News and Politics | November 03, 2008 | 62 comments

44% of Americans are living paycheck to paycheck

source: http://spotlightonpoverty.org/news.aspx?id=060e67ec-2ac9-459b-ab6d-a6d7d7aa5f2c

Image
nelsonjs
Our next government is facing a poverty crisis. It is an issue critical to the well-being of not only millions of individual citizens but to the prosperity and the character of our nation as a whole. November 4th is a crucial election, and whoever wins it will face tremendous challenges and great
  1. groups:
    News and Politics,   Politics
  2. tags:
    News and Politics,  Politics,  Economy,  Obama,  3 more
  3.     
    |

62 comments // 44% of Americans are living paycheck to paycheck

  • Commentor
    • 0
      Commentor  

    • Remember ...
      Unions used to help people have a living wage and things like medical insurance globalization as all but made that sort of thing go away.

      United States citizens have historicaly had low food costs compared with other parts of the world.

      When manufacturing jobs stated leaving and going to places where labor costs were cheaper, few people complained about the lower cost goods they buy at Wal*Mart.

      Now even lots of other kinds of jobs are ofshored as well.

      Its going to get worse before it get better...

      Jefferson said it best:
      "I sincerely believe... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." --Thomas Jefferson to John Taylor, 1816. ME 15:23

      More here :
      http://current.com/items/89492223_thomas_jefferson_banks_more_dangerous_than_arm...

    • 3 years ago
  • J_Jammer
    • 0
      J_Jammer [removed]  

    • The world (not just America) works SO HARD to get by and it's not fair. It's not fair to work more or just as much as someone else in the world and not make the same or anything and barely survive.

      It's sad that we are suppose to be advanced and it just seems we're poorer than we were 50 years ago. Things should be cheaper not more expensive.

      AND yes to flat tax based on consumption......tax those that spend and allow those that save to save.

    • 3 years ago
  • Liberal_Extinction
    • 0
      Liberal_Extinction  

    • I wonder just how many of the pay check to pay checkers have cars, tv's, computers, a video game system, expensive clothes, etc? How many times do you see the car parked in the driveway that is MORE expensive than the house? How many times is a $5000 set of wheels on a $1000 car? How much of this supposed poverty is SELF induced? Do you people realize that the poorest of America are wealthy by many other country's standards? Do you people think that obamessiah buying their votes via promises of free handouts are suddenly going to wake these people up and send them into financially responsible middle America?

      Stuff like this are just more reason for a FLAT TAX based on consumption, not earning. Remove the ability for ridiculous writeoffs and a tax system that is leveraged as a tug of war rope during elections and replace it with a flat 20% sales tax. Responsible Americans that save their money pay little and those who spend frivolously foot the bill.

    • 3 years ago
  • Naki
  • SDLN
  • Commentor
    • 0
      Commentor  
    • SDLN:

      We theoreticlly have that sort of income tax....
      The percent you get taxed increases as your income that is taxed goes up.

      The difficulty is that there are lots of ways to get deductions that are easier to access as your income rises as well.

      For example:

      A renter doesn't get to deduct any portion of the rent but a person buying the house can deduct amount of interest paid.

    • 3 years ago
  • SDLN
  • kuruption
  • Commentor
    • 0
      Commentor  

    • Read Rich Dad Poor Dad

      Make a Budget ..

      Put some money away every payday ... even if its only $1 in a jar till you get enough to put in a savings account

      Feed the PIG!!!!

      choose a coin and don't spend them for example
      save all penny's and nickles

      Save that can depsit money!!
      ---------------------------------------------------------

      Save up to buy things not buy things then pay

    • 3 years ago
  • poosta7
    • 0
      poosta7  

    • Since Regan the Republicans have been able to transfer incredible wealth to the top 10% of the USA at the expense of the labor and middle classes...the only thing that "trickled down" from Regan and Bush et al. supply side economics is higher tax burdens, and higher costs for everything....yet the very people hurt the most seem to be ardent palin/mccain supporters. Go figure!!

    • 3 years ago
  • gansevoort
  • DrownedFlyingWhales
  • DeliaTheArtist
    • 0
      DeliaTheArtist  

    • My roommates and I broke down our luxury expenses-
      PER YEAR, between THREE of us, we spend about
      $2,340 on beer
      $3,120 on smoke
      $8,320 on sweet cable/internet package

      How much do y'all spend on "non-necessary" things?

      edit: I spend $1920 on cable a year, I calculated my monthly as weekly by accident. Math Fail :(

    • 3 years ago
  • outtheinside
    • 0
      outtheinside  
    • DeliaTheArtist:

      beer, smoke, HD on demand.. if i ever need a place to stay. i know who i'm calling.. my budget is limited to a student loan and a scholarship. i don't pay rent so i'd have to say fully 1/2 of my money goes to eating out and alcohol - somewhere between $6,500 and $7,000..

    • 3 years ago
  • DeliaTheArtist
    • 0
      DeliaTheArtist  
    • DeliaTheArtist:

      I just finished paying off my student debt...they (the government) took my tax return for the last 2 years after I defaulted (whoops)...my rent is $1450 a month split between 3 people...

      my standard of living is pretty high. I have nice things that I've accumulated over the years, especially when it comes to technology. But I still live paycheck to paycheck in the way that I can only do one big thing, like buying new tires, per paycheck...

    • 3 years ago
  • cantucwearebrothers
    • 0
      cantucwearebrothers  
    • DeliaTheArtist:

      Holy shit...8 grand on tv/internet!? I keep scrolling up to make sure I saw that correctly.

      TV ~ $0
      Internet ~ $600
      Alcohol ~ $1040 +/-
      Food out ~ $2030 +/-

      And if you can buy tires with one pay check without "saving up"...I'm not sure if that's considered pay check to pay check, but hey whatever. :-)

    • 3 years ago
  • DeliaTheArtist
    • 0
      DeliaTheArtist  
    • DeliaTheArtist:

      You're right! My math is off. I'm so horrible at math- I was calculating everything else by the week, so I did cable like that too. My cable/internet/phone is $160 a month, which comes out to $1920 a year. Good call!

      I split everything with my finacee, so $550 for tires becomes $275. Everything apt related I split with my finacee and roommate, and it becomes easier to afford stuff when you have 3 people going in on it! If I was by myself I would need to save up for sure.

    • 3 years ago
  • dabne
  • DeliaTheArtist
  • J_Jammer
    • 0
      J_Jammer [removed]  
    • DeliaTheArtist:

      Some of it might be excessive, but we are human. We cannot just live day to day by eating, sleeping, working or whatever. We want to have fun. We want to relax and that, of course, cost money. To spend a lot on beer or internet or movies or partying so what? There is too much, but I don't think many people do it too much. They do it barely enough to relax and it feels like it's too much because it so expensive.

    • 3 years ago
  • DeliaTheArtist
    • 0
      DeliaTheArtist  
    • DeliaTheArtist:

      I agree, J_Jammer! (Holy shit did I just really say that?)

      Entertainment is more important than people think, ESPECIALLY in hard times. You need to socialize with friends, do something creative or just get your mind off of things.

      Oh yeah, I probably spend about $4000 if not more a year on art supplies, they are DAMN expensive, but I consider that more of a need than a luxury...

    • 3 years ago
  • J_Jammer
  • DeliaTheArtist
    • 0
      DeliaTheArtist  

    • @outtheinside (mostly):

      I live "paycheck to paycheck", but I know that if I cut out certain luxuries like beer, pot and my awesome HDTV all premo channels on demand package I could probably save some cash...
      ...but what kind of life would that be, anyway?:)

    • 3 years ago
  • outtheinside
  • justright
  • dabne
    • 0
      dabne  

    • People need to start living necessity to necessity and then they will no longer be living paycheck to paycheck.

    • 3 years ago
  • sueathome
  • scotchtape
  • likeamazing
    • 0
      likeamazing  

    • wait, I'm confused. If 44% of Americans are living paycheck to paycheck, that means 56% are living another way. Would somebody mind telling me what that way is??

    • 3 years ago
  • lifestudentno83
    • 0
      lifestudentno83  

    • So if about 1% of Americans are wealthy, about 44% are living paycheck to paycheck, and over 6% percent are claiming unemployment, what does that say of the other 49% of the country?

      The number of unemployed people is far higher than the people claiming it. Perhaps the number of people who actually live from paycheck to paycheck are higher than 44% as well? In addition, what percentage of people are in debt?

      Still, if nearly half of the people involved in your economy are living with little to no surplus in money it is not only a bad sign for the average family but the country's economy. How can you expect to stimulate a dying economy if people don't have extra money to spend on it?

    • 3 years ago
  • cybexg
  • IcamacD
    • 0
      IcamacD  

    • 44% seems like a roundabout number, considering the American "middle class" is estimated between 25% to 66% of households. As far as money management goes, I don’t believe it is due to "eating out" or "over spending" I think it has to do with not just school fees, medical fees and every other "fee" that seems to appear on almost every invoice (administrative fee) but with the realism of life in general. Who knows what is going to happen and a lot of people are unable to afford any hiccup that may come along and set them back financially one or two months.

    • 3 years ago
  • shenda
    • 0
      shenda  
    • IcamacD:

      everyone always talks about "middle class" what about those that I guess would be just below middle class..not quite poverty but below middle..I am not an uneducated woman and I have been a administrative assistant for well over 30 years..my savings is gone..our company I work for at the present is in fear of closing down there company..we are ALL living pay to pay and this slow and unnoticable decline has been going on for quite some time now..I dont spend alot of money on going out to eat or whatever else has been mentioned. I never made a whole lot of money but yet enough to keep me afloat and help whomever in my family or friends needed help..but I cant do that anymore. I barely help myself so please for goodness sake would people please think about the "under the middle class" percentage..those are real humans too. and NO ONE ever speaks of those people

    • 3 years ago
  • nessie00
    • 0
      nessie00  

    • In this wealthy country of ours, there is no excuse for true poverty. If we all contributed to our own communities through volunteering, cash, or food banks then this pyriah could end. No forced redistribution of wealth, just be generous when you can.

    • 3 years ago
  • Neghie
  • Razmatazz
  • outtheinside
    • 0
      outtheinside  

    • oh come on guys.. who here doesn't overspend, go out to eat too much, buy extra crap they don't need... its not a poverty crises for many of the 44% that live paycheck to paycheck -- its a money management crisis. learn to save, spend thriftily, and the difference between necessities and wants. it is and always will be the land of opportunity.

      this goes along with the housing crisis. we have houses that are larger than our need. big vehicles that are larger than our need. its the 'american way' that needs changing, not handouts. change your perspective on what constitutes a necessity on all your expenditures and i'm sure you will find you can save. its keeping up with the jones's that is killing us.

    • 3 years ago
  • cantucwearebrothers
    • 0
      cantucwearebrothers  
    • outtheinside:

      Although I do agree that American's overspend, we didn't come up with this idea all on our own. It's been spoon fed to us. We're just acting on what we're TOLD we need. People are easier to control when they're in a financial panic all the time.

    • 3 years ago
  • outtheinside
    • 0
      outtheinside  
    • outtheinside:

      i disagree. it is not about what you are told, it is about what incentives you have. if the incentive is not to save, then you won't. if you claim you are only doing as you are told - you are sheepish. public policy is about creating incentives. if the incentives are wrong, then we get bad situations like the poor savings rate and people living from paycheck to paycheck. the incentives are now changing and people have to cope or get left behind. adaptation is key.

    • 3 years ago
  • Bill_Robison
    • 0
      Bill_Robison  
    • outtheinside:

      If only what you say were true. The truth is, in the past, Americans had always been able to afford the basics in life (car, housing, food, clothing, etc.) and had "extra" cash at the end of the month. Some chose to save for the future and some not.

      We have lost the "extra" cash to pay for health insurance, car insurance, dental plans, vacations, weekly entertainment, college funds, etc. and are now having to go without many of the basics.

      If you make $2,500 each month, but have $3,500 in bills, do you pay every penny towards the debt you will never pay off? Or do you keep the lights on and gas in the car, then buy your kids Guitar Hero?

      I personally feel most people would be responsible with their spending if the numbers were closer. But if the future looks black, why worry about the red?

      It's not a budget problem when there isn't enough money to pay for the basics. It's slavery.

    • 3 years ago
  • cantucwearebrothers
    • 0
      cantucwearebrothers  
    • outtheinside:

      Attitude follows leadership.

      Our leaders spend, spend, spend. They tell the public to do the same, hell they even give them a check to get them into the spirit of consumerism.

      We have the media reporting on all the "coolest" stuff used / worn / driven by all the "coolest" people. I don't know how many people I heard talking about the iphone before it came out and how they didn't care how much it cost...they had to have one.

      We have advertisers promoting a meriad of products with slogans like "because you're worth it", and "diamonds are forever".

      I'm not saying that people shouldn't be responsible for themselves and their financial situation, but you have to acknowlege the massive amounts of influence and pressure people are under.

    • 3 years ago
  • inapickle
    • 0
      inapickle  
    • outtheinside:

      yes, there are a lot of people that overspend trying to keep up w/ their neighbors/friends,etc.. But many people I see are living paycheck to paycheck w/out overspending..They just can't get anything much saved up..Even w/ working 2 jobs..Rent is high, insurance,etc..Just the basics hurt a lot.

    • 3 years ago
  • scotchtape
  • dabne
    • 0
      dabne  
    • outtheinside:

      I agree. Most Americans are not living within their budget. One of the reasons is that they don't want to work. Americans today don't know the definition of work. They want easy jobs, jobs with benefits, air conditioned desk jobs, be their own boss jobs, work from home jobs, etc... Then they have to have designer clothes, newer cars, cute houses they can't afford. They also don't want to spend time preparing their own food so they eat out almost daily. Don't forget the cell phone and Direct TV, and internet. The list goes on and on. People need to live necessity to necessity and then they will no longer be living paycheck to paycheck.

    • 3 years ago
  • justright
  • shenda
    • 0
      shenda  
    • outtheinside:

      dont give me the spend extra crap either..whoever you are..i have lived check by check and I DONT GO OUT TO EAT..I DONT SPEND EXTRA..THERE !!!IS NO!!! EXTRA..GO BACK TO YOUR CUSHIE LITTLE JOB AND LIVE YOUR SURREAL LITTLE DREAM

    • 3 years ago
  • isnamthere
  • khromadjo
  • isnamthere
  • Elligirl
  • lifestudentno83
  • HolyCity2012
  • HolyCity2012
  • khromadjo
  • isnamthere
  • wiredbirds
  • HolyCity2012
    • 0
      HolyCity2012  

    • The only time in my whole entire life that I was ever able to create a savings account was when I lived with my parents.

      I am jealous of pre-Regan era economics. Back when the American dream was attainable.

      Life in general is a constant shake down.

    • 3 years ago
  • owner1
    • 0
      owner1  

    • only 44%? are you sure, most of the folks in my neighborhood are used to it, they don't like having to do it, but unless somebody is handing out free $$$$ what else can we do. You learn to do only the most basic things for your family, and sometimes that means robbing peter to pay paul:) just to get by.

    • 3 years ago
  • redvelvet1278
  • tokomoe
    • 0
      tokomoe  

    • I was one of those Americans that lost their job due to the economy. I was already working paycheck to paycheck before my tech job was taken away. Now with jobs scarce and unemployment only covering 60% of my previous pay, all my savings are going into just staying afloat.

    • 3 years ago
  • ScratchyPants
    • 0
      ScratchyPants  

    • Many Americans have been living this way for quite some time now. I'm actually surprised that the claims are only 44%. I figured it would be more.

    • 3 years ago
more from News and Politics:
from the community

top videos