Having too large a fraction of monthly income tied up in inflexible spending, such as rent or mortgage payments, can make it difficult to make budgetary adjustments in the face of economic shocks. Many Americans live paycheck to paycheck despite having a high income, due to a phenomenon called 'wealthy hand to mouth'. This situation is stressful and unsustainable.
One Yale economist certainly thinks so. But even if he’s right, are economists any better?