"If “living paycheck to paycheck” means having less than a month’s worth of income saved in cash, then calculated in this way, the “60%” factoid gets it exactly right: the share of working-age, non-business-owning households living paycheck to paycheck was:
63% in 1998
63% in 2001
64% in 2004
64% in 2007
67% in 2010
64% in 2013
61% in 2016
59% in 2019
In other words, Bernie nailed it.
What led the above-cited pundits to the erroneous conclusion that it was Bernie who erred?
The most important factor, quantitatively speaking, is slightly technical and takes a bit of explanation. If you want to use household wealth data to determine what share of Americans “live paycheck to paycheck,” you have to exclude business owners from the analysis. This isn’t just because — to state what should be obvious — business owners can’t “live paycheck to paycheck,” no matter how poor they are, since they don’t receive a paycheck.
The more important point is that including business owners in the data distorts the analysis quantitatively. Business-owning households typically report extraordinarily large holdings of cash assets — far out of line with their incomes or net worth. And while there’s no way to prove this with certainty, it’s pretty clear the reason is that a significant proportion of the cash balances they report as household wealth is actually, in functional terms, working capital for their businesses."
https://jacobin.com/2025/03/bernie-sanders-paycheck-savings-debate
