Middle-income Americans are increasingly 'financially vulnerable'

[BeyondGeography]

Most Americans are struggling with at least some part of their finances, a new report shows, despite a strong economic indicators to the contrary.

Just 29% of Americans — an estimated 73 million people — are “financially healthy,” according to a report released Thursday by the Financial Health Network. The share of financially healthy individuals increased by 1% over 2018, a difference that wasn’t statistically significant.

Another 54% of the country, translating to 135 million people, is “financially coping” — meaning they struggle with some aspects of their financial lives. Some 17% of Americans (43 million people) are “financially vulnerable,” or struggling with nearly all or all aspects of their finances.

Middle-income Americans with household incomes from $30,000 to $99,999, prime-working-age people aged 26 to 49, and women were among those who showed increased financial vulnerability.

... “Americans are still struggling with their financial health,” Rob Levy, the vice president of research and measurement at the Financial Health Network, told MarketWatch. “Our hypothesis is those declines are the result of continually rising costs of health care and child care, and stagnant wages among the middle class,” Levy added.

The organization scored financial health based on eight indicators that fall into the categories of spending, saving, borrowing and planning: spending less than income, paying bills on time, having enough liquid savings, having enough long-term savings, having manageable debt, having a prime credit score, having appropriate insurance, and planning ahead financially...

https://www.marketwatch.com/story/middle-class-americans-are-increasingly-financially-vulnerable-despite-strong-economy-and-low-unemployment-2019-11-14

[ritapria]

1. An Excellent Analysis

The Economy is Booming for about 10% of the population ………….60% are living paycheck to paycheck ….

[Skittles]

2. prices keep going up but wages are stagnant

all the gains go to the 1%

[BeyondGeography]

4. Yup

Corporate mergers on top of the usual stock buyback and dividend piggery:

Link to tweet

[alwaysinasnit]

3. K&R Thanks for posting.

[roamer65]

5. How many will be "secure" when we have the currency crisis?

Our fiscal status is untenable and a currency crisis is the road it will travel.

Voltaire-

“All paper money eventually returns to its intrinsic value. Zero.”

[Sherman A1]

6. Another reason for Universal Basic Income

It is an idea that is overdue and needs to be implemented as quickly as possible. The advances in AI, Automation and Consolidation are simply going to put more and more pressure on the middle class and there is not any wiggle room left.

[Hoyt]

7. Definitely for improving lot of the 29% who were not rated "financialy healthy." But "coping" has

pretty much been where most Americans have been since the 1950s.

83% "financially healthy" or "coping" is not bad, really.

As a rough guess -- probably 20% of the "coping" are in danger of -- and under enormous stress -- of falling into the "financially vulnerable" category. That's a lot.

Job security, safety net and healthcare coverage would do a lot to improve things.

[applegrove]

8. And they've done regression analysis and people in financial anxiety

mode vote intuitively, not rationally. Why they vote against their own economic best interest. Republicans know this.