In the blog, “Fixed Costs: The Cause of Debt?” by Allison Bullen, the writer mentioned the issues American families are facing with their “fixed costs” such as housing, health care and rising educational costs that are impossible to reduce. These costs lead Americans into further debt, and just by cutting down on daily costs by taking public transportations and cooking at home wouldn’t make a very big difference. Based on statistics shown on the blog, housing, health care and college tuition etc. costs an average family 75% of their income in the year 2000, compared to 50% in the 1970s.
Ever since the global financial crisis of 2008, things haven’t really gotten much better. Prices continue to inflate; the average household income is decreasing yearly. The writer mentioned in her blog that the average household income for families between the ages of 33 to 44 fell 14% from 2001 to 2010. With a big cost and low income, the economy has made many families and people desperate. In the current economy, the best possible way for a family to survive is to continue to reduce daily costs as much as possible, and through making smart decisions with anything big such as their “fixed costs”.
Bibliography:
Bullen, Allison. “Allison Bullen’s Blog.” Web log post. Allison Bullens Blog. N.p., 5 Oct. 2013. Web. 17 Nov. 2013. <https://blogs.ubc.ca/allisonbullen/2013/10/05/how-fixed-costs-are-driving-americans-to-the-poorhouse/>.
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