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> Americans don’t even have money in the bank. Median savings is $4500. But M1 is about three times M0; the difference, about $12T, comes to about $400K per Am
by pdonis 4y ago
> Americans don’t even have money in the bank. Median savings is $4500.
But M1 is about three times M0; the difference, about $12T, comes to about $400K per American, so some Americans do have significant money in the bank.
- pdonis 4y agoCorrection, about $40K per American (or about $37K if we subtract cash on hand for businesses, per another post downthread). Still about 9 (or 8) times the median.
- Rury 4y agoDoes M1 include accounts held by companies/businesses?
- pdonis 4y agoAFAIK yes, it includes all demand deposits regardless of who the depositor is. As far as how that affects the calculation I made, from what I can find online, total cash on hand for US businesses is about $1T, so that would have to be subtracted from the difference between M1 and M0 to find average cash deposits per person for individual accounts.
- deleted 4y ago[deleted]
- Broken_Hippo 4y agoOn the other hand, $4500 is nearly 3 months of income for quite a few people, pre-tax. ($10/hour, 40 hours a week for 3 months is $4800). And it isn't like you are going to be able to save much at those wages. In other words, a significant amount of Americans have little-to-no money saved.