Final answer:
Americans are typically insecure with their finances due to factors such as income inequality, economic restructuring, and the impact of events like the Great Recession. The combination of these factors contributes to financial insecurity and impacts various aspects of well-being. The decline in homeowners' wealth and the global financial crisis also play a significant role in shaping Americans' financial situations.
Step-by-step explanation:
Americans are typically insecure with their finances due to factors such as income inequality, economic restructuring, and the impact of events like the Great Recession. The gap between the rich and the average American has grown significantly since 1980, with little of the economic benefits trickling down to the majority of Americans. The Great Recession further exacerbated financial insecurity among Americans, leading to feelings of being poorer and impacting aspects of well-being such as health and psychological health.
A strong stock market depends on the continuous influx of new buyers, but in the 1920s, the majority of Americans had minimal savings while a small percentage controlled a significant portion of the wealth. This lack of new buyers, combined with the decline in consumer purchases and uneven wealth distribution, contributed to economic hardships. Additionally, events like the 2008 financial crisis resulted in job losses and furthered the resentment towards the bailouts of banks and investment firms.
Declining homeowners' wealth, decline in the market value of financial assets, and the global financial crisis of 2008-2009 also had a significant impact on Americans' finances, leading to altered retirement and consumption decisions. Overall, the combination of income inequality, economic factors, and financial crises contribute to the typical insecurities Americans feel about their finances.