Americans are feeling financially naked. According to a new report, three out of four American workers are not financially secure (which doesn’t even include the +30% of American workers that aren’t participating in the labor force). Not that this is any news… the “recovery” that our country has seen since the Great Recession of 2008 is a complete farce. The American Federal Reserve has propped up the financial markets with excessive quantitative easing while simultaneously allowing Americans to load up on debt via near-zero interest rates. A majority of the people that’ve benefitted during this “recovery” have been already-well-off individuals who can take advantage of the capital market and debt interest environments. Case in point…
Peep this chart, bruh:
As you can see, the financial security of the U.S. workforce has kinda sorta freaking plummeted over the past 2 years. Three out of four American workers don’t feel financially secure. In just a mere two years, the number of Americans that feel financially secure enough to say “I always have money to spend on basic necessities” dropped by an astonishing 17% between 2013 and 2015. The number of Americans that felt they were financially well-off enough to pay the monthly mortgage/rent or healthcare costs dropped by 18% and 10%, respectively.
Listen: It’s one thing to feel less financially secure when it comes to healthcare costs. We’ve covered a couple times already how the implementation of Obamacare has crushed Americans’ wallets via increased costs and outrageous fines. It’s also one thing to feel unable to keep up with the monthly costs of a home, given the continued skyrocketing of rent costs. But to feel financially unable to spend on “basic necessities”.
That’s fucking brutal, bruh.
The ramifications of these American workforce sentiments are twofold:
- Americans will mot likely be worse-off financially for retirement. Even though most workers are using their tax refund money on savings, a majority of individuals feel unable to keep up with their daily and monthly costs. If Americans are unable to meet the costs of their “basic necessities”, then lord knows they aren’t fucking saving for retirement.
- If workers feel unable to pay for even basic necessities, they most definitely will not be able to pay for the likely massive loads of debt they’ve accumulated. That smells like another credit default environment to me. This time, we could see a financial crisis in the form of something like the auto industry and not just the mortgage industry.
Regardless, it’s disheartening to hear that so many Americans feel financially inept. Financial instability will ultimately lead to significant stress, which will lead to an overall decrease in quality of life.