3 out of 4 Americans have no personal financial safety net

[Torie]

What percentage of Americans had a personal financial safety net 20 years ago?  That is the first question. The second question is whether it is as necessary to have such a net, or as large a one, given a more robust taxpayer financed government social safety net. It may even be true vis a vis certain government programs, that there is an incentive to keep your personal wealth down.

My personal opinion based on experience, is that irrespective of income levels, the vast majority of Americans don't know much about managing their money, and do a suck job of it, nor do they have the will power to delay gratification even if it is in their long term interest, financial and/or otherwise, to do so. I know a fair number of chaps making six figure incomes that don't have a pot to pis* in.

[Torie]

What percentage of Americans had a personal financial safety net 20 years ago?  That is the first question. The second question is whether it is as necessary to have such a net, or as large a one, given a more robust taxpayer financed government social safety net.

What planet do you live on?  Or, do you live in France?  There is NO social safety net in America.  If you are a single man and you lose you job, you get absolutely nothing.

It may even be true vis a vis certain government programs, that there is an incentive to keep your personal wealth down.

My god, you're 30 years out of date and spouting pure Reaganist mythology.

The US has no social safety net for single men? Really? Come on opebo, you can do better than that. Some government cross subsidy programs look at your net worth opebo to boot.  That is not mythology, that is fact.

[Torie]

Well in addition to food stamps, opebo, we have unemployment insurance and medicaid that come to mind. Utility companies give a break on utility bills to low income folks. There is also Section 8 housing, which subsidizes housing costs. One can make the case that this is all inadequate perhaps, but one cannot make the case that there is no safety net at all.

[Torie]

I don't claim to be an expert on the lucanae of transfer payment programs, but for some reason the earned income tax credit was not mentioned. But sure, single young men are probably the least attractive welfare candidates.

[Torie]

You know why most terrible marriages stay intact? money.

Forcing people to stay in bad relationships for the sake of finances? Yikes.

I also love the lack of nuance to forget that not everyone becomes a single-parent by choice.

Actually, most unhappy marriages turn out happy a few years later, while people who divorce do not tend to be any happier during the same time frame. From a long term happiness point of view, yes most of these couples should stay together.

Single motherhood poses financial problems that need to be dealt with, but we should consider the cultural changes that have made it a significant problem in the first place. Single motherhood indicates a cultural shift. In earlier eras, marriage was considered an end game, and social pressure could be applied if someone got pregnant. This enforced a much lower rate of single motherhood and increased household savings.

Got any numerical data, as opposed to anecdotal evidence, for the bolded bit - and in particular the word "most?" 

[Torie]

Thank you.