$2,000 for a rainy day

Wednesday June 1, 2011

St. Croix, Virgin Islands

8:00am Salt River NDBC weather station

Water Temperature…82.8

Air Temperature…….82.4

Did you know that half of all Americans do not have access to $2,000 for a rainy day? Half could not come up with the money right now if they had to, without taking out a loan or maxing out their credit cards. When asked if they could come up with it in 30 days 28% said they wouldn’t be able to do it.  According to a survey done of 1,900 participants the National Bureau of Economic Research found that only 25% of the American population could come up with $2,000 in an emergency, 34% said they could get the money by asking family or friends.

Some may say that a lot of those people who can’t come up with $2,000 smoke, drink, have cell phones, big screen TV's, cable, internet, Ipods, a new car, X-box, designer clothes and shoes, and/or buy their lunch or at least coffee everyday.  Maybe even some of them are on welfare. The point being that the way they spend their money would exhibit a lack of delayed gratification and no financial planning. This would be attributed to half the American population with no basis in fact.  Its very easy to accuse half the population of this even when its not true.

Top 1% owns 42.7% of the total net worth of the nation
Bottom 80% owns 6.9% of the nations net worth

Average Net Worth of bottom 80% : $48,600
Average Net Worth of top 1%: $23.77 Million
Average Tax Rate on bottom 50%: 20%
Average Tax Rate on small business owners: 32%
Average Tax Rate on the top 1%: 18.8%
Average Tax Rate on the top 100 corporations: 9.7%

Source FRB Survey of Consumer Finances

Today the Federal Reserve is punishing people for saving money.  Interest rates are hovering at around 1% for regular bank and CD savings, which is less than inflation and the cost of living. Houses are losing value and the stock market is too risky for some. On the opposite extreme the media is telling you to spend or the economy will collapse. You are encouraged to go into more personal debt even as you are bombarded with deficit talk, because without demand the economy can’t expand.

No wonder so many people are living on the edge.  Wages have not been going up and with the outsourcing of manufacturing those high paying jobs are disappearing at a rapid rate.  With so many not able to reach into their pockets and pull out $2,000 in an emergency don’t you think that this is more like the fallout from decades of the "trickle-down" myth. Most Americans can't come up with $2,000. . .but a select few can reach in their pockets and pull out $2,000,000. . .and those are the important ones that get the tax breaks.   

Just look back up at that chart again? Who's getting screwed here?

i truly wish people could see it. Factors like ingenuity, competition, corruption, and just dumb luck will always play a role in anyone's measure of success. Reality dictates that we all cannot be corporate executives, bankers, doctors, lawyers, and rock-stars. Not everyone will be able to become rich.  Fresh invention and hard work can pay off...But the real truth is that the majority of Americans will work their lives away as car salesmen, real estate brokers, policemen, firemen, construction workers, nurses, janitors, clerks, waitresses, exercise specialists, military personnel, bus drivers, teachers, etc. dreaming of hitting the lottery some day. 

Please remember that success is not guaranteed and a lot of people are suffering despite how hard they worked.

So for all these reasons i continue to keep the signature on my e-mails front and center.

"Taxes do not "take money out of the economy" they enable the economy.  The rich do not "create jobs, We, the People create jobs through demand."

"Entitlements are cost-cutting business like efficiencies that save money for society as a whole." 
Lets not reduce the deficit on the backs of the middle class and poor, bring home the troops from Iraq, Afghanistan, Libya and all the rest of the places around the world.  Tax the wealthy making over $1,000,000 per year and corporations that are getting away with no taxes that will solve the deficit problem.

See ya next week