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UpInArms

(51,280 posts) Tue Jan 22, 2019, 01:04 PM Jan 2019

Opinion: Government shutdown exposes a harsh truth: Most Americans are unprepared for the next

Recession

The government shutdown, the longest in history, comes with a hidden revelation: Millions of Americans are financially unprepared for the next economic downturn. Worse, they are highly vulnerable, with few protections available to them.

Ten years after the financial crisis, the economic recovery has left millions behind with little to no savings, and the government shutdown serves as a preview for what will happen once unemployment rises from 50-year lows.

Within just a few weeks into the government shutdown, people are struggling to cope. We hear stories about people turning to food banks to feed their families. We hear stories about people who are in dire straits because they can’t get loans. We hear stories about people who can’t pay their mortgages. That’s not even one month into the shutdown.

Why do a few weeks without pay turn into a crisis for many families? Simple: Nearly 80% of Americans live paycheck to paycheck. That’s a problem when you have little to no savings. In fact, it’s akin to playing financial Russian roulette.

And the problem is terrifyingly pervasive. According to a recent GoBankingRates survey, only 21% of Americans have more than $10,000 in savings, with nearly 60% having less than $1,000 in savings:

More at https://www.marketwatch.com/story/government-shutdown-exposes-a-harsh-truth-most-americans-are-unprepared-for-the-next-recession-2019-01-22

7 replies

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Opinion: Government shutdown exposes a harsh truth: Most Americans are unprepared for the next (Original Post) UpInArms Jan 2019 OP

Rich people have money... They are the only ones who matter in the GOP's eyes ck4829 Jan 2019 #1

The World's Top 26 Billionaires Now Own as Much as the Poorest 3.8 Billion, Says Oxfam UpInArms Jan 2019 #4

So... DURHAM D Jan 2019 #2

make the 99% desperate Hermit-The-Prog Jan 2019 #3

I really really try to build a savings account for a rainy day Victor_c3 Jan 2019 #5

Wages need to go up flamingdem Jan 2019 #6

Clear evidence that the tax codes in this country have been hijacked and us, the vast ... SWBTATTReg Jan 2019 #7

ck4829

(35,042 posts)

1. Rich people have money... They are the only ones who matter in the GOP's eyes

Reply to UpInArms (Original post)

Tue Jan 22, 2019, 01:05 PM

Jan 2019

So it's all good.

UpInArms

(51,280 posts)

4. The World's Top 26 Billionaires Now Own as Much as the Poorest 3.8 Billion, Says Oxfam

Reply to ck4829 (Reply #1)

Tue Jan 22, 2019, 01:10 PM

Jan 2019

http://time.com/5508393/global-wealth-inequality-widens-oxfam/

Since the financial crisis almost a decade ago, the number of billionaires has nearly doubled, with a new one created every two days between 2017 and 2018. At the same time, the mega-rich and wealthy corporations are enjoying lower tax rates than they have in decades, the report said.

“Governments are exacerbating inequality by underfunding public services, such as healthcare and education, on the one hand, while under taxing corporations and the wealthy,” Oxfam said.

Women and girls are hit hardest by the growing wealth gap, according to Oxfam. “Girls are pulled out of school first when the money isn’t available to pay fees, and women clock up hours of unpaid work looking after sick relatives when healthcare systems fail,” it said.

To address many of these ills, Oxfam advocated raising taxes. It estimated that a 1% wealth tax would be enough to educate 262 million out of school children and to save 3.3 million lives. As of 2015 returns, Oxfam says that only four cents in every tax dollar collected globally came from tariffs on wealth, such as inheritance or property. The report also claims that the rich are hiding $7.6 trillion in offshore accounts.

DURHAM D

(32,609 posts)

2. So...

Reply to UpInArms (Original post)

Tue Jan 22, 2019, 01:06 PM

Jan 2019

Hermit-The-Prog

(33,313 posts)

3. make the 99% desperate

Reply to UpInArms (Original post)

Tue Jan 22, 2019, 01:07 PM

Jan 2019

If you keep the 99% desperate, they will gladly work for subsistence to further enrich the 1%.

Victor_c3

(3,557 posts)

5. I really really try to build a savings account for a rainy day

Reply to UpInArms (Original post)

Tue Jan 22, 2019, 01:17 PM

Jan 2019

However, anytime I start to build something in my account, something breaks and I have to use my savings to fix it. I’m not going to ever touch credit again unless I’m really really really stuck.

I’m paying off a lot of debt after my divorce. I’m 16 months out from paying off a car which will free up another $600+ per month and I’m paying down some other debts I got stuck with. Between everything, I pay about $1,000 a month towards debts.

flamingdem

(39,312 posts)

6. Wages need to go up

Reply to UpInArms (Original post)

Tue Jan 22, 2019, 01:20 PM

Jan 2019

obviously..

SWBTATTReg

(22,100 posts)

7. Clear evidence that the tax codes in this country have been hijacked and us, the vast ...

Reply to UpInArms (Original post)

Tue Jan 22, 2019, 01:22 PM

Jan 2019

majority of Americans are left holding the bag.

Better wages (not the ridiculous decades old min. wage that's around in a lot of places) are needed.

Higher marginal tax rates are needed for those already making far beyond the what the average American makes. OR a worldwide wealth tax is needed, such as what the Swiss have in place, 1% of all wealth annually (I think 1% is too low and this is causing problems among the Swiss population in that their own people can't afford to live there in Switzerland (or it is getting there).

No deductions allowed for any high wealth / high wealth persons/entities on ALL tax returns.

Better health care for all. Have a minimum AND maximum health care that covers all businesses and individuals (regardless of size of business, income, etc.), e.g., $5,000 and below, lower threshold and above $25000 higher threshold.

The higher threshold would act as catastrophic insurance, that would automatically kick in, in cause of serious disease, illness, etc. for everyone.

Thus, the lower end and higher end of health costs are maybe covered for all. I'm sure that they're gaps but I think the best solution is to leave Obama Care or the ACA in PLACE, and fine tune it if needed!!!

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