Most Americans In Poor Financial Condition

There was a time when Americans were pretty well-off. Most had decent jobs, credit, and money in the bank. Those times are fast disappearing. Since the Republican recession that fully began in 2008, things have really gotten much worse. There has been a wage stagnation for most Americans for years now (with current salaries having less buying power than salaries in the 1970's) thanks to attacks on unions and the off-shoring of good American jobs (both of which are still happening). The recession's elimination of up to 12 million jobs just accelerated the process that has been going on since the Reagan administration.

The upshot of all this is that far too many Americans are now living paycheck-to-paycheck (if they are still lucky enough to have a paycheck). The National Foundation for Credit Counseling (NFCC) recently did an interesting survey. They asked over 2,700 Americans how they would cover a $1000 unplanned emergency expense. At today's prices that's not really a huge unplanned expense -- a car transmission can cost triple that, and a hospital stay, even with insurance, can top $1000 easily.

But what the NFCC found was kind of scary. The huge majority of Americans don't have enough money in the bank to cover a $1000 unplanned expense. In fact, only 36% said they had enough in a checking or savings account to cover a $1000 expense. That means 64% of Americans do not have the $1000. They are virtually living on the edge of financial disaster.

How would these people cover a $1000 unplanned expense? Here's what they said they'd do (or try to do):
17% would borrow from friends or family
17% would disregard other monthly expenses
12% would sell or pawn their possessions
9% would take out a loan
9% would use a credit card cash advance

None of those are really good options for a family living so close to their income level that they have been unable to save a thousand dollars. It would just create more financial pressure.

And still, the Republicans are ignoring the plight of ordinary Americans in their headlong rush to give even more money to the rich and the corporations. Isn't it time to vote them out of office? Isn't it time to return to a sane economic policy?