Oh, the fun we can have with selective data, esp. when we know the target audience, eh?<quoted text>
76% of Americans are living paycheck-to-paycheck
By Angela Johnson June 24, 2013
NEW YORK (CNNMoney)
Roughly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings, according to a survey released by Bankrate.com Monday.
Fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses, enough to help cushion the blow of a job loss, medical emergency or some other unexpected event, according to the survey of 1,000 adults. Meanwhile, 50% of those surveyed have less than a three-month cushion and 27% had no savings at all.
Woe is most of the country.
You know, the paradox in the info above is that, historically, lower savings rates tend to correspond to an increase in spending, ie, consumer confidence. A little proof, you say? Well, when did we see the highest savings rate in the last ten years? That would be about Fall 2008. What was going on then?
Let's compare further - what was the savings rate in, say, Spring '05? Things were "all good" then, right? PSR hovered around 1.5%, at one point briefly dipping below 1%, as I recall.
Since at least the 1960's, living beyond our means is actually a positive econmoic indicator. Not a healthy personal finance strategy, by any means, at least not by my lights, but I tend to be financially conservative compared to the average. But as a national economic indicator, suitable for use in partisan polemics? Not so much.