The number of Americans considered ‘economically insecure’ reached a new high during the period from 2008 to 2010 which spanned what is now called the Great Recession.
This news comes just as businesses hope to increase profits amid holiday sales and Christmas shopping, but half of the U.S. population is now worried that they won’t be able to buy the presents on their list because of their financial situation.
Deemed economically insecure by the Economic Security Index, 20 per cent of the county have considerably less spending money now as compared to previous years.
By comparison, only 14.3 per cent of the country’s population was in the same position in 1986.
The report, compiled by Yale professor Jacob Hacker’s Index team, evaluates census data and looks at a family’s income, savings, and medical bills when determining who is considered economically insecure.
Unemployment rates are clearly linked to the figures, and are similarly grim. The national unemployment rate is currently 9.1 per cent.
While the deals in stores and online on Black Friday and Cyber Monday are meant to encourage shoppers, many people’s bank statements are having the opposite effect.
As a result of the difficult financial times and the diminishing disposable cash in many American households, half of the country is concerned that they will not be able to buy the gifts they want for family and friends this holiday season.
A CBS poll reports that 33 per cent of those polled will not have enough money for holiday shopping.
The poll also asked respondents to describe how concerned they were about meeting their spending needs this season- asking them to self-identify as very concerned, somewhat concerned, not very concerned, or not at all concerned.
The categories were split relatively evenly- all ranging between 21 and 29 per cent.