Re: How Are People Getting By?
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Some other things to take into consideration:
4) More people are making due without health insurance and reitrement savings/pensions
5) Savings rates in the US have now touched 0%
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This is very misleading... even your own report(link) states this
"Commerce Department's savings rate does not adequately measure total household savings, as it does not reflect investment gains generated by real-estate holdings and stock portfolios"
The OP was comparing now to the 1970s. Now people are saving more in different ways now (stocks, 401k, real estate, money markets, etc).
Why save money in a normal bank account that has a return of less then 1%?
Granted overall debt has increased, but if an individual is making more interest off investments then paying interest in debt, this is +EV. Economicaly it is expected to see debt increase with lower interest rates.
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