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> household disposable income That doesn't matter a slightest if people can't afford housing. Income is indeed disposed, without much to show off.
by betaby 2y ago
> household disposable income
That doesn't matter a slightest if people can't afford housing.
Income is indeed disposed, without much to show off.
- davidgay 2y agoDisposable income is measured after housing expenses.
- insane_dreamer 2y agoIncorrect. See below.
- dralley 2y agoDisposable income by definition is post-expenses, which includes housing expenses.
- smnrchrds 2y ago"Disposable income" means income after taxes. The word you are looking for is "discretionary income", which means income after taxes and necessities.
- deleted 2y ago[deleted]
- insane_dreamer 2y agoNo, that's not what disposable income means. Disposable income means income after taxes. It does not include any expenses, housing, health care, or otherwise. from the OECD website: > Income includes wages and salaries, mixed income (income from self-employment and unincorporated enterprises), income from pensions and other social benefits, and income from financial investments. It is less taxes on income, wealth, social security contributions paid by employees, the self-employed and the unemployed, interest on financial liabilities, and the change in net equity of households in pension funds. A bit of a clearer explanation here: https://en.wikipedia.org/wiki/Disposable_household_and_per_capita_income https://en.wikipedia.org/wiki/Disposable_household_and_per_c... The reason why the US has such high disposable income is because Americans have to pay for so much more out of pocket than other OECD countries do. Once you factor in health care, education and other social services that are cheap or free elsewhere, Americans are generally worse off than many OECD countries.
- knubie 2y agoFrom that wikipedia article: > It may include near-cash government transfers like food stamps, and it may be adjusted to include social transfers in-kind, such as the value of publicly provided health care and education. Additionally from the OECD website: > Household adjusted disposable income additionally reallocates "income" from government and Non-Profit Institutions Serving Households (NPISHs) to households to reflect social transfers in kind. These transfers reflect expenditures made by government or NPISHs on individual goods and services, such as health and education, on behalf of an individual household.
- insane_dreamer 2y agothat still doesn't take into account the fact that US households must spend much more on healthcare and education than the expenditures made by EU governments on those same services. Also housing is more expensive in the US (total cost, not per sqft), as is food; in fact, the cost of living in general in the US is more expensive than Europe or Japan, with the notable exception of cars and gas. For example, I just searched cost of living in France vs USA and the first two sites I found gave similar figures of 30% more in the US. Not representative of all of Europe of course but an interesting data point. https://www.mylifeelsewhere.com/cost-of-living/france/united-states https://www.mylifeelsewhere.com/cost-of-living/france/united... https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=France&country2=United+States https://www.numbeo.com/cost-of-living/compare_countries_resu...
- knubie 2y agoAccrding to the wikipedia article you referenced, the OECD data is already adjusted for purchasing power parity (PPP), which is a cost of living adjustment. [0] [0] https://en.wikipedia.org/wiki/Disposable_household_and_per_capita_income#Disposable_income_per_capita_(OECD) https://en.wikipedia.org/wiki/Disposable_household_and_per_c...
- insane_dreamer 2y ago
- Spivak 2y agoAll the replies have me so confused, I have never heard an actual real life human being use the term disposable income to mean anything other than post-expense income. So you have at least one other person who uses the word like that.
- olyjohn 2y agoYeah how is rent money different from taxes? For most people, you HAVE to pay rent/mortgage/shelter expenses. I suppose you can live on the street, or move in with relatives. On that note, you can also choose not to pay your taxes, but you'll also have to deal with those consequences.
- chelical 2y agoHousing isn't that expensive or unaffordable in the US unless you want to live in NYC or SF.
- mcmcmc 2y agoThis just isn’t true
- nradov 2y ago[flagged]
- dang 2y ago"Don't be snarky." "Please respond to the strongest plausible interpretation of what someone says, not a weaker one that's easier to criticize. Assume good faith." https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- AnthonyMouse 2y agoThis is Texas: https://fred.stlouisfed.org/series/TXSTHPI https://fred.stlouisfed.org/series/TXSTHPI It's worse in San Francisco, but it's a nation-wide problem.
- eitally 2y agoI would argue that it's worse now in high COL TX metros than it is in the bay area, because even if home values are still lower in Austin, for example, Texas property taxes are brutal compared to CA and have increased dramatically [in line with property value appreciation], which Prop 13 doesn't allow to happen in CA.
- AnthonyMouse 2y agoI mean it's not just Texas either. Florida: https://fred.stlouisfed.org/series/FLSTHPI https://fred.stlouisfed.org/series/FLSTHPI Pennsylvania: https://fred.stlouisfed.org/series/PASTHPI https://fred.stlouisfed.org/series/PASTHPI Virginia: https://fred.stlouisfed.org/series/VASTHPI https://fred.stlouisfed.org/series/VASTHPI Vermont: https://fred.stlouisfed.org/series/VTSTHPI https://fred.stlouisfed.org/series/VTSTHPI Tennessee: https://fred.stlouisfed.org/series/TNSTHPI https://fred.stlouisfed.org/series/TNSTHPI
- gruez 2y agoThat's unlikely to change the conclusion. US household income is so high and south east asia is so poor that it's impossible to claim it's poorer than some "Southeast Asian backwater", even if adjust for high housing prices, healthcare, and cost of living (which already includes both).