"And very importantly, in addition to that, Russians have very little personal debt, negligible amounts compared with US households . . . "
In addition to many other strengths of the Russian economy over the US economy, a study has now shown that Russians have surprisingly much savings, at least in comparison.
70% of Russians have savings, that will see them through 1- 2 months without other income. In the US, on the contrary, 70% have virtually no savings.
In America, the bottom 55% have zero savings, while the following 24% – the core of the former middle class – have only $1,000 stashed away. A 2016 report, two-thirds of Americans are not able to afford even a $500 emergency cost of any sort. A staggering 78% of full-time workers are reported to be living from paycheck to paycheck. – However, the US has a very developed corporate welfare system, with most large corporations receiving regular IV injections of bailout money.
The recent Russian study showed the following division of savings:
- 16% of Russians have savings to last them through one year
- 25% have enough saved to meet their needs for 3-6 months
- 29% have sufficient savings to last 1-2 months
Russia also has a relatively good social welfare system, which will at least keep the remaining 30% in bread and medicine and a roof over their heads.
Further, I estimate that some 15-20% (many of them of those with no or little savings) can live totally or partially on household farming.
And very importantly, in addition to that, Russians have very little personal debt, negligible amounts compared with US households.
Source for Russian study: rbc.ru
Source: Russian Faith