The U.S. labor market has improved dramatically since the coronavirus outbreak swept the country more than a year and a half ago, but a new bankruptcy survey found that Americans are still worried about its long-term impact on the economy – and their wallets.
About 5 out of 2 Americans (or 39%) cited the epidemic as a significant threat to the economy over the next six months. That fear has almost doubled Washington’s political climate (21%). Concerns about inflation (14%) came in the far third place. Drawing a picture of concern, 3 out of 5 Americans (or 63%) worry that these threats could negatively affect their job or income at the same time, the survey found.
Vaccination and laxity restrictions have helped push U.S. economic growth back to pre-epidemic levels, while some economists say the financial system is heading for the fastest annual growth rate since 1984. Fast-spreading delta variant slow-vaccination rates and outbreaks abroad.
“Americans see the coronavirus epidemic as the biggest economic threat in the next six months, and %% of Americans are worried about their jobs and incomes,” said Greg McBride, CFA, chief financial analyst at Bancroft. “Nervous families are less likely to incur costs, and the recent tug-of-war on travel and consumer considerations bears this out.”
1. Americans say the three biggest threats to the U.S. economy are the coronavirus epidemic (%%), the political climate in Washington (21%), and inflation (1 %%).
2. About a quarter (2 %%) of Americans are very concerned that this threat could affect their income or job prospects, while 0% are somewhat worried.
3. Six months from now, Americans are optimistic about the direction of the U.S. economy, with more than half (56%) expecting the financial system to be somewhat better (48%) or much better (9%).
Other economic concerns: – Political or economic development abroad, 9%; – Terror, 8%; – Unexpected increase in interest rates, 4%; And – “something else,” at 1%.
Americans point to the epidemic on politics as the biggest threat to the economy for the second consecutive poll and the margin between the two issues after the election has increased significantly. When less than a month after the 2020 presidential election, in October 2020, Bancroft voted for respondents, %% saw the coronavirus as the biggest economic threat, with 34% pointing to the presidential election.
Prior to Covid-19, the political environment in Washington was the runway top choice as the biggest economic threat in the last election, 38% in April 2017, 36% in September 2017, 43% in November 2018 and 44% in April 2019.
Americans see different threats based on their age and political affiliation
Yet, Americans’ perception of the biggest threat depends on how old they are and whether they are identified as Republican, Democrat, or Independent.
– Baby Boomers (between the ages of 5 and 755) and Republicans could cite Washington’s politics as the biggest threat to the economy in the next six months, both by 2%, respectively.
– About half of the millennia (those between the ages of 25 and 0) will probably see the epidemic as the biggest economic threat in the next six months, %%, General Jars (411 to 556) 41%.
The survey found that the epidemic was also a major concern for each income group, level of education attainment and region of the country.
Fear of inflation
More surprisingly, however, the low-income groups who continue to take the worst rents in the face of higher inflation did not indicate major concerns about price increases. About 30% of Americans who earn less than ,000 30,000 a year indicate that this is their main concern for the U.S. economy over the next half year. For those who earned between $ 30,000 and $ 49,999 a year, inflation concerns were linked to political concerns, both accounting for 19%.
Two white and Hispanic Americans (14% and 19%, respectively) were more concerned about inflation than black respondents, 7%.
Americans are identifying that price increases have affected their wallets. The August Bankruptcy Report found that 89% of adults noticed a price increase, with 66% of participants indicating that they had suffered a financial loss.
“While inflation is on everyone’s radar, it’s far from the biggest risk,” McBride said. “Only 7 in 1 Americans see inflation as the biggest economic threat in the next six months, and even among households earning less than 50,000 50,000 a year, 1 in 6 see it as the biggest risk.”
Americans are concerned that these threats could hurt their income and job prospects
Regardless of the concerns, Americans are extremely concerned that one of these economic threats could hurt their finances, with:
– 23% of Americans indicate that they are very concerned about their job or source of income for the next six months; And
– 40% notice they are a bit worried.
Those who expressed concern were more likely than Americans who indicated that they were not concerned by a margin of about 2 to 1 (63% vs. 36%, respectively). These include: – 18% of those who said they were not too concerned; And
– 18% who indicated that they are not worried at all.
Across every income group, educational level, demographic, political affiliation, and place of residence, most Americans indicate that they are concerned about their future finances, although some have expressed much more concern than others.
For example, black and Hispanic respondents were almost twice as likely as White respondents to be concerned about their job and income prospects for the next six months with 35% and 36% vs. 18%, respectively. At the same time, older millennials and general jerseys were most concerned about their income situation, with 71% of those ages and 72% indicating some level of concern.
While Americans are worried about their money, most expect the economic recovery to continue, with 56% expecting the economy to be in better shape in about six months from now.
Nearly half (or 48%) of Americans say the economy will improve somewhat during that time, while the other 9% expect the economy to be much better. At the same time, 28% predict that the economy will be a little worse than it is today, while 15% say it will be even worse. About 1% selected, “Don’t know.”
While General Jersey and the old millennium were the top concerns for their jobs or incomes, they are also the most optimistic that the economy will improve to 59% and 68%, respectively, in the next six months. In the six months from now, অর্থ 30,000 a year is shared equally on whether the economy will be good or bad, both 49%, while most Republican-identified respondents and those aged 65 and over have indicated that the economy will be worse (55% and 51% Respectively).
When it comes to politics, 68% of Democrats expect the economy to be in good shape months from now, unlike just %% of Republicans. The majority of independents (56%) surveyed expected an improved economy.
As family income rises, so does optimism for the U.S. economy. Among the highest-income households (those earning more than ৫ 5,000,000 a year), 5% expected economic recovery, 59% of households had an income of-50,000- এবং, and 52% had an income of ০ 50,000-. ,, 99 ning.
What this means
If the economy keeps you up at night, consider spending as much cash as possible on your emergency fund and taking back the funnel.
Experts usually suggest creating a fund of six months worth of your expenses. Thus, if you face an unexpected emergency or cutback in your income, you will be able to pay the bill for a significant period of unemployment. According to the Department of Labor, unemployed Americans face about 30 weeks or 7.5 months of total unemployment.
While homeowners may still be able to repay their mortgages and cash out, many still have that opportunity. The August Bankruptcy Survey found that 74% of homeowners did not reschedule their mortgages despite having historically low mortgage rates. Doing so can take away hundreds of dollars from your monthly payments and be another important way to protect your wallet against rising prices.
“The debate over whether inflation will be short-lived or more lasting has not been resolved,” McBride said. “The jury will be out for many more months, especially with the ongoing supply chain constraints.”