Where Does All Our Money Go?
Seth Godin wrote recently about how more than two-thirds of recent immigrants to the U.S. send money home regularly. How is it that the worst-paid, poorest people in our country can manage to save enough money to send some back to the old country? According to the Ambassador from El Salvador, the money sent ‘home’ to El Salvador accounts for 13% of that country’s GDP!
American households are almost the mirror image, with nearly two-thirds in debt. Many with credit card debt that is unfathomable and even home mortgages that are stretched to the ridiculous, praying that home prices continue to go up.
You would think that if those who are working at the bottom of the ladder can cover their own bills and still send money home, those of us that are working for more than minimum wage should be able to do even more. But we all feel we deserve cable TV, cable internet, cell phones, and a new car.
HatTip: Get Rich Slowly
Good points. Yes, immigrants are frugal savers and many of them overcome enormous odds (learning a brand new language, adapting to a foreign culture, overcoming poverty, etc.) and eventually become successful small business owners and entrepreneurs. They’re not afraid to work hard, pool resources, and get their hands dirty.
Comment by EconEdge — November 1, 2006 @ 7:12 pm