Time magazine is reporting on a new study that finds that many of your neighbors are slogging through the same garbage that you are, living hand to mouth.
You probably already knew that, or at least suspected it. Well, now you can believe it.
Nearly Half of America Lives 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.
Less than six thousand dollars for a family of four would mean that, if one of the income bringers lost a job, he or she would have weeks, not months, to get hired by someone else or start missing bills. Of course, the time period can be extended somewhat. I have resorted to working multiple part-time jobs in these situations, and thus lengthened out the time we could survive without missing payments. But that is a risky strategy since finding a job can itself be a full-time job. And, many times, it is hard to get hired in your field when the interviewer discovers you’ve been working fast food or servicing portapotties for the last four months.
So families are living at the side of a mountain that could slide away underneath them at any time. A quarter of them are “middle class.”
Not only is the government a main part of the reason we are in this situation, but it and its cronies have worked assiduously to make Americans unaware of the financial risk that was increasing for them. By setting low interest rates, the Federal Reserve has discouraged savings and pushed Americans into immediate consumption. As the savings rates began to sink, court economists assured us that this was no problem because Americans were “building wealth” in the value of their homes.
That didn’t turn out well.
The government has basically encouraged a credit industry that has acted as stimulus to the retail world. Now an entire industry has grown up based on a business model that assumes all customers have access to a line of credit. When that ride ends, the sudden stop is going to be quite a shock to the economy. It can’t last.
And yet this is the situation in which the Democrats inflicted Obamacare on the American people. Suddenly now these people will be paying more for insurance that also demands more out-of-pocket costs. We are facing the intentional impoverishment of America. In addition to a sudden decrease in disposable income, jobs and hours are being cut.
Administrations in both parties have helped bring us to where we are now. But loading Obamacare on top of all that was a single-party accomplishment.
Heckuva job, Democrats.