Even well-off can imagine becoming poor

By Bradley Meacham

More than half of Americans with household incomes over $100,000 can see themselves falling into poverty, a new MSN-Zogby poll reports.

Fifty-three percent of Americans in the wealthiest category said they can imagine themselves becoming poor, while 82% of those with household incomes of less than $25,000 said they could become poor. Overall, 61% of Americans said they could imagine such a fate.

Cable television would be the first thing to go for 50% of Americans, while two-thirds said their car would be the last thing they would give up if their income plummeted. Half said they wouldn't give up their pets.

Easy credit

The results of the poll of 10,258 adults suggest that Americans acknowledge the chance of a decline in personal fortunes. They also suggest that modern conveniences and the availability of easy credit may mask the effect of being poor for many people.

"I think it's clear that one way American families have adapted to being economically squeezed is a heavy reliance on debt and credit," said Tom Shapiro, the director of the Institute on Assets and Social Policy at Brandeis University in Waltham, Mass. "That allows us to purchase more and still walk closer to the edge. In fact, it moves the edge further out."

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According to the U.S. Census Bureau, about 37 million Americans live in poverty, which the federal government defines as income below $13,500 for a couple. The MSN-Zogby poll didn't define the term "poor."

Narrowing differences

Census data suggest that, when measured in terms of tangible items, the gap between rich and poor lifestyles actually narrowed significantly between 1992 and 2005. The computer is now more common in the standard American house than the dishwasher, and the poorest have more access to air conditioning, microwave ovens and stereo systems than ever before.

According to the MSN-Zogby poll, the cell phone would be the first expense to cut for 22% of those surveyed, and the Internet would be first to go for just 7%. Thirteen percent said the Internet would be the last thing they would cut.

Credit is partly behind the spread of such conveniences, Shapiro said. "It allows us to have a more democratic appearance in terms of what most of us can buy."

The interactive MSN-Zogby poll was conducted Feb. 9-12 and has a margin of error of plus or minus 1 percentage point.

MSN-Zogby poll (minor answers deleted)
Can you imagine yourself becoming poor?
Yes	61%
No	34%
If you became poor, what would you give up first?
Cable TV	50%
Car	4%
Cell	22%
Internet	7%
Not sure	10%
If you became poor, what would you give up last?
Cable TV	2%
Car	67%
Cell	7%
Internet	13%
Not sure	7%
If you became poor, would you give up your pet?
Yes	17%
No	51%
Not sure	33%

Published Feb. 21, 2007