The question at hand is of the condition of the family if the value of their home rises while their wages decrease (Mandel). Unfortunately, the statistics to answer these questions are not available, but there are different scenarios that can give a common sense solution to the question at hand.
First of all, bonds have hit an acceptable low, which is good news for the home buyer (Mandel). If a homeowner encounters a decrease in their income but their home value increases, the chance of refinancing their home to consolidate their debts at an affordable rate is better with lower interest rates. This can put a family in a stable situation while the money lasts, but with the fluctuating mortgage rates, they may encounter a situation in which refinancing is not an option. On the other hand, if a homeowner's home does not raise in value and their income increases, they may be able to work out a longer term solution rather than refinancing their home. Those with higher incomes are able to contribute more of their money to savings and retirement funds than those with lower wages. That way they are able to have funds available in case of a rainy day.
Michael Mandel states in his article that "the broad-based drop in incomes is being driven more by the rise of China and India." He also states that "Globalization has