https://www.noahpinion.blog/p/paycheck-to-paycheck-and-five-other
Key takeaways:
- Don't fall for 5 popular myths about economics
- No, 60% of Americans are not "living paycheck to paycheck". It's a bad metric because it includes people who waste all their money on consumerism and people who save/invest all their income
- No, this doesn't mean there are no people who suffer. It means it's a bad metric
Yeah, it's a big myth. Another big myth is that most Americans can't come up with $400 cash in an emergency. That myth came from a survey where people were asked "how would you finance a $400 emergency" and most people said "credit card".
Well, I'd put it on the credit card too, but I'd just pay off the credit card every month.
That's just prudent behavior in a fiat system...don't keep cash, and carry expenses on credit card
I'd have to put it on a credit card too I guess because I don't have 400$ cash
Do you have $400 in a checking account? usually when people say cash they also mean money in checking and savings accounts.
Nope not usually. I can pay about 400k Sats though? I guess I just have to wait until most businesses accept them
I'd be angry if I did. I make it a point to never have more than £100 of that toxic fiat caca beyond what I need to pay my bills.
I'm curious now about the other five myths he lists. But not enough to sign up to be able to read them though...
Good one.
Why wouldn’t LendingClub make the finding about 60% of the people living paycheck-to-paycheck? That is their business: lending to cash strapped people at probably predatory interest rates. When the Federal Reserve, whom I am not totally trusting for data, gives out with a completely different picture, one has to wonder which is putting out the BS. In this case asking, “Cui bono?” Is a really good way to sort the crap.
It's a business with heavy incentives to publish bad data that helps their business instead of the traditional credit card/loan/mortgage landscape. Which is true, the credit cards, loans, mortgages fiat landscape fucking sucks. But their incentives are aligned with creating bad data.
Yes, that is the exact reason for all the sh*tty data and erroneous assumptions and crappy policies flying around in society. I can understand that incentives have been misaligned for an awful long time because of THEM and the other banksters.
Im sure people have credit cards to make it by. But you have to realize, americans dont really save money well. They didnt learn these values in their education, unless it was done at home.
Credit cards are the same as the government borrowing money to pay the current bills, in other words, the budget deficit. The only difference is the credit company is the Federal Reserve, who prints money out of thin air, along with its minions the banks and banksters. Sooner or later it all has to be paid back, unless there is a default (bankruptcy) by the consumer or state.
Can the US default?
Yes, indeed it can. It has defaulted at least thrice before, 1871, 1933 and 1972 or 3 by Nixon. The state may have defaulted around 1812, which may have been a major cause of that invasion. Thanks to the Russians, we were able to do something about the British, then.
I see. It hasnt happen in my lifetime, yet.
No, you don’t see. It is happening before your very eyes, right now!! You have to wake up to the fact that FRN fiat is going to zero. That is a default.
What happened to the debt after the default?
The debt goes to zero and the collateral gets scooped up by the creditors.
Thanks for the education
You’re welcome.
Nice takedown
Depends on how you look at it I suppose. I would guess that at least 60% are in debt. Doesn't that mean they have less than zero dollars? I don't think most people pay off their cards every month. That seems like a problem.
My parents can’t save a dollar to save their lives