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.
“We have a ‘Two Realities’ economy in America,” said William Rodgers, a professor at Rutgers University and chief economist at the Heldrich Center for Workforce Development. “One segment has truly recovered from the Great Recession and is at full employment. The other continues to experience stagnating wages, involuntary part-time employment, inflexible work schedules and weaker access to health care.”
President Trump and many Republicans in Congress are focused on getting people back to work with the belief that once people have jobs they will be able to lift themselves out of poverty. But a growing body of research like the Fed and United Way studies and anecdotes from people working on the front lines at food banks and shelters indicates that a job is no longer enough.
Wages in the United States, especially for workers who aren't managers, have stagnated for two decades, making it difficult to save for emergencies, let alone save to buy a home or take extra classes to get ahead.
D'Amato has worked at food banks and pantries since 1979, but she says she's never seen it like it is today with so many people with jobs but still unable to survive. October and November were the highest food bank usage on record for her organization, a reminder that many are still not stable years after the Great Recession officially ended in 2009.