Poor America: 7 In 10 Americans Have Less Than $1,000 In Savings

Tyler Durden's picture

Submitted by Joseph Jankowski via PlanetFreeWill.com,

All day the political class will talk down to the American public about how they have the drive to cause an economic turn around inside the U.S. and return prosperity. Wielding their statist solutions to every government created distortion in the economy, the rhetoric from Washington dogmatizes an ongoing “recovery” produced by those that call themselves leaders.

“Anyone claiming that America’s economy is in decline is peddling fiction,” President Obama said in his State of the Union address earlier this year.

This week Obama came out and said that his administration has created a “more durable, growing economy” with “15 million new private-sector jobs since early 2010” in an essay in the Economist.

But as most people are aware by now, the government calculated numbers are always twisted in order to create the illusion of economic recovery. Just take the jobs report produced for July, where some 200,000 jobs created were the product of a virtual reality created by a faulty model and the manipulation of seasonal adjustments.

“The gimmicked, headline payroll gain of 255,000 more realistically should have come in below zero, net of built-in upside biases,” John Williams of Shadow Stats said about the July figure.

If there is a recovery, people would have money in their savings, right? Savings is undoubtedly an indicator of wealth.

It turns out that 7 in 10 Americans have less than $1,000 in their savings account.

From USA Today:

Last year, GoBankingRates surveyed more than 5,000 Americans only to uncover that 62% of them had less than $1,000 in savings. Last month GoBankingRates again posed the question to Americans of how much they had in their savings account, only this time it asked 7,052 people. The result? Nearly seven in 10 Americans (69%) had less than $1,000 in their savings account.

 

Breaking the survey data down a bit further, we find that 34% of Americans don’t have a dime in their savings account, while another 35% have less than $1,000. Of the remaining survey-takers, 11% have between $1,000 and $4,999, 4% have between $5,000 and $9,999, and 15% have more than $10,000.

Let’s reiterate a figure shown above: 34% of Americans don’t have a dime in their savings account.When applying this number to the total population of the United States, there are over 108 million people who have no savings what so ever.

There can not possibly be an economic recovery going on when a third of the population has no money to fall back on. And considering that savings is essential for capital investment, it’s obvious that the average person is contributing nothing to growth.

This is a sign that the United States, the so-called nation of economic opportunity and prosperity, is economically broken.

The US Census Bureau released numbers just a year ago which found that 47 million Americans fall below the poverty threshold of about $24,000 of median household income a year.

Welcome to poor America.

Here are some more shocking statistics that prove the U.S. is NOT in a recovery and average Americans are struggling to make ends meet.

Courtesy of Michael Snyder of the Economic Collapse Blog:

Other numbers from the U.S. Census Bureau are also very disturbing.  For example, in 2007 about one out of every eight children in America was on food stamps.  Today, that number is one out of every five.

 

According to Kathryn J. Edin and H. Luke Shaefer, the authors of a new book entitled “$2.00 a Day: Living on Almost Nothing in America“, there are 1.5 million “ultrapoor” households in the United States that live on less than two dollars a day.  That number has doubled since 1996.

 

– 46 million Americans use food banks each year, and lines start forming at some U.S. food banks as early as 6:30 in the morning because people want to get something before the food supplies run out.

 

The number of homeless children in the U.S. has increased by 60 percent over the past six years.

 

According to Poverty USA, 1.6 million American children slept in a homeless shelter or some other form of emergency housing last year.

 

Police in New York City have identified 80 separate homeless encampments in the city, and the homeless crisis there has gotten so bad that it is being described as an “epidemic”.

 

If you can believe it, more than half of all students in our public schools are poor enough to qualify for school lunch subsidies.

 

According to a Census Bureau report that was released a while back, 65 percent of all children in the U.S. are living in a home that receives some form of aid from the federal government.

 

#- According to a report that was published by UNICEF, almost one-third of all children in this country “live in households with an income below 60 percent of the national median income”.

 

When it comes to child poverty, the United States ranks 36th out of the 41 “wealthy nations” that UNICEF looked at.

 

The number of Americans that are living in concentrated areas of high poverty has doubled since the year 2000.

 

An astounding 45 percent of all African-American children in the United States live in areas of “concentrated poverty”.

 

– 40.9 percent of all children in the United States that are being raised by a single parent are living in poverty.

 

An astounding 48.8 percent of all 25-year-old Americans still live at home with their parents.

 

There are simply not enough good jobs to go around anymore.  It may be hard to believe, but 51 percent of all American workers make less than $30,000 a year.

 

There are 7.9 million working age Americans that are “officially unemployed” right now and another 94.7 million working age Americans that are considered to be “not in the labor force”.  When you add those two numbers together, you get a grand total of 102.6 million working age Americans that do not have a job right now.

 

Owning a home has traditionally been a signal that you belong to the middle class.  That is why it is so alarming that the rate of homeownership in the United States has been falling for eight years in a row.

 

According to a recent Pew survey, approximately 70 percent of all Americans believe that “debt is a necessity in their lives”.

 

At this point, 25 percent of all Americans have a negative net worth.  That means that the value of what they owe is greater than the value of everything that they own.

 

The top 0.1 percent of all American families have about as much wealth as the bottom 90 percent of all American families combined.

 

If we truly are “the greatest nation on the planet”, then why can’t we even take care of our own people?

To give an answer to Mr. Snyder’s question mentioned above, a huge reason “the greatest nation on the planet” can not take care of its own people is because there is a giant government on its back, infested with special interests, sucking hundreds of billions of dollars out of the economy every quarter.

Inflation-adjusted federal tax revenues hit a record $765 billion for the first quarter of fiscal year 2016, while the federal government still ran a $215 billion deficit during that time, according to a Treasury Department statement.

Whenever you hear a politician speak of economic recovery, without the mention of shrinking the size of government, just understand it is not possible and that special interests are siphoning the life right out of your economy.

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RafterManFMJ's picture

No job, no savings, but thank god I got me that health insurance!

neidermeyer's picture

Let me know when you've saved up the $2500 co-insurance and the $5000 co-pay so you can see a doctor without having to skip the next 3 supermarket runs.

hedgeless_horseman's picture

 

Let me know when you've saved up the $2500 co-insurance $10,000 deductible  and then the $5000 co-pay 30% coinsurance so you can see a doctor without having to skip the next 3 1,000 supermarket runs.

 

http://www.zerohedge.com/news/2014-09-04/you-have-health-insurance-you-c...

max2205's picture

16 years of war in the ME takes its toll.  Fed isn't helping things

CONGRESS should just go home...useless 

stacking12321's picture

talk about peddling fiction.

having a savings account shouldn't be conflated with having savings:

"From USA Today:

Last year, GoBankingRates surveyed more than 5,000 Americans only to uncover that 62% of them had less than $1,000 in savings."

Handful of Dust's picture

"Yes we can!" economics is filtering through the naiton. Hillary will continue this fine work with her 65% tax on the middle class and importation of 5x the number of MENA's Barry brought over.

 

4 more years of "Change you can beleive in!"

 

 

RAT005's picture

Consider all of the responsible sussessful people's counterparty risk to be exposed to the general population.....all of a sudden they aren't so well off eaither.

Stuck on Zero's picture

And what makes ZHers think they have any cash savings?  A few digits in their on-line accounts? Ha.

SoilMyselfRotten's picture

YAYAH, I knew i'd one day be a 30%er. Wait, forgot to make my car payment today, never mind, maybe next paycheck.

Loftie's picture

The USG is busy arming foreign racists while America crumbles. http://bit.ly/2cx8JnY

Déjà view's picture

"Great Society"...LBJ...which society in reference to? Must be that "Domino" theory...

CPL's picture

Most of them are 130k in debt.   1k doesn't mean a lot.   Nor does 5k.  The average debt obligations exceed the resources those households carry. 

Antifaschistische's picture

What kills me....isn't the fact that American's are poor.  What kills me is how many of those 7 out of 10 people have a shiny new Dodge Charger in their driveway, or even a Corvette.  THATS what kills me.

True Blue's picture

Sub-prime bubble blowing, fiction pedal cars. Nothing to see here.

Antifaschistische's picture

Let's talk about the 3 out of 10.

Joe has $4,000 in savings....and $15,000 on his Visa card.  THIS SHOULDN'T COUNT

Bob has $10,000 in savings....and a $275,000  unpaid mortgage balance.  THIS SHOULDN'T COUNT

CPL's picture

Average is 137k per household.  The bums will no credit in the USA have more capital at their disposal than their 'richest' and also the largest users of credit facilities.

asteroids's picture

More interestingly, how are those 3/10 going to pay the $19T in debt?

truthserum's picture

Debt issued in ones own fiat currency dosn't really exhist. It's like if you gace your neibor an IOU and when he claims payment you pay him in more IOU's.

Countrybunkererd's picture

Here's a thought on top of that:

The private sector creates private sector jobs, Get out of the way, NO, JUST GO AWAY!  The government can't create jobs (except by theft elsewhere in the economy) it creates an atmosphere where BUSINESS creates jobs or as in this case, doesn't (healthcare being one piece of the problem).

Retronomicon's picture

So this survey is based on savings accounts? Most people have a checking account, and then other ways to save money.  Only a fool would put significant funds in a savings account.

noob2016's picture

President Hillary C is going to pay that if I elect her. Much like President Obama is paying for my gasoline.

RafterManFMJ's picture

I said I have health insurance, not that I can use it.

viahj's picture

I for one, have more outside of the banking system than within it.  sadly, this isn't the fundamental driving the headline.

Haus-Targaryen's picture

Was thInking the same thing.

How much do I have in my "savings" account? Idk 13 cents?

de3de8's picture

Your not the typical sheeple

Patriot Eke's picture

Yes, what idiot would be leaving a large amount of money in a bank? All of my wealth is NOT in a bank. No thanks!

1980XLS's picture

"Hope & Change"

brought to you by the magic Negro & the Cunt.

Expect even MOAR Negro Magic, should that filthy cunt pull off a win

38BWD22's picture

 

 

My second check to Trump is now being mailed.

Promise made, promise kept.

 

LadiesLoveCoolJames's picture

Giving money to a billionaire! Maybe you should also offer up your wife's pussy for grabbing by his truncated digits.

RafterManFMJ's picture

Made my first donation last night after the debate.

Intelligence_Insulter's picture

I got 0 dollars in my bank account ATM.

exi1ed0ne's picture

Ha!  I've got $1200 in savings.  Suck it article!!

PoasterToaster's picture
PoasterToaster (not verified) Oct 10, 2016 4:38 PM

What happens to savings when there is a negative interest rate on deposits?

1980XLS's picture

You take the money out of the bank.

See, fixed it for you.

neidermeyer's picture

a.) You get fewer or no deposits.

b.) What difference at this time does it make when you have no money?

c.) There has never been a better time to go Galt.

11b40's picture

Next big downturn (and it is coming) will see bankruptcies to the moon, and unemployment numbers will explode.  Small business is struggling, and so many companies are running on very thin cash flows.

It could be a great time to run up as much debt as possible, then walk away.  Every place you look, there are credit offers galore and hucksters begging you to borrow.  Once bankruptcies hit a certain level, the stigma is erased, and it will be impossible for the courts to sort out who won't pay from who can't pay.

 

CPL's picture

The credit has to turn into something untraceable.  A house is certainly a fixed asset,  as is having a family, as is working for whatever subscription of career people contribute to.

exi1ed0ne's picture

The bank of "My Mattress" is already preferable and less risk laden even without neg rates.  I'll pass on the .1% interest. It's not enough of an incentive to ballance handing over property rights of my money to the banks.

Yen Cross's picture

   You didn't build those subprime loans.

  That's pretty pathetic in the overall scheme of things. You can see why Zerocare is such a failure.

  Wage and job growth is stagnant. Older folks can't retire because of hidden inflation.

  I'm gonna go microwave me some tater -tots and drink some gut rot, before I head back to Pins & Needles[s] tomorrow.

rmopf2010's picture

Subprime loans was born from a rape from Bill Clinton

ebworthen's picture

I had over $1,000 in savings - until I had to pay $2,500 that Obummercare "insurance" policy didn't cover.

BSHJ's picture

Some of these statistics are BS.....the government balloons the programs that give stuff away like candy at halloween then others come along and do a study to say looky here....there are more people than EVER getting free candy from the goverment....oh NO! What are we going to DO?

Yen Cross's picture

  How exactly do .gov subsidies change the bank account balances of those people. [ Yes they're being subsidized, but it doesn't change the fact that they DON'T have $1k in savings]

 Who do you think is paying that bill?

Jane Sheppard's picture

And those who did/could save, saw big ticket items like houses, health costs, energy, etc go up by 100% every decade. So even if you do save, you are not rewarded one iota. Had I known better i'd have been buying PMs out of high school.

hawaiian waverider's picture

Keep in mind, those survey respondents are the ones who are online and own a computer.  There are many who don't use a computer and can't get online.  Add those and the number look scarier. 

 

 

BSHJ's picture

I am never broke, I have lots of checks for my checkbook

centerline's picture

One of my favorite sayings.