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Does the average American actually exist? The guy that the Bureau of Labor Statistics basis its figures on. It seems that the fictitious character is out there somewhere being hunted down; or perhaps the man was shot down long ago in some past that the country invented for itself in the hope of spinning another yarn about how rich the Nation was. The only thing that the ‘typical American’ does it make most people in this country realize that they are being left far behind when it comes to spending in an ever-growing gaping gap that we have fallen into and that we call ‘income inequality’. The ‘typical American’ hasn’t fallen into that hole because the Bureau of Labor Statistics is looking at figures that are outside of the bottomless pit that is most people’s daily lives.
The Bureau of Labor Statistics has been churning out its figures for the past thirty years showing us how the ‘average American’ spends his money.
• Today under 40% of the lowest quintile in the USA owns a home.
• But, 90% of Americans in the top quintile own one or more.
• Therefore the top quintile spends an average of $21, 000 more than the lowest quintile.
• It also spends some $13, 000 more in transport costs.
• More than 50% of income of lower-income families goes on housing and transport costs in the USA today.
• Overall, the figure works out to roughly 30% of all budgets combined in the household going to housing costs.
• The lowest quintile also spends as a percentage of its budget double what the richest quintile spends on food.
• The top 20% of people in the US spend more on eating out at restaurants as well as entertainment and vehicles.
• The top 20% earn an average of $247, 000.
• The lowest quintile earns an average of $17, 500 per year, but their expenses amount to an average of $24, 800.
• They are therefore in debt more often than the top quintile.
So, where do you fit in here? Are you just an average Joe, the guy that looks, acts, eats, sleeps and walks like everyone else in the country? The fictitious guy…is he out there?
The average American:
• Earns $62, 000 per year.
• They spend 26.5% on housing.
• 12% of income goes on transport.
• Gas costs 3.4% of the average budget.
• Healthcare costs 5% of the household budget.
• 9.8% goes on eating; and 40% of that sum goes on eating out at restaurants and buying take-aways.
• 4% goes on entertainment and 2.7% goes to clothing and shoes.
Oh! Forgot to say that the average American according to the Bureau of Labor Statistics is a 49-year-old man. Sorry, for all the women out there and sorry if you are not that age: you’re just not the archetype of the Bureau of Labor Statistics (you can thank your lucky stars, probably). The average American has been churned out of the Bureau’s computer program, hallmarked with the ‘Made-in-the-USA’ sticker, stamped and packed to be sent off somewhere overseas, probably.
But, in comparison with other countries around the world, the American people are spending less money on food than other countries such as the UK, Japan or Canada. They spend more than those countries on housing. The Average Joe might not be spending money on food but, he’s certainly wasting it. Food waste in the US stands at a loss of $165 billion in the country today on average. That’s over $500 per person and per year. While spending that goes on housing is nearing 30% of budget on average in the US, in the UK it represents some 24% of total budget. Japan’s average figure amounts to 21%. Is that a sign that the US housing market is over-inflated and ‘bubblesque’?
We still have enough money to play with though apparently. We spend $2.3 billion a year in tattoos. Then$66 million getting them removed. We spend almost as much on our lawns ($40 billion) as looking after the kids ($47 billion). We spend over $10 trillion every year (probably on stuff we don’t need).
But, that average Joe: he out there?
Originally posted: US Spending: Typical American? Does He Exist? [6]
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