Posted to: Economy

Bring on the Wealthy

In California those families with a combined income of $250,000 or more are considered wealthy.  


Do these people know that the median income for a family of 4 in California is $74,801?  Wealth should not be defined as what you make in a calendar year.  For instance, Family A and B each made $250,000 in 2008.  Famiy A lives in Oakland, CA, has 2 children in college, costing about $70,000/year.  Mom was diagnosed with cancer and their insurance did not cover all of the costs.  The past two months they have been unable to make their mortgage payments.  Family B lives in Clarksville, TN, has 2 children, each in Jr. High School.  Last year Family B went to Europe for 3 weeks and even purchased a second home.  But because both families earned $250,000 both families are considered wealthy.

Now lets look at the cost of living for both cities:

In Oakland, CA, you would pay about $680,000 for a decent size house to accomodate a family of 4; to rent, you would pay around $1800 – $2000. 

In Clarksville, TN, a house would cost you $226,000 and rent would be $620.

In high cost states, like California, many households make a combined income of $250,000.  But I would certainly not say that these families are wealthy by any means (at least not the ones I know).  This is why the presidents stimulous package isn’t going to help Californian’s a whole lot.  The caps on the package should be adjusted for cost of living, just like the loan limits.

For those curious cats out there, check out to see how the cost of living varies city to city.


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