As the middle class continues to shrink the gap between the haves and have nots is getting worse and worse. Elizabeth Warren is an outspoken critic of our nation’s dependency on a credit economy and how it is essentially killing the middle class. She teaches contract law at Harvard Law School. The video of her discussing her research is well worth the time if you can spare an hour. Skip the first six minutes and put it in the background if you must. The research she has done is remarkable.
Even with two incomes in a household we are saving nearly nothing and spending more than we did just a generation ago. Mortgages, health care, a second car, child care and taxes are costing the middle class more than they did 30 years ago. Bush’s tax cuts certainly have not help the middle class, only hurt it further as the richest one percent have just gotten richer. Its kinda crazy stuff.
Warren delves further into it as we see that today’s household of two income earners with two children that are lucky enough to not face life’s uncertainties still have 75% of their income going towards their mortgage, health care, and day care. 30 years ago it was 50% with one income earner. Then throw in that you now must earn a college education with its own skyrocketing costs to the mix and the middle class is even further burdened.
She worries that the middle class is going to disappear and her metaphors do not bode well for us.