Reply to Do you make $400,000 a year but feel broke?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Straw man doesn't me a what you think it means[/quote]
It is a straw man, because the family in the hypothetical wouldn't be bypassing private because "they don't want to pay what someone charges you," they'd be bypassing because they can't rationally afford private.

If your position is that private school tuition should not be priced so that every family can rationally afford private school, that's fine.  If your position is that the assumptions in the hypothetical are too conservative (e.g., you think a family of 4 has more than $120k available even after cutting out the fat on a $250k net income), that's fine.  Many of the responses here keep flipping back and forth between the two arguments.[/quote]

All "rationally afford" it means is "what I want to pay"[/quote]
You're not really reading closely then.  I am not in the position of the hypothetical family.  In that hypothetical, the family has $400k HHI, which I'm assuming to be $250k of net income.  My question is whether it's rationally affordable for that family to pay 4 $30,000 full freight tuitions, on the assumption that $120k represents all a family in that situation would save (inclusive of retirement) on that net income, even living modestly.

If you accept all of those assumptions, my position is that it would be good policy for a school to provide a small grant.  For example, $10-20k in the aggregate for the 4 kids, such that the family is devoting $100k of the $120k available (which would allow them to fund their 401k for example).

Now, if you want to argue that I'm way to conservative suggesting there's only $120k of available funds and you think that family has fat to cut in their budget in this situation, that's perfectly ok too, but then make that argument.  On the other hand, if you accept the assumptions and think the system should essentially preclude them from choosing private (as asking them to save zero each year would be economically irrational), that's ok too.  My position is simply that if you accept the economic assumptions, it would be appropriate for the aid system to provide them a small grant, as they would be making more than enough financial sacrifice.

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