Apparently it's impossible to live on a $500,000 salary in New York. Or at least, it's impossible for a banking executive living in the ritziest parts of the city if "to live on" includes the banker being the sole bread-winner for his family, and no change whatsoever of lifestyle.
“Some of them want their drivers to have guns,” the driver said. “You get a cop and you have a driver.” To garage that car is about $700 a month.
A personal trainer at $80 an hour three times a week comes to about $12,000 a year.
The work in the gym pays off when one must don a formal gown for a charity gala. “Going to those parties,” said David Patrick Columbia, who is the editor of the New York Social Diary (newyorksocialdiary.com), “a woman can spend $10,000 or $15,000 on a dress. If she goes to three or four of those a year, she’s not going to wear the same dress.”
Total cost for three gowns: about $35,000.
Not every bank executive has school-age children, but for those who do, offspring can be expensive. In addition to paying tuition, “You’re not going to get through private school without tutoring a kid,” said Sandy Bass, the editor of Private School Insider, a newsletter that covers private schools in the New York City area. One hour of tutoring once a week is $125. “That’s the low end,” she said. “The higher end is 150, 175.” SAT tutors are about $250 an hour. Total cost for 30 weeks of regular tutoring: $3,750.
Two children in private school: $64,000.
Nanny: $45,000.
Ms. Bass, whose husband is an accountant with many high-end clients, said she spends about $425 every 10 days on groceries for her family. Annual cost: about $15,000.
More? Restaurants. Dry cleaning. Each Brooks Brothers suit costs about $1,000. If you run a bank, you can’t look like a slob.
The total costs here, which do not include a lot of things, like kennels for the dog when the family is away, summer camp, spas and other grooming for the human members of the family, donations to charity, and frozen hot chocolates at Serendipity, are $790,750, which would require about a $1.6-million salary to compensate for taxes. Give or take a few score thousand of dollars.
I think I'm actually offended by this newspaper article. Seriously, if Allen Salkin, the reporter who wrote this Times article, wants to just crawl into a hole and die of shame, I'd be okay with that. I'd even shed a crocodile tear for the sake of appearances if that would help the process.
It's one thing to say it's more expensive to live in Manhattan than Fargo, which is clearly true. It's another to say that kids all need to go to private schools -- which is not an absurd position, actually, but then the honest thing to do is to mention the combination of bad policy and racism which causes the problems with public schools in big cities. And it's a great leap further still to say that, as a matter of course, these kids can't get by in school without expensive private tutors, and $250/hr tutors for the SAT. Similarly, it's one thing to say that a person running a bank can't look like a slob, so we'll let the Brooks Brothers suits slide. It's another to say that a person running a bank needs to own a summer house, and has to take two expensive family vacations per year, totaling at least $16,000. Seriously, is the author insane? Completely detached from reality?
People all over this country are losing their homes -- not their summer places, but their sole places of residence. There's a healthcare crisis. A lot of people are losing their jobs, people can't afford to buy proper food, and we're supposed to be upset that President Obama doesn't want to allow banks to be bailed out with federal tax dollars and allow executives to be paid more than $500k/yr? As if there's a moral obligation to ensure that the rich and powerful continue to remain rich and powerful? Their kids who are unmotivated or just too stupid to otherwise get into Harvard or Princeton (or, God forbid, Brown or Cornell) have to get their ridiculously priced tutors on top of their expensive private schools! They need to take their families to Hawaii in January and the Alps in March! I mean, screw the poor and the middle class, if they can't afford their prescription medications tough! They should have thought of that before all the rich people decided that the rich people needed to be bailed out!
At the risk of sounding like a populist, I'm just going to suggest that maybe perhaps the government's moral obligation is to take care of the many Americans who need help in these difficult times, not the few whose lives of luxury are at risk of becoming slightly less luxurious.
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