Scooby - thanks for the book referral, I'm not an EW fan by any stretch but will read the book to better understand what she is saying. I have been pretty active on here when it relates to the middle class and how that is defined...household income is the typical measure and that is misleading as the number of single and retired households is changing all the time. I read a summary and when she says it isn't spending that causes the problem I have to say that one consistent theme in here theories is that it is always somebody else's fault, usually big, for profit companies. Again, this is from a summary but it was quoting from the book when it said people are 'forced' to move to more expensive houses, near the best schools because they want better education for their kids and have to pay hefty tuitions and the cost of those houses increases because of the influx of people. Really? Those summaries are from sites supporting her book and suggesting it be bought. To say that overspending isn't the problem but it really is buying expensive houses and paying tuition in the pursuit of good schools seems to be inconsistent.
Like you say, we may not all agree on her conclusions...but I also don't agree with her problem statement. It isn't the rich alone buying 6,000 BTU backyard, built-in grills on their new paver patios. The rich don't own all the flat screens, poker tables, PWCs, XBoxs, home theater systems, SUV's, third cars, boats, vacation houses, time shares, wet bars, subzero refrigerators, granite counters etc. She can say that isn't spending but somebody bought that stuff, most likely at credit card interest rates. The rule about saving XX months of bills doesn't change with two incomes and higher bills.