Savings

This website presents the fact that almost half the population has less than $500 in savings.

http://www.huffingtonpost.com/2012/10/22/americans-savings-500_n_2003285.html

"Nearly half of Americans don't have more than $500 saved up, according to a recent study by CreditDonkey.com, a credit card comparison company. Of the roughly 1,100 Americans polled, 41 percent reported having less than half a grand of readily-accessible savings at hand. "

I have seen this stated before describing a more or less amazing lack of savings.  Another way of looking at it is the percentage of income saved.  This chart show historical saving rates:

http://research.stlouisfed.org/fred2/series/PSAVERT/

Currently it is around 3%.  10% is generally recommended by financial advisers, 20% for early retirement.

In the comments on the Huffpo story someone submitted: Yes, but 90% have cable TV and half have  smart phone.  Another comment:

"Who wants to bet that at least half of these people have a cell phone (not the obama phone)? Annual Cost $600/year. Half drink alcohol cost $312/year (calculated at $6 per week very conservative). 10% smoke weed annual cost $1,300 ($25/ quarter 1 quarter per week that's if they smoke cheep mexi).

It's about choice"

Ironically, the comment was accompanied by a screen name and an icon picture of his tattooed arm.

While about half have saved less than $500, the other half has saved so much more.  500 dollars saved from their life time of work, whatever period that may cover and half the population did not just graduate from high school this year, is a poor showing of spending choices for that half excluding those that are spending all their income to feed themselves.

When I graduated from high school in 1961 I had $200 saved from a paper route and owned a motorbike.

There is class division in this country and perhaps this is the real division.  The disgust that savers have for non savers.  Non savers being stereotyped as making poor spending decisions and lacking in character.  Because they spend on things they want but do not need, those that work hard and save have to support them with government entitlements.  We pay, to a great extent, for their lack of savings that they could have made instead of squandering it on instant gratification beyond their relative needs for an adequately comfortable life style.

The sector that probably despises the non-savers the most is the top 5% of the savers.  Those that have their savings in investments.  The rest of the savers despises them on the grounds that they are moral and financial slackers.  This is a class division that nobody wants to throw the spotlight on and is not overtly talked about, even less than race, I think.  I, myself have disparaged non savers as "liquor store mentality" who have no concept of deferred gratification.  They want it all, they want it now.

However, in our consumption oriented society it is the non-saver that that is the champion of consumption.  The rockstars of consumption are those that go into debt for things they do not need and probably cannot continue to pay for.  They power the economic engine of the country.  They proudly wear their class badge of membership:  The tattoo. 

Our National Debt is equal to our National Savings according to Randy Wray.  Our National Debt, each persons share is about $50,000 per person.

If we all have $50,000 in savings then lets all get tattooed!  We can afford the indulgence.

If almost half have saved less than $500 which is nothing compared to $500 then the remaining half have saved, on average, $100,000.

We really are, by so many measures, a half and half nation.  How many people with less than $500 in savings will vote for Romney?

How in the world can I reconcile the idea that our National Debt is our National Savings since the beginning of our country with the statement that almost half of the population has savings of less than $500?  Perhaps it is because they might have only $500 they can put their hands on but actually they have a future potential of receiving in entitlements a great amount of the National Savings to compensate for their lack of current savings?

This is a moral problem, an equity problem, a financial problem.

The savings rate of China is discussed here:

http://www.washingtonpost.com/world/asia_pacific/getting-chinese-to-stop-saving-and-start-spending-is-a-hard-sell/2012/07/04/gJQAc7P6OW_story.html

Those pathetic Chinese just do not understand the importance of spending everything they get as quickly as they can get it, or even quicker by spending money they do not even have yet.  What are they saving it for?  Their old age when the Chinese custom of the children taking personal responsibility for elder care is no longer workable because of the limits placed on child bearing by the government?  Saving for retirement?  Personally saving for retirement without substantial dependence on government?

What a Republican idea!