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Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
27,606 posts, read 14,604,784 times
Reputation: 9169
Quote:
Originally Posted by scarabchuck
Hate to say it but it seem like it is. When i see new housing developments popping up here in MI, starting in the low $400k mark, obviously people are making much more then that. And this is in the rustbelt. Look at the housing costs on the coasts...just crazy.
It's because people can get mortgages. A $400k mortgage at current interest rates is a $2k per month mortgage payment (not counting PMI or property taxes), that only takes a household income of $70k or so at the low end to afford
It's because people can get mortgages. A $400k mortgage at current interest rates is a $2k per month mortgage payment (not counting PMI or property taxes), that only takes a household income of $70k or so at the low end to afford
That payment with average taxes would be $2500, add homeowners insurance ...maybe $150 a month...$2650 on $70k, i don't think so....
So why does the Fed Gov tax us at all? The Federal Reserve can just create money to pay for federal spending.
What a great idea! Inflation is bound to be more of a problem longer term.
But our federal gov't could create huge moneys and very quickly if necessary for instance, for a major war. They wouldn't need to go to thousands of banks for loans as in early WW2.
IMO there is no set reason why it couldn't do similar with HC, protecting our people.
What a great idea! Inflation is bound to be more of a problem longer term.
It was a rhetorical question. So, there's a downside to excess money creation: inflation, which causes everything to cost more, therefore the Federal Reserve can't just create all the money the Fed Gov spends.
Quote:
But our federal gov't could create huge moneys and very quickly if necessary for instance, for a major war. They wouldn't need to go to thousands of banks for loans as in early WW2.
IMO there is no set reason why it couldn't do similar with HC, protecting our people.
You don't think creating an extra $3-$4 trillion/year would be inflationary? Interesting...
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
27,606 posts, read 14,604,784 times
Reputation: 9169
Quote:
Originally Posted by scarabchuck
That payment with average taxes would be $2500, add homeowners insurance ...maybe $150 a month...$2650 on $70k, i don't think so....
Two earners making $35k each (a typical working couple) have more take home pay combined than one worker earning $70k. Keep that in mind, and it's not a negligible difference either. And again, I said that's the low end. It would be tight (prob 60% of their net pay), but they could manage.
Again. The stats are out there. Only about 10 to 15 million people in this country make $100k per year or more. The median individual earns in the low 30's, and median household is around 55k
It was a rhetorical question. So, there's a downside to excess money creation: inflation, which causes everything to cost more, therefore the Federal Reserve can't just create all the money the Fed Gov spends.
You don't think creating an extra $3-$4 trillion/year would be inflationary? Interesting...
It might, depending on when and where that money goes. The Fed created that much post 2008 crash and it had next to no inflationary result.
Today we are more prone to inflation secondary to resource limitations (like certain areas with local housing) rather than from our middle class going on a spending country wide spree having too much discretionary income.
IMO one of the first things we do is make our HC reasonable for our middle class. And that will take more new money.
$200k isn't enough money? Your average working Joe making $30k to $40k per year or the working poor can't afford the medical bills that result in $500k plus doctor incomes. "Well paid" doctors are well paid because they bankrupt their patients
I am not a doctor but my former neighbor is. He put in 4 years undergrad, medical school residency and other schooling to become a neurologist. He is saddled with $200k+ in medical debt. At 32 or 34 he was ready to practice. That is at least 10+ years of no income while pursuing education and hands on. You will be glad he put in that time and spent that money on loans if you need quality knowledgeable care. He deserves all the income he can earn. To compare physicians to your average working Joe is comparing lumps of coal to diamonds.
It was a rhetorical question. So, there's a downside to excess money creation: inflation, which causes everything to cost more, therefore the Federal Reserve can't just create all the money the Fed Gov spends.
You don't think creating an extra $3-$4 trillion/year would be inflationary? Interesting...
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