I'm going to relay the depressing news that's behind this dynamic. Many Americans think of business as a risky, exclusive endeavor because "it takes money to make money". What's missed in that is that holding a job
also costs money. Lots of it, although the costs are sometimes indirect. You have to live in an expensive location, although you're not getting
nearly enough utility (in most cases) to justify paying to live there... except for the better jobs there. If you're serious about your career, you can't do your own cleaning: two-career couple and you need a maid. If you have kids, your bosses will ask where they go to school and it will affect your promotion chances. If a professional job pays $400k, there's absolutely no way you can keep it with less than about a $300k (pre-tax) lifestyle, and that's if you're really good. (The untalented need $500k to keep that job.) In fact, the major reason why it pays so much is because that is the economic cost of doing what the job requires (living in an expensive area, hiring a maid so you aren't distracted by chores). The vast majority of Americans' expenditures (aside from basic necessities) is put toward (a) recovering from negative emotional effects of work stress, and (b) meeting the social expectations necessary in order to succeed in one's career.
What we'd expect based on our knowledge of markets is that people would have to spend $1/year to keep a $1/year job. However, some people have a talent for managing money and saving. If they make twice as much, they save twice as fast. Instead of making $100k (post-tax) and spending $80k, they're spending $160k to keep a $200k (post-tax) job. The more they make, the more they save. No surprises.
However, the financially untalented are the ones who have to spend $120k to keep a $100k job. If they get promoted, they'll be spending $240k to keep a $200k job. They'll burn twice as fast.
This is a deeper problem than people think. It's not just about "discipline" or will. There are people out there who are just severely below average in financial sense and, while they can play the social gymnastics necessary to get the $500k+ jobs, they can't make $1.00 without spending $1.10 (at any income level).
What we'd expect based on our knowledge of markets is that people would have to spend $1/year to keep a $1/year job. However, some people have a talent for managing money and saving. If they make twice as much, they save twice as fast. Instead of making $100k (post-tax) and spending $80k, they're spending $160k to keep a $200k (post-tax) job. The more they make, the more they save. No surprises.
However, the financially untalented are the ones who have to spend $120k to keep a $100k job. If they get promoted, they'll be spending $240k to keep a $200k job. They'll burn twice as fast.
This is a deeper problem than people think. It's not just about "discipline" or will. There are people out there who are just severely below average in financial sense and, while they can play the social gymnastics necessary to get the $500k+ jobs, they can't make $1.00 without spending $1.10 (at any income level).