11/17/2023 0 Comments Average american finances 2015![]() ![]() Furthermore, the combination of financial market volatility and the highest inflation rate in 40 years has contributed to this “cliff” effect. 3, 4 While there was no singular cliff moment, as different policies ended at different times based on a variety of factors, we find that financial health did decline between 20 – just as most pandemic-era government financial supports are ending. Pulse research and other sources cautioned of a financial health “cliff” that would occur as these policies reached their close. However, 2021 was the last year people generally were shielded from eviction and received stimulus checks, expanded unemployment benefits, and Child Tax Credit advances. Personal financial behavior also changed as people increased their savings and spent less money during lockdowns. But massive levels of financial support offered to individuals by federal and state governments likely led to improvements in financial health during the pandemic. ![]() 1, 2 This trend initially appeared contradictory: Financial health improved despite lockdowns and record unemployment, among other impacts. and caused an unprecedented economic crisis, financial health rose to its highest point since Pulse research began. ![]() As COVID-19 claimed over a million lives in the U.S. Over the past two years, we saw financial health consistently increase in the midst of a global pandemic. Introduction FinHealth Declines as the Pandemic Recedes While in 2022 we see rare declines in financial health among many traditionally privileged populations, we are also reminded of the persistent precarity that many others experience. These results raise important questions about the role of government support in maintaining and safeguarding financial health, as well as the importance of quality jobs and worker power. Though many Americans appear headed toward further reductions in financial health as inflation continues and spending, saving, and credit use revert to pre-pandemic levels, the financial health changes of the past three years have continued to suggest that government policy can positively influence financial health. The tightening labor market appears to have had positive impacts on the financial health of workers, particularly those at the lowest income levels, and aggregate-level declines in financial health may point to the efficacy of government interventions during the COVID-19 pandemic. We find important implications of the economic upheaval and pandemic-influenced trends of the past few years. ![]()
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