Labels: Spending, Statistics
That was a good lecture. I was amazed of the real graphs where people actually spend less on consumer goods, and it's all the hard fixed assets.
I would opt for banks to tighten the requirements of buying too much mortgage, I know a lot of people that are "house poor" too much house and can't afford much else.
Good lecture and great first start at identifying the problem. Now, Elizabeth needs to dissect the fixed expenses to understand why they have increased over the years.
You don't have to be an expert to know that too many people are buying houses they can't afford. This fixed expense chews up more income than any other single expense. As a result, it’s my opinion this is the biggest reason two income families are going broke.
I have 2 kids and worked in the semiconductor industry for 7 years. During 2000-2005, this was perhaps the most volatile industry in the US. As a result, we lived within our means and made sure one income could cover the mortgage and additional expenses in the event of a job loss. Yes, we lived in a small house than most, but we didn't lose our home either. Many middle class families could choose to live in a smaller home, but don’t make that choice.
This is a most informative video. Ms. Warren is an gifted speaker with much important data for all. You don't want to miss this!
