50% of Americans Couldn’t Come Up with $2,000 – Business – The Atlantic Wire

http://www.theatlanticwire.com/business/2011/05/50-americans-couldnt-come-up-2000/38058

50% of Americans Couldn’t Come Up with $2,000

Nearly half of Americans are living in a state of “financial fragility,” a new paper by the National Bureau of Economic Research reveals. To determine this statistic, researchers from the George Washington School of Business, Princeton University, and Harvard Business School asked survey participants whether they would be able to come up with $2,000 for an “unexpected expense in the next month.” 22.2 percent predicted they would be “probably unable” and 27.9 percent said they’d certainly be unable to foot the unplanned bill. The hypothetical cost “reflects the order of magnitude of the cost of an unanticipated major car repair, a large co-payment on a medical expense, legal expenses, or a home repair.” But, it was the participants’ method of coping that really determined their fragility:

Taken together with those who would pawn their possessions, sell their home, or take out a payday loan, 25.7% of respondents who were asked about coping methods (equal to 18.6% of all respondents) would come up with the funds for an emergency by resorting to what might be seen as extreme measures,”the authors write. Along with the 27.9% of respondents who report that they could certainly not cope with an emergency, this suggests that approximately 46.5% of all respondents are living very close to the financial edge.

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And with less and less discretionary income remaining from pay-day-to-pay-day — increasing gas and food prices, higher rents, education and more — Harry Reid & Ilk believe that taxes should rise, and rise high, at that.

When the discussion touches on substatial increases of Federal taxes (state, county, and city tax increases are another discussion) and ‘income distribution’, it really means all the income taxed (our’s) is ‘distributed’ to the the Federal government to use at their ‘discretion’ (not our’s). With ever elevated taxation ‘distributed’ for ‘discretion’, the tax payer will eventually become nominally a serf.

Come to think of it, serf’s were taxed at just 30%. This would make the American tax payer, i.e., those paying taxes, less than serf’s — just ‘income producing assets’ for politicians.

There certainly has been enough financial Paul Reverses — but everyone’s too fixed on their Internet social networks, smartphones and text messaging, cable TV entertainment, and video games to be distracted?

One can only imagine it must take shopkeepers and farmers to fight.

Financially Fragile Households: Evidence and Implications

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