Almost 46% of Americans would be hamstrung if an unexpected $400 bill showed up in the mail, according to a new study by the Federal Reserve.
That does not sound like an economic recovery.
The fact that almost half of the 99 percenters don’t have $400 in savings to foot a vet bill or a speeding ticket with fines and surcharges, tells more about the US fragile middle class than any other statistic.
Seven years into the economic recovery from the Great recession and many Americans can’t handle an emergency expense without sending the family’s finances into a tailspin.
On the positive side if you think this is a positive, This is the third time the Fed has looked at this question, and the number has dropped from 50 percent in 2013 to 46 percent last year.
Naturally the more money you make the better you are able to cope. Although, 19% of families making over $100K still reported that making the emergency expense would be a problem.
That is compared to 66% making less than $40K.
So as the stock markets move back to reaching all-time highs, this study shows the inequity between the haves and the have-nots.
It’s not that these Americans are down on their luck or not liquid. No, they have seen their good paying full-time jobs leave and have become part of the American Scream.
Two part-time jobs with no benefits in a house that is underwater on price and paying soaring medical insurance payments.
You can’t blame them. They are refugees of the Obama Economic Miracle.