More than half of American households cannot scrape together $400

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Frightening statistic in a new book: “HOW THE OTHER HALF BANKS,” by Mehrsa Baradaran. Government studies show that more than half of U.S. households cannot come up with $400 to cover a medical emergency without borrowing.

Almost TWO-THIRDS OF AMERICAN HOUSEHOLDS lack enough savings to get by for three months.

The book details the plight of America’s “unbanked.” Those millions without bank accounts or investments.

According to Ben McLannahan, who reviewed the book for the FINANCIAL TIMES, the unbanked actually spend much more of their total income on interest payments than do those with bank accounts. “The average unbanked family earning $25,000 a year spends more on finance [via payday loans and pawnshops, mostly] than it does on food.”

Years of government policies which punish saving, business-launching and investment have created a nation of dependents.

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