Census – 35% of Households Say it is Difficult to Pay Expenses

Census Bureau employees continue doing their jobs whilst under attacks from the Republicans and Covid19. Help is on the way, but it took President Biden to signal the “beginning of the beginning of recovery” on 20 January 2021 at noon. It’s a disaster recovery plan that is needed under the disastrous policies of the voted out of office Trump mis-adminstration.

Better late than never. But for the suffering it’s small compensation for enduring a seditious President for four years who – based on his actions in office was unemployed all the while being pampered, housed, fed and subsidized – aka welfare for the rich –  by taxpayers he disdains. ( see AutoInformed on Snapshot – The Trump Economic Depression, Small Business Pulse Weak – Large Negative Covid Effects)

The latest Brookings Institution research from the Hutchins Center on Fiscal and Monetary Policy observes:

“Since the onset of the pandemic business debt has increased by about $1.25 trillion and household debt by less than $100 billion, intensifying pre-Covid concerns at the Federal Reserve about the risk that business debt poses to financial stability. Fan Cai and co-authors from the Federal Reserve Board say that this concern reflects the potential that, in the event of a ratings downgrade, institutional holders of bonds and business loans will rush to sell those assets, pushing down their prices in a downward spiral known as a fire sale.

Ken Zino of AutoInformed.com on Negative Covid Economic Effects on People

Click to Enlarge.

In contrast, a large share of household debt, which includes mortgages and student loans, is held or guaranteed by the government so the likelihood of fire sales is much lower. In addition, business debt is more likely to be illiquid than household debt, amplifying the consequences of fire sales. The authors predict that businesses will emerge from the pandemic more leveraged than they were before, suggesting that the potential for fire sales will be a growing concern,” said Brookings.

Based on responses collected January 20 through February 1, the  U.S .Census Household Pulse Survey estimates that:

  • 9% of American adults expect someone in their household to experience a loss in employment income in the next 4 weeks
  • 6% of adults live in households where at least one adult substituted some or all in-person work for tele-work because of the coronavirus pandemic
  • 2% of American adults lived in households where there was either sometimes or often not enough to eat in the previous 7 days
  • 8% of adults are either not current on their rent or mortgage payment or have slight or no confidence in making their next payment on time
  • Of adults living in households not current on rent or mortgage, 3% report eviction or foreclosure in the next two months is somewhat or very likely
  • 4% of adults live in households where it has been somewhat or very difficult to pay usual household expenses during the coronavirus pandemic
  • 3% of adults in households with post-secondary educational plans had those plans cancelled or significantly changed this fall
  • 2% of adults have received a Covid-19 vaccine
  • Among adults who have yet to receive a Covid-19 vaccine, 54.8% definitely will get one when available
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