Most Americans are one paycheck away from the street

[WorldofWarcraft]

What's going on here? Is the economy to blame? Is it the people?

Americans are starting 2016 with more job security, but most are still theoretically only one paycheck away from the street.

Approximately 63% of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair, according to a survey released Wednesday of 1,000 adults by personal finance website Bankrate.com, up slightly from 62% last year. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (23%), borrowing from family and/or friends (15%) or using credit cards to bridge the gap (15%).

http://www.marketwatch.com/story/most-americans-are-one-paycheck-away-from-the-street-2016-01-06

 

[fordman7795]

It is the people. Society has changed to a want culture vs a need culture. Not many people need a new iphone every 6 months. People live beyond their means and never save.

 

[rshawneecarbon1]

I think it's the society. I don't make a lot of money by any means as im early in my career and in one summer of work I saved up 4500 dollars and made another 3500 to pay off a loan. Granted I worked about 200 hours of overtime in one month because of wildland fires.

I just think people are blind consumers. I buy a lot of stupid little things at thrift stores. Like a cheese greater or some shit I can get for 50 cents vs even going to cheap wal matt and spending 2 or 3 bucks for something that works no better. It adds up to a lot over time.

 

[ehtheist]

I think it's both but, where people would have been better off given the same income several decades ago, being in this bad a state in this day and age is largely on them. More toys, more trips, more eating out, more concerts, more subscriptions, more cars... If many people look at how much money they spend on totally unnecessary things, they'd find that the money they blow could have lead to either a sizeable savings or some far more substantial purchases - if they hadn't spent their money poorly. Things are tigther than in the past but not nearly as tight as our IPhone wielding, iPad owning, two trips a year and eating out twice a week public would have you believe.

The headline should read "Most Americans are one paycheck away from the street - but Vegas next weekend is going to be awesome!"

 

[Oedad]

It's mostly the people.

Most well off Americans are one paycheck from the street. As in I know plenty of people pulling in 10+ grand a month who have nothing saved at all.

Most humans will spend what they get when they get it, and has nothing to to with being underprivileged or oppressed by the big bad banking system.

 

[Orgasmo]

I understand if you are low income and cannot save up. However, you have no excuse if you are making over 50k per year not to at least stash away a few hundred bucks a month for a rainy day. If you want to be somewhat financially secure for your retirement, you should save no less than 20% of your income.

 

[gspieler]

So, what happens to the economy if people stop spending money on luxuries?

 

[Queen B]

Most Americans are actually in debt. They buy things they cant afford and continue to pay the minimum credit card fee per month, like idiots.

 

[WorldofWarcraft]

I think it's both but, where people would have been better off given the same income several decades ago, being in this bad a state in this day and age is largely on them. More toys, more trips, more eating out, more concerts, more subscriptions, more cars... If many people look at how much money they spend on totally unnecessary things, they'd find that the money they blow could have lead to either a sizeable savings or some far more substantial purchases - if they hadn't spent their money poorly. Things are tigther than in the past but not nearly as tight as our IPhone wielding, iPad owning, two trips a year and eating out twice a week public would have you believe.

The headline should read "Most Americans are one paycheck away from the street - but Vegas next weekend is going to be awesome!"

I think there's a lot more shit to buy now than decades ago.

 

[SouthoftheAndes]

It's not the economy we are doing quite well. It is people and internal (domestic labor, wage, and tax issues). What we have is a tax system that largely helps hoard and redistribute wealth upwards. That is fine if you want eventually pure Lasiez Faire and thus (everything goes). However, for running a nation efficiently that won't work.

Another major issue is Healthcare costs although Obamacare is a working and will take sometime. Still Obamacare is a step in the right direction towards reducing poverty and has worked tremendously in this area. Another issue is the need to expand medicare and social security not reduce it. And lastly the failure to increase the minimum wage to a decent level (since it has failed to keep pace with inflation since the 1970s) is another reason.

I'd also like to add that more education can help better distribute the youth towards fields that are more productive rather than low level service jobs. Whether that be a trade of some sort or going to school to be an acountant, lawyer or doctor.

I think we should work to reduce corporate tax rate slightly. Penalize companies that move abroad to exploit people disproportionately (Like APPLE, or Intel). In addition, I'd like to see a raise on capital gains tax in short term and then have it fall off the longer the period.

 

[Brodels]

I'm one of them

 

[Fatchops]

People are addicted to debt. Paying 18% interesting buying lattes at Starbucks every morning.

 

[5H3RD0G]

It's called debt first discovered here in America with the most debt in the entire world combined.

 

[Gutter Chris]

Yea people are morons all of em.

Has nothing to do with flat wages forever , inflation or loss of manufacturing and union jobs. Nope its all Iphones and applebeeeees that are to blame for why everyone broke.

 

[ehtheist]

Yea people are morons all of em.

Has nothing to do with flat wages forever , inflation or loss of manufacturing and union jobs. Nope its all Iphones and applebeeeees that are to blame for why everyone broke.

I believe what you did is called a straw man argument. You take one part of what someone said, ignore the other part, and exaggerate the only part you mentioned. The more you know.

 

[Gutter Chris]

I believe what you did is called a straw man argument. You take one part of what someone said, ignore the other part, and exaggerate the only part you mentioned. The more you know.

Just like everyone above me I guess. We have this talk alot on sherdog and I always see it blamed on people just spend too much money. Previous generations blew money on things as well but for some reason werent living hand to mouth. I really wonder wtf happened. Gotta be the ipads and starbucks.


I do like that you didnt right me an essay for once though

 

[Darwinambrosius]

Nothing surprising about this.

 

[red]

At times it's missing one workday that would do it for me already behind on mortgage and balancing it against auto payments and kids. I refuse welfare.

 

[scoopj]

Most Americans are one paycheck away from the street and yet by some miracle unemployment remains at 5%. That kind of sensationalism is frustrating. For most, if you lose your job you'll get some kind of severance, then if necessary unemployment. Very few will end up "on the street" except in a small minority of cases.

 

[M3t4tr0n]

So, what happens to the economy if people stop spending money on luxuries?

It dies. That's what some people don't understand they just hate poor people