Decline of the Middle Class (ideology, economy, money, income)
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I'm not an expert on any of this but my theory is it started in the 80s. My parents started out as solidly middle class back in the 70s when I was born. They bought a $40,000 dollar home (I really do think it was that cheap, and we lived in a nice neighborhood), had average cars, my mother sewed our clothes, etc. My parents put me and my sister in private school because of busing and we had a country club membership. My dad was involved in oil well exploration and drilling, etc. so yes, my parents after about ten years did get rich, but even after they did they were both pretty conservative with money and never flinged it around. I had a tonsilectomy in '77 that I'm pretty sure they paid for with cash; my mom referred to credit cards as "charger plates".
Something changed in the 80s; it became necessary to look and act like the wealthy due to cultural influences like Lifestyles of the Rich and Famous, yuppies, the Royal Family in England (Princess Diana, etc.), lifestyle labels like Ralph Lauren, designer everything, the super models, overnight fame-- stars like Madonna, and the allure of the rich high rolling lifestyle that so many people now covet.
The economy has radically changed since the 70s and people can't get started to even achieve the basic level of middle class prosperity that my parents had without a lot of hard work. Nowadays people want to keep up so they use credit to maintain an appearance of wealth because to not do so is somehow wrong.
Quote:
Originally Posted by boiseguy
I'm curious as to what everyone's opinion is as to the realities involving the declining of the middle class...There was a time when people saved money and purchased cars, houses, appliances, furniture and owned their middle class lifestyle outright. It is my opinion that middle class lifestyles are being purchased by way of lines of credit...We measure our standard of living in our society by what we got and what we can "afford" It is also my opinion that middle class standing for many of us is an illusion, and has caught up with us due to the recent credit crunch's....
I really hate to be unsympathetic about this plight but:
The average American house size has more than doubled since the 1950s; it now stands at 2,349 square feet. Whether it's a McMansion in a wealthy neighborhood, or a bigger, cheaper house in the exurbs, the move toward ever large homes has been accelerating for years.
Average size of a new single home:
1950 - 983 sq ft
1970 - 1,500 sq ft
1990 - 2,080 sq ft
2006 - 2,349 sq ft
While not an apt comparison, I was looking at some homeplans from various European sources and noticed their homes are generally much less in sq. footage.
When I moved into my current home, I downsized by about 25% in sq.ft and lost a garage. While it was a pain to toss a bunch of stuff it was also liberating to free oneself from being a slave to junk. In addition I took a good deal of time going over a wide range of floor plans to find the most efficient use of space and in the end have enjoyed the happy return of reduced operating cost.
My utility bills are half of my previous home and I have subsequently put those savings into more productive use such as upgrades, improvements in energy efficiency and more land.
While I happen to think the middle class is in decline, much of the reasons for this decline are self inflicted as they are due to government. I can say with some certainty that the majority of my friends are living on the credit edge and are one catastrophe away from ruin and for me, that is no way to live.
I think the largest decline has been in our working class. We have fewer and fewer worker bees, and everyone expects to be compensated like a manager.
Increased credit has allowed people to live outside of their means. Everyone trys to keep up with the Jones' today, with hopes that tomorrow will be fiscally better.
Taxes.... More and more government programs and services that take money out of our pockets so that it can be wasted by others. How many high schools need artificial turf and lights for their football field? The usual explanation is (it's state funded... and if we don't spend it, someone else will). Do powerpoint presentations in every class room work so much better than chalk boards or overhead projectors?
Lawsuits.... If we could somehow set a maximum value on lawsuits, maybe insurance wouldn't be so high. I'ver never lost a loved one to malpractice, but I'm willing to bet that $100 million wouldn't comfort me any more than $1 million.
Volunteerism.... So many feel they need to be compensated for every effort. If citizens would take more pride in their communities maybe our municipalities wouldn't have to spend as much.
Parents purchased a house on LI in 1982. Large high rance with LR/DR, EIK 4 Bedrooms (3upstairs on second level.. 4th on the first floor). First floor was where our kids room was etc and 1 car garage. I have a small Levitt house with 4 bedroom s 2 Baths LR and EIK.. it's MUCH samller.. 1/2 the size of my parents.. slightly smaller property. I paid, in interest, on my principal last year more than 1/2 of what my mom and dad's entire mortgage was on the house they bought in 1982.. Yes.. different neighborhood but still a blue collar neighborhood (about the same socioeconomic type area as I grew up).
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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In the 60s when I was a kid, I never saw "2 car families". We only had one car and all the other friends I had only had one car. Your "other car" was the MTA bus if you needed it.
In the 60s when I was a kid, I never saw "2 car families". We only had one car and all the other friends I had only had one car. Your "other car" was the MTA bus if you needed it.
Well.. in the 60's both mommy and daddy didn't have to work full time to afford to live.. Each parent needs a car to trade off pick up and drop offs of the kids at school , events etc. How can a wife who has to get the kids off to school and off to her job also drop hubby off at hte MTA (assuming only one parent works in the city.. maybe both work on LI.. quite possible) (and you can switch it and it cuold be the reverse of my example). then go pick him up after picking up the kids, dropping them at practices, cooking dinner.
If you cut down on those things I've mentioned you could have more money.
What do you know when you live with "Mommy"???
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