October 11, 2012
By Chuck Bentley
Chief Executive Officer
On the eve of the Vice Presidential Debate, highly anticipated for economic repartee between the candidates, Politico is running my opinion piece warning that ordinary Americans are now mimicking Uncle Sam’s horrendous spending patterns – and everyone needs to make a change.
“Bill Gross of PIMCO may have put it best when he said that we’re a nation run by fiscal drunks. That should now be obvious to all. Less obvious, and possibly more troubling, is that this unbridled binge spending is now practiced by the least among us. The poor are getting poorer when measured by their debt.
“A national crisis in spending beyond our means reaches from the White House to the home front. Recently, the Labor Department noted that the bottom fifth of Americans spent more than double their incomes (through things like credit cards, drawing from savings and payday loans). In a healthy budget, debt payments should not be more than 5 percent of monthly spending. But the Economic Policy Institute reports that in 2010, about one-fourth of the poorest fifth of households were spending more than 40 percent of their income servicing debt.”
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