Here’s a fabulous Elizabeth Warren speech discussing the main concepts from the Two Income Trap. She compares a family in 1970 with a family today. In short, we have less disposable money, despite having two incomes. Health insurance and housing costs are killing us. We’re spending more on houses not for the granite counter tops, but for the schools. Families would rather live next to toxic waste dump in order to have better schools for their kids. College is now a mandatory requirement for middle class status and college is expensive. If someone loses their job, there is no safety net, and the family ends up going bankrupt.
Families with kids are under enormous financial stress. She thinks we’re moving from a three class society to a two class society. (via Corrente and Wendy)