An American Perspective: Where Does The Money Go?
With all the economic doom and gloom filling the airwaves as of late, it seems the American perspective has become a bit skewed; not that you can really blame anyone. When all you read about in your newspaper’s money section is the weakening of the dollar, the bank credit crisis, golden parachutes on Wall Street, and astronomical national debt numbers, it is difficult to keep your eye on how good your personal economy really is.
Sure, you might have a bit of consumer debt, but you also have a home, clothes, and a job which provides a steady income no matter what the local economic experts might say. The American unemployment rate is at a whopping 10%, but what does that really mean? It means 9 out of 10 people who are working age are, in fact, working. The 1% on the unemployment lines may not see this as good news, but they should.
Unemployment outside the US has soared to 95% in some countries. Of the 201 countries tracked by the world fact book, the US ranks 108th in unemployment. This is right in the middle of the pack, and it’s really not such a bad place to be. Sure, the odds of getting a job are better in countries like Cuba and Thailand, but the standard of living is nothing you’d trade countries for, not to mention the kind of work is not generally conducted in a suit or tie but rather in a stuffy factory or on manure strewn farmland.
When comparing the woes of unemployment and underemployment, you don’t have to travel nearly so far to find out that average isn’t so bad. The average American family, or American earning unit, brings in nearly $62, 857.00 annually. This is the average; plenty of folks right here on US soil only see a fraction of that amount. Some families survive on less than $6.50 every day – that’s all the money for food, transportation, housing, and unexpected expenses they have.
If you are an average middle class American, chances are you have a mortgage. That average mortgage payment of about $2500 a month costs you 12 times that amount daily.
Moving away from the very difficult and unsettling realities of poverty at home as well as the world over, average Americans display their shortsightedness and idiosyncrasies in their daily spending choices. Who would have thought that the average American spends more on their car and clothing than on their preparations for the future and savings?
Clothing and car expenses combine to take up a total of over 7% of people’s annual income, with entertainment expenditures adding an additional 5.5% for a grand total of 12.5%. Keep in mind that insurance, pensions, and savings only totals 11%. True, it is only a 1% difference, but many would gladly trade places with you Average Joe’s for the chance to have money to save or spend on entertainment venues at all.
The largest section of most people’s income is spent on housing. US average houses cost $16, 989 or 34% of the total income each year, which is more than many individuals even earn in several years’ time. Add to this the fact that this average home is a palatial dwelling and it really puts things into perspective.
Yes, the economy has seen better days, but your personal economy is still pretty great, even if you have to settle for being Average Joe America for now.
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