Comments on: Review of The Two-Income Trap: The Myth of American Overconsumption

By: Peter Nelson

Peter Nelson — Fri, 03 Apr 2009 15:12:27 +0000

Warren’s whole premise is suspect. My wife and I have had two incomes for years but we have always structured our budget for one income by living frugally. And it worked – a few months ago I was laid-off. I haven’t spent even one penny of my unemployment payments – I’ve simply put it into my rainy-day fund. I put my ENTIRE severance package into a 1-year CD. But we own a contemporary house on an acre of land and this summer we’re going on vacation in the Rockies.

We drive old cars into the ground; we make our own food; we don’t watch TV; we repair as much as we can ourselves, and we’re excellent savers.

So I don’t know what “trap” Warren is talking about. There are plenty of people getting by on one income, which is proof that there’s no reason why two-income couples need to spend both incomes. So if they do spend both incomes then, by definition, that’s overconsumption.

By: Lise

Lise — Mon, 09 Mar 2009 02:21:38 +0000

Manda, let me apologize to you. Right after starting the review series, I got sucked into another project – so I have not yet completed the series.

The other project is mostly complete now, so I look forward to having more time to finish my review. I hope you’ll stick around for it!

By: Manda B

Manda B — Sun, 08 Mar 2009 17:19:28 +0000

So, whatever happened to the other posts reviewing the Two-Income Trap? I tried to find them on the website, but only saw it mentioned in one other post…What gives?

By: Frugal in the Fruitlands » Should You Break Up With Suze Orman?

Frugal in the Fruitlands » Should You Break Up With Suze Orman? — Thu, 12 Feb 2009 19:22:12 +0000

[...] bills is one thing; but it ignores the basic economics conditions that actually cause insolvency. In reviewing The Two-Income Trap I talk about these in greater depth; how rising costs but lagging salaries have created a perfect storm for the middle class. [...]

By: Nick Pagan

Nick Pagan — Sat, 06 Dec 2008 13:02:22 +0000

Hi Lise,

Do these studies comparing seventies spending have inflation adjusted figures?

I once remember reading some years ago that the cost of many goods has dropped significantly over the years in real terms. Economics of scale, the impact of new technologies and diverting resources globally to lower cost centers has had a significant impact on the cost of items today over yesteryear, when adjusted for inflation.

I just wonder what effect that would have on the study.

That said, I think that it’s pretty much a universal constant that everyone in the developed world, no matter what their income bracket, reckons that they need at least an extra 10% of income to feel comfortable :)

By: Frugal in the Fruitlands » Carnival Wrap-Up: Punny About Money Edition

Frugal in the Fruitlands » Carnival Wrap-Up: Punny About Money Edition — Fri, 05 Dec 2008 20:41:09 +0000

[...] by Lise on 05 Dec 2008 at 04:41 pm | Tagged as: meta The first part of my review of The Two-Income Trap was featured in this week’s Carnival of Personal Finance, hosted at Mighty Bargain [...]

By: Lise

Lise — Mon, 01 Dec 2008 22:21:40 +0000

@Nicole: I have not watched it yet – I totally admit to being somewhat video-adverse – but I’ll make a point to when I get home.

… looking at the intro, man, Elizabeth Warren needs some better PPT skills. Such is the price of genius? ;)

By: Carnival of Personal Finance, Cyber Monday 2008 Edition | Mighty Bargain Hunter

Mon, 01 Dec 2008 06:04:07 +0000

[...] Frugal in the Fruitlands reviews The Two-Income Trap. [...]

By: nicoel

nicoel — Fri, 28 Nov 2008 20:51:51 +0000

Lise,

Have you watched this? http://www.youtube.com/watch?v=akVL7QY0S8A

I wonder if the book goes into greater detail?

By: Frugal in the Fruitlands » Support the Credit CARD Act of 2008

Frugal in the Fruitlands » Support the Credit CARD Act of 2008 — Tue, 18 Nov 2008 16:19:21 +0000

[...] some are eager to point fingers at irresponsible consumers, I think Warren and Tyagi have shown that American overconsumption is largely a myth. What people are spending money on today, it turns out, are the necessities of life – not plasma [...]