Share of People Who Can Cover a $400 Expense Went Up in 2017

Every year we learn that lots of people don’t have enough savings to cover a $400 emergency expense. Here’s the Post yesterday:

Four in 10 adults still say they don’t have enough savings to cover a $400 emergency expense, according to the latest Federal Reserve report on the economic well-being of Americans. While that is an improvement over 2013, when half of Americans said they could not cover a $400 expense, it remains elevated at a time when unemployment is so low and wages are rising.

This is a reminder, says Heather Long, “that the U.S. economy has deep structural problems that are far from being cured.”

I suppose so. But I finally got curious about where this statistic comes from every year like clockwork, and the answer turns out to be the Federal Reserve’s “Report on the Economic Well-Being of U.S. Households.” It’s based on their annual Survey of Household Economics and Decisionmaking (SHED), which they’ve been conducting since 2013. Here are a couple of charts from the 2017 report:

Both of these charts suggest that although we’re not yet in financial nirvana, pretty much everyone has been doing steadily better over the past five years. And only 7 percent of the population reports that they’re finding it “difficult to get by.” Now here’s the $400 emergency expense chart:

That’s going steadily up too. It’s certainly true, as Fed chair Jerome Powell says, that aggregate statistics “tend to mask important disparities by income, race and geography,” but it’s also true that things are getting better for just about everyone.

They aren’t getting better very fast, though, and there’s probably a recession due in the next year or two. That’s when we’ll find out just how resilient our economy really is and how well our lowest-income workers are doing.

ONE MORE QUICK THING:

Or at least we hope. It’s fall fundraising time, and we’re trying to raise $250,000 to help fund Mother Jones’ journalism during a shorter than normal three-week push.

If you’re reading this, a fundraising pitch at the bottom of an article, you must find our team’s reporting valuable and we hope you’ll consider supporting it with a donation of any amount right now if you can.

It’s really that simple. But if you’d like to read a bit more, our membership lead, Brian Hiatt, has a post for you highlighting some of our newsroom's impressive, impactful work of late—including two big investigations in just one day and covering voting rights the way it needs to be done—that we hope you'll agree is worth supporting.

payment methods

ONE MORE QUICK THING:

Or at least we hope. It’s fall fundraising time, and we’re trying to raise $250,000 to help fund Mother Jones’ journalism during a shorter than normal three-week push.

If you’re reading this, a fundraising pitch at the bottom of an article, you must find our team’s reporting valuable and we hope you’ll consider supporting it with a donation of any amount right now if you can.

It’s really that simple. But if you’d like to read a bit more, our membership lead, Brian Hiatt, has a post for you highlighting some of our newsroom's impressive, impactful work of late—including two big investigations in just one day and covering voting rights the way it needs to be done—that we hope you’ll agree is worth supporting.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate