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Reply #5: And how many normal families could cut their spending 40%? [View All]

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starroute Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-11-11 09:25 AM
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5. And how many normal families could cut their spending 40%?
I'll grant that people making over $100,000 a year have a certain amount of discretionary income. But a family living on $50,000 or less is already close to the bone -- and cutting out that occasional pizza or movie night isn't going to save them more than a few hundred dollars a year.

Even before the recent economic dislocations there were articles like this one from 2005 -- http://www.rtoonline.com/content/Article/Jan05/DiscretionaryIncome011005.asp -- saying that "Average discretionary income for households with earnings of less than $50,000 is $2,075."

So just who is this belt-tightening metaphor aimed at, anyway?

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