Exurban life
A lot of interesting things stuck out to me in this story of a family from the far suburbs of Philadelphia that is having trouble getting ahead.
Public/Private School trade-off: Many people are still willing to pay double-tuition for their children (private school tuition plus property taxes), even when finances are tight. There are two reasons for this in my opinion: 1.) The public schools are poor (or people perceive them to be poor) and 2.) People put significant value on belonging to a private/religious school community. The first is a problem, the second is just a trade-off families have made for years.
Media obsession with the price of gasoline: I'm not saying it's an unimportant issue - but I think it's blown a bit out of proportion much of the time. As the price of gas doubled, Brian McCausland's expenses went up $1,800 per year. This surely isn't a trivial number, but aren't healthcare costs of $9,000 per year and private school costs of $7,000 per year a much bigger deal? Given that the cost of gas will almost always be a relatively small portion of a family's budget, it will rarely be the primary reason a family will move or stay put. Despite this fact, the media consistently write stories as if the price of gasoline is the most important issue of the day.
Pensions: Defined-benefit pension plans make our workforce more immobile. An immobile workforce ultimately results in people having fewer choices and opportunities over the course of a lifetime. At the very least, immobility gives people less leverage with current employers. I'm actually surprised a company like State Farm still offered old-school pension plans to employees who started in the mid-90s. Defined-contribution plans (e.g., 401k, 403b) are a much better option. They give the employer more cost certainty and the employee more mobility.
Sprawl: This quote sums up much of the issue, "...a post-World War II idea that success is measured as a new house in the burbs. " People have continued to sprawl for over 50 years now - how much longer can this last? At some point people are going to have to start moving back into cities and older suburbs near cities, right?
Generational Economics: The children of baby-boomers are the first American generation that might end up economically worse-off than their parents. While it's much too soon to concede this as fact, it is cause for concern. There is an inherent pressure for every generation to be more successful than their parents. Maybe part of the answer is for our generation to try to redefine the measure of success from the size of a house to something more important. Something a bit more broad and meaningful, like an improvement in quality of life, would be an admirable goal.
Public/Private School trade-off: Many people are still willing to pay double-tuition for their children (private school tuition plus property taxes), even when finances are tight. There are two reasons for this in my opinion: 1.) The public schools are poor (or people perceive them to be poor) and 2.) People put significant value on belonging to a private/religious school community. The first is a problem, the second is just a trade-off families have made for years.
Media obsession with the price of gasoline: I'm not saying it's an unimportant issue - but I think it's blown a bit out of proportion much of the time. As the price of gas doubled, Brian McCausland's expenses went up $1,800 per year. This surely isn't a trivial number, but aren't healthcare costs of $9,000 per year and private school costs of $7,000 per year a much bigger deal? Given that the cost of gas will almost always be a relatively small portion of a family's budget, it will rarely be the primary reason a family will move or stay put. Despite this fact, the media consistently write stories as if the price of gasoline is the most important issue of the day.
Pensions: Defined-benefit pension plans make our workforce more immobile. An immobile workforce ultimately results in people having fewer choices and opportunities over the course of a lifetime. At the very least, immobility gives people less leverage with current employers. I'm actually surprised a company like State Farm still offered old-school pension plans to employees who started in the mid-90s. Defined-contribution plans (e.g., 401k, 403b) are a much better option. They give the employer more cost certainty and the employee more mobility.
Sprawl: This quote sums up much of the issue, "...a post-World War II idea that success is measured as a new house in the burbs. " People have continued to sprawl for over 50 years now - how much longer can this last? At some point people are going to have to start moving back into cities and older suburbs near cities, right?
Generational Economics: The children of baby-boomers are the first American generation that might end up economically worse-off than their parents. While it's much too soon to concede this as fact, it is cause for concern. There is an inherent pressure for every generation to be more successful than their parents. Maybe part of the answer is for our generation to try to redefine the measure of success from the size of a house to something more important. Something a bit more broad and meaningful, like an improvement in quality of life, would be an admirable goal.
YOu are underestimating the impact of the costs of gas. Your NY lifestyle leaves you out of touch with many Americans that rely on cars to get them to low income jobs and $117 barrel oil to heat their inefficient homes. You have to get to work and you need heat, but you can always rationalize putting off a $15 copay for preventive medicine. That check up that many Americans sacrifice could detect serious disease before it become more advanced, but they have to prioritize the dollar.
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You're correct in the sense that I will always have a bias in this debate as long as I continue to live without a car in Manhattan. You also make a good point about lower income families. But if this is true (and I agree it is), why do I always see stories of "middle-class" America struggling with the price of gas with a flat screen TV hanging in the background? Why are all the stories of people living pretty well off, but having to just cut back a little? The media should be reporting the stories of the families where it matters most - where they're making the trade-offs between transportation, heat, food, and healthcare. Maybe it has something to do with selling newspapers and getting better ratings, I don't know.
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To put this into perspective: If your MTA card went from $81 to $162 for the month you pay it, but you're not happy about it. I completely agree with you and the points you make about the family in the 'burbs. The family doesn't pull their kids out of catholic school, because they chose to pay to send their kids to that particular school. They chose to move to an area further out knowing there would be some risks and increased costs. Gas is not something you choose to spend money on-you sort of have to fill the tank. Does the price of gas drive everything we do- no. But, does it make me think about which car to drive- the minivan or sedan? Yes.
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It is usually a flat screen TV, DirecTV dish on top of their house, two SUV's in the driveway, while the whole family is either on their cell phones or PS3. Complaining about the price of gas is like complaining about the weather.
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