Your cash outflow equals your cash inflow. But what does that mean?
Does it mean we're not saving? Well what if you're making a return on what you've already saved? And what if you're buying an asset - - principal payments on your mortgage don't count as savings but they add to your net worth...
Does it mean "it's harder to get by than it was a generation ago?" That would presume that all of the outflows are necessary. The previous generation got by without HDTV, cable, cell phones, PCs, high speed internet. 70% of the households own their homes, rather than 60% a generation ago - and houses are twice as big.
Real median family income is up 32% since 1979. Yet we're spending all of it. We're AMERICANS. We see stuff, we want it, we buy it. If median family income were up 320%, we'd still spend all of it. I'm fine with that - it's the engine that drives the economy, an it makes our investments go up.
But it does NOT mean "it's harder to make ends meet."
2007-02-05 05:46:02 · 8 answers · asked by Anonymous in Politics & Government ➔ Politics
Although I agree with alot of people on here that it sucks to be poor, I also have to say that most of the poor people I've met have had cell phones, cars, and HDTV's. Just take a ride through your local housing projects and you'll see the best cars in your area. The reason people are poor is because they feel the need to buy all this crap and sacrifice real needs.
2007-02-05 06:29:56 · answer #1 · answered by dr_tom_cruise_md 3 · 2⤊ 2⤋
For the bottom 50% (and in some areas, the bottom 80%) of earners, it does mean that it's harder to make ends meet.
Even over the last 3 years, the cost of living has increased in my area such that what cut the mustard 3 years ago for living on one's own no longer serves the purpose. The cost of living increased almost 20% a year here. I've been lucky, my income increased by almost 40% in that time, but I do have friends who aren't so lucky.
While the consumerist mindset does play a role, it most definitely is not the cause.
A person NEEDS a full-time job with average pay just to make ends meet, and that's without saving any money.
2007-02-05 13:57:12 · answer #2 · answered by leftist1234 3 · 2⤊ 0⤋
One of the greatest changes is credit card spending.
The Redpublican President Bill Clinton was active in deregulating the Banking Laws so Credit card companies could charge as much as 33% interest. The old Mafia Loan Sharks were more merciful than today's Bankers.
If the average person throws away 10% of every paycheck, on interest payments. It alters the American way of life.
Little things like tithing and faith based charity is no longer a part of the American way of life. The Banks get your donation $$$.
Go big Red Go
2007-02-05 13:57:07 · answer #3 · answered by Anonymous · 2⤊ 0⤋
It's a meaningful term for alot of people. There are alot of people who live paycheck-to-paycheck just to make ends meet-- Meaning, they're not funding their 401k or saving for a "rainy day". Many folks also have alot of credit card debt to service. and when that rainy day comes (and it always does), they go into more debt to say, fix the car or something on the house, or braces for junior, etc. etc. Sure there are people who have cable, HDTV etc. etc. which could be considered luxuries. There's also alot of people who don't have those things and end up with nothing extra after food and shelter.
For many on the lower end of the economic scale, it is harder to make ends meet.
2007-02-05 13:55:32 · answer #4 · answered by dapixelator 6 · 3⤊ 0⤋
If you ever had to choose between paying your rent or keeping food on the table you would understand what it means.
People without the nice things like cellphones and cable or anything else, work 40 hours a week and still can't afford to save because they are paying their bills.
2007-02-05 13:58:13 · answer #5 · answered by sprcpt 6 · 3⤊ 0⤋
"ck4829" has it right, you have no concept of reality.
Real wages in the US have dropped 20-30% since 1980. Those at the bottom of the economic scale are not "wasting their money", they don't have enough money to begin with to live on.
The poorest of the poor DO live paycheque to paycheque, and YOU should learn to spell.
.
2007-02-05 13:56:10 · answer #6 · answered by Anonymous · 4⤊ 0⤋
Sounds like you're late for your ski trip to the Aspens or something.
Obviously, you have no idea what it's like to not be in the upper class.
2007-02-05 13:50:03 · answer #7 · answered by ck4829 7 · 4⤊ 1⤋
I think mostly it is people who can't afford to save.
2007-02-05 13:52:28 · answer #8 · answered by Take it from Toby 7 · 3⤊ 0⤋