40 Percent of Americans have 500 or less in savings

[LastVoter]

http://philadelphia.cbslocal.com/2012/10/19/survey-40-percent-of-americans-have-500-or-less-in-savings/

I think this explains some of the recent polling patterns in Virginia and Ohio we are seeing.

[Vosem]

http://philadelphia.cbslocal.com/2012/10/19/survey-40-percent-of-americans-have-500-or-less-in-savings/

I think this explains some of the recent polling patterns in Virginia and Ohio we are seeing.

You mean the trend towards Romney?

Also, it's always been this way...why would it only explain recent polling patterns? People just realized they have $500 or less in savings?

[opebo]

I have no savings.  Another way of putting this is that I work for a living.

[Franzl]

Many are in this situation through no fault of their own, victims of the American system. Still can't help thinking that American consumer behavior is also to blame.

[opebo]

Many are in this situation through no fault of their own, victims of the American system. Still can't help thinking that American consumer behavior is also to blame.

Not so much.  Please realize that the American minimum wage is about $7/hour, and that the vast majority of the working poor make only very little more than the minimum.

[DC Al Fine]

Many are in this situation through no fault of their own, victims of the American system. Still can't help thinking that American consumer behavior is also to blame.

Not so much.  Please realize that the American minimum wage is about $7/hour, and that the vast majority of the working poor make only very little more than the minimum.

40% of people make less than what, $10/hr? Bull. This is a massive character flaw for most of these people, many of whom have way more house than they can afford.

[opebo]

40% of people make less than what, $10/hr? Bull. This is a massive character flaw for most of these people, many of whom have way more house than they can afford.

The median is only around $15/hour, DC, so for the lower classes, they're lucky to get $10.

These kind of people don't have houses, or if they do, they're nothing more than slums, DC, so your critique is nonsense.

[DC Al Fine]

40% of people make less than what, $10/hr? Bull. This is a massive character flaw for most of these people, many of whom have way more house than they can afford.

The median is only around $15/hour, DC, so for the lower classes, they're lucky to get $10.

These kind of people don't have houses, or if they do, they're nothing more than slums, DC, so your critique is nonsense.

15*40*52=$31 200. I'm not particularly familiar with your tax system, but in Canada that works out to around $2100/month in take home pay. Certainly not luxurious, but liveable. Hell, I've lived off $1000/month with a higher cost of living to boot.

This is $500 total savings, not $500/month saving. It's certainly doable and this is assuming you're single. Throw in a spouse working 20 hours a week at Wal-Mart and you'd have your savings in less than a year.

[opebo]

15*40*52=$31 200. I'm not particularly familiar with your tax system, but in Canada that works out to around $2100/month in take home pay. Certainly not luxurious, but liveable. Hell, I've lived off $1000/month with a higher cost of living to boot.

Rent alone is approaching $1000/month isn't it, DC?  I haven't been back in the Bad Place in years so I may not be up-to-date.

I know that over here I make about $1,400/month and my rent is only $100, and I never save anything - in fact I spend far more than I earn.

[DC Al Fine]

15*40*52=$31 200. I'm not particularly familiar with your tax system, but in Canada that works out to around $2100/month in take home pay. Certainly not luxurious, but liveable. Hell, I've lived off $1000/month with a higher cost of living to boot.

Rent alone is approaching $1000/month isn't it, DC?  I haven't been back in the Bad Place in years so I may not be up-to-date.

I know that over here I make about $1,400/month and my rent is only $100, and I never save anything - in fact I spend far more than I earn.

In the midsize city where I live, a mediocre 2 bedroom in a middle class neighbourhood will run you $900. I had a roommate and $800/mth rent, which worked out to $400 for my rent budget.

Please tell me how you were able to swing such a deal.

[opebo]

I know that over here I make about $1,400/month and my rent is only $100, and I never save anything - in fact I spend far more than I earn.

In the midsize city where I live, a mediocre 2 bedroom in a middle class neighbourhood will run you $900. I had a roommate and $800/mth rent, which worked out to $400 for my rent budget.

Please tell me how you were able to swing such a deal.

I live in Thailand.

[J. J.]

Ghosts show up and hand me money.  I'm not thrilled about it, surprisingly. 

[DC Al Fine]

Ghosts show up and hand me money.  I'm not thrilled about it, surprisingly. 

Yeah, having a ghost touch you must be creepy.

[King]

They can't access it for many years but payments into social security are savings.

[memphis]

Reminds me of my parents. Long divorced. Both always have a savings account with an extremely negligible amount in it. Don't know why they bother. We do have a problem in this country in that talking about finances is taboo. Especially about personal specifics. It's much less taboo to ask a friend the specifics of his sex life or medical history than how much money he makes or how much debt he has. And as a result, we have zero common sense for how to approach money. And that, of course, combines with a class system that is heavily unfavorable for those struggling to get by. It's great for banks. Terrible for people. How does one break a taboo?

[DC Al Fine]

Reminds me of my parents. Long divorced. Both always have a savings account with an extremely negligible amount in it. Don't know why they bother. We do have a problem in this country in that talking about finances is taboo. Especially about personal specifics. It's much less taboo to ask a friend the specifics of his sex life or medical history than how much money he makes or how much debt he has. And as a result, we have zero common sense for how to approach money. And that, of course, combines with a class system that is heavily unfavorable for those struggling to get by. It's great for banks. Terrible for people. How does one break a taboo?

Make it the cool new rebellious trend? I'd much rather hear about 401(k)'s and stock picks on the bus than about some dude's new STD.

[opebo]

Reminds me of my parents. Long divorced. Both always have a savings account with an extremely negligible amount in it. Don't know why they bother. We do have a problem in this country in that talking about finances is taboo. Especially about personal specifics. It's much less taboo to ask a friend the specifics of his sex life or medical history than how much money he makes or how much debt he has. And as a result, we have zero common sense for how to approach money. And that, of course, combines with a class system that is heavily unfavorable for those struggling to get by. It's great for banks. Terrible for people. How does one break a taboo?

Really it all just comes down to wages, memphis - wages are absurdly low in america.  I used to go over this with my dear departed father:

He (a lifelong Republican mind you) used to remark that back before he 'went into business' he was getting around $5/hour in 1959 as young unionized worker in the metropolitan sewers just after getting out of the army... this was at a time when a car cost maybe $1,500 and a house less than $15,000, so this was roughly the equivalent of $50+/hour nowadays.  

The last time he ever received a paycheck from another party was I think around 1971 (though he'd long since started his own business), and at that time the union wage was about $11-12/hour, at a time when a car was maybe $3,000 and a house maybe $30,000, so, figure this was roughly equivalent to about $75/hour nowadays.

It is low wages and the extraction of a larger share of national income by the exploitative class which has made for all our economic and social problems.

[Grumpier Than Uncle Joe]

It is low wages and the extraction of a larger share of national income by the exploitative class which has made for all our economic and social problems.

You mean the government, via taxes?

[opebo]

It is low wages and the extraction of a larger share of national income by the exploitative class which has made for all our economic and social problems.

You mean the government, via taxes?

No, the owners, Grumps.

[Grumpier Than Uncle Joe]

It is low wages and the extraction of a larger share of national income by the exploitative class which has made for all our economic and social problems.

You mean the government, via taxes?

No, the owners, Grumps.

I knew you'd swoop down on this like a hawk with a yummy bunny in its sights

[DC Al Fine]

Reminds me of my parents. Long divorced. Both always have a savings account with an extremely negligible amount in it. Don't know why they bother. We do have a problem in this country in that talking about finances is taboo. Especially about personal specifics. It's much less taboo to ask a friend the specifics of his sex life or medical history than how much money he makes or how much debt he has. And as a result, we have zero common sense for how to approach money. And that, of course, combines with a class system that is heavily unfavorable for those struggling to get by. It's great for banks. Terrible for people. How does one break a taboo?

Really it all just comes down to wages, memphis - wages are absurdly low in america.  I used to go over this with my dear departed father:

He (a lifelong Republican mind you) used to remark that back before he 'went into business' he was getting around $5/hour in 1959 as young unionized worker in the metropolitan sewers just after getting out of the army... this was at a time when a car cost maybe $1,500 and a house less than $15,000, so this was roughly the equivalent of $50+/hour nowadays.  

The last time he ever received a paycheck from another party was I think around 1971 (though he'd long since started his own business), and at that time the union wage was about $11-12/hour, at a time when a car was maybe $3,000 and a house maybe $30,000, so, figure this was roughly equivalent to about $75/hour nowadays.

It is low wages and the extraction of a larger share of national income by the exploitative class which has made for all our economic and social problems.

You're wage numbers are way off. Average annual income in the USA was around 5k in 1959. Assuming a 40 hour work week you have a rate of about $2.40 an hour or $19 in today's wages. This was also with women kept mostly out of the labour market and minimal immigration from Mexico.

[opebo]

Really it all just comes down to wages, memphis - wages are absurdly low in america.  I used to go over this with my dear departed father:

He (a lifelong Republican mind you) used to remark that back before he 'went into business' he was getting around $5/hour in 1959 as young unionized worker in the metropolitan sewers just after getting out of the army... this was at a time when a car cost maybe $1,500 and a house less than $15,000, so this was roughly the equivalent of $50+/hour nowadays.  

The last time he ever received a paycheck from another party was I think around 1971 (though he'd long since started his own business), and at that time the union wage was about $11-12/hour, at a time when a car was maybe $3,000 and a house maybe $30,000, so, figure this was roughly equivalent to about $75/hour nowadays.

You're wage numbers are way off. Average annual income in the USA was around 5k in 1959. Assuming a 40 hour work week you have a rate of about $2.40 an hour or $19 in today's wages. This was also with women kept mostly out of the labour market and minimal immigration from Mexico.

Well, buddy, it was an anecdote, not a statistic.

[memphis]

Reminds me of my parents. Long divorced. Both always have a savings account with an extremely negligible amount in it. Don't know why they bother. We do have a problem in this country in that talking about finances is taboo. Especially about personal specifics. It's much less taboo to ask a friend the specifics of his sex life or medical history than how much money he makes or how much debt he has. And as a result, we have zero common sense for how to approach money. And that, of course, combines with a class system that is heavily unfavorable for those struggling to get by. It's great for banks. Terrible for people. How does one break a taboo?

Really it all just comes down to wages, memphis - wages are absurdly low in america.  I used to go over this with my dear departed father:

He (a lifelong Republican mind you) used to remark that back before he 'went into business' he was getting around $5/hour in 1959 as young unionized worker in the metropolitan sewers just after getting out of the army... this was at a time when a car cost maybe $1,500 and a house less than $15,000, so this was roughly the equivalent of $50+/hour nowadays.  

The last time he ever received a paycheck from another party was I think around 1971 (though he'd long since started his own business), and at that time the union wage was about $11-12/hour, at a time when a car was maybe $3,000 and a house maybe $30,000, so, figure this was roughly equivalent to about $75/hour nowadays.

It is low wages and the extraction of a larger share of national income by the exploitative class which has made for all our economic and social problems.

It's both. There are plenty of people who make good money who make really bad decisions. But the system is screwed against the other half as well. Both my parents had good government jobs that paid about the median income throughout their careers. My mom was a teacher and my dad was an accountant at the state prison. Obviously nothing extravagant, but neither was remotely wise with their money. Mom was always giving her money away to the synagogue going out to eat, and compulsively buying more clothes. Never met a credit card she didn't like. Dad bought us lots of video games and bought himself a new car every few years. He had a bit of a casino habit for a period in the 1990s. Thankfully, they both now have state pensions. Otherwise, they'd both be living under a bridge.

[Link]

40% of people make less than what, $10/hr? Bull. This is a massive character flaw for most of these people, many of whom have way more house than they can afford.

The median is only around $15/hour, DC, so for the lower classes, they're lucky to get $10.

These kind of people don't have houses, or if they do, they're nothing more than slums, DC, so your critique is nonsense.

15*40*52=$31 200. I'm not particularly familiar with your tax system, but in Canada that works out to around $2100/month in take home pay. Certainly not luxurious, but liveable. Hell, I've lived off $1000/month with a higher cost of living to boot.

This is $500 total savings, not $500/month saving. It's certainly doable and this is assuming you're single. Throw in a spouse working 20 hours a week at Wal-Mart and you'd have your savings in less than a year.

No one... NO ONE is saying the United States is not the most bad @$$ place to live if the best case scenario happens.  As a young single male making a decent living I can get by without really looking at my bank account.  The only time bomb that is going to blow up any time soon is my student loans.  But if you don't live in the best case scenario say if you... I don't know, get married and then get your wife pregnant, well then things get expensive real fast.

The problem with America is most people are running on the tread mill and doing okay.  So they vote like they are doing okay.  Well when the lay off happens and you have a wife and kid that few hundred dollars a month you saved up goes bye bye real quick.

What happens if you get pulled over by the cops after having three beers at the bar on the way home for work.  Well you could be in financial hurt real quick.  What happens if an illegal alien with no insurance because you live in a Nazi state hits you?  Well your insurance will cover it but guess what?  Your insurance rates will go into the stratosphere.  If you have a a legal, medical, or career emergency you could be living in your parents basement or worse under a bridge real quick.  What keeps America going is the illusion of security.  The reality is most of us are dancing on the knife's edge and don't even realize it.

[DC Al Fine]

40% of people make less than what, $10/hr? Bull. This is a massive character flaw for most of these people, many of whom have way more house than they can afford.

The median is only around $15/hour, DC, so for the lower classes, they're lucky to get $10.

These kind of people don't have houses, or if they do, they're nothing more than slums, DC, so your critique is nonsense.

15*40*52=$31 200. I'm not particularly familiar with your tax system, but in Canada that works out to around $2100/month in take home pay. Certainly not luxurious, but liveable. Hell, I've lived off $1000/month with a higher cost of living to boot.

This is $500 total savings, not $500/month saving. It's certainly doable and this is assuming you're single. Throw in a spouse working 20 hours a week at Wal-Mart and you'd have your savings in less than a year.

No one... NO ONE is saying the United States is not the most bad @$$ place to live if the best case scenario happens.  As a young single male making a decent living I can get by without really looking at my bank account.  The only time bomb that is going to blow up any time soon is my student loans.  But if you don't live in the best case scenario say if you... I don't know, get married and then get your wife pregnant, well then things get expensive real fast.

The problem with America is most people are running on the tread mill and doing okay.  So they vote like they are doing okay.  Well when the lay off happens and you have a wife and kid that few hundred dollars a month you saved up goes bye bye real quick.

What happens if you get pulled over by the cops after having three beers at the bar on the way home for work.  Well you could be in financial hurt real quick.  What happens if an illegal alien with no insurance because you live in a Nazi state hits you?  Well your insurance will cover it but guess what?  Your insurance rates will go into the stratosphere.  If you have a a legal, medical, or career emergency you could be living in your parents basement or worse under a bridge real quick.  What keeps America going is the illusion of security.  The reality is most of us are dancing on the knife's edge and don't even realize it.

These are all good reasons for a small safety net for genuine catastrophes.

However, the $500 says a lot more than just skating by. It means people of reasonable means are buying TV's, computers, home reno's on credit instead of savings. It speaks to a deeper problem with society.