Friday, August 29, 2008

Middle class in Manhattan

I addressed where $250k per year fits in Manhattan a couple of days ago.

Today, Felix Salmon picks up the same topic, but his comments are not working for me, so I will post here for your consideration:
Let's say that a family of 4 in Manhattan makes $250,000 per year, and they give $25,000 to charity and save $25,000 per year (retirement & college savings plans totaling $20,000).

Federal, state and city income & sales taxes will take about $80,000. So they are left with $10,000 per month to spend. Of course, a 2 bedroom apartment will cost about $7,000 per month, and since more than half the households under the poverty line have a car, let's give them a car, parking spot and 4 unlimited Metrocards, which costs $1,000 per month to carry in the city.

I'm not sure that $2,000 per month for food, clothing, utilities, travel & entertainment, and everything else constitutes rich.

$250,000 for a SINGLE PERSON, now that is rich. But households have almost 3 people in them.

Felix, I take it you don't have kids yet.

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