THE SECRET SHAME OF MIDDLE-CLASS AMERICANS

 THE SECRET SHAME OF MIDDLE-CLASS AMERICANS

Since 2013, the federal reserve board has been conducting a survey to "monitor American consumers' financial and economic situation." The survey found that 49 percent of part time workers would prefer to work more hours than their current wage, 29 percent expects to make a greater income, and 43 percent of homeowners who own their house for at least one year believe it has appreciated in value. One question however was a surprise. Fed asked respondents how would they pay for $400 in an emergency. Respondents were asked by the Fed to answer a question about how they would pay for $400. Four hundred dollars Who would have known?

It was obvious. It's because I am that 47 percent.

I know what it is like having to deal with creditors in order to get through a week. I know how it feels to be humbled and forced to pay people so I can pay them back. I know what it's like to have liens placed on my name and have my bank account taken by creditors. I know what it's like to have my bank account taken over by creditors and to have my $5 reduced literally. I also know what it's like to live for days on eggs. It is a horrible feeling to go to the mailbox and not have a check. There will always be new bills, but I don't know if there will ever be a check to pay them. I know what it's like to have my daughter tell me that I don't know if it would be possible to pay for her wedding. Everything depended on the outcome of the event. I can also relate to the pain of having to borrow money from my adult children because my wife ran out of heating oils. I wouldn't want anyone to think that I would be that poor. I like to think that I seem reasonably wealthy. You would not know it by looking at my resume. My writing career has been quite successful. I have written five books, published hundreds of articles, received a lot of awards and fellowships, as well as a solid reputation. If you looked at my tax returns, you wouldn't know. While I am not wealthy, I have a good income. I can usually make a decent middle- or upper-middle-class living, which is pretty much what any writer could expect. Even though you wouldn't think it would be, I don't believe it. I refuse to admit to financial insecurity. I call it "financial imputed" because it shares many of the same characteristics as sexual impotence. This may prove to be more embarrassing that sexual impotence. Brad Klontz is a financial psychologist at Creighton University in Omaha. He teaches there and helps people with financial problems. "Much greater likelihood." America is, as Donald Trump reminds us, a country that has winners and losers, weaklings and alphas. Being financially challenged is a source and source of shame. It can also be humiliating and even a form of suicide. Silence is the only way to protect yourself.

I have never spoken about my financial woes with any of my close friends. Then I realized that what was happening was not only happening to me, but millions of Americans. And not just the poorest who struggle to make ends met. According to the Fed survey, and other surveys, it was occurring to middle-class professionals as well as those in upper classes. It was happening to those soon to retire as well as those who were just starting their careers. It was happening to college graduates as well as high school dropouts. It was happening everywhere in the country, even places you wouldn't expect to see it. I knew that I wouldn’t have $400 in an urgent situation. I had no idea, and could not have predicted, that so many Americans would not have the money to make it through an emergency. Brian, my local butcher and friend, told me once that while he may not have all the answers, he was lying about his financial difficulties.

I was unaware that economists had not discussed this topic until recent times. There were data on income and net worth and unemployment statistics, but they didn't capture the reality of what was happening to households trying to make ends meet week to week. David Johnson, an economist from the University of Michigan who studies income and wealth inequality, stated that "people studied savings and credit." This idea that people can't make ends met or the idea they wouldn't be able to pay for a surprise is new research. It has been a hot topic since the Great Recession. Johnson states that economists have believed for years that people balance their consumption over their lives, balancing bad years with good. Johnson says this is because they borrow from the bad and save the good. Recent research has shown that people are more likely than ever to spend the money they receive, such as a bonus or a tax refund. Johnson believes that "it could be" that people don’t have the money to save. Many people are in a constant state of financial danger. If you are really curious about the reasons for America's current economic turmoil, even though many indicators point to a positive trend, then ask one of those 47 percent. Ask me.

Financial impotence is also known by many other names, such as financial fragility and financial insecurity. However, it doesn't matter what you call it. The evidence strongly suggests that either an insignificant minority or a very small majority of Americans have financial problems. How thin are you? The 2014 Bankrate survey found that only 38% of Americans would pay $1,000 for an emergency-room visit and $500 for car repairs with money they have saved. Pew Charitable Trusts released two reports last year showing that 55 percent and 71 percent respectively of Americans didn't have enough cash to cover a month's worth lost income. Annamaria Lusardi from George Washington University, Peter Tufano at Oxford and Daniel Schneider (then of Princeton) conducted a similar survey asking individuals if they could "come together with" $2,000 within 30 working days for an unanticipated cost. One-quarter of respondents could not do this, with 19 percent able to only do it if they pawned items or borrowed money. Conclusion: Nearly half the Americans are financially vulnerable and living very close to their financial edge. Jacob Hacker of Yale conducted another analysis that measured how many households lost at least 25% of their "available income" over a year. Income minus medical expenses was not included. He found that at least one in five households experienced such a loss in every year from 2001 to 2012. mildly difficult which cards should i play to increase my earnings