4 ms·

Well most of the people don't have much to save. It's the 1% issue.

refurb 7y ago
Americans have a much better savings rate than Canada. 8% versus 1% and lower overall levels of debt. https://www.theglobeandmail.com/business/economy/economic-insight/article-why-canadians-arent-saving-like-they-once-did/ https://www.theglobeandmail.com/business/economy/economic-in...
- cma 7y ago
  With a strong social safety net it isn’t as necessary, which was his point. Is that US number using median values? That’s what will matter for more people.
  - refurb 7y ago
    I was responding the comment “hardly anyone can save”. Apparently Americans can save more than Canadians. And no, Canadians don’t save as much because of the safety net, it’s because there is a massive housing bubble there encouraging it.
GuB-42 7y ago
In a first world country like the US most people can save if they want to. It is not the 1%, more like the 80%. Think about it this way. Imagine your household income is $50k, the median. But for one year, you decide to live like you are at $30k, barely above poverty. It may be a difficult year but there is no reason you can't manage, 1 in 5 people live their entire life with that. At the end of the year, you are left with $20k. You can now start living your life like anyone with a median income will. Because of that 1 frugal year, you are left with a average balance of $20k for your entire life. No more living paycheck to paycheck. And even better, when you die, your children will inherit these $20k so they won't need that year of poverty to keep their balance positive. So these $20k will actually last forever. Of course, it is a simplification, but the idea is that keeping savings is just a matter of living with the paycheck of a few months ago instead of the last one. Now what are the benefits of having an average of $20k that you won't touch. First, it is insurance. Insurance costs you money in the long run, that's how insurance companies pay their employees. That sum is your own insurance for small things, like phones. Second is that you can take advantage of opportunities, like volume discounts. Money will make you save money. For those who are above the poverty line, the reason they can't save is lack of discipline. Not "the 1%". But to be fair, society in North America doesn't really help, with ads everywhere and credit everything.
- thefounder 7y ago
  Yeah, live an even more miserable life so that you can save a little. You save your whole life what others make in a minute/hour/day
  - claudeganon 7y ago
    Mike Bloomberg spent 500 million dollars on advertisements for a failed presidential bid. With this money, he could've given every American a million dollars, still have 173 million left over, and have made no discernible impact on his net worth. It's absolutely an issue of the 1% versus everyone else, and especially given these people's opposition to providing basic social safety nets to all people. EDIT: I'm an idiot and didn't think through the math.
    - Fricken 7y ago
      You might want to double check your arithmetic.
    - hyper_reality 7y ago
      $500m would give every American $1.50
      - claudeganon 7y ago
        Oh yeah I totally messed this one up.
    - droidist2 7y ago
      You're not the only one who messed that one up. https://twitter.com/KFILE/status/1235808311834021888 https://twitter.com/KFILE/status/1235808311834021888
    - solotronics 7y ago
      Really? Hopefully this makes people think more critically about the drivel they hear on TV. This goes for both sides!

Americans have a much better savings rate than Canada. 8% versus 1% and lower overall levels of debt. https://www.theglobeandmail.com/business/economy/economic-insight/article-why-canadians-arent-saving-like-they-once-did/ https://www.theglobeandmail.com/business/economy/economic-in...

cma 7y ago
With a strong social safety net it isn’t as necessary, which was his point. Is that US number using median values? That’s what will matter for more people.
- refurb 7y ago
  I was responding the comment “hardly anyone can save”. Apparently Americans can save more than Canadians. And no, Canadians don’t save as much because of the safety net, it’s because there is a massive housing bubble there encouraging it.

GuB-42 7y ago

In a first world country like the US most people can save if they want to. It is not the 1%, more like the 80%. Think about it this way. Imagine your household income is $50k, the median. But for one year, you decide to live like you are at $30k, barely above poverty. It may be a difficult year but there is no reason you can't manage, 1 in 5 people live their entire life with that. At the end of the year, you are left with $20k. You can now start living your life like anyone with a median income will. Because of that 1 frugal year, you are left with a average balance of $20k for your entire life. No more living paycheck to paycheck. And even better, when you die, your children will inherit these $20k so they won't need that year of poverty to keep their balance positive. So these $20k will actually last forever. Of course, it is a simplification, but the idea is that keeping savings is just a matter of living with the paycheck of a few months ago instead of the last one. Now what are the benefits of having an average of $20k that you won't touch. First, it is insurance. Insurance costs you money in the long run, that's how insurance companies pay their employees. That sum is your own insurance for small things, like phones. Second is that you can take advantage of opportunities, like volume discounts. Money will make you save money. For those who are above the poverty line, the reason they can't save is lack of discipline. Not "the 1%". But to be fair, society in North America doesn't really help, with ads everywhere and credit everything.

thefounder 7y ago
Yeah, live an even more miserable life so that you can save a little. You save your whole life what others make in a minute/hour/day
- claudeganon 7y ago
  Mike Bloomberg spent 500 million dollars on advertisements for a failed presidential bid. With this money, he could've given every American a million dollars, still have 173 million left over, and have made no discernible impact on his net worth. It's absolutely an issue of the 1% versus everyone else, and especially given these people's opposition to providing basic social safety nets to all people. EDIT: I'm an idiot and didn't think through the math.
  - Fricken 7y ago
    You might want to double check your arithmetic.
  - hyper_reality 7y ago
    $500m would give every American $1.50
    - claudeganon 7y ago
      Oh yeah I totally messed this one up.
  - droidist2 7y ago
    You're not the only one who messed that one up. https://twitter.com/KFILE/status/1235808311834021888 https://twitter.com/KFILE/status/1235808311834021888
  - solotronics 7y ago
    Really? Hopefully this makes people think more critically about the drivel they hear on TV. This goes for both sides!