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That’s as much a benefit of having a higher income, as a consequence of a savvy budget.

Look at the statistics, plenty of people with higher incomes live paycheck to paycheck and don't have an efund. Not having money in the bank is more often a behavioral problem than an income problem.

The real issue imo is that nobody seems to get a proper financial education, and resources vary greatly in quality.

Short term cash savings means less long term compound investment.

Sure, but the compound investment returns will be dwarfed by short term debt interest payments (credit card, personal loans, etc). Far too many people float credit card debt so they don't need to touch investments. That's the problem cash is intended to solve, and you can mitigate that opportunity cost with money market funds and high yield savings asks accounts.

If you can’t go to work without a car and you can’t fix your car without taking on debt, then you can’t afford to carry a positive balance.

Everyone's circumstances are different, but people frequently have more options available to them than they actually consider.

For example:

• can they fix the car themselves? If you can identify the problem (most car parts stores offer free OBD2 scans), you can perform most repairs with a jack (comes with most cars), socket set ($50 or so at the hardware store), a screwdriver ($20 or so), and YouTube
• is mass transit an option? A bicycle + bus can get almost everywhere, even in my area with terrible transit options. It'll take an extra hour, but it's a lot cheaper than panicking and paying $1k+ for a tow and repair shop
• get a ride with a coworker or friend, or even uber until the weekend when you have more time to deal with it
• quit the job and apply for something closer - if you can survive 3+ months without income, maybe the car breaking down is the kick you needed to pull the trigger on a decision you've been putting off

Obviously individual circumstances differ. My point is that if you have no cash reserves, your anxiety when literally anything goes wrong can blind you to other options (I know because it has happened to me). If you have the fallback option of just paying out of pocket for a fix, you'll probably also be able to take a step back and consider other options.

I've had a cash reserve since I worked my way through college. Sometimes rebuilding that cash reserve sucked and meant I had to eat really cheaply and not go out with friends. I made just over minimum wage (about $9-10/hr) while attending college full time and renting an apartment (shared a bedroom because I couldn't afford my own room). I know how hard that it because I did it. I remember push starting my manual transmission car for weeks because I didn't have the time or money to replace the starter.

I learned to repair my own car, and I've been doing my own maintenance since, even though I can now afford to take it to a shop, though I do refuse the more dangerous jobs (e.g. anything with high voltage or in the steering system). I also rode my bike + bus for a few years to save money and improve my fitness (10 mile ride, so not super close, and I was the only one doing it).

I'm not saying everyone should fix their own cars or ride the bus and bike, I'm saying that not having a cash buffer can lead to desperate decisions. Do what you can to create a surplus each month, even if it's just a few dollars, and save that for a rainy day.

massive surplus

Yes, a higher income or asset balance makes things easier, but not having that doesn't make it impossible, just harder.

feedback loop of poverty - wherein people are effectively trained to think short term by selection bias

Poverty is a completely different beast with its own set of causes and possible solutions. I'm not saying everyone can just "pick themselves up by their bootstraps," I'm saying most people can do better and create a cash cushion.

But yes, family and community culture is a huge part of the problem and reduces the chances for people to better educate on managing finances themselves and break that cycle.