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Wed Dec 26, 2012, 10:26 AM

Typical American Household Has Only $100 After Monthly Expenses

Typical American Household Has Only $100 After Monthly Expenses

According to findings from the Center for Responsible Lending's newest report, The State of Lending in America and Its Impact on US Households (State of Lending), the typical household has just $100 left each month after paying for basic expenses and debt payments. After controlling for inflation, the typical household had less annual income at the end of 2010 than it did at the beginning of the decade.. Moreover, as worker productivity increased, the workplace has seldom rewarded them with higher pay.

Even in households with two wage-earners, the amount of disposable or discretionary income after paying monthly expenses was less in 2010 than it was in 2000. The combined effect of stagnant wages along with unemployment and under-employment is forcing families to curb spending and use any available assets to keep pace financially. Families with no savings or assets incurred new debt.

"The recession and slow recovery have led to declining net worth for the average U.S. household and a disproportionate decline for African-American and Hispanic households", states the report.

In communities of color, income declines are higher in part because of declines in over-representation in two types of employment that historically provided stable and secure jobs: manufacturing and construction. These two industries suffered job losses of 10 and 20 percent, respectively. African-Americans who formerly worked manufacturing and construction jobs lost more than twice the number of jobs between 2007 and 2011 than they previously gained in the pre-recession decade.

http://atlantadailyworld.com/201212262612/Business/typical-american-household-has-only-100-after-monthly-expenses

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Arrow 9 replies Author Time Post
Reply Typical American Household Has Only $100 After Monthly Expenses (Original post)
Liberal_in_LA Dec 2012 OP
Robyn66 Dec 2012 #1
commenter8 Dec 2012 #2
liberal_at_heart Dec 2012 #3
geckosfeet Dec 2012 #4
datasuspect Dec 2012 #5
geckosfeet Dec 2012 #7
FSogol Dec 2012 #9
arely staircase Dec 2012 #6
Heywood J Dec 2012 #8

Response to Liberal_in_LA (Original post)

Wed Dec 26, 2012, 10:36 AM

1. Sounds about right (nt)

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Response to Liberal_in_LA (Original post)

Wed Dec 26, 2012, 10:39 AM

2. The $$$ is going to corporations

Meanwhile, oil companies rake in $4 billion a year from the taxpayer, on top of the record profits they are making from high gas prices...

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Response to Liberal_in_LA (Original post)

Wed Dec 26, 2012, 10:47 AM

3. I just signed up for yet another insurance policy I can't really afford

Ever since my husband went on disability at work we have had to get private medical, dental, and life insurance. I'm starting to wonder if I should cancel because I'm coming very close to having a negative balance at the end of the month.

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Response to Liberal_in_LA (Original post)

Wed Dec 26, 2012, 10:50 AM

4. Yeah. Those $200 cable and cell phone bills are killers.

And the payments on the cars are a real drag....



Households headed by persons aged 55-65 saw the largest losses in wealth. People at or nearing retirement lost an average of $90,000 from 2007-2010. As wealth and retirement resources declined, many older workers remained in the labor force longer than retirees in previous decades.

As an increasing number of older workers delay retirements, some younger workers experience higher unemployment and declining labor participation. A consequence of their delayed entry in the workforce increases the number of households doubling-up, living with friends or non-family members as a result of economic hardship. From 2005-2010, the number of these households grew 50 percent.

CRL further notes that consumer spending accounts for approximately 70 percent of total U.S. economic activity. As large numbers of consumers continue to tighten their fiscal belts, sustainable economic recovery will likely be delayed.

"In order for the U.S. economy to grow again, individual households must find themselves in a position to increase their spending," says the report. "This will be difficult as long as households continue to face stagnant incomes, increasing expenses, increasing levels of debt, and declining net worth."


So - if I understand the gist of this piece, less and less income and money for the proles, but they need to keep spending spending spending consuming consuming consuming to put more $$$'s into the pockets of corporate owners.

Can you say modern era debt bondage?

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Response to geckosfeet (Reply #4)

Wed Dec 26, 2012, 10:53 AM

5. 1. sell your television

 

2. cancel your cable

3. throw away the smartphone/data plan, get a voice only cell phone.

4. if you REALLY want to get radical, get rid of the cell phones altogether and get a landline with voicemail.

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Response to datasuspect (Reply #5)

Wed Dec 26, 2012, 10:57 AM

7. I understand that. But the article seems to be advocating the opposite.

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Response to geckosfeet (Reply #4)

Thu Dec 27, 2012, 12:49 PM

9. So is an $8 a day coffee habit.

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Response to Liberal_in_LA (Original post)

Wed Dec 26, 2012, 10:54 AM

6. pretty wealthy by global standards

a lot of people have less than 100 bucks before expenses. i agree about wages and income disparity in this country but sometimes it helps to count your blessings as well.

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Response to arely staircase (Reply #6)

Thu Dec 27, 2012, 12:47 PM

8. How far we've fallen,

when being one paycheck away from poverty is a blessing.

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