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I saw her speech. It's great by the way, but you're wrong about healthcare. Healthcare is more expensive in every way than it was in the 70s. She shows how e

I saw her speech. It's great by the way, but you're wrong about healthcare. Healthcare is more expensive in every way than it was in the 70s. She shows how everything in our society is less expensive now, except the places where we are spending all our money: Housing, Healthcare, and Education. And how ridiculous it is for families to have 2 incomes just to afford a house in a neighborhood that has "good schools". This is the 2 income trap. 2 income families are twice as likely to suffer the loss of one of those incomes, and if their mortgage requires 2 incomes to pay, there goes their house. For some reason the US has fully bought this ridiculous obsession with housing. A $3,000 or $4,000 a month mortgage that takes 50-75% of their monthly income is considered "normal" somehow, and keeping up with the neighbors in conspicuous consumption is considered normal as well. No wonder it is unsustainable and our economy is suffering.

yummyfajitas 16y ago
The house is 60% bigger [1], and according to Warren's data, costs 70% more. Most likely, it also includes more amenities such as washer/dryer (which were uncommon in 1970). We spend more, but also get more. See my other post which gives numbers on healthcare. I agree that college costs are out of control. People choose to take on a riskier financial profile in order to consume more. That doesn't mean things are more expensive. [1] http://www.infoplease.com/askeds/us-home-size.html#axzz0wycZzk3U http://www.infoplease.com/askeds/us-home-size.html#axzz0wycZ...
- elai 16y ago
  Things like washers and driers only add a very small amount to the typical house price.
- watmough 16y ago
  You're picking [1] to the exclusion of Warren's own numbers. Per Warren's numbers, the increase in house size was essentially restricted to one additional room. Certainly not the 60% increase in size you posit. The cost increase in housing was non-uniform, and the largest increases in cost were driven by houses in good school districts and we're talking tens of thousands of dollars across school catchment areas in the same metro. Thus the increases in house prices were disproportionately leveled on families with school-age children.
  - yummyfajitas 16y ago
    Square footage could increase if the rooms got larger and there are more of them.
- Retric 16y ago
  It's not an apples to apples comparison. Prior to the Tax Reform Act of 1986 (TRA86), the interest on all personal loans (including credit card debt) was deductible. TRA86 eliminated that broad deduction, but created the narrower home mortgage interest deduction under the theory that it would encourage home ownership.[1] Basicly housing has been subsidized relative to other purchaces. EX: A 55" TV included with a new home costs a lot less than one paid for with credit cards.
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yummyfajitas 16y ago

The house is 60% bigger [1], and according to Warren's data, costs 70% more. Most likely, it also includes more amenities such as washer/dryer (which were uncommon in 1970). We spend more, but also get more. See my other post which gives numbers on healthcare. I agree that college costs are out of control. People choose to take on a riskier financial profile in order to consume more. That doesn't mean things are more expensive. [1] http://www.infoplease.com/askeds/us-home-size.html#axzz0wycZzk3U http://www.infoplease.com/askeds/us-home-size.html#axzz0wycZ...

elai 16y ago
Things like washers and driers only add a very small amount to the typical house price.
watmough 16y ago
You're picking [1] to the exclusion of Warren's own numbers. Per Warren's numbers, the increase in house size was essentially restricted to one additional room. Certainly not the 60% increase in size you posit. The cost increase in housing was non-uniform, and the largest increases in cost were driven by houses in good school districts and we're talking tens of thousands of dollars across school catchment areas in the same metro. Thus the increases in house prices were disproportionately leveled on families with school-age children.
- yummyfajitas 16y ago
  Square footage could increase if the rooms got larger and there are more of them.
Retric 16y ago
It's not an apples to apples comparison. Prior to the Tax Reform Act of 1986 (TRA86), the interest on all personal loans (including credit card debt) was deductible. TRA86 eliminated that broad deduction, but created the narrower home mortgage interest deduction under the theory that it would encourage home ownership.[1] Basicly housing has been subsidized relative to other purchaces. EX: A 55" TV included with a new home costs a lot less than one paid for with credit cards.

deleted 16y ago

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