Working Poor: Almost Half Of U.S. Households Live One Crisis From The Bread Line

[웃 910]

Working Poor: Almost Half Of U.S. Households Live One Crisis From The Bread Line

What does it mean to be poor?

If it means living at or below the poverty line, then 15 percent of Americans -- some 46 million people -- qualify. But if it means living with a decent income and hardly any savings -- so that one piece of bad luck, one major financial blow, could land you in serious, lasting trouble -- then it's a much larger number. In fact, it's almost half the country.

"The resources that people have -- they are using up those resources," said Jennifer Brooks, director of state and local policy at the Corporation for Enterprise Development, a Washington, D.C., advocacy group. "They're living off their savings. They're at the end of their rope."

The group issued a report today i examining so-called liquid asset poverty households -- the people who aren't living below the poverty line, but don't have enough money saved to weather a significant emergency.

According to the report, 43 percent of households in America -- some 127.5 million people -- are liquid-asset poor. If one of these households experiences a sudden loss of income, caused, for example, by a layoff or a medical emergency, it will fall below the poverty line within three months. People in these households simply don't have enough cash to make it for very long in a crisis.

The findings underscore the struggles of many Americans during what has often seemed like an economic recovery in name only. While the Great Recession officially ended more than two years ago, unemployment remains high and wages have barely budged for most workers. For more people, whether they draw a paycheck or not, a life free of deprivation and financial anxiety seems perpetually out of reach.

That's not to say that everyone who is liquid-asset poor spends all their time fretting. On the contrary, because many have regular paychecks coming in, they may not grasp the precariousness of their situation.

"They don't necessarily realize how close people can be to one interruption to income or one interruption to health benefits," said David Rothstein, the project director for asset building at the non-profit Policy Matters Ohio. "They're one paycheck away from being in debt."

Rothstein, who also serves on a steering committee at the Corporation for Enterprise Development, told The Huffington Post that payday lenders -- who loan money to desperate borrowers at high interest rates, drawing people into hard-to-escape cycles of debt -- are "a huge problem" in Ohio, as in many other states. People often turn to payday lenders to cover one-time, unexpected expenses, but can end up in a long and costly relationship.

"People say things like, it's just one mechanical problem with their car," said Rothstein. Before they know it, he said, "every other week, they're back at the payday lending shop."

The Corporation for Enterprise Development findings echo other recent studies showing that many Americans are ill-prepared for financial emergencies. Analysts said the reasons include flat wages, the high cost of medical treatment and the nationwide drop in housing values leaving homeowners with less wealth than they believed they had.

Andrea Levere, the president of Corporation for Enterprise Development, told HuffPost that greater financial literacy might have helped prevent the current situation.

People can "graduate high school and not know how to write a check," Levere said, adding that an increased emphasis on personal responsibility for budgeting and spending sould be an important part of any step forward.

At the same time, Corporation for Enterprise Development officials were quick to argue that public policy needs to address the scope of the problem. Levere cited the example of asset limits in public benefit programs, which restrict services like food assistance and public health insurance to households with few or no assets -- a policy that critics say denies help to many people in need.

"In some cases," said Levere, "it means they can't even own a car that is in good enough shape to get them to work."

Brooks agreed. "A family that loses its job, that was maybe solidly middle class, in a state where they have restrictive asset tests, is going to have to liquidate all their assets, all their savings for the future" in order to qualify for benefits.

The report maintains that there are a number of measures that could alleviate liquid asset poverty, from strengthening consumer protections against payday lenders to making greater assistance available to first-time homebuyers. Levere said even minor policy adjustments could have "revolutionary implications."

"There's a lot of ways forward. It doesn't mean it's not tough," Levere said. "I'm a great believer in one step at a time."

http://www.huffingto...kusaolp00000003

Edited January 31, 2012 by ☠

[SuperDuper! 230]

http://www.huffingtonpost.com/2012/01/31/working-poor-liquid-asset-poverty_n_1243152.html?ncid=edlinkusaolp00000003

[웃 910]

http://www.huffingto...kusaolp00000003

Not bad for 6 years of hard work

February 7, 2011 - AOL Inc. [NYSE:AOL] announced today that it has entered into a definitive agreement to acquire The Huffington Post, the influential and rapidly growing news, analysis, and lifestyle website founded in 2005, which now counts nearly 25 million unique monthly visitors*.

The new group will have a combined base of 117 million unique visitors a month in the United States and 270 million around the world**

The Huffington Post's affluent, influential audience, that is growing at a rate of 22 percent (December 2009 vs. December 2010)****, when combined with AOL's massive scale, video offerings and local expertise, will represent an incredibly desirable demographic for a broad range of advertising partners across the board.

AOL has agreed to purchase The Huffington Post for $315 million, approximately $300 million of which will be paid in cash funded from cash on hand. The Huffington Post is privately owned by its two cofounders, as well as a group of investors.

[SuperDuper! 230]

Not bad for 6 years of hard work

February 7, 2011 - AOL Inc. [NYSE:AOL] announced today that it has entered into a definitive agreement to acquire The Huffington Post, the influential and rapidly growing news, analysis, and lifestyle website founded in 2005, which now counts nearly 25 million unique monthly visitors*.

The new group will have a combined base of 117 million unique visitors a month in the United States and 270 million around the world**

The Huffington Post's affluent, influential audience, that is growing at a rate of 22 percent (December 2009 vs. December 2010)****, when combined with AOL's massive scale, video offerings and local expertise, will represent an incredibly desirable demographic for a broad range of advertising partners across the board.

AOL has agreed to purchase The Huffington Post for $315 million, approximately $300 million of which will be paid in cash funded from cash on hand. The Huffington Post is privately owned by its two cofounders, as well as a group of investors.

AOL numbers decline after Huffington Post purchase

By Brenna Carreon

Deseret News

Published: Monday, Jan. 30, 2012 9:35 p.m. MST Recent Nielsen numbers show a drop in the number of visitors to AOL Inc.'s site.

Chairman and CEO, Tim Armstrong had 78.9 million unique visitors prior to acquiring the Huffington Post, according to a New York Post article.

Recent numbers now show only 73.6 million.

According to analysts, $315 million was too much money for the Huffington Post.

“A total disaster from the beginning,” says a market source to the New York Post. “Between all the layoffs and redesign, it’s amazing anyone would want to work at HuffPo. They’re chasing the competition now rather than leading it.”

http://www.deseretnews.com/article/print/705398372/AOL-numbers-decline-after-Huffington-Post-purchase.html

[Gary and Alla 3,694]

And we need four more years of this nonsense? Are you kidding me? You want MORE people in this condition? Obama has been a disaster for poor people. But he approved those tax cuts for the rich, even after Bush's tax cuts expired...Obama extended them! And what do poor people get? More poor people to share the bread.

[Mr. Big Dog 10,747]

Working Poor: Almost Half Of U.S. Households Live One Crisis From The Bread Line

Capitalism rocks!

[Obama 2012 1,714]

Capitalism rocks!

you wouldn't know what capitalism is if it bit you on the #######.

[slim 1,530]

So, let me get this straight... we're trying to encourage folks to increase liquid assets and we're going to do so by offering them homeownership?

Uh.... how liquid is a home?

Also, don't most people see an increase in bills associated with home ownership?

[웃 910]

Also, don't most people see an increase in bills associated with home ownership?

No, most people see a MASSIVE (particularly if you bought after 07) savings in bills compared to renting.

I can rent a 1 bedroom apartment for $700 or I can have a 2 and half car garage, corner house with multiple yards, decks, large living room, large kitchen, laundry room, 3 rooms, and 1 and a half baths for $300 flat including taxes and insurance.

I have that so I rented it out for $1150 a month. Rent is due in 10 days so I'm deciding what I should spend the profits on.

[Gary and Alla 3,694]

No, most people see a MASSIVE (particularly if you bought after 07) savings in bills compared to renting.

I can rent a 1 bedroom apartment for $700 or I can have a 2 and half car garage, corner house with multiple yards, decks, large living room, large kitchen, laundry room, 3 rooms, and 1 and a half baths for $300 flat including taxes and insurance.

I have that so I rented it out for $1150 a month. Rent is due in 10 days so I'm deciding what I should spend the profits on.

So why am I guessing your income tax return is not going to show a "profit" to pay taxes on? Maybe because of depreciation? Mortgage interest deduction, maintenance. So are you saying you will have a profit you pay tax on? Or will you avoid the tax on your profit and keep it tax free and decide where to spend the money you shoul dbe paying in tax but like most businesses, do everything you can to avoid paying. And what do you think about Romney paying 15% of his income in taxes vs.the higher percentage paid by people makingless money?

Is this why you oppose the FAIR TAX?

OR is there some benefit to the economy in general for allowing you to avoid paying tax on this income? Would those benefits apply to other investors, or only you?

Edited February 1, 2012 by Gary and Alla

[웃 910]

So why am I guessing your income tax return is not going to show a "profit" to pay taxes on? Maybe because of depreciation? Mortgage interest deduction, maintenance. So are you saying you will have a profit you pay tax on? Or will you avoid the tax on your profit and keep it tax free and decide where to spend the money you shoul dbe paying in tax but like most businesses, do everything you can to avoid paying. And what do you think about Romney paying 15% of his income in taxes vs.the higher percentage paid by people makingless money?

Is this why you oppose the FAIR TAX?

OR is there some benefit to the economy in general for allowing you to avoid paying tax on this income? Would those benefits apply to other investors, or only you?

Actually I am going to show about $17,000 (if I remember correctly) of rental income.

Turbo tax has my bill at $300 so I am ok with that....Now if it said $2200 or $1600 or some bullsh!t number then I would consider not reporting it!!!!

Because I do see it as being taxed two times or actually three times:

First on the initial income which was taxed and then used to invest

Second on the rental income

And third on property taxes

---------

I support Mitt Romney's plan of 0 cap gains for people that make less than $200,000

[Gary and Alla 3,694]

Actually I am going to show about $17,000 (if I remember correctly) of rental income.

Turbo tax has my bill at $300 so I am ok with that....Now if it said $2200 or $1600 or some bullsh!t number then I would consider not reporting it!!!!

Because I do see it as being taxed two times or actually three times:

First on the initial income which was taxed and then used to invest

Second on the rental income

And third on property taxes

---------

I support Mitt Romney's plan of 0 cap gains for people that make less than $200,000

If we had FAIR TAX there would be no capital gains tax, no need for you to ever lie on an income tax return, and no need to fill out the papers at all.

How it is you can pay only $300 on $17,000 in income from which no tax is withheld? Do you think YOU should pay a fair share, or just other people?

Edited February 1, 2012 by Gary and Alla

[웃 910]

If we had FAIR TAX there would be no capital gains tax, no need for you to ever lie on an income tax return, and no need to fill out the papers at all.

How it is you can pay only $300 on $17,000 in income from which no tax is withheld? Do you think YOU should pay a fair share, or just other people?

I think we need the TURBO TAX!

[slim 1,530]

No, most people see a MASSIVE (particularly if you bought after 07) savings in bills compared to renting.

I can rent a 1 bedroom apartment for $700 or I can have a 2 and half car garage, corner house with multiple yards, decks, large living room, large kitchen, laundry room, 3 rooms, and 1 and a half baths for $300 flat including taxes and insurance.

I have that so I rented it out for $1150 a month. Rent is due in 10 days so I'm deciding what I should spend the profits on.

So you're living there and renting out the other rooms?

Also, who's paying your property taxes, insurance, mowing the grass, repairing the water heater when it breaks, etc?

[웃 910]

So you're living there and renting out the other rooms?

Also, who's paying your property taxes, insurance, mowing the grass, repairing the water heater when it breaks, etc?

No. I live elsewhere. I am renting to one family (husband/wife/toddler).

I have a 30 year mortgage. Taxes are fortunately rolled in to the mortgage but it comes out to about $1500 or $2000 a year in taxes.

They pay for electricity/gas/lawn maintenance.

If something breaks (for example $500 in plumbing under the kitchen sink last summer) then I pay the bill...

Edited February 1, 2012 by ☠