More than half of Americans are unable to afford a minor emergency: Only 39% would be able to cover an unexpected $1,000 bill from their savings More than half of Americans can't afford $500 car repair or $1,000 ER visit New study shows that just 39 per cent of Americans would be able to take into their savings in cases of minor emergencies That leaves 61 per cent of Americans who scramble for funds to cover such costs
Mena: After corporate America outsourced good paying manufacturing and service jobs to China, India and Mexico most of the jobs left in the USA for blue collar workers are low paying service jobs like retail store, supermarket, restaurant, fast food, hotels, customer service, warehouse etc. Those jobs pay in average of $600 to $800 every two weeks.
The problem is in big cities like New York, Boston, Los Angeles, San Francisco, Fort Lauderdale apartments rents are very high. A blue collar worker may pay $700 to $800 a month from one bedroom apartment out of a $700 biweekly paycheck. One paycheck alone go for the rent. The second paycheck of the month is use to pay utility bills, to buy food, buy gasoline for the car. Sometime those workers have monthly car payment and insurance payment.
Because of low paying service jobs and high apartment rents most American cant afford a $1000 medical emergency and car repair. If their car break down they have to not pay the utility bills in order to find money to fix the car. This is the reason so many American people have stress. Single man and woman have to find a partner to help them pay the bill.
More than half of the American population are unable to afford a $1,000 emergency room bill or a $500 car repair, according to a new report (pictured)
Just 39 per cent of respondents in Bankrate's survey said they would be able to tap into their savings to pay for an unexpected, minor emergency. However, that leaves 61 per cent of US citizens scrambling for funds to pay off a visit to the ER or repairs to their vehicle (file image)
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The vast majority of people in the U.S. are saddled with a multiplicity of fixed payments each month--rents mortgages, utilities, etc.-- plus payments for discretionary consumption items payments. Little is left over for savings.
Yet there are millionaires ans billionaires with cash to burn. That's market capitalism for you. Cardinal rule for market capitalism: Maximize profits, minimize costs. Those costs include wages.
As a result most people survive on credit cards--whose companies also maximize profits by charge huge interest rates.
But the catch is this: If people decide to be frugal in their consumption in order to save more, that could lead to recession and increasing unemployment. Result: more food stamp demand, more welfare, and more government "help".
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