The recession pain of the rich
What’s a woman to do when she can no longer afford $114 a pair for her kids jeans and the cost of the pool man is putting a squeeze on the budget? Oh, the agony of having to live on just $300,000 a year. I know I’ll certainly spend a moment of silence wishing for better times for Laura Steins.
The divide between the haves and have nots is growing ever wider and the disconnect on the part of people like Ms. Steins is mind-boggling. She says she doesn’t mind saying she is barely squeaking by with just $300,000 a year when she should be ashamed. People all over the country are losing their homes to foreclosure, elderly people in particular are having to choose between food or medicine and this idiot is whining because she can no longer afford the $8,000 – $10,000 A MONTH that is required to keep her $2.5 million house going. She says she can’t sell the house because it’s where her kids go to school and it’s where she works. Really? There’s nothing within a 25 mile radius of her work but a $2.5 million mansion? Her kids would just die if they had to change schools? Yes, the real estate market is slow but that’s not unique to her and many people have been forced to sell homes they can’t afford.
And bless her little heart she’s going to take a whole 10% cut in her bonus this year…..what a disaster that is especially compared to the millions of people who have found themselves with no job in the last couple of years. What’s being unemployed in comparison to her cut in pay?
Bravely Moving Forward
But, to give credit where credit is due, Ms. Stein is involved in a group called the Stephen Ministry who wrestle with how to help members struggling through the crisis. They get together and talk about how tough it is to cut back on the gardener and do their own weeding. They even encourage people to come to a ministry party wearing – gasp – old clothes and EVEN hand- me- downs. One guest arrived in khakis anyway because his jeans were just too vintage. I’m not sure I own jeans that aren’t “vintage” – but of course dressing to impress isn’t real high on my list nowadays.
But Stein is a fighter who displays a rare courage by forging ahead and buying a new sweater at Ann Taylor’s actually using a 20% off coupon, a sweater she just absolutely needs to wear to the party she was invited to in the Hamptons…..a party of 70 who make do with a recession meal of champagne, oysters and shrimp. My God, don’t these brave little soldiers make you proud?
Laura Steins doesn’t mind saying that she is barely squeaking by on $300,000 a year. She lives in a place where the boom years of Wall Street pushed the standard of living to astonishing heights. Where fifth-graders shop at a store called Lester’s that sells $114 tween-size True Religion jeans. Where a cup of fresh spinach and carrot juice called the Iron Maiden costs $7.95.
By local standards, Steins occupies the lower rung of affluence — the rung where every dollar now matters.
As a vice president at MasterCard’s corporate office in Purchase, N.Y., she earns a base pay of $150,000 plus a bonus. This year she’ll take home 10 percent less because of a smaller bonus. She receives $75,000 a year in child support from her ex-husband. She figures she will pull an additional $50,000 from a personal investment account to “pick up the slack.”
The nanny and property taxes take $75,000 right off the top, but Steins considers both non-negotiable facts of her life and not discretionary. When she bought out her husband’s share of the house after their 2006 divorce, she assumed the costs of keeping it afloat — $8,000 to $10,000 a month. There’s a pool man, a gardener and someone to plow the snow from the quarter-mile-long driveway.
As tight as money is, she has decided that living in a 4,000-square-foot house on three acres is the practical thing to do. “A), I couldn’t sell the house right now,” she says, citing the slow real estate market. “B), this is where my kids go to school. And C), it’s where my job is.”




August 18th, 2009 at 2:22 pm
Maybe she could bring in more money by renting out a couple of rooms.
August 18th, 2009 at 3:56 pm
I LOVE HER
The blissfully ignorant are sometimes the MOST entertaining segment of society ! Maybe she tells the nanny, the gardner, the chef, the maid, the snow blower and the pool guy to take a 10% cut in pay to help her scrape by……
August 18th, 2009 at 7:22 pm
The sad thing is, this woman is freakin’ serious. When I was working in financial aid for a local university, a student and parent insisted that someone in charge (me) speak with them about “special circumstances.” It turns out that mom and dad’s income between them had been reduced from $125,000 a year to a mere $100,000 a year due to pay cuts in their jobs. They were certain with the “right adjustment” to their financial aid file their son would be eligible for a full Pell grant and other federal and state grants. I felt like telling them to come back and talk to me when they had to live on $17,000 a year for a family of four. I didn’t. I was professional. It just didn’t occur to them to sell one of their four vehicles, or their boat, or their second house on the river. Boggles the mind.
Sage Reply:
August 18th, 2009 at 7:41 pm
I know she is. It’s amazing, isn’t it?
That’s actually pretty funny the people thought they would get a full Pell grant because they were only making $100,000 instead of $125,000.
kert Reply:
August 19th, 2009 at 2:52 pm
We have become a society that expects handouts. We have become a socity that can’t even fathom the idea of sacrifice.
Sage Reply:
August 19th, 2009 at 7:19 pm
Yes, we have a society where corporations expect and get handouts. How much? In 2006 the federal government spent $92bn subsidizing business. Source
August 19th, 2009 at 2:47 pm
Compassion. Where is your compassion for this woman? This woman has apparently worked her arse off to get where she is. No one just handed her that position she has. She has paid hundreds of thousands of dollars into the government coffers over the years. She employs several people who are dependent on her. She is apparently alone (divorced) and trying to maintain the life-style she has been provided for herself and her children. Clearly, she is struggling, she is feeling enormous stress, worry, etc. Why can’t you have compassion for her? Why can’t you have compassion for both her and for the woman making $17,000?
What terrible thing has this woman done that makes you so angry towards her? So unwilling to feel a little empathy?
Sage Reply:
August 19th, 2009 at 2:56 pm
Yeah, my heart bleeds for her. She didn’t have to buy out her husband’s half of a $2.5 house. And poor thing can’t do her own weeding. Yes, it’s a shame she’s having problems but her whining about it to the press leaves me cold.
You don’t know that she worked her ass off.
August 19th, 2009 at 4:12 pm
Kert, I have compassion for her. I know how difficult it is to swallow your pride and live within your means because of a loss of income. My husband and I did it during the first recession (remember Bush 41?). We didn’t have to sell our primary residence, but we did sell our vacation home at Lake Tahoe, stopped taking expensive vacations, etc. and my husband moved his business to a less expensive location. It’s a tough, emotional transition. But does her child deserve a full Pell grant because the mother chooses to maintain a specific lifestyle rather than contribute to her child’s educational expenses?
From my perspective, the issue and difference between this woman and the woman who makes $17,000 is how each of them chooses to spend their discretionary income.
Federal financial aid guidelines are clear. The rational begins with the basic premise that the parents are ultimately responsible for their childrens’ education. If your income exceeds the income threshold, you are not eligible for the Pell grant because you have made the choice, regardless of a drop in income, to continue to live or attempt to maintain such a lifestyle. Lavish primary residences, vacation homes, boats, expensive cars, RV’s are all paid for with discretionary income; income that could be used instead for educational purposes. If there is nothing left over for her child’s educational expenses, that was her choice.
The woman who supports a family of 4 on $17,000, rest assured, does not have any discretionary income. Every penny is spent on basic, extremely modest living conditions, if in fact all the basics necessities can be provided.