timelets | A Maria Antoinette moment

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Wilbur Ross, a billionaire and the current Commerce Secretary, doesn't understand why federal workers who don't get paid can't get a loan from a bank.

"Wilbur Ross 'Doesn't Understand' Why Furloughed Workers Need Food Banks | Hallie Jackson | MSNBC" (Watch on YouTube)

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From:

timelets

I agree with most of you points, except that people just don't have a habit of saving money for an emergency, e.g. getting sick. It's just a part of the culture. I know a number of people who live from paycheck to paycheck without a budget or a savings plan. They rely on credit cards to shift debts.

From:

gomberg

I am afraid, there is no amount you could save on a 50,000 dollar sallary in the US that will be enough if you fall seriously and truly sick to the point of losing both the job and insurance - unless, of course, you are not planning to be treated and are only planning on feeding and clothing yourself for a few months until you die. In fact, you might be better off if you could become indigent as fast as possible. Taking a federal government job seems like a good solution to this particular problem.

From:

timelets

Well, that's how most of them think. Unfortunately, you can't have a savings conversation without a budget, even for a %50k/year salary. There are plenty of Chinese US residents who manage to save for their children education on that income.

From:

gomberg

True. But, then, these people, arguably, live very peculiar lives. I mean, there are many Latino immigrants in the US who work three jobs at minimal wage and manage to send substantial money to their families back home. They also sleep 6 hours a day four men to a room. You also might call it "culture", but I do not like to overuse such words.

The key thing is, would those people whom you are marking as "overconsuming and lacking in foresight" be happier in expectation had they changed their behavior and saved for their children´s college by refusing themselves daily pleasures of life. I, for one, strongly doubt that.

From:

timelets

Actually, it would be interesting to see whether the workers' behavior is going to change because of the current shutdown. We already know that at TSA absenteeism is up to 10% now. Maybe these people are already working other jobs intend to rebalance their employment portfolio, so to speak.

From:

gomberg

I believe this has already been documented. Of course, they are already working other jobs - though, at this point, it is more to deal with current liquidity.

More generally, it would be interesting to see if in the future US government would have to pay more to hire (to compensate for the increased perceived risk). That would be the best evidence of changed worker behavior.