200/day, not 200/hour. Also you wouldn't knock of 18k for food and transportation costs unless your homemaker weighs 600 pounds and requires 10 pounds of food a day and custom transportation.


This has been another installment of "MBAs can't read or do math."


But your basic point is correct in spite of all that. The number is ridiculously overinflated.

The reality is that most "homemakers" make one meal a day that takes more than 5 minutes to prepare - that's dinner. Breakfast is usually some cereal or oatmeal, hell even if it's eggs, I can fix 4 "breakfast burritos" with eggs, cheese, and bacon in soft tortillas in under 10 minutes.

The cooking numbers are what really make it so absurd.

 

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And the truth is Kj, you're correct, you really are, however, there are lots of things that are "priceless" when trying to place financial value on interpersonal relationships.

What is the value of an earner who can afford to let the other parent stay at home?

 

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I figured that would be a perk for the "live-in-nanny"


Or for most Outposters, nonexistent.

 

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lrn 2 read

As I said... at RETAIL (market) costs. They're charging you full retail/market wages in their examples. So I'm using per-diem allowances allowed by the government or typical corporations for allowable market/retail numbers on costs per mile, etc.

As I also said... the whole thing is hopelessly flawed, so even trying to match costs to it that are apples-to-apples isn't terribly useful, either. It's not even sound enough to be a valid starting point for anything 'real.'

 

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When you hire a personal chef you think 18k of 53k cost is transportation and the cost of food to feed the chef?


But anyhow we agree it's a stupid exercise.

I know people you can hire to do a home caregiver job, cleaning/driving/companionship/cooking/bathroom help at $40 a day - some will even spend the nght.

When my grandmother got depressed after my grandfather died... We hired 3 ladies so that there was at least one person staying with her all the time. It didnt cost us $300k a year.. Much less. She didnt want to move out of her house and move in with her kids otherwise it would have cost $0.

@Yuki -- I was actually overly-generous (in favor of the idiots who said it is $96k) and allocated transportation across all the 'trades' as though it was only one person doing it all... since it is only one person on the other side of the ledger. Just enough thought to prove a BASIC point that they're probably 50% or so off, because they are front-loading RETAIL costs designed to cover profit margins, etc and then not subtracting costs. In reality an analysis would need to be much deeper.

I'd love to know what the actual value really is. But we agree... this exercise is a pretty stupid way to do it.

 

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It would be easy enough to see what it actually costs to hire a live at home nanny/chef/etc if you provide them food and lodging.


I would guess it would be more like about 30k/year.