America’s Real Economy: It Isn’t Booming

From Forbes Magazine:  https://www.forbes.com/sites/petergeorgescu/2018/08/22/americas-real-economy-it-isnt-booming/#78f849dd60b7

Peter Georgescu
Aug 22, 2018

Ostensibly, for the past ten years, our economy has been recovering from the 2008 collapse. During the past few years, our comeback seems to have gained momentum. All the official indicators say we’re back in boom times, with a bull market, low unemployment and steady job growth. But there is an alternative set of data that depicts a different America, where the overlooked majority struggles from month to month.

The Nation recently published a stunning overview of the working poor and underpaid. One of the most powerful data points in the piece described how empty the decline in unemployment actually is: having a job doesn’t exempt anyone from poverty anymore. About 12% of Americans (43 million) are considered poor, and yet they are employed. They earn an individual income below $12,140 per year, and slightly more than that for a family of two. If you include housing and medical expenses in the calculation, it raises the percentage of Americans living in poverty to 14%. That’s 45 million people.

At that level of income, there’s almost no way to pay for food and shelter in any sizeable American city. That means people now can both be employed and homeless. Rajon Menon writes, for The Nation:

In America’s big cities, chiefly because of a widening gap between rent and wages, thousands of working poor remain homeless, sleeping in shelters, on the streets, or in their vehicles, sometimes along with their families.

Fewer and fewer people have savings to weather time between jobs or an emergency expense. A third of the U.S. population has no savings and another third has saved less than $1,000. Two-thirds of American households, by this measure, are desperately scrambling to make ends meet from check to check. Nearly half the American population earns too little to live on comfortably:

One-third of all workers earn less than $12 an hour and 42% earn less than $15. That’s $24,960 and $31,200 a year. Imagine raising a family on such incomes, figuring in the cost of food, rent, childcare, car payments (since a car is often a necessity simply to get to a job in a country with inadequate public transportation), and medical costs.

Even in households that combine income from two wage-earners, it’s rarely enough to live on without anxieties about money. It takes an average of a little more than $100,000 per year now for a household to be able to live without anxieties about money.

Continue reading at:  https://www.forbes.com/sites/petergeorgescu/2018/08/22/americas-real-economy-it-isnt-booming/#78f849dd60b7

Posted in Uncategorized. Comments Off on America’s Real Economy: It Isn’t Booming
%d bloggers like this: