Most people pay half of what they make to rent.
This is from a February 2016 email to Clinton campaign director Podesta, released by Wikileaks. Brazile is currently acting chair of the Democratic National Committee.
Folks … she’s clueless.
But no doubt she’s an important contributor to national Democratic positions.
Well, for starters, 63% of households own the homes they live in.
That could be interpreted two ways. If we think of it in terms of population, homeowners tend not to be single, so it’s likely that more than 63% of the population lives in a home owned by their family. Alternatively, if we were to look at just people in the labor force, we’d probably get somewhat less than 63% owning homes.
Then there’s the CPI, which is formed as a weighted average of expenditure shares. For urban consumers, the weight on housing is 41%. That’s on the high side for the country as a whole, but arguably better represents Brazile’s constituents. But, only 32% of expenditures are acutally on shelter (the other 9% is related to shelter). Digging deeper, only 7% is rent.
How far is Brazile off?
To be generous, her one off statement starts with 50% of the population, and claims they pay 50% of their income towards rent. That’s 25%. Perhaps she meant of their take-home pay, but given national effective tax rates of around 20%, that merely reduces the 25% down to 20%. So she’s off by a factor of 3.
No wonder she feels people need government help: she does not know what she’s talking about.
As far as housing expenses go, her world is a fantasy.