5 ms·

The cost of housing combined with manufacturing outsourcing has basically crippled the American working/middle class since the early 2000s. Then add inflation.

The cost of housing combined with manufacturing outsourcing has basically crippled the American working/middle class since the early 2000s. Then add inflation. When Ivy League business school grads are having to save until their 40s to buy homes, what does that imply for the rest of the country?

zamfi 5y ago
> cost of housing combined with manufacturing outsourcing I think these are two separate issues. > business school grads saving into their 40s to buy homes For example, on this -- surely, if anything, manufacturing outsourcing has only made business school grads get paid more? If you're not already familiar, take a look at Baumol's cost disease [0] for more on the phenomena at play here. [0]: https://en.wikipedia.org/wiki/Baumol%27s_cost_disease https://en.wikipedia.org/wiki/Baumol%27s_cost_disease
- curiousllama 5y ago
  > business school grads saving into their 40s to buy homes Median pay out of top b schools is ~$125-$150k. If you have a stay at home partner and a few kids, you prob need to make partner/Director before you can buy a townhouse in a Brooklyn. That said, if you're single and work for an I Bank in Chicago, you'll be able to buy when you hit VP in your early 30s.
  - zamfi 5y ago
    > buy a townhouse in a Brooklyn This is not equivalent to “buy homes” — this is like saying they wait until 40 to buy a car because the Honda Civic they drove in their 20s doesn’t count, they need a BMW.
mcs5280 5y ago
The system is working exactly as designed. The politicians are enriching their wealthy donors.
giantg2 5y ago
"Ivy League business school grads" Is it possible they have to wait due to larger than average student loans (although many do come from wealth), or that the high paying jobs they seek are in HCOL areas?
- mogadsheu 5y ago
  I think you’re accurate about both.
e4e78a06 5y ago
People feel like they _have_ to live in NYC/SF/LA when they make peanuts. If those people moved to the Midwest they'd have much lower CoL and probably still around the same pay. Amazon pays $15/h wherever you are.
- pinephoneguy 5y ago
  - ketzo 5y ago
    - pinephoneguy 5y ago
- nightski 5y ago
  Yeah exactly. Cost of living is so much lower and one can actually live in some very nice smaller cities with plenty of restaurants, entertainment, and nature. Good quality of life. If you are even luckier and can be a developer in those cities making 150k-200k you feel like royalty with a ton of extra money to travel often.
  - asdff 5y ago
    The only problem is in some of these places its hard to be a developer and cross 80k much less 150k. There is a reason why midwestern grads get poached to the coasts.
- asdff 5y ago
  It's expensive to uproot which is why the working poor are often trapped in high cost of living areas. OTOH the midwest has had a huge problem for years of 'brain drain,' and that's because there are just fewer highly compensated jobs than what you'd expect in the midwest, and among these salaries are appreciably lower. People don't receive degrees at midwestern schools then move to NYC, SF, LA, wherever else without a job offer lined up, and if they take that offer its because its better than what midwestern companies who are even more active in recruiting of midwestern grads were offering them.

zamfi 5y ago

> cost of housing combined with manufacturing outsourcing I think these are two separate issues. > business school grads saving into their 40s to buy homes For example, on this -- surely, if anything, manufacturing outsourcing has only made business school grads get paid more? If you're not already familiar, take a look at Baumol's cost disease [0] for more on the phenomena at play here. [0]: https://en.wikipedia.org/wiki/Baumol%27s_cost_disease https://en.wikipedia.org/wiki/Baumol%27s_cost_disease

curiousllama 5y ago
> business school grads saving into their 40s to buy homes Median pay out of top b schools is ~$125-$150k. If you have a stay at home partner and a few kids, you prob need to make partner/Director before you can buy a townhouse in a Brooklyn. That said, if you're single and work for an I Bank in Chicago, you'll be able to buy when you hit VP in your early 30s.
- zamfi 5y ago
  > buy a townhouse in a Brooklyn This is not equivalent to “buy homes” — this is like saying they wait until 40 to buy a car because the Honda Civic they drove in their 20s doesn’t count, they need a BMW.

mcs5280 5y ago

The system is working exactly as designed. The politicians are enriching their wealthy donors.

giantg2 5y ago

"Ivy League business school grads" Is it possible they have to wait due to larger than average student loans (although many do come from wealth), or that the high paying jobs they seek are in HCOL areas?

mogadsheu 5y ago
I think you’re accurate about both.

e4e78a06 5y ago

People feel like they _have_ to live in NYC/SF/LA when they make peanuts. If those people moved to the Midwest they'd have much lower CoL and probably still around the same pay. Amazon pays $15/h wherever you are.

pinephoneguy 5y ago
- ketzo 5y ago
  - pinephoneguy 5y ago
nightski 5y ago
Yeah exactly. Cost of living is so much lower and one can actually live in some very nice smaller cities with plenty of restaurants, entertainment, and nature. Good quality of life. If you are even luckier and can be a developer in those cities making 150k-200k you feel like royalty with a ton of extra money to travel often.
- asdff 5y ago
  The only problem is in some of these places its hard to be a developer and cross 80k much less 150k. There is a reason why midwestern grads get poached to the coasts.
asdff 5y ago
It's expensive to uproot which is why the working poor are often trapped in high cost of living areas. OTOH the midwest has had a huge problem for years of 'brain drain,' and that's because there are just fewer highly compensated jobs than what you'd expect in the midwest, and among these salaries are appreciably lower. People don't receive degrees at midwestern schools then move to NYC, SF, LA, wherever else without a job offer lined up, and if they take that offer its because its better than what midwestern companies who are even more active in recruiting of midwestern grads were offering them.