5 signs Americans are flat-out broke

[spacejamz]

Strangely the bigger issue is people who can afford to have kids but do not.

Kids are the greatest cause of economic purchases out there, and with fewer children there is fewer purchases, fewer jobs, and the business world moves away to where there is more economic activity and growth.

Maybe Idiocracy was documentary and not a comedy flick? LOL

 

[Cerpin Taxt]

Seems relevant.

 

[Victorian Gray]

Some people just don't get it...it's not just the TV or the iphone...where are your prices for the cable/satellite packages for those TV's? The unlimited texting and 2GB data plans for the iphones? Eating out more than cooking at home?

As stated in the OP, there is a reason savings account balances are down and it is due the bad priorities that many people seem to have in their spending habits.

Yep, can't have poor people having any enjoyment/happiness in their lives. You are poor because you are flawed and a failure and you need to acknowledge that through a life of asceticism and suffering. And you should be seen to suffer so as to provide an example for all.

 

[GoPackGo]

Seems relevant.

That video was basically paving the road to SkyNet

 

[spacejamz]

Yep, can't have poor people having any enjoyment/happiness in their lives. You are poor because you are flawed and a failure and you need to acknowledge that through a life of asceticism and suffering. And you should be seen to suffer so as to provide an example for all.

It has nothing to do with them not being able to enjoy life...If you can't see why having unlimited texting/data and cable tv while having nearly nothing savings is a bad idea, there is no point in continuing this discussion...

 

[Subyman]

I don't know what the OP is talking about. New car sales are up over last year:
http://online.wsj.com/mdc/public/page/2_3022-autosales.html

 

[schmuckley]

Home ownership is lower now than any time before in my lifetime.
I made more money for the same work in 1981.
..and money was worth more then.
What's really happening?

 

[Zorba]

Yes, enabled them to offhsore production entirely or in sections and then import for final assembly (Boeing) into the US. Lower price labor and no drop in price for the planes. Win for everyone...well....except the US worker that was displaced from a good paying job but hey, that doesn't matter. They will find another job.....

Not to mention GE and Boeing have off shored a hell of a lot of engineering jobs too.

Boeing is currently using the threat of outsourcing to break all their unions at the moment. The CEO even bragged last month that he was making the employee "cower."

McNerney responded with a quip when asked about his plans after turning 65 next month. “The heart will still be beating, the employees will still be cowering, I’ll be working hard,” he said. “There’s no end in sight.”

 

[OverVolt]

How is $50/mo on a cellphone such a huge waste of money when back in the 80's and 90's people probably spent $5,000-$10,000+ on computers via disposable income, some even making a career out of it.

Truth is there is barely any disposable income anymore. 2Gb of data!? shouldn't you be saving for retirement so you can make a sandwich with two slices of bread!?

 

[Carson Dyle]

Home ownership is lower now than any time before in my lifetime.
I made more money for the same work in 1981.
..and money was worth more then.
What's really happening?

 

[schmuckley]

I'm thinking your chart is flawed.

 

[Carson Dyle]

I'm thinking your chart is flawed.

I'm thinking your thinking is flawed.

 

[spacejamz]

How is $50/mo on a cellphone such a huge waste of money when back in the 80's and 90's people probably spent $5,000-$10,000+ on computers via disposable income, some even making a career out of it.

Truth is there is barely any disposable income anymore. 2Gb of data!? shouldn't you be saving for retirement so you can make a sandwich with two slices of bread!?

$5000 for a computer in the 90's??? I must have hung around a significantly different crowd than you did...

When I was living paycheck to paycheck in my twenties (which would have been in the early 90's), I had a rent (which included utilities and cable), car payment, car insurance and a credit card with a $1000 limit...life was alot simpler back then...I had several friends who were BBS junkies and I am pretty sure they didn't spend $5k on a their computers...they barely had enough for beer money (who knows, maybe they did spend $5k on computers and I just didn't know it)...

Truth is, there is barely any disposable income after you payoff your necessities, such as $100 cable or satellite bill, home internet, cell phone with voice/data texting, cigarettes, beer, going to see the latest movies every weekend and rolling on your 21" rims...

If you go to any site that helps you set a budget so you can save for the future, the first things to go are cable, high monthly cell phone bills, etc...but fuck that, it is someone's fault you don't have enough money....

 

[Exophase]

How is $50/mo on a cellphone such a huge waste of money when back in the 80's and 90's people probably spent $5,000-$10,000+ on computers via disposable income, some even making a career out of it.

Truth is there is barely any disposable income anymore. 2Gb of data!? shouldn't you be saving for retirement so you can make a sandwich with two slices of bread!?

$5-10k for computers? My family didn't get one until the mid-90s but it was around $2k. What I heard from others who owned them was about $3k in the late 80s to early 90s. And we're just talking about PCs here right? Because in the early 80s various Commodore, Apple, Atari, etc computers were far from $5k+; I wasn't there buying computers then but this much is evident from ads.

The thing is, a much higher percentage of the population today has a smartphone than those who had computers in the 80s and early 90s. So it's kind of hard to compare the two.

 

[BoberFett]

Seems relevant.

Great video. It lays out the truth simply enough that you can't really argue with it.

 

[OverVolt]

$5-10k for computers? My family didn't get one until the mid-90s but it was around $2k. What I heard from others who owned them was about $3k in the late 80s to early 90s. And we're just talking about PCs here right? Because in the early 80s various Commodore, Apple, Atari, etc computers were far from $5k+; I wasn't there buying computers then but this much is evident from ads.

The thing is, a much higher percentage of the population today has a smartphone than those who had computers in the 80s and early 90s. So it's kind of hard to compare the two.

I'm talking about over the decade, like 2-3 computers. Since people typically bought a new one every 2-3 years as there was a bigger point in upgrading from DOS to 95 to 98 to NT professional, to XP etc. And it was about $2k a pop each time whereas today its more like a $399 laptop every 8 years.

In the 80's I'm not sure, everything was expensive. Printers were expensive, the computers were expensive and became obsolete quickly.

Yet alone the software. Remember everyone paying a good $50 a pop for Norton back in the day before good free antivirus software?

 

[PlanetJosh]

What we need is for the Chinese to raise the minimum wage to $15/hr.

If that happens and then if I invent a gadget that may show promise then where would I have it manufactured?

 

[John Connor]

History always tells the truth.

As much as the Republitards try and spin the truth history will always refute their spewage and lies.

#6 Barney Frank and friends blocked the regulation of the GSE's.

Let me elaborate. George H.W said they all got drunk, well who the hell was pouring the liquor? Now the Dummycrats have been in control of Congress for waaay too long and shit ain't getting done. True, during Reagen's years he worked with the Dummycrats, but the Dummycrats ain't like they used to be. Today they are rank, vial, staunch, partisan assholes! Hell! During John Bolton's confirmation hearing on being the UN Ambassador the BS was so deep and so long to appoint him that he had to be the temp UN Ambassador. Now he's a Foxnews contributor. I like what he has to say most of the time, but sometimes he speaks with his head up his ass. Like last week he said the air drops in North Iraq could land on someone. Really?

Why can't Democrats and Republicans work together and just get shit done? Term limits are in order!

 

[John Connor]

What we need is for the Chinese to raise the minimum wage to $15/hr.

No, what we need is to reduce the taxes for corporations so they chose to do business here and not over seas.

 

[John Connor]

People are broke. I'm not denying it. What I am saying is that people have their priorities screwed up.

Good point. Or drive a massive SUV and fill the fucker up at the gas station.

 

[Mai72]

$5000 for a computer in the 90's??? I must have hung around a significantly different crowd than you did...

When I was living paycheck to paycheck in my twenties (which would have been in the early 90's), I had a rent (which included utilities and cable), car payment, car insurance and a credit card with a $1000 limit...life was alot simpler back then...I had several friends who were BBS junkies and I am pretty sure they didn't spend $5k on a their computers...they barely had enough for beer money (who knows, maybe they did spend $5k on computers and I just didn't know it)...

Truth is, there is barely any disposable income after you payoff your necessities, such as $100 cable or satellite bill, home internet, cell phone with voice/data texting, cigarettes, beer, going to see the latest movies every weekend and rolling on your 21" rims...

If you go to any site that helps you set a budget so you can save for the future, the first things to go are cable, high monthly cell phone bills, etc...but fuck that, it is someone's fault you don't have enough money....

For budgeting I like 'You Need a Budget." They have a 30 day free trial and after that its only $40 I believe. They also have a smartphone app which syncs with the desktop. The app is free, but you need the desktop. You can't use it without the desktop app for windows.

They have videos on YouTube to plan your money effectively. They even have classes and a ton of reading material.

Check it out.

 

[Matt1970]

Lets not forget people eat out a hell of a lot more than they used to.

 

[boomerang]

Do flat-out broke people raise their children to be flat-out broke? Are people taught that it's desirable or advantageous to be flat-out broke? Does it come from their home or is it taught in their school?

My parents were born in 1927 and 1929. For the recent attendee's of our public education system, 1929 was the start of what you may have heard of as "The Great Depression". Look it up if you haven't heard about it. My father taught me that we need to learn to discern between our needs and our wants. How do we in the span of less than one hundred years go from frugality brought on by necessity to profligate spending in virtually every aspect of life? How do we go from paying cash for everything short of a home to borrowing for virtually everything from a home to a car to gasoline to a movie ticket or a pack of gum?

These new values, are they learned or taught? I worked for thirty years in the automotive industry before retiring for the first time. Why did I save every dollar I could for the future when my co-workers who were compensated identically to me spent every dollar they earned plus borrowed every dollar they could including borrowing from themselves (tapping their 401K plans)? Why did we have such different approaches to our time here on earth? Why should I be concerned about the path they've chosen? Probably because our society has deemed it necessary for me to support them.

"From each according to his ability, to each according to his need." How does that address the underlying problem?

 

[spacejamz]

I'm talking about over the decade, like 2-3 computers.

So you intentionally meant to mislead everyone with your $5K-10K sticker shock (I would assume yes since you did not clarify that amount until you were called out on it)???

Who in their right mind would compare a purchases over a decade in the context of the discussion in this thread (which were one time TV/phone purchases or monthly cell phone/cable bills)???

 

[z1ggy]

Do flat-out broke people raise their children to be flat-out broke? Are people taught that it's desirable or advantageous to be flat-out broke? Does it come from their home or is it taught in their school?

My parents were born in 1927 and 1929. For the recent attendee's of our public education system, 1929 was the start of what you may have heard of as "The Great Depression". Look it up if you haven't heard about it. My father taught me that we need to learn to discern between our needs and our wants. How do we in the span of less than one hundred years go from frugality brought on by necessity to profligate spending in virtually every aspect of life? How do we go from paying cash for everything short of a home to borrowing for virtually everything from a home to a car to gasoline to a movie ticket or a pack of gum?

These new values, are they learned or taught? I worked for thirty years in the automotive industry before retiring for the first time. Why did I save every dollar I could for the future when my co-workers who were compensated identically to me spent every dollar they earned plus borrowed every dollar they could including borrowing from themselves (tapping their 401K plans)? Why did we have such different approaches to our time here on earth? Why should I be concerned about the path they've chosen? Probably because our society has deemed it necessary for me to support them.

"From each according to his ability, to each according to his need." How does that address the underlying problem?

Obviously the people are to blame, but I think a large burden of that comes from the media and the banks. The media has always glorified celeb status and making us feel like we need to dress, act, and be like them in order to feel good about ourselves. Then, the banks lent people all kinds of money to obtain this status. So you have a growing group of people who feel that their lives are defined by their material goods and social status, instead of other more important things. They lived in the moment instead of thinking about their future, and now we are where we are economically.

I don't feel broke or dirt poor. I am only 26 and have little savings, but I really think that's kind of expected out of somebody my age. I can afford a place to live, a car, to pay off my student loans and still have some extra money for dates, etc. I try to not live beyond my means and to carry as little debt as I can. I can't ignore the numbers of wealth inequality and the ever dwindling purchasing power of the middle class, but by no means do I feel "broke".