Despite economic growth, many Americans have not been able to cope with a sustainable slowdown: report



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In the midst of what is likely to become the longest period of sustained economic growth ever recorded, a new report says that millions of middle-class, low-income Americans still do not have access to land solid enough to to cope with a lasting recession.

Since the beginning of the Federal Reserve's annual report on household welfare in 2013, the survey (the most recent survey of more than 11,000 Americans) has become a critical tool in determining whether the benefits of recovery have exceeded the limits of the socio-economic spectrum.

While this year's report is generally positive, officials said it identifies the underlying fragility and exposes pockets of distress. Line after line, the report presents the daily concerns of American households.

Nearly four in ten (39%) said they would not be able to raise the funds needed to deal with a $ 400 emergency. Even without any sudden expense, about 17% of adults said that they would miss a payment on at least one bill during the month of the survey.

More than 6 in 10 said losing their jobs would mean they could not cover three months of expenses, even if they borrowed, sold assets, or borrowed from friends or relatives.

Only 36% said their retirement savings were on track.

Nearly a quarter of Americans have given up some form of medical care in the past year because they could not afford it. Separately, 1 in 5 had to deal with major and unexpected medical bills. About 4 in 10 people still had debt related to these bills.

The survey covers 2018, when the unemployment rate averaged 3.9%, the lowest since 1969, and that the economy grew by 2.9%, which corresponds to the peak reached after the great recession. Average hourly earnings rose 3%, which is without a doubt the fastest rate since the end of the recession. But these figures are general national averages – if earnings disproportionately benefit the few affluent, the trends of the majority of American workers may be missed.

When David Moore, owner of D & D Automotive in Las Cruces, New Mexico, learned that he would soon live the longest economic expansion ever recorded, he seemed indignant.

"That does not extend to me," he said. "It's getting worse."

Moore has been a mechanic for 40 years. He said these days, customers often have to leave their cars with him until the payday comes, or until they can collect the money.

"I lost three jobs this week because it is too much money," Moore said. "They pulled the cars, they will not fix them."

"There is no extra money available for many people," Moore said. "I'm sometimes shocked by stickers, adding tickets," he added later. "Everything is gone."

In fact, when his son had to go to the emergency room last year, Moore himself could not afford the $ 2,000 bill right off the bat. He always sends $ 100 a month to the hospital to pay the bill, he said.

"Another year of economic expansion and low national unemployment rates have not made it possible to reduce persistent economic disparities between races, studies and geography," the report's authors wrote.

In particular, the economic distress measures continue to highlight black workers and, to a lesser extent, Hispanics. Only 47% of black adults rated their local economy as good or excellent in 2018, compared to 68% of whites.

Black Americans are less likely to work and less satisfied with the number of hours spent at work.

Disparities are strong even among Americans who attended university. About 28% of blacks are behind their student loans, as are 15% of Hispanics.

The number of whites is only 7%. The gap may be related to access to education – black Americans were five times more likely than whites to have attended a for-profit university.

Andrew Van Dam of the Washington Post wrote this story.

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