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Without borrowing or selling property, yeah. Not a lot of people have that much liquid cash laying around.
But I wouldn't assume that this would be some kind of economic devastation. Our whole system revolves around easy credit.
If the unexpected expense is something that can be paid for on a credit card, that 20% interest isn't exactly ideal but for many people it can be a simple task of buying now and paying it off over 2 or 3 months. For them, $1000 isn't a lifestyle changing expense.
For others, $1000 might be devastating. It might be the difference between making rent or not, and ultimately lead to eviction and maybe even homelessness.
So liquidity is a different question from financial health or resilience, even if they're somewhat correlated. There are other metrics out there more directly measuring financial stability or vulnerability.