A Class of Economic Zombies, Another Triumph of Socialism

Apparently our government has succeeded in making almost half of the population dependent upon it or others. Phil Izzo in the WSJ discussed a paper from the National Bureau of Economic Research:The survey asked a simple question, "If you were to face a $2,000 unexpected expense in the next month, how would you get the funds you need?" In the U.S., 24.9% of respondents reported being certainly able, 25.1% probably able, 22.2% probably unable and 27.9% certainly unable. The $2,000 figure "reflects the order of magnitude of the cost of an unanticipated major car repair, a large copayment on a medical expense, legal expenses, or a home repair," the authors write. On a more concrete basis, the authors cite $2,000 as the cost of an auto transmission replacement and research that reported low-income families claim to need about $1500 in savings for emergencies.These data are shocking and shameful. Governmental policies have reduced nearly half the...(Read Full Post)