The Two-Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke

The authors present quantitative data to demonstrate how American middle-class families have been left in a precarious financial position by increases in fixed living expenses, increased medical expenses, escalating real estate prices, lower employment security, and the relaxation of credit regulation.

The result has been a reshaping of the American labor force, such that many families now rely on having two incomes in order to meet their expenses. This situation represents a greater level of financial risk than that faced by single-income households: the inability of either adult to work, even temporarily, may result in loss of employment, and concomitant loss of medical coverage and the ability to pay bills. This may lead to bankruptcy or being forced to move somewhere less expensive, with associated decreases in educational quality and economic opportunity

Among the expenses driving the two-income trap are child care, housing in areas with good schools, and college tuition. Warren and Tyagi conclude that having children is the "single best predictor" that a woman will go bankrupt

Warren and Tyagi call stay-at-home mothers of past generations "the most important part of the safety net", as the non-working mother could step in to earn extra income or care for sick family members when needed. However, Warren and Tyagi dismiss the idea of return to stay-at-home parents, and instead propose policies to offset the loss of this form of insurance.

Warren and Tyagi attempt to overturn the "overconsumption myth" that Americans' financial instabilities are the result of frivolous spending – they note, for instance, that families are spending less on clothing, food (including meals out), and large appliances, when adjusted for inflation, than a generation prior.

I’m guessing they don’t want everyone knowing their only source of food is hot pockets.

I mean... through the 18-24 area, I pretty much ate every meal alone.

Still do at 38.

Part of why I make it a point to cook for my people as often as I can

wait, what do the other 75% do?

The article states that while there are many factors involved, smartphones and social media are key factors.

“There’s not a single smoking gun,” says De Neve about the growth of this trend.

the spectre of capitalism standing behind him holding a smoking gun:

Is it really “alone” if you’re on chat?

I eat lunch mostly alone. Dinners maybe about half or 2/3rds with someone. But I'm well older than 18-24 :(

How many of the other 75% wishes they could eat their meals alone?