Piggy bank empty? Don’t resort to plastic.


It's worse than not being able to buy new toys. Photo by TONY WOOD

So why have relatively few formerly middle-class Americans become actively outraged by Wall Street frauds and job-destroying corporate raiders such as Mitt Romney? One answer is that many of us, despite lost jobs or lowered wages, have managed to maintain fairly good living standards, thanks to savings and other monetary cushions. But piggy banks across the country are close to tapped out:

From Reuters via Truthdig:

More than four years after the United States fell into recession, many Americans have resorted to raiding their savings to get them through the stop-start economic recovery. In an ominous sign for America’s economic growth prospects, workers are paring back contributions to college funds and growing numbers are borrowing from their retirement accounts.

Some policymakers worry that a recent spike in credit card usage could mean that people, many of whom are struggling on incomes that have lagged inflation, are taking out new debt just to meet the costs of day-to-day living. American households “have been spending recently in a way that did not seem in line with income growth. So somehow they’ve been doing that through perhaps additional credit card usage,” Chicago Federal Reserve President Charles Evans said on Friday.

“If they saw future income and employment increasing strongly then that would be reasonable. But I don’t see that. So I’ve been puzzled by this,” he said…

Advertisements
This entry was posted in economic collapse, Great Recession, Mitt Romney, Politics, The New Depression and tagged , , , , . Bookmark the permalink.

One Response to Piggy bank empty? Don’t resort to plastic.

  1. Pingback: Beware of plastic

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s