Don't Worry About the Vase Podcast The $140K Question: Cost Changes Over Time
Dec 17, 2025
Explore the validity of the viral $140K poverty claim and its misconceptions. Delve into the Cost of Thriving Index and its implications on family expenses, especially regarding childcare. Examine the dominant role housing plays in perceptions of affordability, alongside changing attitudes toward commuting and home size. The discussion also tackles healthcare and education cost trends, questioning whether inflation has stabilized. Plus, discover how productivity measures may not align with actual outcomes. It's a lively debate on the intersection of costs and expectations!
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Rising Income But Higher Real Costs
- Real incomes have risen but costs for key items have often risen faster, creating genuine hardship despite better goods.
- The revolution of rising expectations and rising requirements explains why people feel worse even as material wealth increases.
Housing Drives The Affordability Crisis
- Housing is the dominant factor driving perceived unaffordability because supply restrictions raise prices where opportunities concentrate.
- Legalizing and massively expanding housing supply would relieve slack and feel more solvable.
Affordability Metrics Mask Reality
- Rising mortgage rates and prices have sharply worsened affordability metrics even if long-term percentages hide some changes.
- Many buyers rely on wealth and transfers rather than median income to purchase typical houses.