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

The Prophet of Edan by Philip Chase [The Edan Trilogy #2]

We all have our part to play and our duty to perform. This is a beautiful novel about performing your duty with honor, even in the face of almost certain failure. Author Philip Chase has an unusual gift for telling a compelling story, and The Prophet of Edan works on two levels: on the individual level, with characters we care about and root for, and on the grand, civilizational level, where entire nations  hurl themselves at each other in a desperate war of survival. And the geopolitical dramas in Philip's world of Eormenlond are downright Kissingerian --with betrayal, realpolitik and honor, all in equal measure. Now, any story with a large cast and a lot of moving parts presents the author with a structural challenge: how do you help the reader keep everybody and everything straight, but yet do it in a way that's organic to the story? After all, this is the second part of a trilogy,  and a lot happened in Book I . So I'll share an example here of what this author does,...

The Investor's Manifesto by William J. Bernstein

In just under 200 pages, The Investor's Manifesto gives you everything you need to manage your investments: * A historically grounded discussion of the tradeoffs between risk and return, * How to design an investment portfolio using index funds, including advice on withdrawal rates and how (and how often) to rebalance, * A good discussion of human psychological biases (the author uses the wonderful phrase "investing psychopathology" to describe this topic), and * How to navigate the financial services industry without getting your head handed to you. Finally, there's a chapter that summarizes everything, followed by a solid reading list for continuing your investment education, broken down by topic: theory, history, psychology, and business. Anyone wanting to reach a reasonable competence level in investing should read at least one of William Bernstein's books. This one or The Four Pillars of Investing  will suffice. Since he's not a Wall Street guy--he's...

Godel, Escher, Bach by Douglas Hofstadter

A wonderful, beautiful work. Ask me about it, and I'll start nattering at you about sphex wasps, fugues, isomorphisms and "jumping out of the system." And my voice will trail off and you'll see me get a faraway look in my eyes. It's actually quite difficult to describe what this book is about--at least, impossible to describe in a few short sentences. [1] But there are so many ways to read Godel, Escher, Bach , and such a wide range of ideas and insights one can get out of it, that it becomes a different book for every reader. And let me confess, if you haven't read GEB  yet, I am jealous of you. [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!] First of all this book can be understood on many levels. You can read it a...