It’s been about three years since the start of the pandemic. I’m not sure if it’s officially over yet, but Americans have returned to their old financial behavior: save little & charge much.
Here are two charts I came across recently that paint the ugly picture. First, the US Savings rate fell to 4.7% in December (well below the 8.8% pre-pandemic average) …
Second, it’s not that people are just living off their pandemic stimulus anymore. Credit card balances have now reached record levels … almost $1T, with interest rates going up quickly.
Sorry for the negative outlook on a Friday morning. As I said at the start of the pandemic, on a national level, the situation is embarrassing (April 2020) …
Related: Our National Savings Dilemma
After $7T in stimulus to businesses and individuals, we’ve learned nothing for the next time we’re faced with a national emergency. It’s as if this sign I recently saw at Walt Disney World also applies to people & government hand outs. Who knew?! 😉
HAVE A GREAT WEEKEND!
Image Credits: Pixabay, Federal Reserve Charts
3 thoughts on “Americans Less Financially Resilient Than Ever?”
The sign you posted, “Do not feed the wildlife! Feed wildlife changes their natural behavior and may be harmful to their health.” says it all. As a society we have lawnmower parents who mow down all the obstacles in front of their children, and then the parents wonder why their children cannot make it on their own. At a National level, our Federal and many State Governments are acting like lawnmower parents. The irony is that many liberals will be the first ones who give you a tongue lashing for feeding the wild animals, because it goes against their Mother Gaia religion. Yet, they turn around and have given handouts that has created a dependent class since the Great Society and the results have been devastating.
In higher income groups, I have had a first hand view of what Texans refer to as “All hat, no cattle”, who are those who spend a lot to appear wealthy but in reality are in debt up to their necks.
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Yes, the nanny state is full swing. The more people fail to manage their finances effectively, the more cause there is for politicians to be generous & “helpful”.
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Helpful is punishment of good behavior.