7 things the middle class can't afford anymore

[Bowden]

Interesting article.
This problem I think is related to growing income inequality in the U.S.
The middle class in the U.S. is in decline and this article points out some of the impacts to the middle class of growing income inequality.

Capital has been trickling up, not down for some time.
Related to globalization, off-shoring of jobs, and the state of the U.S. job market in general.
Many of the jobs created in the past 10 years have been low income, low or no benefit types of jobs.
The U6 indicator that measures 'true unemployment, i.e. temp workers wanting full time jobs but cannot find them in the job market or their current employer will not convert them to full time and underemployed workers that are qualified for higher paying jobs but cannot find any, is at 12%.


http://www.usatoday.com/story/money...heat-sheet-middle-class-cant-afford/17730223/

During debates and speeches, politicians often bring up the financial burden that's placed on the middle class. We talk about the middle class as though they are this singular entity, who used to thrive until they underwent persecution by the evil 1%. But, realistically speaking, the middle class and the 99% are not really synonymous.

So, who are the middle class?

In its discussion of historical middle class societies, The Economist reports, "Their members are neither rich nor poor but somewhere in-between. . . . 'Middle-class' describes an income category but also a set of attitudes . . . An essential characteristic is the possession of a reasonable amount of discretionary income. Middle-class people do not live from hand to mouth, job to job, season to season, as the poor do."
Some argue that the most sensible income amount to attach to the middle class would be the median household income, of around $54,000. Perhaps, anyone who earns between the 25th percentile and 75th percentile is a member of the middle class.

The middle class has certainly changed. We've ranked a list of things the middle class can no longer really afford. We're not talking about lavish luxuries, like private jets and yachts. The items on this list are a bit more basic, and some of them are even necessities. The ranking of this list is based on affordability and necessity. Therefore, items that are necessity ranked higher, as did items that a larger percentage of people have trouble paying for.

Vacations

New vehicles

To pay off debt

Emergency savings

Retirement savings

Medical care

Dental work

 

[SheriV]

medical care and dental work we're hanging on tenaciously to..but its infuriating to me that I can't afford the"cadillac insurance" I once did.
retirement savings is still happening, but its doing double duty as a potentially high penalty emergency fund

yes to all the rest though...I'm stuck making minimum payments on shit even though I know full well it will
take a bazillion yrs to pay it off and theres no way Im buying a new car or going on vacation anytime soon

 

[Bowden]

medical care and dental work we're hanging on tenaciously to..but its infuriating to me that I can't afford the"cadillac insurance" I once did.
retirement savings is still happening, but its doing double duty as a potentially high penalty emergency fund

yes to all the rest though...I'm stuck making minimum payments on shit even though I know full well it will
take a bazillion yrs to pay it off and theres no way Im buying a new car or going on vacation anytime soon

The problem with middle class medical care afford-ably is related to health care insurance deductibles and ties into low middle class emergency fund savings rates.
Many of the plans have low monthly premiums, however the deductibles before the insurance kicks in are in the thousands of dollars ranges.

I once served on a employer 'test' group of employees that were evaluating HSA high deductible plans that my company was getting ready to provide as an option.

When I pointed out that the plans had low monthly premiums but the deductibles depending on plan were up to six thousand dollars many people in the room were apparently surprised to hear that the out of pocket costs were so high.
I also pointed out that someone, especially if they had kids, had better have enough savings in reserve to fund that out of pocket cost to be able to pay the deductible.

Same type of problem with 'obamacare'.

While the monthly premiums are subsidized at a low cost, depending on the plan, the deductibles before the insurance kicks in are in the three to six thousand dollar ranges.
No one at a modest income that could not afford health care insurance on the open market prior to 'obamacare' can afford to pay a out of pocket three to six thousand dollar medical bill.

 

[SheriV]

we're actually heavily considering the high deductible with hsa plan..the idea of the first yr putting the high dollar amount into the hsa is terrifying

we can put almost our family max into the hsa with the premium difference..I'll admit I like the idea that it rolls over, grows and can be used towards dental expenses (braces for kids)


whats wild is we have an ok ppo now but the deductibles aren't all that different but the premium is three times as much
we could qualify for subsidized care via the aca but the coverage is horrid and no one in the area accepts the ins so its a catch 22, oh and under the aca I would lose the vision, dental, life and accident ins riders the hubs has through work ...

its just such a terrible mess

 

[heckler7]

I have an HSA account its great I recommend it. I find some of the items i need for far less money on the internet. for instance if I go to rite aid or CVS to buy my insulin needles the price is $150, I pay $25 copay, but I can buy them for $10 off amazon. same with blood test strips the are $75 at rite aid but I find them for $6 on amazon. Insulin is about $600 for a 45day supply I can get a 90 day supply mailed to my house for $200.