How much of that standard of living is based on credit, though? Credit is largely based on income. Housing, payment flexibility for amenities and vacations, big ticket purchases that reduce long-term costs, etc.
When 3/4 of those making less than 50k and 2/3 of those making less than 100k are living paycheck to paycheck, that extra flexibility influences quality of life quite a bit.
* Statistics vary, but between 55 percent to 63 percent of Americans are likely living paycheck to paycheck.
* Three in four Americans who earn less than $50,000 are living paycheck to paycheck, compared to roughly two in three of those making $50,000 to $100,000.
I'm sure that's part of it. It could help explain how one person has to live in a roach infested apartment while another can get a nice house in the suburbs. Same with having no car or only being able to afford a used one in poor condition vs having nice new cars with very low monthly payments. Those two things alone can mean a lot in terms of standard of living.
I know that they say it's expensive to be poor but it'd be a very broken system if we had a $60k a year social safety net for everyone, but poor people still couldn't afford fresh healthy food, reliable transportation, or adequate housing and were still fighting to keep their heads just above water.
When 3/4 of those making less than 50k and 2/3 of those making less than 100k are living paycheck to paycheck, that extra flexibility influences quality of life quite a bit.
Quote (https://www.bankrate.com/finance/credit-cards/living-paychec...):