"The article points out an annual income of $172,000 as being rich, but by implication, these people still have to work for their money."
I think the real issue is that someone making 300,000 probably doesn't have much more disposable income than someone making 80,000. Whatever extra money they have is likely just going to a slightly nicer house, their IRA, dental insurance, a slightly better preschool for their kids, etc. In other words, if you're making 300,000 per year then you probably can't afford to fly to Hawaii for the weekend on a whim any more than someone making 80,000 can.
You make a good point, I would just substitute "choose not to" for "probably can't." The person chose that nicer house and an expensive lifestyle. As a counterpoint, I went to Virginia Beach for a week on a whim at a time when I had no real income to speak of.
> "someone making 300,000 probably doesn't have much more disposable income than someone making 80,000"
I don't think that's borne out by the stats. As I recall fixed costs essentially flat-line as a percentage of income somewhere south of 200k, up until you reach the "don't look at prices anymore" brackets. Also, I note that it really doesn't take much more disposable income to add flashy consumption. Five thousand dollars is easily two annual trips to Hawaii, which -- while not remotely a trivial amount of money -- really isn't that hard to sock away at 300k vs 80k. And two additional annual vacations at 300k is certainly going to look like 'whimsical' to the guy making 80k who takes one real vacation a year.
So I'm wondering if we aren't having a disagreement on definitions. And when you say 'hawaii on whim', you're thinking about trips approaching the opulence of the "don't look at prices anymore" brackets?
> I think the real issue is that someone making 300,000 probably doesn't have much more disposable income than someone making 80,000.
I think the term disposable income gets misused a lot. People don't see the money they spend on the BMWs, or the part-time nanny, or the private school, or any number of everyday luxuries as a use of disposable income. But they are every bit as much as those trips to Hawaii.
I think the real issue is that someone making 300,000 probably doesn't have much more disposable income than someone making 80,000. Whatever extra money they have is likely just going to a slightly nicer house, their IRA, dental insurance, a slightly better preschool for their kids, etc. In other words, if you're making 300,000 per year then you probably can't afford to fly to Hawaii for the weekend on a whim any more than someone making 80,000 can.