything else was crates and their bed was on the floor. We always have plenty to eat, have a nice house, plenty of clothes, etc. How can that be poverty? And this in on one income.
ReplyDeleteIt's the cost of living increase. Back in grandma's day a movie was 10 cents, a loaf of bread was a nickel etc. My parents bought their first house in '64 for $20,000. It's worth over $700,000 now. The cost of lumber is up, contractor wages are more. Inflation is a monster.
DeleteBoth articles ask you to subscribe and they repeat a LOT of the same data. One is selling a premium service. The other makes loose promises for help if you subscribe. I don't trust either one.
ReplyDeleteYes, we are in a mess. I would say by much of our own doing! If we worked with our own hands and minded our own business, etc. 1 Thesslonians 4:11-12 and fulfilled the commandment not to covet we wouldn't be in debt and contributing to the mess. We are an insatiable society, keeping up with everyone else and unhappy, unhealthy, overweight and unproductive in what is important. Good Lord, we should be ashamed of ourselves. Listening to drivel these men have written with "facts" from who knows where just spreads fear and a desire to make more $. We need to live simple, do without and find out who our loved ones are so we can rely on each other. We are all lone rangers to make ourselves proud. It is stupid! Dr. Dobson said, probably 25 years ago that Americans are working and running so hard with their tongues hanging out of their mouths they don't know what govt is doing and what to vote for. We have reaped what we have sown! You may think I am condemning here, but actually I am heartbroken and furious! How could the most blessed of all nations, and we still are if you look around, be in such bad shape? There are hundreds of self-centered, rebellious reasons. Our hearts are cold to each other and we have circled the wagons to protect ourselves. We aren't truly self-sufficient. We look for short cuts and the easy way and have lots of toys and distractions. We aren't integrious any more and we are outraged if someone else does us wrong. We want retribution more than peace and cooperation. We need to get back to faith in God. Contentment with what we have, love one another, help our fellow man, and require government to do their job, follow the laws they swore to uphold and follow through on the promises that got themselves elected. We are all responsible to right this ship. Stop listening to "fire in the theater" people such as these men looking to make $ off of desperate people who won't take the time to inform themselves. People are so ignorant nowadays. We have to figure out how to get out of this mess working with our own hands, not with our hands out for aid! We must teach the next generations before all is lost. It may be lost anyway, end times are coming and America will no longer be a world power. Get right with God and stop worrying about money. God will provide for each of His own as He wills for us. Praise God and seek the beauty in every day!
In general, I've noticed folks don't NEED God until they've fallen to the bottom of the hole they dug.
DeleteOh, I don't say we don't pray to God, worship Him and so on but it's not God's time at Bat until we are in TROUBLE.
Not the way God's plan for you to work, but God is a "Gentleman" He allows you to go your own way waiting until you CALL on Him.
Psalm 37 (and hundreds of other scriptures)
Do Not Envy Those who Do Wrong
…4Delight yourself in the LORD, and He will give you the desires of your heart. 5Commit your way to the LORD; trust in Him, and He will do it. 6He will bring forth your righteousness like the dawn, your justice like the noonday sun.…
Berean Standard Bible · Download
Yes, Michael!
DeleteMay we all be like the Berean church and search the Scriptures for the truth. May the Lord draw us to Himself in the difficulties we are facing. May the eyes of our hearts look to Him for all our needs and may His Spirit lead us to discern in these dark times His true light from the lies of the darkness, the enemy who has put false prophets with lying lips to mislead through the tickling of ears. May we choose His simple ways and resist the ways of the world. Believe in the Lord, repent, and receive His eternal reward of peace in His presence. Amen!
why not raise your own kids that a years salary, and Doesnt, include DR visit for the things spreading in daycare
ReplyDeleteI miss you on WND where you reported on real news such as:
ReplyDeletehttps://www.westernjournal.com/widespread-obamacare-fraud-phony-ssns-100-success-rate-getting-coverage-investigation-finds/
These articles above are panic pieces. Most people are making it with much less income. It is harder these days coming out of Biden's inflation and regulations. It takes awhile for a ship this big to make an 180 degree turn.