How come most Americans are poor?

Do keep in mind that there are 300 million people in the US, and 20 million in Australia.

Also do keep in mind that liberals like to tax the living crap out of Americans, particularly those of us in the middle class. My last estimate put about 65 cents of every dollar in the hands of the government.

Poverty in the US is hardly the same as poverty in 3rd world countries. We have a lot of poor fat people. Figure out how that happens... There are people in poverty in the US that have cell phones, cable TV, etc...

 

everyone hates americans yet half of what they watch is american movie or american tv

then again everything I own was made in china

 

I believe most of the clients I meet are sitting at over 30 to 45 percent debt to income levels.... I think a healthy debt to income ratio is 15% ... this is critical in financial health... anyone over this point should be thinking hard and long about major purchases and keeping up with the Jones’s. They won’t keep up long…

 

Including mortgage? In the U.S., if you include mortgages, most Americans are at about 100%+ debt to income (luckily I'm not in this boat).

 

Why are you poor ? Because you're stupid.
Why are you stupid? Because you're poor.
America is giving everybody a chance to have a good life.
Starving in America ? You are kidding me. You have to choose to be poor by not working.

 

I don't understand this perception about everyone hates americans and US I see all over this forum. This is so wrong ....

 

Oh, its not everyone.. Just a one Canadian, UK'r, and a whole lotta Muslim's

But it's pretty much always been that way... Imagine if DP was around during the Clinton years, you'd see the same sentiment...

 

no they are 30 to 45 debt to income without the mortgage included... some banks are letting people purchase a home with a 50% debt to income ratio... nuts... Then the first thing they do after the purchase the new home is purchase a new vehicle and add another 600.00 a month to the bills...

 

Americans are only poor compared to other Americans or other highly industrialized nations.

Americans vs the rest of the world = very rich

But to the heart of your question.

Americans are poor because we live in a capitalist society which greatly encourages that you SPEND SPEND SPEND to keep up with the Jones'.

In America if you don't have a 52" plasma high definition tv there must be something wrong with you ! (or so the tv would have you believe)

 

Exactly.. I have a 51"

Like I said... You'd be surprised how many poor in American have fat bellies... You have to wonder how people in poverty get so fat... I'm not talking about the bellies you see in Africa, I'm talking Rosie'O or Sally Struthers fat!

There are different levels of poverty in the US... No one in America has to go hungry though... Everyone has help! Those that don't choose not to get help.

 

Because the food they can afford to eat is made by McDonald's and BK and the likes. They cannot afford to purchase healthy stuff - which truely, is freaking expensive.

 

couple that with the fact that a lot of Americans are probably financially illiterate and you're in a loose/loose situation.

yeah, let's continue to make the min. pmt on the credit cards with 21% interest

 

What? Man, I can feed my entire family a 3 meals for the cost of one meal at McDonalds! And healthy too.

Food's cheap... Healthy Food is cheap... If you are talking about buying these pre-made diet meals, weight watchers or any of this other bull shit, rip you off freeze dried crap, I can understand.

The reality is, a loaf of bread and some low fat hormel ham and american cheese, lettuce , tomato's, and some mustard could likely feed one person for a week, at the same cost as one sitting at McDonalds.

Many people who are poor just spend their money on stupid shit. I know people who complain they are poor, but have money for the expensive beer, cigarettes, junk food, trips to the bar, etc.. But then never have money for gas in their tanks, or insurance.

 

Well said! You hit the nail on the head, and this is why Americans are asset poor relative to the rest of the world, because we listen to the stupid advertisements and buy more stuff than anyone else.

 

I still don't understand why a relatively high debt to income ratio, by itself, is that horrible. I have a debt to income ratio (excluding my home) of 1:2 (or a 50%). Most would say this is very high, but I have an asset to disposable income ratio of 10:1 (meaning I can live 10 years without working) and all my loans are either zero interest (car) or very low interest (student loans at 2.25%).

 

Hmmm - you are right. But as you said, most poor people spend and stupid shit, Mickey D and BK fall in that category as well.

About healthy expensive food - I was thinking along the lines of a grocery store like Whole Foods Market or Trader Joes up in NE.

 

I'm reminded of the comedian who immigrated to the USA and remarked, "What a great country, where even the 'poor' people are fat!"

 

60% of the country is in debt. We are not poor, we just spend money like it grows on our trees.

 

When 60% of the country is in debt, you're worse than poor. Think about it this way. A poor family that is living in Africa, who can't afford to buy hardily anything, may be broke.

But when you compare them to the typical American, who owes more than what they have, when you think about it, they are both the same, but in reality, the African family is better off. Why? Because if the African family starts making money, it belongs to them. They don't have to pay it to some credit card company.

Now the American family, they've got more "toys" than the poor family in Africa, and to the common man who compares both, they are "richer" than the African family. But guess what, if that American owes hundreds of thousands in student loans, mortgages, credit card debts, and car loans, they are in the negative.

Before they can begin building wealth, they have to pay off all their debts. The poor African family, if they get $3000 in the bank, with no debt, by my definition, they are wealthier than the American family.

If you understand what I just said in the paragraphs above, you have discovered the truth to wealth, and you will be able to beat the snot out of anyone who is making a six figure income....think about the paragraphs above, what it means.

When Donald Trump's company filed for bankruptcy in the 80s or 90s, did you remember what he told people when they asked him how much he was worth? I can't remember, but he pointed at a homeless guy, and he said something like "that guy over there is worth millions more than me"

I'm paraphrasing what Trump said, but it is basically the same thing. If you understand what Trump said, and what I put in this post, you now know the secret to wealth.

 

You have a strong point, We are now stopping the use of credit cards as much as we could and we are spending a lot more wisely to save for our kids college education. We are saving as much money as we can to get out of debt and probably if we saved enough will put our money in Mutual funds.
Also I want to add if a family is earning an average of 40 k monthly you also have to consider the lifestyle in a certain State, State lifestyle varies we live here in NC the tax is somewhat a killer, but whenever we visit Florida I feel like were saving more.