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I don’t live in the US. But I’m wondering: Is that a function of inflation, or is it a function of overspending? (Or, third option, a function of high paying jo

by leobg 4y ago

I don’t live in the US. But I’m wondering: Is that a function of inflation, or is it a function of overspending? (Or, third option, a function of high paying jobs beyond geographically clustered in cities where living expenses are especially high.)

jghn 4y ago
Yes.
duxup 4y ago
I gotta think overspending. While housing is absurdly expensive depending on where you live that doesn't mean that at 250k you can't live within your means / have to be living paycheck to paycheck. I suspect they don't want to make the compromises required (commuting and so on) to spend less. It might not be easy to live cheaper in expensive areas, but at 250k it should be possible. As the article notes the majority of these people are still paying their bills "easily".
- leobg 4y ago
  True. I cannot comprehend how people can spend $8 on a cup of coffee. To me, that isn’t even a question of whether one can afford it. It’s a question of sanity. I can make a great cup of coffee myself for mere cents. And if a business that specializes in selling hundreds of cups of coffee a day does it orders of magnitude worse than I can at home, I would feel foolish patronizing them. That makes me almost feel insulted. Same with clothing, btw.
empthought 4y ago
Overspending causes inflation, so...
johndfsgdgdfg 4y ago
I am an immigrant in NA. It's an extremely materialistic culture. Before coming to NA I've heard the phrase 'NA is a culture of excess'. After living here for few years I've realized what the culture of excess means. Exercising restraint is not in DNA of NA culture. The whole culture is just me-me-me and what more I can consume.
- dr_dshiv 4y ago
  Got an example to share?
- leobg 4y ago
  Crazy. Then again, perhaps it would be worse for the economy if people hoarded their money. Perhaps better to be a saver in an economy of spenders than to be spender in an economy of savers?
jandrewrogers 4y ago
Overspending. Americans often light large piles of money on fire without a second thought, which has traditionally been enabled by having far more money left after paying all ordinary expenses from their income than people in other industrialized countries. Even though Americans notoriously spend a lot on unnecessary luxury in their day to day expenses, the median household in the US still has $1000 per month left over for buying the latest iPhone or boat or whatever. Americans have prodigious amounts of money to save or spend on frivolous things by any global standard. Americans strongly lean toward the "spend" side of that, having one of the lowest saving rates in the industrialized world.

by leobg 4y ago

jghn 4y ago

Yes.

duxup 4y ago

I gotta think overspending. While housing is absurdly expensive depending on where you live that doesn't mean that at 250k you can't live within your means / have to be living paycheck to paycheck. I suspect they don't want to make the compromises required (commuting and so on) to spend less. It might not be easy to live cheaper in expensive areas, but at 250k it should be possible. As the article notes the majority of these people are still paying their bills "easily".

leobg 4y ago
True. I cannot comprehend how people can spend $8 on a cup of coffee. To me, that isn’t even a question of whether one can afford it. It’s a question of sanity. I can make a great cup of coffee myself for mere cents. And if a business that specializes in selling hundreds of cups of coffee a day does it orders of magnitude worse than I can at home, I would feel foolish patronizing them. That makes me almost feel insulted. Same with clothing, btw.

empthought 4y ago

Overspending causes inflation, so...

johndfsgdgdfg 4y ago

I am an immigrant in NA. It's an extremely materialistic culture. Before coming to NA I've heard the phrase 'NA is a culture of excess'. After living here for few years I've realized what the culture of excess means. Exercising restraint is not in DNA of NA culture. The whole culture is just me-me-me and what more I can consume.

dr_dshiv 4y ago
Got an example to share?
leobg 4y ago
Crazy. Then again, perhaps it would be worse for the economy if people hoarded their money. Perhaps better to be a saver in an economy of spenders than to be spender in an economy of savers?

jandrewrogers 4y ago

Overspending. Americans often light large piles of money on fire without a second thought, which has traditionally been enabled by having far more money left after paying all ordinary expenses from their income than people in other industrialized countries. Even though Americans notoriously spend a lot on unnecessary luxury in their day to day expenses, the median household in the US still has $1000 per month left over for buying the latest iPhone or boat or whatever. Americans have prodigious amounts of money to save or spend on frivolous things by any global standard. Americans strongly lean toward the "spend" side of that, having one of the lowest saving rates in the industrialized world.