U.S. Household Debt Worse Than in 2008
According to a survey report by the U.S. Federal Reserve Bank, household debt in the U.S. has risen to a level higher than the worst peak of the financial crisis in 2008.
Of the 6,600 adults surveyed, 23% did not expect to be able to pay all of their current month's bills in full and 25% reported skipping medical treatments due to cost in the prior year
However, the Federal Reserve also claims that 70% of Americans said they were either "living comfortably" or "doing okay," which is up 1% from 2015 and up 8% from the first survey results in 2013.
The improvements in well-being as reported by the survey respondents are concentrated among adults with at least some college education. Americans without a college education are doing worse than before.
Poor Americans continue to be squeezed between the rising cost of living and stagnant wages.
According to Federal Reserve Board Governor Lael Brainard, "the survey findings remind us that many American households are struggling financially, including fully 40% of those with a high school diploma or less. More broadly, 44% of all respondents could not cover an unexpected $400 emergency expense or would rely on borrowing or selling something to do so. The survey also shows that many adults have no savings for retirement."
One of the big factors in keeping the poor down is employer's abusive practice of not provided a consistent schedule or allowing workers full-time positions. 17% of workers report that their schedule varies from week to week based on employers' needs. This makes it difficult or impossible for them to get a second job or obtain more education to improve their employment prospects.
Many Americans can expect to become poorer and sicker under the Trump regime as social safety nets are pulled out from under them, health care and insurance costs increase, minimum wage remains at the same low level and the cost of food and housing continues to climb.
The Federal Reserve Bank is a private bank owned by other banks, most of which have long criminal histories and are predatory in nature. So, the report should be taken with a grain of salt.