Skip to main content

The Two Income Trap by Elizabeth Warren

What is wrong with the following statement?

"But the two-income family didn't just lose its safety net. By sending both adults into the labor force, these families actually increased the chances that they would need that safety net. In fact, they doubled the risk. With two adults in the workforce, the dual-income family has double the odds that someone could get laid off, downsized, or other wise left without a paycheck. Mom or Dad could suddenly lose a job."

You've just read the fundamental thesis of The Two-Income Trap. If you agree with it--although I truly hope you're a better critical thinker than that--you'll have your views reinforced. Thus reading this book would be an unadulterated waste of your time.

If on the other hand you are capable of critical thinking and you can successfully see through hilariously unrigorous "logic" of the above statement, then this book will still be a waste of your time (unless you like reading books for the sheer pleasure of laughing at their lack of rigor).

Either way, you'll have to wade through 162 pages of hand-wringing and one-sided statistics to get to any actual solutions--and those solutions should have been written on a 3x5 card that says:

1) Don't incur high fixed costs--manage your big-ticket spending items like housing and cars so they don't crush you down the road.
2) Don't compete with your neighbors.
3) Save money.

Better still, watch this Saturday Night Live skit instead. There. I just saved you four precious hours of your life.

More Posts

Empire, Incorporated by Philip J. Stern

Bluntly: this book is worth your attention if two things are true: 1) you're interested in the history of the early joint stock companies and their role in colonial history, and 2) you're willing to put up with a long, cluttered and disorganized book. Empire, Incorporated doesn't know what it really wants to be, and as a result author Philip Stern finds himself scattered everywhere, throwing at the wall anything and everything to do with mercantile-era joint stock companies. The book simply crawls with minutia to the point where even its own author at times gets his own lines crossed and loses his own thread. [A quick  affiliate link to Amazon  for those readers who would like to support my work here: if you purchase your Amazon products via any affiliate link from this site, or from my sister site  Casual Kitchen , I will receive a small affiliate commission at no extra cost to you. Thank you!] I'll critique the work more in another paragraph, but let's first ...

Dark Matter by Blake Crouch [spoilers]

A first-rate central concept inside a second-rate plot wrapper. After reading two Blake Crouch novels , Crouch's gift for concept is obvious, but writing believable and well-resolved narrative arcs is an area for improvement. We'll start with this novel's concept layer, the multiverse: the idea that there are an infinite number of possible universes, and with every choice we make, every fork in our road, a new separate universe will exist for any and all of these possible choices. Dark Matter is a story about a physicist, Jason Dessen, who figures out a way to place a human being into "superposition," enabling him to move from quantum universe to quantum universe, and even to choose which quantum universe to inhabit. [A quick  affiliate link to Amazon  for those readers who would like to support my work here: if you purchase your Amazon products via any affiliate link from this site, or from my sister site  Casual Kitchen , I will receive a small affiliate commis...

The Dhandho Investor by Mohnish Pabrai

Worth reading, and rereading, and re-rereading. An elegant book that teaches fundamental principles of value investing, and much more. The Dhandho Investor  also has the highly unusual quality of being useful at a wide range of reader sophistication levels: you can gain tremendously from this book as a beginner or as a deeply experienced investor. I'll single out Chapters 5 and 6 for particular mention: Chapter 5 describes author Mohnish Pabrai's investing framework, with nine interlocking and synchronistic rules. Chapter 6 describes in very simple language all of the gigantic structural advantages of investing in the stock market, as it offers low frictional costs, a tremendous selection of possible businesses, and, most importantly, periodic incredible opportunities. These two chapters explain why you will take a pass on almost all investments--but then, once in a while, make large bets on specific situations that meet your requirements. [A quick  affiliate link to Amazon ...