What happens when the majority of households can't save

[Odogwu-Blockchain]

The problem most times are from these earners, they live a reckless lifestyle that doesn't leave below their means. Over time, I've come to realize that if people leave the life according to their means of income, they will save and still survive perfectly and make a good life as well.

These complainers are buying things above their salary or they spending before the money comes in, these are problems, if they have work on that, there gonna be solutions.

The government implementing salary to be paid weekly will be an added advantage to the citizen, payment not meeting the end of each other causes inability to save money, promote bad spending and many problems too. The solution is weekly or daily income after work.

[alani123]

Greece has one of the most liberal property income taxes in the whole world. 15% tax and it doesn't get counted together with regular income so you could be earning millions from real estate income and it doesn't even raise your tax bracket. Isn't that crazy?

This is definitely not true. Income from rentals is taxed progressively, up to 45%. But I'd agree that both real estate taxes AND labor taxes should decrease. In either case, housing would become more affordable. Imagine if the average person was earning double their wage, instead of wasting half of that to fund a puppet state.

The answer is always to get their hands off the people's pockets.    That requires from the people to realize they're serving the Matrix, though. Pretty difficult task when everyone's having an attention span of a 5-year old kid.

45% is actually quite attractive as a top tax bracket for real estate and you see the results in Greece right now. Foreign entities are buying the country's real estate to take it of the long term market and make it Airbnb.

We went from being one of the first countries in terms of home ownership to having a shortage of viable housing units and home ownership decreasing every year. So we're already seeing the effects of letting businesses roam around and do whatever they want unrestricted. Housing becomes a business and the working people are thrown out of their homes by force.

More countries should street clear away from Greece's example. Because while the country is facing a financial crisis the government is only making measure that deepen the divide between the ultra rich and everyone else.

[gunhell16]

That is slowly becoming a global problem, I believe, because the situation in my country is almost the same. People work so hard only to make enough money to get through the month, and sometimes even less, which then makes them borrow money from others to sustain their livelihood. If someone is always indebted to others, how on earth can they save any money? Wages stay the same forever, but inflation keeps rising, which creates more problems because you are getting the same salary, but the prices of goods and services keep increasing over time.

A house is a very big thing, in my opinion, you can't even buy a vehicle by saving money these days, this is the reason why most people use public transport systems and for this reason public transports are always busy in most of the countries. I also wonder whether someone can actually be able to buy a house through savings these days, because if they start saving today, they might have a good amount after a decade, but after that much time, the prices will again be higher, so they still won't be able to get anything good with it.

In today's times, even if you're employed, your salary isn't enough to cover all expenses. That's why some people end up taking on side hustles just to meet their additional financial needs, since the pay from a regular job is simply insufficient, especially when you consider how large your family is.

That's why some people are willing to take a chance and build their own business, even if it starts with a small capital as long as it's managed properly and sustained with perseverance until it eventually becomes successful. It really is tough in the beginning, more so than being an employee, which is already challenging for someone who has a family.

[Die_empty]

The problem most times are from these earners, they live a reckless lifestyle that doesn't leave below their means. Over time, I've come to realize that if people leave the life according to their means of income, they will save and still survive perfectly and make a good life as well.

These complainers are buying things above their salary or they spending before the money comes in, these are problems, if they have work on that, there gonna be solutions.

How many countries have a good minimum wage that could be enough to survive and save? These days people struggle to survive because inflation is not allowing them to save. With the rate of prices of goods and services, it will take an extraordinary effort for workers to save. This is why people are doing more than one job to survive. Most time the problem is a bad economy and not financial recklessness.

The government implementing salary to be paid weekly will be an added advantage to the citizen, payment not meeting the end of each other causes inability to save money, promote bad spending and many problems too. The solution is weekly or daily income after work.

Paying wages instead of a salary will have little effect on people's financial management. Anybody who cannot manage his salary will also waste his wages. Financial management is a skill that is developed over time.

[LastKiss]

Then the years turned into decades. We've now though reached a point where most people can't save anything.
New stats in Greece show nearly 90% of households can't even save a single euro after the monthly expenses.
~snip~

Women are asking for gender equality so they can apply for jobs that were previously dominated by men. In my workplace, I used to see only men filling laboratory positions, but now more women are filling in those roles as well. This is also happening in other cases. When a household lacks of money the wife will look for a job to cover that gap. From what I have observed, when both partners have jobs, they tend to have a decent life, they can own proper vehicles, have a house and afford to raise a child, etc.

It is true that the rising cost of daily needs is putting serious pressure on household budgets. Waiting for the government to solve the problem will make us hopeless, so many people choose to look for better jobs for themselves or for their household instead. From what I have read about Greece, they are facing increasing daily living costs that are not matched by salary growth, well this is happened in my place too which may eventually cause a gap between income and expenses.

[barbara44]

Corrupt governments will never free us from inflation. Borrowing in the name of development and then inflation. This is how the country and the people are always burdened with debt. My point is, when people are crying for food, looking for housing, what will we do with improved communication systems and development? Why don't they use this money to reduce inflation? Why don't they use it to increase production? Why don't they do infrastructural development? Why isn't it used in the education sector?

One reason for this is that the government's control has decreased and the people of the country have become independent and are researching the mistakes of the government. The current governments are for the rich, the government of the poor is no longer seen. Maybe it exists in the world, but it is very rare.

Inflation can't be reduced by putting in money, it can be reduced by putting in investment. Meaning, lets say that you create 10000 breads a day, and the price of bread is 1 dollars, that means 10000 dollars is spent by people everyday to buy those. Then price of bread goes to 1.5, that is 50% inflation, you can't just spend money because that would create endless cycle of spending money to get bread for people, government can't do that.

What can they do? They can make tax reduction on places to get more breads made. That way, 20000 breads will be made because production would be profitable, then even if they sell one bread for 1.1 dollars, they would make 22000 dollars, more than the 50% inflation one made. So, focus on tax reduction for production and increase productivity and you will get cheaper stuff.

[Dictator69]

What would a people first government do in this case? Create social housing in order to lower market prices and make it more affordable? Mandate higher wages? Create more housing by giving more permits?

No. We just see inaction. And this inaction of course only helps the large owners.

You have nailed with this topic, it is really a serious problem, most of the countries in Europe already facing this issue and for someone likeme, who is not facing such problem will soon if I won't pay attention now and If I won't spread the awareness in the close circle of people either they are my family, friends, or they are not even interested to buy the property.

Now, if I have to share my points, I would say government can easily tackle this problem if they are not greedy, but if they are we can't do anything but have to face it. Vienna's housing model is a good example, which is used in Austria, they have imposed a special housing tax, a headache for rich, obviously, but everyone pays it. It is then used to build and renovate new houses. It has two basic parts, you can learn more about it anywhere. I can't cover it completely but I will say, it is a good model.

But I have to say one thing if is changes, the other parts also need to be changed and maybe for such change, the governments are not agreeing.

[Bluedrem]

Savings pave the way for future prosperity and act as a friend in bad times. People cannot earn their entire lives, so when they can earn, they have to save some of the money they earn for future use. If you understand, you will see that when you have enough savings, you feel physically and mentally at peace because you do not have the fear of losing your job. You are then mentally prepared that even if your job goes away, you can live with the money you have saved. Savings also have various benefits. Savings are important for the future prosperity of your wife and children. When a family does not have savings, they fall into adverse situations in extreme situations. In short, savings are essential for a secure future.

[Strongkored]

It is very bad when, even after working, we cannot save any money, even a very small amount, and this is also what happens in my country, instead of saving, many end up trapped in high-interest debt, especially those living in big cities.
It is not actually due to low wages but also because of a lifestyle that does not match their income.
If we cannot save, it is impossible to invest, and in the near future, financial difficulties will surely worsen.

[viljy]

Well, this is a classic situation of impoverishment of the people. This does not happen quickly, but it leads to the emergence of a large group of people who have absolutely nothing to lose. They also don't give a damn about the state that took everything from them. There are usually two scenarios afterwards. Either the state collapses from the outside and no one protects it, or from the inside. In both cases, the elite and the richest citizens of this state lose absolutely everything, and often their lives. In the modern world, people who have lost their middle-class position are usually well educated - this is much more dangerous for the elite than ignorant workers or peasants 100 years ago. Because there are too many educated people compared to those times.

[The Cryptovator]

It is very bad when, even after working, we cannot save any money, even a very small amount, and this is also what happens in my country, instead of saving, many end up trapped in high-interest debt, especially those living in big cities.
It is not actually due to low wages but also because of a lifestyle that does not match their income.
If we cannot save, it is impossible to invest, and in the near future, financial difficulties will surely worsen.

Here is passive income. For a few people who have only regular regular salary, it's become hard to even survive, whether it's in Europe or any other developing countries. This has become a common problem for citizens nowadays, though some people still live a luxurious life. Due to world inflation, daily costs have been increasing, though the salary hasn't been increasing. We have to comply with society even if we aren't capable of doing so. As a result of increasing debt, people are falling into a loan trap that is making life more hellish. So we must have second income source either investment, business or part time jobs.

Back to the main topic, from the savings everyone dreams to build a home. It's not luxurious; it's necessary. Everyone might think differently, but sleeping at one's own home is a dream for our country. If you can build multiple homes, they will be liquidated when necessary; the value will be higher as well. When you are selling someone, if buying on the other hand means the poor becoming poorer and the rich becoming richer. But that's the reality; we must have a second or passive income source to spend a good life at least.

[AmaGold70]

It used to be that while wages would never get someone rich at least it was possible to eventually buy some property after years of work. Be it at least a house. A house doesn't have any productive capabilities, it's just a roof by pure material standards.

Then the years turned into decades. We've now though reached a point where most people can't save anything.
New stats in Greece show nearly 90% of households can't even save a single euro after the monthly expenses.

What is the result of that? The people are now more than ever liquidating family owned property and businesses to just sustain themselves. Which turns out to be catastrophic for property ownership because it gets very centralised. Banks repossess properties en masse and foreign investors scoop it up also en masse. Locals end up opening less and less of their country's land every year.

What would a people first government do in this case? Create social housing in order to lower market prices and make it more affordable? Mandate higher wages? Create more housing by giving more permits?

No. We just see inaction. And this inaction of course only helps the large owners.

This kind of situation can be very challenging and disgusting. This is more or less feeding from hand to mouth. If a country's economy is so bad that people are only thinking of what to eat, to me that is the worst economy. In every economy, the government on seat has a major role to play, it the policy they make that will determine if the economy will be good or bad and when the economy of a country is bad, it affects almost everything negatively, the lifestyle of the people will be cruel and will give room for corruption.

[icebar]

The government is working only for the rich. The rich give directions to the government, so the government is also doing that work by being greedy. And the government has to do that work because it has no alternative. The rich run almost all the institutions in the society. The way they rule, the governments will also work for them so that in the future they can get their support and come back to their homes again and again. Due to which the person who is poor in the society is getting poorer day by day. His scope of work is decreasing. His salary is decreasing but on the other hand his house rent is also increasing. There is big inequality in every place in the society. The difference between the rich and the poor is very big. If the government of a country cannot protect itself from such a situation, then no one will be able to remove these obstacles.

[Felicity_Tide]

What would a people first government do in this case? Create social housing in order to lower market prices and make it more affordable? Mandate higher wages? Create more housing by giving more permits?

No. We just see inaction. And this inaction of course only helps the large owners.

I think the failure of the government to set standards in so many of these sectors, has resulted to individuals working on those ideas, and setting a very high price so as to benefit from it. The society is too quick to blaming individuals who invest their money, while leaving the government who has made the lives of people unbearable. Real estate and housing is currently a global trend, and it is completely dominated by private sectors that has set price standards. The government on the other hand aren't focused in this area, and still finding it difficult to keep the economy in good shape. Unemployment and inflation keeps increasing, giving less hope and opportunity to the masses, while the rich finds creative ways _{(from the available problems)}, to establish themselves further. No doubt, the rich will keep getting rich, and the reverse for those that are struggling.

[slapper]

The 90% number from Greece is more than a statistic. It's a threshold.

When you have the failure of the majority, you're not looking at failure of the individual anymore. You've got system failure coming. And the thing about systems, they don't fix themselves, they just keep running till something goes entirely wrong. Which may be what we're watching happen in real time but nobody wants to call that yet.

Families selling off property they had accumulated over generations of lives just to pay monthly expenses. That's wealth transfer. Slow motion, but still violent in result.

And once that property is passed on to banks or foreign investors? It's not coming back. You can't reverse that kind of consolidation without some serious intervention and we're not getting that, clearly.

Inaction is a choice. When you don't construct social housing, when you don't require wages, when you don't require an increase in permits. Those are very active choices to allow the market to do what markets do. Consolidate power upward. The question isn't why governments don't act, it's who does it benefit when they don't.

And the locals losing their ownership of their own country? When you can't own anything where you live, then you stop investing in community. You stop caring in the long-term because what's the point?

Just work till you can't do it anymore.

[Rgram]

The problem most times are from these earners, they live a reckless lifestyle that doesn't leave below their means. Over time, I've come to realize that if people leave the life according to their means of income, they will save and still survive perfectly and make a good life as well.

There are majority of people who don’t leave recklessly or lavishly and still, they find themselves at the bottom of everything in life, always struggling to meet up with essential needs to life. It’s truly difficult these days to meet up with essential needs and still manage to save from it. The inflation rate has become very alarming and with an economy that is constantly deteriorating, we would get to a point where people would turn back on civilization.

[XOOMBOX]

The government is working only for the rich. The rich give directions to the government, so the government is also doing that work by being greedy. And the government has to do that work because it has no alternative. The rich run almost all the institutions in the society. The way they rule, the governments will also work for them so that in the future they can get their support and come back to their homes again and again. Due to which the person who is poor in the society is getting poorer day by day. His scope of work is decreasing. His salary is decreasing but on the other hand his house rent is also increasing. There is big inequality in every place in the society. The difference between the rich and the poor is very big. If the government of a country cannot protect itself from such a situation, then no one will be able to remove these obstacles.

Nowadays the reality is that in many countries the voice of the rich is heard more than that of the common people in policymaking but if all the responsibilities are put in one line “government vs. poor” then the depth of the problem is not captured. Today, people's incomes are decreasing while expenses are increasing due to the market, tax system, weakness of labor policy, housing crisis, etc. so the question is not only who is controlling whom but also why the policies are not able to keep pace with people's lives.

In here I think government's responsibility is more than citizens such as increasing transparency, tightening the limits on lobbying, strengthening fair taxes and social protection but the role of citizens is also not small such as making demands, participating at the local level, and information-based discussions because without these pressure does not build on government. In the society inequality did not arise overnight, so the solution will not be overnight either but with the right direction and accountability, any situation can be changed. Disappointment of people is understandable but we should not give up hope because the power of change ultimately lies in the hands of the people.