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First , those two words got you to look at this article. Unfortunately, they are also the two primary causes of divorce in the country today. In fact, there were cut-off points at which more annual income had a negative effect on overall life satisfaction. That is an entirely different message from what most have been led to believe. Today, more than ever, the walk to the end of the driveway has become a dreaded thing as bills loom large in the dark crevices of the mailbox.
The rise in medical costs and health care goes unabated consuming more of their incomes. Of course, by just looking at household net worth, once again you would not really suspect a problem existed. The majority of the increase over the last several years has come from increasing real estate values and the rise in various stock-market linked financial assets like corporate equities, mutual and pension funds.
However, once again, the headlines are deceiving even if we just slightly scratch the surface. Such masks the majority of Americans who have an inability to increase their standard of living.
What monetary interventions have failed to accomplish is an increase in production to foster higher levels of economic activity. The equation is very simple — when individuals are stressed over finances they are less active sexually. This was shown in a recent study by the National Bureau of Economic Research. A similar pattern emerged in all three cases. Research published through the NBER is often conducted by academics at their own universities. Of course, this decline in fertility, fuels one of the primary problems facing the U.
The problem for American families today, despite media commentary to the contrary, is simply the inability to maintain their current standard of living. When incomes remain stagnant, or falls, due to job loss or reduction in pay, the impact on the budget at home is significant when there are already very low saving rates and the inability to access a tight credit market.