Earlier quoted context omitted.
This has largely been debunked -- the questions asked were not about their access to sufficient funds. For example, the median American household has $1000 per month in disposable income ("beer money") after all typical living expenses. This fact alone should immediately raise questions about the assertion that the majority of households can't afford $500 in one-time cost, emergency or not. The major source for this…
A Bankrate[1] survey found that only 37% of respondents could cover a Given that, I'd say a large percentage of Americans do not have plenty of emergency cash. That's not to say most of America is "one paycheck away from the street" like the parent comment quoted... [1]: https://www.bankrate.com/banking/savings/survey-how-american...
I'd be in the 'reduce spending' camp since I try to avoid touching my savings.