Discussion about this post

User's avatar
Jeff's avatar

It's interesting to hear that even with universal health care and affordable childcare in Europe, people are setting high income thresholds as pre-requisites for becoming parents. In the U.S., those are really major financial obstacles, where even people I know with one kid, making good money, will in all seriousness say "I couldn't bear to pay another $30,000 a year on daycare for another 5 years" and call it quits.

The cost of family health insurance is also getting pretty exorbitant here. My younger sister (engaged, probably planning to have kids soon) pays nothing in premiums for her employer-provided health insurance, and she was aghast to learn that (just my portion of) my family health insurance plan's premiums climbed this year from $14,000 to $19,000. There is one cheaper, HSA-eligible "high-deductible" plan option with a premium of merely... $17,000, but where literally every service and prescription drug, aside from one annual checkup, must be paid fully out of pocket toward the several-thousand-dollars deductible, before it actually covers anything. Even with the "good" PPO plan, we have averaged several thousand dollars extra out of pocket every year since our first kid was born in 2018.

I think the common thread across Europe and the States, then, is housing affordability. I think most middle-class workers used to believe, pretty much accurately, that they'd be able to find a decent-enough home, at a manageable if not ideal monthly cost, maybe after making some sacrifices in terms of a less sought-after location. But now people reasonably worry they simply won't be able to get decent housing within commuting distance of their career. The mortgage-to-income ratio all across the US has skyrocketed to levels formerly confined just to places like NYC, SF and Seattle. It hovered around 30% from 2012 to 2021, but is now more like 44%: https://www.atlantafed.org/economy-matters/banking-and-finance/2024/10/16/home-ownership-affordability-monitor-2-0

Expand full comment
R P's avatar

There is something odd with these median household numbers, given that the median household income is only about $80k in the US.

Expand full comment
14 more comments...

No posts