She investigated expenses and found that in today's dollars, families now spend LESS on clothing, appliances and food but spend MORE on Health Insurance, Housing/ Education and Taxes (because the second income is taxed as supplemental to the first). She says children today are more likely to be in a family that experiences bankruptcy than a family that experiences divorce.
She also says that car ownership is NOT more expensive but that now, 2 cars are a requirement, not just an option:
"With an [inflation-adjusted] income of $42,450, the average family from the early 1970s covered their basic mortgage expenses of $5,820, health-insurance costs of $1,130 and car payments, maintenance, gas, and repairs of $5,640.Instead of 3 classes (poor, middle, rich) she says it is more appropriate to classify people into those on the treadmill of debt, and those who are healthy and maybe childless, who stay debt free.
...
"With both people in the workforce, the family spends more than $8,000 a year on its two vehicles."
I had never heard of Ms Warren before yesterday, but she is apparently widely read and appears often on talk and news shows. If you google her, you will get many results. She was recently appointed to the Chair the Committee that will oversee how the government spends that $700 Billion bailout of the banking industry.
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