Tuesday, October 11, 2016
Seven out of Ten
According to USA Today, 7 our of 10 Americans have less than $1000 in savings. It's not just the lower classes. Nobody has any money saved. Even the well off are spending it as fast as it comes in.
I am not surprised. Two big reasons. The first is that wages have been stagnant for a long time. Hard to save much money when there isn't much extra. The second reason is that there's so little incentive to save. Banks have been paying less interest than the rate of inflation, often much less. Worse, there are banks that now have negative interest rates. Saving money is actually a money losing proposition.
Unfortunately that means few people have money stashed aside for an emergency fund. It's also well known that only are tiny percentage of people are saving for retirement. Few people believe that Social Security will be there for them yet almost nobody has the private means to get by.
No wonder so many people think they'll have to work until the day they die. That might no be so horrible a thing if we all loved our jobs. Would you do your job without pay just for fun? Darn few would.
Could it be that people don't expect the current financial situation to last? Currency collapse is overdue by historic standards. Why save dollars if they are going to go the way of the Continental?
In the end, it's probably a simple case of few people having anything left over at the end of the month.