U.S. business executives call for raising retirement age to 70


By zzyzzx   Follow   Thu, 17 Jan 2013, 8:12am   2,611 views   77 comments
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http://finance.yahoo.com/news/u-business-executives-call-raising-232942268.html

WASHINGTON (Reuters) - A business group of top executives on Wednesday proposed reforms to Social Security and Medicare that would raise the enrollment age for both programs to 70.

This strategy for "modernizing and protecting our social safety net" would save $300 billion in Medicare spending over the next 10 years, make Social Security solvent for 75 years and help foster stronger economic growth, the group estimated.

The group would push the age at which full Social Security benefits are paid to 70 for those now aged 54 and under. Currently, the age for collecting full benefits depends on year of birth, Someone born between 1946 and 1953 can take full benefits at age 66. That will rise to age 67 for individuals born in 1960 or after.

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  1. curious2


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    38   10:22am Fri 18 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    dublin hillz says

    Zirp definitely hurt retirees trying to live off fixed income via interest rates in CDs, savings accounts, but at the same time in allowed their 401K/IRA balances to recover which may be even more important.

    I agree about the short-term effects but there is an issue of long-term risk and principle. Government should not be insuring the stock market. Investors approaching retirement have been advised for decades to reduce exposure to the stock market and shift into fixed income, for the simple reason that stock market prices have always fluctuated. Now we have the opposite situation, where the federal government is sacrificing the stability of the currency in order to stabilize the stock market. It's the tail wagging the dog, and replacing market risk with systemic risk.

  2. zzyzzx


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    39   11:34am Fri 18 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)  

    dublin hillz says

    The bottom line is that fudging with retirement age won't really solve the underlying issue

    Correct. A better economy could. IMO, this won't happen until we see the return of import duties in a significant way.

  3. finehoe


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    40   12:09pm Fri 18 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    zzyzzx says

    this won't happen until we see the return of import duties in a significant way.

    Nor will it happen until the criminals who control the banking system are jailed.

  4. zzyzzx


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    41   12:13pm Fri 18 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)  

    finehoe says

    Nor will it happen until the criminals who control the banking system are jailed.

    Exactly how does that increase employment levels???

  5. finehoe


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    42   12:34pm Fri 18 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    zzyzzx says

    Exactly how does that increase employment levels???

    To quote Jesse, "the Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery."

  6. thunderlips11


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    43   4:47pm Fri 18 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)   Protected  

    Kevin says

    The maximum Social Security payout would have to be increased substantially to make things fair, even under the current system where lower income workers extract more money than they contribute and higher income workers tend to extract less money than they contribute.

    But back to the original post, it's laughable that a bunch of 0.001% earners who by general consensus are vastly overpaid would suggest extending the retirement age to 70.

    To me, Progress means we steadily lower the hours worked while lowering the retirement age.

    If computers and tech is so wonderful, how come the efficiency benefits aren't trickling down?

    The reason the rich are getting so very rich is because the middle and working classes are getting less or the same, despite efficiency increasing - the wealthy are keeping most of the efficiency improvements for themselves - even though most of the efficiency comes from a better trained (mostly at their own college loan expense) workforce.

    Wages haven't moved much in Purchasing Power since the 80s, but more is expected to be paid by the employee (higher medical contribs, no more defined benefit retirement, training themselves instead of getting paid to train on company time at company expense,etc.) Yet the income for the top 1% has exploded.

    And now we're expected to work longer? Fiddlesticks.

  7. Kevin


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    44   8:26pm Fri 18 Jan 2013   Share   Quote   Permalink   Like (2)   Dislike  

    thunderlips11 says

    To me, Progress means we steadily lower the hours worked while lowering the retirement age.

    Why would we lower the retirement age? People should be engaged in something productive for as long as physically possible. Ceasing to work is to cease to live.

    thunderlips11 says

    If computers and tech is so wonderful, how come the efficiency benefits aren't trickling down?

    They certainly are. 50 years ago, most americans worked in jobs requiring physical labor. Today hardly anybody does.

    thunderlips11 says

    The reason the rich are getting so very rich is because the middle and working classes are getting less or the same, despite efficiency increasing - the wealthy are keeping most of the efficiency improvements for themselves - even though most of the efficiency comes from a better trained (mostly at their own college loan expense) workforce.

    The reason the rich are staying rich ("getting" is a different issue entirely) is because as a society we refuse to tax wealth other than modest land taxes.

  8. Peter P


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    45   12:30am Sat 19 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike  

    One should find his passion and devote his life to it. Retirements sounds good only if someone has been whoring his life away.

  9. zzyzzx


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    46   8:27am Sat 19 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike (1)  

    Kevin says

    The reason the rich are staying rich ("getting" is a different issue entirely) is because as a society we refuse to tax wealth other than modest land taxes.

    IMO, the reason the rich are getting richer is because the middle and lower classes income aren't keeping up with inflation so in relative terms, it looks like the rich are getting richer. IMO, this is because there are a lot fo stupid people who who routinely buy stuff made in China and made in USA prices. The factories were moved to China and for the most part, prices remained the same. For example, Craftsman tools aren't any cheaper now that they are made in China. When the lower and middle class lost their jobs due to outsourcing and rampant imports, their wages went down in relative terms.

  10. zzyzzx


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    47   9:30am Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)  

    Kevin says

    The reason the rich are staying rich ("getting" is a different issue entirely) is because as a society we refuse to tax wealth other than modest land taxes.

    You mean like Al Gore, right?
    http://finance.yahoo.com/news/al-gore-nets-another-fortune-164510966.html

    According to a filing with the Securities and Exchanges Commission, Gore -- a director on Apple's board -- exercised an option to purchase nearly 60,000 shares of the tech giant at the bargain basement price of $7.48, costing him a total of about $445,000.

    But with Apple's current market price at about $500 a share, Gore's holdings are worth $29.75 million, giving him a huge windfall-on paper at least.

  11. The Professor


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    48   10:02am Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)   Protected  

    I had a lot of opinions on SS to share. After reading through half of these comments the real problem dawned on me; population growth is reaching the limits of the world's finite resources.

    When one person lives through 3 or 4 generations there is bound to be a sticky human buildup. Death is not keeping up with birth. Barring plague or common sense, population will continue to grow.

    How can we raise the retirement age to 70 when able bodied 30 year old workers can't find a job? Why pay a baby boomer like me a professional salary when there are scores of unemployed college grads that would work for above poverty level wages?

    Either the world is just a place to live while your soul gets tortured and educated, or it is time for humanity to reach beyond this limited world and explore and exploit the universe.

    Space: The final solution.

  12. The Professor


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    49   10:08am Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)   Protected  

    Back to earth and the SS topic.

    Employment age should be increased for non manual labor jobs.

    Mean test the recipients and go after disability fraud.

    Eliminate income caps on those taxed.

    Personally, I am taking retirement as I go. I like my work and plan on being gainfully employed well into my 70s if not my 80s.

  13. The Professor


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    50   10:23am Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)   Protected  

    Call it Crazy says

    Could you live on about 300 dollars a week?

    If I were a minimum wage employee I would have to. Plus I would have to pay "working expenses".

    It would be difficult to live on $1200/ month, but somehow people do it.

  14. Vicente


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    51   10:42am Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    population growth is reaching the limits of the world's finite resources.

    Population growth is flattening and will peak soon. It may even become negative for a bit. Ignorance on this is epidemic.

    http://www.ted.com/talks/hans_rosling_religions_and_babies.html

  15. marcus


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    52   11:11am Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Hadn't seen that one. Very interesting.

  16. The Professor


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    53   12:54pm Sat 19 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike (1)   Protected  

    Vicente says

    Population growth is flattening and will peak soon. It may even become negative for a bit. Ignorance on this is epidemic.

    Maybe it (population) is flattening because we are reaching the limits of our resources?

    Who knows the future? I am hoping against cannnibal anarchy.

    We could be more or less crowded but we still have the same amount of earth.

  17. Kevin


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    54   1:26pm Sat 19 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike  

    Population is flattening because in an industrial society children are more of a burden than a benefit.

    If you own a farm, more kids means more free labor. If you live in a city, more kids means a bigger, more expensive home, more food, more education expenses, more medical care, more clothing etc.

    Machines and electronics are the reason

    This is why it won't be a big deal when we all live forever.

  18. Peter P


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    55   1:35pm Sat 19 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike  

    Kids are net liabilities.

  19. curious2


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    56   1:56pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Peter P says

    Kids are net liabilities.

    That depends on your perspective. For the middle class, who are working to pay for artificially inflated housing and medical and education costs, yes, and that demographic is not reproducing at replacement level. For the top 1%, the costs are effectively trivial and don't even add up to the entertainment value, so that demographic is reproducing and lobbyists demand an end to estate taxes too. For AFDC/TANF and other public assistance families, kids can be a revenue source, and they are also reproducing and demanding more $ from government. In a democracy one might expect demographics to drive economic policy, but in America's lobby-driven democracy the reverse occurs: economic policy is driving demographics.

  20. marcus


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    57   3:45pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    When one person lives through 3 or 4 generations there is bound to be a sticky human buildup. Death is not keeping up with birth. Barring plague or common sense, population will continue to grow.

    later...

    The Professor says

    Maybe it (population) is flattening because we are reaching the limits of our resources?

    Dude, watch the fricking video. He will hold your hand through understanding, in a way that most 10 year olds could grasp.

    Vicente says

    Population growth is flattening and will peak soon. It may even become negative for a bit. Ignorance on this is epidemic.

    http://www.ted.com/talks/hans_rosling_religions_and_babies.html

    No offense, but you aren't worthy of the name "the professor."

  21. marcus


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    58   3:55pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    Maybe it (population) is flattening because we are reaching the limits of our resources?

    Kevin says

    Population is flattening because in an industrial society children are more of a burden than a benefit.

    Both of these are factors. Yes, people don't have as many kids because they don't need them for labor on the farm. But that was already true in the sixties (in the U.S.)

    Making a living has gotten much harder since the sixties. Or put differently, it's harder to afford having 5 or 7 kids. In the US, two incomes is barely higher than what one income could buy for a family 50 years ago. The rest of the developed world must be somewhat the same. This would be in part because of limited resources, but also because of a evening out trend with the third world (ie manufacturing etc going there).

    The biggest factor: If the mother has to work, it's harder for her to be in the full time child rearing business.

    But yeah, in the developing world, a big part of the drop in children per family since the sixties is probably more related to people leaving farms.

    Of course China is a special case with their laws on how many children they can have.

  22. The Professor


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    59   5:07pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)   Protected  

    marcus says

    No offense, but you aren't worthy of the name "the professor."

    OK. I forgive your condescending attitude.

    No offense taken.

  23. The Professor


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    60   5:26pm Sat 19 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike (1)   Protected  

  24. curious2


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    61   5:28pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    marcus says

    No offense, but you aren't worthy of the name "the professor."

    OK. I forgive your condescending attitude.

    The acid test is can you forgive marcus for claiming to be a teacher?

  25. The Professor


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    62   5:59pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)   Protected  

    curious2 says

    The acid test is can you forgive marcus for claiming to be a teacher?

    Why not? They let me be the professor.

  26. marcus


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    63   6:53pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    In a way, I'm flattered that curious2 has so much respect for teachers that he thinks I couldn't be one.

    On the other hand, his saying that, is based totally his feelings towards me, rather than on a belief that what I say makes me sound too stupid, or too lazy to be a teacher.

    I don't see his comments anymore, but I'm sure that those who do are well aware of some of his emotional challenges.

  27. curious2


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    64   7:06pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    marcus says

    what I say makes me sound too stupid, or too lazy to be a teacher.

    Yes it certainly does, and the tantrums of false accusations and profanity do not reflect the maturity required of a teacher, and especially the logic required of a math teacher.

    For example, in one thread, notice who posted the first comment and several others before marcus arrived. Then observe marcus' name-calling tantrum accusing that same person of following him to that thread just to troll him. Marcus never apologized for that, nor for any of his other false accusations no matter how obviously illogical.

    Or consider marcus creating a whole additional thread demanding the ignore functionality be changed because he had "ridiculous trouble" opening a separate browser to stalk someone he was pretending to "Ignore." He still does that, replying to my comments while pretending to "Ignore" me.

    So yes, those comments and others make it impossible for me to believe his claim to be a teacher. My only feeling about it is amusement. If I actually believed him, and had a kid in his district, I would feel sad. On one point we agree though: I do respect actual teachers. So, perhaps I should appreciate marcus' pretending to be a teacher as an aspirational choice, like a kid wearing a fireman's helmet and making siren sounds.

  28. marcus


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    65   7:24pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Well, I can see this from the front page, even with ignore on

    "curious2 says marcus says what I say makes me sound too stupid, or too lazy to be a teacher. Yes it certainly does, and the tantrums of false accusations and profanity do not reflect the..."

    If I were curious enough to open another browser, to see the rest of his drivel, and worse if I were to respond, I would probably have him following me around again for a week, talking about how I can't be a teacher, and his other nonsense.

    Whatever. What do you want c2 ? My sysmpathy ?

    marcus says

    I don't see his comments anymore, but I'm sure that those who do are well aware of some of his emotional challenges.

  29. curious2


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    66   7:25pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    marcus says

    What do you want c2 ?

    Either quit pretending to "Ignore" me, or start actually ignoring me, or both.

    What do you want marcus? I don't expect an answer though, since that would conflict with pretending to "Ignore" me.

    Back to the original topic, if by some incredible mischance marcus turns out to be a teacher, I will retract my disbelief and extend my sincere hope that he can retire early instead of continuing to age 70.

  30. monkframe


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    67   8:52pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    "IF you raise the age to 70, it's going to hurt a lot of people. IT is their fault, but many boomer have not been saving enough. And now, the time when they maybe thought they would really be socking it away, their home values and job prospects dropped, while health care and college for their kids went up"

    No, it's not their goddamned fault, it is the mass transfer of wealth upward. Any later retirement age for Social Security will hurt lots of people, but the rentier class will continue to do fine, THANK YOU SUCKERS!

  31. HEY YOU


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    68   9:09pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    "raising retirement age to 70" for all Republicans,Conservatives & Tea Baggers. Bet you RCTBs didn't think it would affect you. Still for Big Business?

  32. New Renter


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    69   9:41pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Kevin says

    Why would we lower the retirement age? People should be engaged in something productive for as long as physically possible. Ceasing to work is to cease to live.

    Ah yes, I think I've heard this kind of talk before:

    Yep, that's it!

    But seriously Kevin, there is far more to life than "work" . If you think "work is life" you REALLY need to get out more.

  33. New Renter


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    70   9:45pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    marcus says

    No offense, but you aren't worthy of the name "the professor."

    Smoke some serious product - he'll make more sense that way

  34. Kevin


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    71   9:45pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)  

    New Renter says

    Kevin says

    Why would we lower the retirement age? People should be engaged in something productive for as long as physically possible. Ceasing to work is to cease to live.

    Ah yes, I think I've heard this kind of talk before:

    Yep, that's it!

    HEY YOU KNOW WHO ELSE ATE FOOD AND BREATHED AIR? NAZIS!

    Dumb fucking arguments are for dumb fucking people.

  35. Vicente


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    72   10:36pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike (1)  

    curious2 says

    For AFDC/TANF and other public assistance families, kids can be a revenue source, and they are also reproducing and demanding more $ from government.

    This is playing to the Idiocracy Myth, which comes from the Welfare Queen Myth. It boils down to assuming poor people are genetically inferior and will drag down humanity by outbreeding the superior Whites.... excuse me I mean their betters. In fact poor kids generally speaking aspire to chase the American Dream just like others in their cohort. Doesn't every other RICH FATCAT have an Origin Myth about how they started their life living in a dirt shack and look how far they've come?

  36. curious2


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    73   10:56pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Vicente says

    This is playing to the Idiocracy Myth, which comes from the Welfare Queen Myth. It boils down to assuming poor people are genetically inferior and will drag down humanity by outbreeding the superior Whites.

    Can you cite any sources or explain what you mean? How do you get from the observation that the middle class aren't keeping up with replacement rate to a conclusion that whites are genetically superior? Even after reading several articles on this topic, I haven't seen anyone but you jump to a conclusion anything like that. Most articles that do mention race in this context focus on the significant drop among immigrant women, most of whom are Hispanic.

  37. New Renter


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    74   11:08pm Sat 19 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Kevin says

    New Renter says

    Kevin says

    Why would we lower the retirement age? People should be engaged in something productive for as long as physically possible. Ceasing to work is to cease to live.

    Ah yes, I think I've heard this kind of talk before:

    Yep, that's it!

    HEY YOU KNOW WHO ELSE ATE FOOD AND BREATHED AIR? NAZIS!

    Dumb fucking arguments are for dumb fucking people.

    Wow, musta struck a nerve there!

  38. Vicente


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    75   12:42am Sun 20 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    curious2 says

    How do you get from the observation that the middle class aren't keeping up with replacement rate to a conclusion that whites are genetically superior?

    Your post seemed to me to take the usual "welfare queen" tack, that unfit parents were being assisted to breed more unfit children, and soon we'd be drowning in welfare brats. Like rabbits.

    People are not rabbits. Many successful adults came from poor backgrounds.

    Frankly it is nonsense that the middle class will be "outbred" and cease to exist. Pure nonsense. The middle class might be compressed due to economic pressures, but AS A CLASS would always exist no matter which set of individuals composed it.

    I'm not sure why it's so American to assume that you ARE in fact middle class, or should aspire to be labelling yourself that. I'm a citizen of the United States, I aspire to live a useful and interesting life not belong to a particular class.

  39. curious2


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    76   2:31am Sun 20 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Vicente says

    Your post seemed to me

    That probably says more about you than about the post itself. You still haven't cited any sources. In any event, as you seem to understand, the "middle" must inevitably exist. Yet, there can be significant variations in the shape of distribution, from hourglass to pyramid to circle. Many have observed a change in shape, although you seem alone in projecting your particular choice of color onto it.

  40. Kevin


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    77   6:58pm Sun 20 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    There is no need for a middle to exist. It's quite possible for there to be zero people making a certain income range. Say 1% of the population makes over a million per year while 99% makes just enough to not starve.

    But 'middle of the income range' isn't what defines the middle class anyway.

    The term first came in to use to describe people who had money, but acquired it through building up businesses rather than the inherited wealth of the aristocracy.

    As the aristocracy disappeared, it came to mean a person who was able to live comfortably, but was dependent on their labor (business income or salary) to maintain their quality of life. The upper class isn't dependent on their labor (and, in many cases, isn't even dependent on income of any sort). The lower class lives hand to mouth (or "paycheck to paycheck").

    So, yeah, somebody making $400,000 a year without any meaningful assets to fall back on is still middle class, despite having higher income than 99% of the population.

    That group of well off but wage dependent people could disappear, but they probably won't.

    Vicente says

    I'm not sure why it's so American to assume that you ARE in fact middle class, or should aspire to be labelling yourself that.

    Simple: Nobody wants to be seen as a member of the aristocracy, but nobody wants to be poor, either.

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