I got this great article from one of my listserves that talks about the upper middle class, so-called HENRYs–”high earners, not rich yet”. They profiled an Asian American family, although that’s not the main point of my post. The article basically addresses the fact that the HENRYs are affected by tax cuts and don’t feel rich.
My opinion is this: I understand that these people are not wealthy and will have to continue to work. They don’t make enough to retire, and they need to continue showing up every day to their office to do law, medicine, finance, or whatever it is that they do. I do think that it will affect HENRYs. But I don’t think they’re being “penalized.” I think they’re just being asked to pay their fair share. Right now we’re running a deficit because people don’t pay a fair amount. The HENRYs make more than 98% of all Americans. It’s hard for me to see how they struggle like people who are right in the middle.
For example, on page 2, they talk about a guy named Selden in LA who pays $1680 a month to send two kids to daycare, which is around the same price as daycare in Portland. Assuming his $388k a year is taxed at 40% (which is roughly what he’d be paying under the Obama plan..I don’t know what his local taxes are), he has $232k in cash every year, $19,400 in cash per month. With money towards the college fund of $750 per older child and $1680 daycare and his $3,100 mortgage, he still has $13,120 in cash every month. That’s $13,120 for food, entertaining, savings–even more if he has a retirement account that deducts pre-tax. With the new child, his costs go up by $1,000 for daycare and $750 for college, but that’s still $11,370, which is more than most people make pre-tax, pre-mortgage, and pre-child expenses. He isn’t going to be buying yachts or funding startups with that money, but he’s comfortable. Even with this tax increase, he won’t starve or lose his home.
I totally understand that people have different lifestyles. As someone in business myself, I understand that certain lifestyles and even professions require certain expenditures and that the blurring between needs and wants is different depending on your station in life. I just think we’re all just going to have to tighten our belts for a while. The economy is bad, people are losing jobs, and we’re going to have to make sacrifices.
No related posts.
I also wanted more rice than what could fit inside the wrap....
Bryon, I think the reason no one has replied to this one is that the article is so long!
I personally believe that this is largely due to the American standard of living, and the American dream that EVERYONE grows up knowing through subliminal messages.
Of course, I may only really think this because I know of many stories of people immigrating to make it big in the US – to only find them selves in a situation with the same struggles. That where they find themselves, they’re far below the line that defines poverty and can never quite find a way to get above it. Of course, there are those people that overcome it – but instead of living conservatively and spreading their wealth to those that could use it. Then they try to be the most hip person they can be – raising their standard of living.
I know that my parents have done so – I grew up living in an upper-middle class household. I found it hard to imagine living with any less. But having no tv, or the most current video game system, forces you to go out and either do something physically active, or do something socially active. Except, right now – I’m still trying to find the local community here to work with.
My parents lifestyle here in America is based on being as “normal” as possible – yet they would always tell us how much better our lives are than theirs were. I often wondered why we just didn’t live with less.
…And of course I have quite the expensive bicycle. Living as scarce as I did in college makes me want to use the money I make now to catch up and buy all the things I didn’t let myself get during the last few years of my life.
Maybe its because my knowledge of OFWs (Overseas Filipino Workers of which are the chief export of the Philippines) is that they leave for a dream. And for those that make it, they want more than the roof above their heads, the sanitary bathrooms, and food that’s actually decent.
I know the point isn’t to compare the American lifestyle with other lifestyles, but I think that the excessive money perpetuates certain aspects that are detrimental.
What is it about humans they always make us want more?
Do we always want to have something more than the standard of living?
or
Is it the dreams that we have?
People often say that its because the society here promotes selfishness. And much like the book you pointed out for me to read (which I did pick up, I just need to read) “Bowling Alone” takes away from any desire to work at the community levels.
Don’t businessmen golf to be social with each other? Why don’t they start a community project and be social with each other in their communities? In fact, from a business perspective, it’d probably be even better because the community could be in strong support for you.
…Uh oops… I guess being sick gives me nothing better to do but continue writing aimlessly.
Hey Jason,
Too bad you’re sick, but I’m totally psyched that you’re writing. Since I’m getting in the habit of posting other people’s work on my front page, if you come up with anything new that you’d like to put out there, just let me know, and I’ll put it out there.
You’ll definitely like “Bowling Alone.” I think it’s a must read for the modern day activist.
You’re definitely right about the money. Like everything else, it’s addictive. Once you have some, you need more, and then you need even more. That’s probably a good reason why people of different socio-economic classes usually define needs vs. wants differently.