Posted on 02/02/2014 7:48:11 AM PST by SeekAndFind
A new report from the Corporation for Enterprise Development shows that 44% of Americans are "liquid asset poor" and are forced to live from paycheck to paycheck.
The economic picture is looking brighter these days. The federal government announced Thursday that economic growth had picked up to its fastest pace in two years, while employment growth over the past five months has averaged a healthy 185,000 new jobs. But as evidenced by a report out Thursday from the Corporation for Enterprise Development, nearly half of Americans are living in a state of "persistent economic insecurity," that makes it "difficult to look beyond immediate needs and plan for a more secure future."
In other words, too many of us are living paycheck to paycheck. The CFED calls these folks "liquid asset poor," and its report finds that 44% of Americans are living with less than $5,887 in savings for a family of four. The plight of these folks is compounded by the fact that the recession ravaged many Americans' credit scores to the point that now 56% percent of us have subprime credit. That means that if emergencies arise, many Americans are forced to resort to high-interest debt from credit cards or payday loans.
And this financial insecurity isn't just affected the lower classes. According to the CFED, one-quarter of middle-class households also fall into the category of "liquid asset poor." Geographically, most of the economically insecure are clustered in the South and West, with Georgia, Mississippi, Alabama, Nevada, and Arkansas being the states with the highest percentage of financially insecure.
(Excerpt) Read more at americanthinker.com ...
When they say “Paycheck” are the including government assistance?
Same people will invest in MyRA???
Does this number include the 92 Million Americans who don’t get paychecks?
—just judging by my lifetime of experience, I doubt that there has been much change over the last fifty years——
RE: Does this number include the 92 Million Americans who don’t get paychecks?
I suspect many do. They’re just doing it underground. The USA has a huge underground CASH ONLY economy even as we speak.
The real problem is that the US standard of living is currently being supported at an artificially high level by entitlements funded by 40% borrowed/fake money.
We’re like that family in 2007 living in a McMansion with negative equity and a balloon mortgage, two leased luxury SUVs, and a purse full of maxxed out credit cards. Life was good right up to the foreclosure/repo/etc.
Do you mean the ones that get your paycheck via government plundering?
Can’t be true because we know for sure that 40% of Americans live from EBT card to EBT card.
I can understand that a lot of people are facing difficult circumstances, but I really have to question the credibility of a report that uses a statement like this as supporting evidence:
The plight of these folks is compounded by the fact that the recession ravaged many Americans' credit scores to the point that now 56% percent of us have subprime credit.
This isn't a problem at all. It's an indicator and an opportunity. It says that 56% of Americans have no business borrowing money -- which any objective financial analyst could have told you years ago.
Cut up the credit cards, sell the house with the underwater mortgage (or walk away from it), and get on with your life.
Time Magazine writes an article about 44% of Americans being liquid asset poor while our country is 17 trillion dollars in debt.
56% of our citizens are still more responsible than Uncle Sam.
And this is a surprise to..... Anyone?
Remember when you could write-off the interest you paid on credit cards and car loans?
What I do find amazing is the number of people I encounter who have retired and are still making mortgage payments. In many cases, that means they are retired and have a negative net worth. Those folks live from pension check to pension check. --- I'm, sure at some point I'll have an opportunity as a taxpayer to bail them out. My responsible behavior will be punished through taxes to support their irresponsible behavior.
You could have $1.2 million in 401(k) and IRAs, $450k in investments and have a $60k mortgage on a house worth $410K.
That would give you a net worth of $2 million not including smaller assets.
Ought to be interesting when they reach 75. The kids they dumped into daycare and the. Strapped with this debt, not to mention contracept end out of existence, not a money source
Social security will take care if them when they caint work,
Pshaw yeah! A government that would take away contracted for retirement from all of its war veterans and their widows’ fund without a protest from the populace would never withhold so iCal security!
Anyway, people have contracepted about two thirds of tgat generation who would pay
Excellent question. Toss in federal checks and I bet that number is far higher....I think it is far higher anyway.
I have heard from people, that this is a reason why both Republicans and Democrats have not dealt with illegal aliens.
The reason is, illegals are here working, paying taxes, etc. and politicos of both parties see them as being there to pay baby boomers Social Security/Medicare, etc.
This is just talk I’ve heard from people, but it explains a lot. Illegal aliens are working, many in legitimate jobs, are paying taxes.
Where this argument loses me, however, is the fact that we have tens of millions of unemployed/underemployed. Which begs the question of why so many people on public assistance have chosen spend years or a lifetime not doing any productive work of any kind.
Who’s kidding who? Most are living off their credit cards because their pay checks are shrinking by the month. The cost of heating this winter, the shrinking food dollar, soaring medical insurance, and their cut in working hours, make “paycheck-to paycheck” sound good.
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