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Millions Of Americans Had Their Emergency Savings Wiped Out

A new survey via CNBC and Acorns Invest commissioned by SurveyMonkey, found that the virus-induced recession wiped out 14% or about 46 million American’s emergency savings. 

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About 17% had to tap into emergency savings to cover living expenses, 11% had to borrow money to cover everyday expenses, 6% stopped contributing to 401(k) or other retirement accounts, and 5% asked for rent relief.

The survey of more than 5,400 adults in August found that older millennials depleted their emergency savings the most. About 26% of those aged 25 to 34 said their savings had been drained as they struggled to survive the downturn. Only 6% of boomers drained savings; they’ve been through multiple boom/bust cycles and understand the importance of saving for a rainy day. Unlike millennials who have only been through one recession.

The survey’s findings outline a similar message from former Federal Reserve Chair Janet Yellen last week, where she warned in an op-ed, published in The New York Times, that millions of Americans are suffering. She said monetary policy by itself could not save the economy from the downturn, and the solution will require additional rounds of fiscal stimulus to thwart a deepening fiscal cliff.

The virus-induced recession has caused unprecedented economic damage, while more than 30 million American’s are collecting unemployment benefits. The labor market recovery has stalled as the Fed’s new policy to raise the inflation target above 2% will result in a higher cost of living for tens of millions broke, jobless Americans.

What’s even more stunning is that a quarter of all personal income is derived from the government.

This merely underscores the uneven, or K-shaped nature of the the recovery: where the political elites and ultra-wealthy were bailed out by the Fed, while millions of serfs, i.e., low-income folks, have (almost) completely run out of savings, depleted stimulus funds, and some can no longer afford food as the fiscal cliff  hits the 31 day mark on Tuesday.

Congress and the Fed better beware: stress low-income households enough, they will eventually assemble and revolt, striking at the one building that has so far avoided the protesters’ focus: the Marriner Eccles building.

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4 comments

  1. It is time to look at states and countries that did not lock down and the results. The Lancet had an article that Tucker Carlson cited that showed schools did not need to be shut down because children did not spread the virus, and a death was a rarity. And the CDC cited that only 6% of the deaths that were listed as being from Covid were actually from Covid. The remainder had underlying causes. So we should open up our economy, with continuing precautions, and those at risk (elderly with health conditions, and anyone of any age with a health condition) should continue to practice lockdown or semi-lockdown measures. There is no reason our churches should not open with social distancing and schools with precautions. Our business need to be able to open, so that everyone can get services, not just Her Majesty Queen Pelosi.

    Another consideration is the depression and suicides that this is causing, the economic devastation on families and business owners and our children.

    • You are uneducated and NUTS Covid alone only killed 10,000 people world wide according to the latest info from the CDC Covid was the biggest HOAX perpetrated on mankind and those responsible including Pelosi Schumer Schiff an Gates and Soros should be tried for treason.

  2. The reason is clear George Soros & Bill Gates both want to be trillionaires that is why millions of Americans and others world wide have suffered this HOAX of Covid-19 that only really alone killed less than 10,000 people world wide according to the CDC Almost all the deaths attributed to covid were caused by at least 2 1/2 other reasons including Covid that made it 3 1/2. The lies of Democrats were unbelievable and all Democrats and the two Billionaires named here should be tried for TREASON and ……

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