Almost Half Of U.S. Households Exhaust Their Salaries

[Art_from_Ark]

"The Federal Reserve has declared economic growth "solid." But several new reports show most Americans are treading along a dangerous financial tightrope, where one slip could be devastating.

"Nearly half of U.S. households — 47 percent — say they spend all of their income, go into debt or dip into savings to meet their annual expenses, according to an analysis of Fed survey data released Thursday by the Pew Charitable Trusts.

"'They could not withstand a serious financial emergency,' said Diana Elliott, a Pew research manager who co-wrote the analysis. 'That really is the contrast to the macroeconomic story' of a recovering economy."

http://www.kitco.com/news/2015-01-29/Almost-Half-Of-US-Households-Exhaust-Their-Salaries.html

[merrily]

1. Wall Street recovery does not equal Main Street recovery anymore.

Whatever was the case in 1929, Wall Street invests all over the world, including places where Main Streets jobs have gone. Main Street recovery, for the most part, needs jobs located in the US.

[Art_from_Ark]

2. You got that right

Wall Street has increasingly distanced itself from Main Street with its incessant demands for ever-increasing profits at the expense of local workers. Once a company starts to reach maturity, it has to look for creative ways to appease its Wall Street overlords. That usually entails finding new markets, cutting staff, and/or shipping jobs to low-wage countries. I can think of at least 5 factories in my hometown area that have moved out of the area for the latter two reasons, even though the area has lots of skilled workers who were working for a relatively low (for the US) wage: Emerson Electric, Levi Strauss, Whirlpool, Kraft Foods, Guardian Glass. There are no doubt others, these were just the ones that immediately came to mind.

[merrily]

3. Job scarcity--the surest way to make workers forget about unions, safe working conditions, benefits

and all that other pesky stuff that annoys employers. Works better than direct union busting, "right to work" (for next to nothing), etc.

[Go Vols]

8. Gotta be willing to travel

There are Union jobs that require help.

http://www.ironworkers.org/jobline

That link is Union shops begging for hands,if highly qualified,you can call and get a job just about anywhere in the country.

Work 20 years and retire with a pension.

Can't offshore US infrastructure.

[merrily]

9. Rephrase; Willing and able to travel and to work in construction.

There is no valid reason on earth that the only jobs Americans can get are in construction and jobs that require them to uproot themselves and their families involuntarily, which causes all kinds of societal problems. But, thanks for letting us know that those jobs exist for those who can manage them.

Have you posted in some of the groups that might be especially grateful for that info?

[Art_from_Ark]

10. Of course, construction is often a seasonal job

Constantly moving from place to place to follow construction work can take a toll on people, especially children.

[merrily]

11. And elders and public schools and a bunch of other things.

And you have to have the money to move around and be pretty fit physically.

[Go Vols]

25. Yep

You get it when young and pick a trade that makes money.

[Go Vols]

16. I was lucky enough to pick where I went

and the places I picked were "booming". I would get there and build a name,then bid work so I could stay there until the work ran out or I got a quite better deal elsewhere.

[Go Vols]

13. I mostly stay in GD and computer help

I voluntarily traveled around the country for 20+ years building big jobs and retired in my 40's.

Its not for everyone,as I had many hands not make it a half day,but it suited me as I liked a company paid for house,utilities,truck,gas,ect.

Family was with me thru all those years even tho at one point I was raising a 5 and 8 year old alone while running work.

I could have stayed at "home" and maybe made 25 bucks an hour,I wanted more and went out and got it.

I think there was a northern migration,gold rush migration in history,now people willing to work hard are going to ND to get big money.

[merrily]

14. Absolutely: For people who can and want to, it's great.

That is why I suggested posting an OP in a few places, in case people are interested and able. The Labor Movement forum might be good for starters.

[CTyankee]

23. I love it! It is wonderful...

[Bonobo]

4. I suspect this is increasingly true for Japan too.

I see so many new cars and things here and knowing the salaries, I wonder how they could POSSIBLY afford them...

Tokyo is one thing, but out here in the sticks, salaries aren't so high.

[Art_from_Ark]

5. My guess is bank loans and/or payday loan companies

I saw an ad from a local bank recently offering new car loans at 1.5% interest, so that might entice some people to try to keep up with the Tanakas. Of course, payday loan company ads are everywhere, and I would guess that those companies are raking it in (although they apparently recently lost a class-action suit for usury and have to pay back some of the money they overcharged).

[Bonobo]

6. In other words...

Japanese have become as stupid with regards to savings as everyone else.

Pressure to keep up is pretty intense in Japan.

[Art_from_Ark]

7. Well, maybe not quite as stupid

But there definitely is a lot of pressure to keep up.

[Sherman A1]

15. Precisely

I know I sleep sooooo much better........

[hfojvt]

17. That doesn't make sense

according to the census, 61.4% of households have more than $25,000 in net worth.

That clearly would include at least 8.4% of that 47%. Are these people saying that they dip into savings because they save money in March and then dip into it by December?

Of course, one big way a homeowner adds to their net worth is not directly by saving, but simply by making house payments and having their house appreciate in value.

The linked article closes by talking about the mythical 1%. It says: "Including capital gains, they earned nearly 19 percent of all income in 2013, according to Emmanuel Saez, an economist at University of California at Berkeley. "

Intersting, because according to IRS estimates the 1% earned 22.8% of the income in 2007. Of course, IRS figures are flawed because if a married couple each making $40,000 files separately, which presumably some do, that would register as two taxpayers with $40,000 income instead of a household with $80,000 in income. And if they had a child who made $6,000 a year at their job, that would register as another tax filer with income below $10,000 when actually the family income is $86,000.

Unfortunately the article provides no context, by including what Saez estimated for earlier years.

[woo me with science]

18. Recovery. Another lie. nt

[Enthusiast]

19. Sometimes I wonder about the scope of the lies. Do they include some commonly accepted statistics

and poll results. Obviously we are dealing with miscreants that feel no responsibility for telling the truth.

[woo me with science]

20. I think you're absolutely right to wonder.

Lying and manipulation are not just condoned, they are clearly the MO now.

How much of OUR money are they pouring into this lying Oligarchy Theater that now passes for our democracy?

[RiverLover]

22. Forty-Seven Percenter here

Never thought of it that way before, but I do "exhaust my salary"...also known as staying afloat after leaving a bad marriage with the clothes on my back.

[davidn3600]

24. And truth is ACA didn't solve anything

If those 47% had a serious medical problem, they will be in financial ruin...even with Obamacare.

For many plans you need thousands of dollars just to meet the deductible. That doesn't include potential time missed at work. Right there is enough to put the family behind in mortgage or other payments....then it all snowballs.