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Original title: Under the epidemic, the poor get richer and the poor get richer. 14% of Americans have exhausted their savings Source: Global Forex Network
According to the latest SurveyMonkey survey, since the COVID-19 pandemic, 14% of Americans (up to 46 million people) said they had exhausted their emergency savings, another 11% had to borrow money to pay for daily expenses , and some stop paying pension insurance.
The new corona virus crisis has caused unprecedented economic and social damage, leaving millions of Americans unemployed or reducing working hours and wages.
Broken down by age, older millennials have the worst financial situation: Surveys show that roughly a quarter (26%) of young people ages 25-34 say they have completely used up their emergency savings, while older ones of 65 The proportion of baby boomers is only 6%.
SurveyMonkey conducted this survey of more than 5,400 American adults in August. The margin of error for this survey is plus or minus 2 percentage points.
This survey echoes other recent findings. These survey results indicate that many American families are facing financial difficulties in the face of high unemployment and the economic recession brought on by the new corona epidemic.
Former Federal Reserve Chairman Yellen warned in an op-ed in the New York Times that millions of Americans are suffering. He said monetary policy alone cannot save the economy and that the solution will require more fiscal stimulus to stem the deepening fiscal chasm.
The economic recession caused by the epidemic has caused unprecedented economic losses and more than 30 million Americans are receiving unemployment benefits. The recovery in the labor market has recently stalled.
Even more shocking is that a quarter of personal income comes from government aid and subsidies.
According to the latest statistics, the current unemployment rate in the United States is 10.2%, which means that about one-tenth of the American workforce cannot find work.
Additionally, Bankrate’s statistical report shows that while some Americans save more than ever, far more people are struggling with financial conditions than those with acceptable financial conditions.
The research mentioned above also indicated that the number of people with reduced emergency savings is about three times higher than before the outbreak.
Bankrate’s chief financial analyst, Greg McBride, recommends that at least enough emergency savings be deposited for six months to live to cover expenses from medical bills to home repairs.
But at the same time, the wealth of the rich in America continues to grow. According to an analysis by the advocacy organization American Tax Equity, since the coronavirus quarantine in March, the total wealth of American billionaires has risen by nearly $ 800 billion, an increase of more than 25%. This is partly due to the rise in US stocks, especially tech stocks.
The rising wealth of billionaires is in stark contrast to the economic difficulties faced by millions of ordinary Americans. The Federal Reserve estimates that the net worth of American households fell 5.6% in the first quarter, the biggest single-quarter drop since the 1950s.
According to Feeding America, nearly half of American households have gone hungry since the start of the pandemic and the demand for food storage has increased by 20%. Additionally, in the coming months, an estimated 40 million Americans may be evicted from their homes because they cannot pay their rent or mortgages.
“Compared to the health and wealth of most working and low-income families, the growth of wealth for billionaires is just weird and ugly,” said Chuck Collins, director of the Inequality Program at the Institute for Policy Research. .
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