We have occasionally followed new reports on the economic condition of the public and the news is rarely good. After an extremely very poor jobs report, a new study found that twenty-eight percent of Americans have nothing in their savings accounts and another 21 percent have no savings account at all. Only 29 percent has $1,000 or more in their accounts.
The recent survey by America Saves, as part of a campaign from the Consumer Federation of America, surveys 1,000 people three times per year for its Personal Savings Index.
Not surprisingly, top earners continue to sock away savings — 84 percent of people who earn more than $100,000 annually reported to be interested in saving compared with 72 percent of people with annual incomes between $50,000 and $75,000 and 68 percent of people who earn less than $25,000.
The economic situation in this country is far worse than most people appreciate. We live in economically stratified areas where there is little interaction between distant economic classes. These reports are a startling wake up call for policy makers. The goal of everyone having a few months cushion for bad times is clearly not occurring — leaving at least half or more of the population on the razor’s edge of poverty.
Source: CNBC
As an “observer” from another planet I see things a bit differently. Some people in America keep some cash in a “stash” and sometimes call it a “sock”. This is hidden. Sometimes hidden from the wife and family. Sometimes the wife hides it from the husband and family. Kids often have a stash and it ain’t always hash. Keeping it in the sock will not earn interest. Keeping it in the bank will not earn much interest. Except from prying eyes who want to know how much you have. A story in the news yesterday about ATM fees was of interest. If you go to an ATM machine not owned by your bank they charge a high fee of like $5 even if you only take out Ten. Five will get you ten. Banks are trying to save money by asking you to forego any paper accounting each month and just get some info off of the internet. Yeah, you and the world. Your info is on Cloud Nine. I can access Cloud Nine information. You see the internet users save information on the Cloud and not in the safe. Your records are out there. As time goes on you will each question why you have a bank at all. There must be some alternative. In America you have something called “cash”. When you go to the supermarket pay with cash not some debit card or credit card. Never use a debit card at a gas station. And never orally give out the code number to some clerk at a gas station. If you are out of cash use a credit card. They are safer for you from the two scammers– the thief and the bank. Cash– dont leave home without it. Savings account? No way Jose. Ask Hey Zeus when you go to church. And get up an leave when they pass the plate. Or puke in it. Tell the pastor to go fleece some other flock. The pastor works at the bank part time. Birds of a feather flock together.
Hitler ended the Great Depression when he declared war on the US.
“…recovery efforts proven effective since the great depression”
Effective? Hilarious!:
Keynes was, of course, completely wrong. That’s why we are still in a stagnant economy despite the “stimulus” and “quantitative easing” and near-zero interest rates.
“If only the Democrats had been in control since 2008, this never would have happened.”
You can see the GOP is the party of ideas. Just note how they came up with concept of austerity during the biggest down turn since the great recession and sabotaged recovery efforts proven effective since the great depression.
Now some whiners might say it is un patriotic to put party interest above national economic recovery. But hey, the guys who know, the guys with the money, know what is good for the GOP is good for the country.
Just wait till the GOP gets the white house back then you’ll see – 4% growth, 6% growth – heck they will probably pave the streets with gold.
“We are all so grateful for the enforced time off from our jobs brought to us by the GOP and wall street.”
Those damned Republicans, still controlling things even when they lost the Presidency, House and Senate!
It’s like they’re evil wizards or something.
JT has apparently been reading Robert Reich. He has been talking incessantly about there being a segregation of the classes for a while. Well, when you create a system built on envy, that’s what occurs.
I see ninian really has his finger on the pulse of the US. LOL!
Small business has always been the biggest creator of new jobs. They cannot afford Obamacare. They are given the choice, hire people and give them fewer hours or go out of business. It was predicted Obamacare would be a drain on jobs, and that prediction has come to pass. And you socialists, these aren’t large corporations, these are small businesses that are getting socked. Because it’s ALWAYS small business that gets it in the ass from govt.
“If only the Democrats had been in control since 2008, this never would have happened.”
Why sure. You can see how well things worked with GOP in control up till 2008, Greenspan the libertarian in control of the FED, and GOP house forcing austerity on the country since 2008. They managed to turn the great recession in to the longest period of low economic activity and low growth since the great depression. The GOP really does know how to excel.
We are all so grateful for the enforced time off from our jobs brought to us by the GOP and wall street.
Thanks guys. Nothing beats learning to fish or a new hobby in your peak earning years.
The only problem is they have been cutting back the food stamps so much I have been having dreams of eating the rich. Do you think that will be a problem?
Interesting that the interest rate is the lowest it has ever been in history.
They’ve got savings, it’s called the big government party. The progressive left and right have everyone’s retirement years covered. No problem. “When you rob from Peter to pay Paul, you can always count on the support of Paul.”
Elections have consequences.
Not to worry, they’ll just take it from the half that does have savings.
Problem solved.
If only the Democrats had been in control since 2008, this never would have happened.
And that is exactly how the power elite want It. An economically unstable populace is a fearful uninformed populace. Good for demagogues and thieves.
And it could have been so different. It’s not a good endorsement of the US System.
Especially as the car in the drive is stolen….
The most important issue is what are the consequences for America and its economy, and what if anything is to be done about this situation in “the Richest Nation in the World” ?
Maybe some of the postings I have been making are a little more close to the truth about the State of the Nation than the “Old Reactionary Guard” wants to admit?
I predict that America will have to change. And this change will involve a move to the left.
I think corruption in the Financial World has made a major contribution to this situation and if business had been more honest and transparent the situation wouldn’t be so bad.
I think that reactionary opinion in America will ensure this gets a lot worse before it gets better.
I wonder how this compares with other countries? _Just a thougt
The Science Geek
http://www.thesciencegeek.org
A savings account does not pay much interest. A credit card, or several, are available to borrow from. They have higher interest rate cost than a savings account. But savings are for paying things which come up–even one’s funeral. People in America will save more when they are paid a return. That ain’t happening JT. There is another way to “save”– which is to put money into the IRA or other stock accounts. Those funds can be reached by calling the broker and selling Aapl or Facebook stock and using the proceeds for needs or to send JoeBob to college. Or to pay the funeral home when wifeypoo croaks. Such is the strategy in America. America, love it or leave it.
Where are the opportunities for jobs that pay enough that a person can develop a savings account? Being a bar-tender, Starbucks fountainista, or even joining the military won’t do it. People say that developing internet apps is today’s answer to farming in the last century. We can “farm” the internet to earn a basic living, but to actually support oneself and have money left over to save, via the Internet, one needs much greater creative and technical skill, than were needed for farming.
Yesterday NPR had a segment on computerized cameras replacing fire-tower lookouts. The jobs-money-savings-investment paradigm needs significant redevelopment and reorganization, into a system that fits with the robotic-computer age.
Oops. Make that a Benz.
They might not have much savings, but there’s a shiny new Mercedes-Bens 401K in the driveway.