Despite improvement in certain areas of the economy, the Great Recession never truly ended for millions of Americans. Households across the nation are still trying to overcome a sluggish labor market, stagnant wages, and rising living costs. Making matters worse, the struggle does not appear to be ending anytime soon.
The Federal Reserve’s wealth effect is in short supply. According to a new report from the central bank, 25 percent of American households say their families are “just getting by” financially, and another 13 percent are “finding it difficult to get by.” Compared to five years earlier, 34 percent feel like they are worse off today, while the same number feel about the same. Only 30 percent repot that they were somewhat or much better off financially. The survey polled more than 4,100 respondents between September and October last year.
“Many households in the United States have been tested by the Great Recession. Large-scale financial strain at the household level ultimately fed into broader economic challenges for the country, and the completion of the national recovery will ultimately be, in part, a reflection of the well-being of house- holds and consumers,” explains the report.
Let’s take a look at fives signs that Americans are broke and struggling in the current economic environment.