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 Thing

And it's a big one. Mother Jones is launching a new Corruption Project to do deep, time-intensive reporting on the corruption that is both the cause and result of the crisis in our democracy.

The more we thought about how Mother Jones can have the most impact right now, the more we realized that so many stories come down to corruption: People with wealth and power putting their interests first—and often getting away with it.

Our goal is to understand how we got here and how we might get out. We're aiming to create a reporting position dedicated to uncovering corruption, build a team, and let them investigate for a year—publishing our stories in a concerted window: a special issue of our magazine, video and podcast series, and a dedicated online portal so they don't get lost in the daily deluge of headlines and breaking news.

We want to go all in, and we've got seed funding to get started—but we're looking to raise $500,000 in donations this spring so we can go even bigger. You can read about why we think this project is what the moment demands and what we hope to accomplish—and if you like how it sounds, please help us go big with a tax-deductible donation today.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight 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