The U.S. economy has a problem. The usual economic bench marks look really good: America in 2018 is enjoying faster growth, low unemployment, record numbers of job openings and a stock market near an all-time high. Yet an alarming number of Americans are still struggling to get by.
In the past week, two reports — a new Federal Reserve survey of more than 12,200 Americans about their finances and a new United Way report on financial hardship — reveal just how unstable life remains for a large number of people. Here’s a rundown of the key findings:
- Forty percent of American adults don’t have enough savings to cover a $400 emergency expense such as an unexpected medical bill, car problem or home repair.
- Forty-three percent of households can’t afford the basics to live, meaning they aren’t earning enough to cover the combined costs of housing, food, child care, health care, transportation and a cellphone, according to the United Way study. Researchers looked at the data by county to adjust for lower costs in some parts of the country.
- More than a quarter of adults skipped necessary medical care last year because they couldn’t afford it.
- Twenty-two percent of adults aren’t able to pay all of their bills every month.
- Only 38 percent of non-retired Americans think their retirement savings is “on track.”
- Only 65 percent of African Americans and 66 percent of Hispanics say they are “doing okay” financially vs. 77 percent of whites.
The Fed and United Way findings suggest the U.S. economy isn’t nearly as strong as statistics such as the unemployment rate and the GDP growth rate suggest. Taken alone, these metrics mask the fact that some Americans are doing well and some are not.
– The Washington Post