The Reason Americans are Broke
The reason that Americans are Broke makes decent SEO candy, and also brings up an important question. Why are Americans broke? Well for starters that question is an over-generalization, obviously not all Americans are broke but it can clearly be said that many are. In fact in comparison to quite a few other developed countries Americans are financially unstable. The average working American maintains roughly five weeks worth of income in cash. Hopefully if you read that last statement you find that atleast a little repulsive. Five weeks worth of income saved being the average amount of money an American has saved is a joke. Up until a few years ago the average American spendt 101% of their income. Sub prime credit card issuer, Providian managed to rake in approximately $1,000,000,000, yes one BILLION, in profit not that many years ago. Consumer lending is so incredibly profitable because Americans have become somewhat complacent with the idea they are supposed to broke. It as if crippling debt and living paycheck-to-paycheck have become acceptable. Below are clear reasons why Americans are broke.
Americans are Materialistic
Once again I feel the need to clarify that I’m not referring to all Americans when I say this but the majority. Materialism is as I see the desire to make others envious more so than to make your self satisfied. You’re going to make everyone so jealous when they see the car your in? In reality, while many may envy the car, it is a twisted and illogical reason to want to own something. I just ate a great meal, but I don’t need to make other people feel bad about it to enjoy it. Listening to people ‘complain’ or rather brag about how much they spent on their Ed Hardy clothes (Ed Hardy is garbage), or laughing that they are broke and buy $4 cups of coffee with money they don’t actually have. American’s not only make themselves the victim, but also laugh about it at the same time.
The Reason Americans are Broke does Involve Politics
We’re at war…so we should be spending more money on ourselves? Remember GW did in fact suggest just after the invasion of Afghanistan that it was time people got out there and took their kids to Disney World and starting financing more lovely cars and homes. During other wars Americans were asked to conserve and scale back their consumption and do things like start victory gardens and buy war bonds. It’s as if now sacrificing certain luxuries for pragmatic reasons would be unpatriotic. The government basically encourages you to waste money and energy. Sure ethanol doesn’t actually save oil, but we will subsidize and possibly give you tax breaks for using it. Yes, it is illogical to build your home on a beach, but that’s ok because the federal government will create their own subsidized home insurance plan to save you money.
Or at least it was. At one point, the concept of just leveraging yourself into deeper and deeper debt and just waiting for the day you could sell your home for a nice gain is over. We are out of leverage and the wealth of this generation will produced moreso by enginuity and less by simply borrowing against the future. We have roughly 18 million uninhabited homes in this country and the population of America will be falling through the floor starting in 10 years. Economically this will probably be fantastic, but not in regards to the housing market nor the credit markets. The reason Americans are broke is because they can’t see this reality right in front of them.
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