Some new
economic analysis helps quantify just how many people might be
characterized as the “wealthy poor”— and it’s a surprisingly large chunk
of the overall population. A
new paper
by economists Greg Kaplan and Justin Weidner of Princeton University,
and Giovanni Violante of New York University, finds that about 70
million Americans may live in families they describe as “wealthy
hand-to-mouth” households. These are families that own assets such as
homes, cars, retirement plans and even boats, yet still spend virtually
every dollar of their regular income because it’s necessary to pay all
the bills they’ve racked up.
Many breadwinners may feel they have
no choice but to live from paycheck to paycheck, especially if they have
kids headed to college and other bills that come with the duties of
raising a family. Plus, monthly expenses such as mortgage payments and
tuition are a form of investing, since it’s reasonable to expect some
return from owning real estate or financing education (though not as
much, perhaps, as we once thought).
end partial quote:
So, if I'm understanding this designation right "The Wealthy poor" would be people with no real "paid for assets" like a paid for house, paid for stocks and bonds, or other paid for real estate that might have value if they sold it.
So, this would put anyone who works for a living without any fully paid for assets that they could borrow against or sell in an emergency as the "Wealthy poor".
I sort of find this to be a strange designation because even in the 1950s, 1960s, 1970s, 1980s, 1990s, and 2000s most people in places like the Greater Los Angeles Area were like this. Very mobile, world travelers but who tended to spend whatever they earned in enjoying themselves, educating their children and in world travel.
Though I understand this point of view I find it a little archaic for the present times we live in. However, it might be important for people to understand that without their jobs if they are functioning like this they likely would lose everything within 6 months to a year, especially if Putin's antics get any worse and puts this nation on a war footing like we were during World War II. So, at least having your land paid for or a motor home paid for that you might live in in an emergency or a Van or Truck with a camper that you might have a place to live somewhere that is paid for so no one can take it away might be useful about now for people spending every penny with no paid for assets to speak of.
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