Housing Costs Outpace Wage Growth

[EVDebs]

For those of you wondering how government is going to get the taxes it needs and the economy is going to get the 'consumption' dollars it needs to at least limp through the next four years...consider this: The Center for Housing Policy shows that housing costs are outpacing wage growth

Full-time job may not earn decent housing
Prices climbing faster than wages, two studies say
By SIOBHAN MCDONOUGH
http://www.chron.com/cs/CDA/ssistory.mpl/business/3159350

>snip

"It's generally accepted that a family should not spend more than 30 percent of its income on housing to ensure there is enough money for other needs. But in a recent six-year period, the number of low- and mid- dle-income working families paying more than half their income for housing has increased 76 percent. In 2003, 4.2 million working families spent more than half their income on housing, up from 2.4 million in 1997."

The genius of FDRs New Deal was that he started amortized mortgages that freed up large amounts of monthly spending dollars. Prior to his New Deal, mortgages were interest payments and then a huge balloon payment at the end, which couldn't be paid during the Great Depression.

Now we need to do the same thing. Somehow monthly incomes need to have the housing component lowered, especially along the heavily populated blue-state coastal areas !

[Double T]

1. Everything Is Out Pacing Wage Growth, So................

.......Bend Over Backward And Kiss Your Middle Class Ass Goodbye.