Scott Alexander reviews Elizabeth Warren's 'The Two-Income Trap', which argues increased two-income families have led to more competition for positional goods without improving financial security.
Longer summary
Scott Alexander reviews Elizabeth Warren's book 'The Two-Income Trap', which argues that the rise of two-income families has not improved financial security but instead led to increased competition for positional goods like houses in good school districts. The book challenges common narratives about overconsumption and suggests that families are actually spending similar amounts on luxuries as previous generations. Scott finds Warren's analysis insightful but questions some of her conclusions about the importance of school districts. He appreciates her non-partisan approach and willingness to consider market solutions alongside government intervention.
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