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Looks like 40 percent of America is living paycheck to paycheck.
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The U.S. economy is not doing nearly as well as the mainstream media would have you believe. A few days ago I wrote about a new study that discovered that nearly 51 million U.S. households “can’t afford basics like rent and food”, and just yesterday I discussed the fact that we are on pace for the worst year for retail store closings ever. Now we have just gotten new numbers from the Federal Reserve which are absolutely staggering. According to the Fed’s latest study, more than 4 out of every 10 Americans do not even have enough money to cover an unexpected $400 expense without borrowing the funds or selling something. In essence, nearly half the country has no significant financial cushion whatsoever. So what are all of those people going to do when the next economic crisis hits?
Technically speaking, dollar bills (federal reserve notes) are IOUs - debt- minus value. They are NOT dollars (coin, silver or gold).
Frankly, money hasn't circulated since 1933, so let's be clear - everyone is [bleeped].
Technically speaking, dollar bills (federal reserve notes) are IOUs - debt- minus value. They are NOT dollars (coin, silver or gold).
Frankly, money hasn't circulated since 1933, so let's be clear - everyone is [bleeped].
see: Title 12 USC Sec. 411
Those that have taken the time to invest in things besides cheap, breakable goods from Walmart are in a much better position. Things like stocks, bonds, gold, silver, etc. These are all worth something. Even the goods that people buy hold some value. In the case of a collapse/loss of trust in currency, many of these things could be traded for goods/services. The United States is still the best house in the worst neighborhood, IMHO.
I know I'll be flamed for saying so, but some (some....not all) of this is due to middle income people spending beyond their means, and not making the frugal choices our parents' generation did. Back then, the "lifestyle" of people with modest incomes was a one-week vacation at the beach, no cleaning services, and an inexpensive dinner out at Hot Shoppes perhaps once a month. Now I know many individuals with incomes of $50,000 or $60,000 who go on expensive cruises and to exclusive resorts, have bi-weekly maid service, and dinner out 3x a week at upscale restaurants - and then they complain to me that they can't save any money for retirement.
As just one single example, just last evening I went out with an acquaintance who earns $40,000 (in a major NE city), and while I ordered a fish-and-chips, she ordered the most expensive steak on the menu, an appetizer, and a glass of wine. My cost was $17 with tax, and hers was $45. While we were eating, she told me she has no savings (hinting perhaps that I should pick up the bill).
I'm not saying this is true of everyone who can't scramble together $400, as there are many people living on minimum wage who truly do struggle, but it is not always the case.
Inequality in this country is at highs not seen since the Gilded Age and the modern economy is only going to exacerbate the divide as more and more trade and manufacturing jobs die off and the digital economy takes over. Of course, we'll never have (nor should we have) complete economic equality. However, the gap is currently too wide and the only way to narrow it, like it or not, is through the state. We need a more northern European-esque welfare state to close the gap. Equal opportunities doesn't mean equal outcomes, but far too many Americans don't have equal opportunities and that's very troubling.
An increasing amount of people who are using food banks these days are people who have jobs (sometimes multiple) but still can't afford the basic necessities. In a country as rich as this, when you're actually working an honest job, you should be able to have a basic standard of living.
I know I'll be flamed for saying so, but some (some....not all) of this is due to middle income people spending beyond their means, and not making the frugal choices our parents' generation did. Back then, the "lifestyle" of people with modest incomes was a one-week vacation at the beach, no cleaning services, and an inexpensive dinner out at Hot Shoppes perhaps once a month. Now I know many individuals with incomes of $50,000 or $60,000 who go on expensive cruises and to exclusive resorts, have bi-weekly maid service, and dinner out 3x a week at upscale restaurants - and then they complain to me that they can't save any money for retirement.
As just one single example, just last evening I went out with an acquaintance who earns $40,000 (in a major NE city), and while I ordered a fish-and-chips, she ordered the most expensive steak on the menu, an appetizer, and a glass of wine. My cost was $17 with tax, and hers was $45. While we were eating, she told me she has no savings (hinting perhaps that I should pick up the bill).
I'm not saying this is true of everyone who can't scramble together $400, as there are many people living on minimum wage who truly do struggle, but it is not always the case.
People work less, spend more, and then blame robots, globalization, the public schools, taxes, billionaires, etc. for why they can't make ends meet.
They are banking on someone else bailing them out when they hit rock bottom, because someone else always has.
The article didn't say they don't have $400 to their names. It was an extra $400, beyond money already allotted for bills and money already allotted for retirement savings.
The same article mentioned that 25% didn't have retirement savings. This means that 75% have retirement savings.
Last edited by sware2cod; 05-28-2018 at 02:21 PM..
I know I'll be flamed for saying so, but some (some....not all) of this is due to middle income people spending beyond their means, and not making the frugal choices our parents' generation did. Back then, the "lifestyle" of people with modest incomes was a one-week vacation at the beach, no cleaning services, and an inexpensive dinner out at Hot Shoppes perhaps once a month. Now I know many individuals with incomes of $50,000 or $60,000 who go on expensive cruises and to exclusive resorts, have bi-weekly maid service, and dinner out 3x a week at upscale restaurants - and then they complain to me that they can't save any money for retirement.
As just one single example, just last evening I went out with an acquaintance who earns $40,000 (in a major NE city), and while I ordered a fish-and-chips, she ordered the most expensive steak on the menu, an appetizer, and a glass of wine. My cost was $17 with tax, and hers was $45. While we were eating, she told me she has no savings (hinting perhaps that I should pick up the bill).
I'm not saying this is true of everyone who can't scramble together $400, as there are many people living on minimum wage who truly do struggle, but it is not always the case.
The typical middle wage is $18 an hour and it hasnt changed in almost 20 years adjusted for inflation. Think about that. Most Americans are living in a continuous recession. 84% of the stock market is owned by the top 10% of income earners. Think about that. No wonder the media is full of stories about how wonderful the economy is. The owners of said media are doing phenomenally well. Media not owned by big corporations tell a different story.
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