RE: Illinois as model for Democratic agenda
Wojtek Sokolowski wrote:
On the demand side, there is an unprecedented growth of standards of living for the great majority of the population in every developed and many developing countries. Not only most people do not feel immiserated anymore, but they do not identify themselves with the lower social strata and instead aspire to a higher social status.
Few people want to identify with those below them (except maybe upper middle class youths). But a very large portion of the US population is at the margins of solvency. Here are the results of a Gallup poll from April 2001 - taken when employment was only slightly off its cyclical peak, and unemployment was 4.4%, below today’s level.
Doug
May 09, 2001 One-Third of Americans Worry About Paying “Normal Monthly Bills” Saving for retirement is the biggest financial concern
by Lydia Saad GALLUP NEWS SERVICE
PRINCETON, NJ — With the U.S. economy teetering between a recession and a “soft landing,” the financial well being of a third of Americans may just hang in the balance. A recent Gallup poll suggests that many Americans are living so close to the edge financially that a prolonged economic downturn could put them in a serious financial squeeze. In turn, rather than producing more spending to stimulate economic growth, we could see a collapse of consumer spending and all the ills that would produce.
Nearly one-third of Americans, 32%, told Gallup in an April 6-8 survey that they worry about not having enough money to pay their normal monthly bills — including 12% who say they are very worried about this. Another 29% indicate that making ends meet is a minor concern while just 39% of the nation’s adults are not concerned at all.
The financial pressure many Americans feel is underscored by two other findings from the same Gallup poll. Barely half the nation’s adults, 53%, characterize their personal finances as being in excellent or good shape, while 47% say their finances are in only fair or poor shape. Also, half of working Americans admit that they could not afford to be out of work for more than three months without facing significant financial hardship.
Some Americans At More Risk Than Others
Of course, not all Americans feel this financial pressure to the same degree. Women are somewhat more likely than men (35% vs. 27%) to say they are very or moderately worried about paying their monthly bills. Younger women (aged 18-49) are especially likely to indicate this financial concern, 38% say they are worried, compared to 28% of younger men, 31% of older women and 26% of older men.
Naturally, large differences are also seen according to household income: only 12% of those living in households earning $75,000 annually are worried about paying their monthly bills, compared to 28% of those earning $30,000 to $74,000 and 45% of those making less than $30,000. However, a substantial difference in worry about making ends meet is also apparent by race — 29% of white Americans are concerned, compared to 46% of blacks and other racial minorities.
Paying the Bills Is Not the Only Worry
Americans were asked in the Gallup survey whether they are “very worried,” “moderately worried,” “not too worried” or “not worried at all” about each of seven different financial matters. Having enough money for retirement emerged as the number one concern — 53% say they are either very or moderately worried about this. Whether for a serious illness or for standard medical bills, paying for healthcare ranks next, with 50% and 44% worried, respectively.
A substantial portion of the nation’s adults, 43%, worry about their ability to maintain their standard of living. Thirty-two percent worry about paying their normal monthly bills. Meeting housing costs (such as rent and mortgage) and paying credit card bills rank as lower concerns, with 24% and 18% respectively worried about these expenditures.
Retirement Worries Surge in Middle Age
Less than half of adults under 30 tell Gallup they worry a great deal about having enough money for retirement, but this figure jumps to 63% among adults aged 30-49 and remains at that level (62%) for those aged 50-64. Concern drops off significantly (31%) among those already of retirement age (65 and older), suggesting they either met their retirement savings goals, have learned to manage with less, or have decided it’s too late to worry.
One in Four Americans is Worry Free
Overall, 17% of Americans report a high degree of financial stress, indicting they worry at least moderately about six or seven of the seven financial matters measured. On the other end of the spectrum, 25% of Americans report no financial stress, indicating little or no worry on all seven items. Most Americans fall somewhere in between, with 27% worrying about three to five of the items and 30% worrying about just one or two.
Tomorrow, Gallup will look at the number of credit cards Americans regularly use and the practices they use to pay them off.