Survey finds that one out of every five Americans could be out of money “by Election Day”

This week we learned that there won’t be any more stimulus checks for the American people before the election, and that prompted tremendous eruptions of anger all over social media.  At first I didn’t understand why people were so angry, but now I do.  It turns out that a substantial portion of the population is desperate for another round of checks because they are almost entirely out of cash.  In fact, a very alarming survey that was just conducted found that one out of every five Americans “could be out of money by Election Day”

In fact, nearly one-quarter of U.S. consumers say they have less than three weeks of financial runway before they run out of cash, according to a weekly survey on Americans’ finances by consumer finance company Credit Karma. With just four weeks until the election, 1 in 5 Americans could be out of money by Election Day, the data shows.

This is yet more evidence that is consistent with the assertion that the economic downturn in the United States is starting to accelerate again.  The trillions of dollars of “stimulus money” that the federal government borrowed and spent earlier this year is starting to wear off, and tens of millions of Americans simply aren’t going to be able to make it without more emergency government assistance.

But none is coming for a while, and so many American families are going to be faced with some really “tough choices”

“People are going to be forced to make tough choices,” says Colleen McCreary, chief people officer at Credit Karma. “There are a lot of Americans who either haven’t been in this situation in a long time or have never had to face this reality. Many will have to sacrifice and prepare because it could get worse before it gets better.”

Sadly, I think that McCreary’s assessment is overly optimistic.

There is absolutely no guarantee that economic conditions will get any better for the foreseeable future.

With each passing day, more businesses are going under and more jobs are being lost.

In fact, another recent survey found that approximately half of all small businesses in America will “need more aid from the government over the next 12 months to survive”

Half of all small businesses expect to need more aid from the government over the next 12 months to survive, according to a survey by the right-leaning National Federation of Independent Business. Sales for about one-fifth of small companies are still down 50% or more from pre-pandemic levels, the NFIB said.

Please take a moment and let that sink in.

We are talking about half of all small businesses in the entire country.

How in the world can the mainstream media be using the term “recovery” when half of our small businesses are on the verge of going belly up?

That doesn’t make any sense at all.

Of course large businesses continue to deeply struggle as well.  For example, we just learned that Wells Fargo has eliminated 700 commercial banking jobs

Wells Fargo has cut more than 700 commercial banking jobs as part of workforce reductions that could ultimately impact ‘tens of thousands’ of staff, according to a new report.

The San Francisco-based company has made layoffs for positions across the whole division, Bloomberg reported on Wednesday, citing people with knowledge of the matter.

And we also just learned that Ruby Tuesday has formally filed for Chapter 11 bankruptcy protection

Hobbled by the pandemic and facing the same long-term challenges as other casual dining chains, Ruby Tuesday filed for Chapter 11 bankruptcy protection early Wednesday.

The company hopes to use the debt-cutting process to improve its finances and stay in business, saying in a statement that it had “reached an understanding with its secured lenders to support its restructuring.”

Ruby Tuesday has already closed 185 locations, but they are hoping that a restructured company will allow the rest of their restaurants to stay open.

I remember eating at Ruby Tuesday quite a few times when I lived out on the east coast many years ago, and I don’t remember ever having a bad meal there.

If the chain completely collapses, that will definitely be a very sad day.

Of course Ruby Tuesday is far from alone.  So far in 2020, a total of 509 large companies have filed for bankruptcy.  The following comes from Wolf Richter

In September, another 54 large companies filed for bankruptcy, after 54 had already filed for bankruptcy in August, according to S&P Global Market Intelligence, bringing the total for the year as of October 4 to 509, the highest for the same period since 2010.

These are companies that are either publicly traded (minimum $2 million in assets or liabilities), or are private companies with debt that is publicly traded (minimum $10 million).

But this is just the beginning.  As I have discussed previously, we are being warned that a “tsunami of bankruptcies” is coming in 2021 unless the federal government steps in.

At this point, just about every industry wants federal help, and not everyone will be able to get it.

So we should expect to see more numbers like these as the months roll along…

The American Hotel & Lodging Association has said that nearly three-quarters of hotels say they will have to lay off more workers without further financial aid.

And American Airlines and United Airlines combined furloughed 32,000 employees last week. Airlines have already shed tens of thousands of positions through early retirements and buyouts. Delta Air Lines began the year with 91,000 employees, but 18,000 left voluntarily and 40,000 others agreed to take unpaid leaves of absence. The company may cut 1,700 pilots Nov. 1 unless their union agrees to contract concessions.

Overall, more than 60 million Americans have filed initial claims for unemployment benefits this year.  It is a nightmare that never seems to end, and many experts expect the pace of layoffs to start increasing again as we head into 2021.

Many Americans are hoping that the upcoming election will change things for the better, and right now everyone is buzzing about the VP debate.  But there have been bubbles of optimism around previous elections, and yet our long-term economic problems have just continued to get worse and worse.

Over the past 12 years we have added 17 trillion dollars to the national debt, we have witnessed the greatest corporate debt binge in world history, and U.S. consumers have been borrowing and spending money like there is no tomorrow.

But tomorrow always arrives, and our day of reckoning is now at hand.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

During The Coming Economic Crisis Two-Thirds Of The Country Will Be Out Of Cash Almost Immediately

money-one-dollar-bills-public-domainDid you know that almost 70 percent of the U.S. population is essentially living paycheck to paycheck?  As you will see below, a brand new survey has found that 69 percent of all Americans have less than $1,000 in savings.  Of course one of the primary reasons for this is that most of us are absolutely drowning in debt.  In fact, the total amount of household debt in the United States now exceeds 12 trillion dollars.  So many Americans are so busy just trying to pay off their existing debts that they can’t even think about saving anything for the future.  If economic conditions remain relatively stable, the fact that so many of us are living on the edge probably won’t kill us.  But the moment the economy plunges into another 2008-style crisis (or worse), we could be facing a situation where two-thirds of the country is in imminent danger of running out of cash.

If you are living paycheck to paycheck, you live under the constant threat of your life being totally turned upside down if that paycheck ever goes away.  During the last crisis, millions of Americans lost their jobs very rapidly, and because so many of them were living paycheck to paycheck all of a sudden large numbers of people couldn’t pay their mortgages.  As a result, multitudes of American families went through the extremely painful process of foreclosure.

Unfortunately, it appears that we have not learned anything from the last go around.  According to the brand new survey that I mentioned above, 69 percent of all Americans have less than $1,000 in savings…

Last year, GoBankingRates surveyed more than 5,000 Americans only to uncover that 62% of them had less than $1,000 in savings. Last month GoBankingRates again posed the question to Americans of how much they had in their savings account, only this time it asked 7,052 people. The result? Nearly seven in 10 Americans (69%) had less than $1,000 in their savings account.

Breaking the survey data down a bit further, we find that 34% of Americans don’t have a dime in their savings account, while another 35% have less than $1,000. Of the remaining survey-takers, 11% have between $1,000 and $4,999, 4% have between $5,000 and $9,999, and 15% have more than $10,000.

Perhaps the most alarming fact from this survey is that 62 percent of all Americans had less than $1,000 in savings last year.  So that means that this number has gotten 7 percent worse over the last 12 months.

How did that happen?  I thought the mainstream media was telling us that the economy was getting better…

Look, if you don’t have an emergency fund you are in danger of losing everything.  This is a point that I have been making over and over again for years, and in an article about this new survey USA Today made this point very strongly as well…

This data is particularly worrisome since the recommendation is for Americans to have six months in expenses saved in case of an emergency, such as a large medical expense, car repair bill, or losing your job. Without this emergency fund to fall back on, millions of Americans could be risking financial disaster.

As the publisher of The Economic Collapse Blog, people are constantly asking me what they should do to get prepared for what is coming.

The number one thing that I always suggest is to build up an emergency fund.

In a chaotic situation it is always hard to anticipate accurately what is going to happen, but without a doubt we are all going to need to continue to pay our bills and to buy things for our families during the next crisis.

Yes, someday the U.S. dollar will become rather worthless, but until that happens you are going to need to continue to put a roof over the heads of your family and to put food on the table.

And you are going to need money to do those things.

Some time ago, the Federal Reserve also found that a large percentage of Americans are living on the edge of financial disaster.  They discovered that 47 percent of all Americans could not even come up with $400 to pay for an unexpected emergency room visit without borrowing the money or selling something that they own.

If you can’t even come up with $400 you are really hurting, but that is the status of about half the country these days.

We are continually being told that the economy is strong, but that is simply not the truth.

In fact, it turns out that the period from 2005 to 2015 was the worst period for per capita real GDP growth in modern American history.  The following comes from Zero Hedge

  1. Growth was unusually strong in the 1960s and early 1970s. In every year from 1966 through 1973, per-capita income was up between 30 percent and 40 percent from a decade earlier. Thus, it’s not surprising that many Americans recall this as a great period for the nation’s economy.
  2. In every year from 1984 to 2007 — a period that economists call the Great Moderation, because of the way both growth and interest rates stabilized — per-person income was up between 20 percent and 30 percent from a decade earlier. That’s ample reason for Americans to view this as a good period for the economy.
  3. Cumulative per-person growth from 2005 to 2015 was lower than in any prior decade in the sample. That certainly helps explain why many Americans are unhappy with the nation’s recent economic performance.

And as I repeat over and over, Barack Obama is on track to be the one and only president in all of American history to never have a single year when the economy grew by at least 3 percent, and he has had eight years to try to accomplish that feat.

Why doesn’t Donald Trump ever bring up that amazing fact?  I would think that he could get a lot of mileage out of that number.

At this point, nobody can deny that the middle class is shrinking.  61 percent of all Americans lived in middle class households in 1971, but now the middle class makes up a minority of the population for the very first time in our history.

Back in 1970, the middle class brought home approximately 62 percent of all income, but today that figure has plummeted to just 43 percent.

Those that are still doing well often dismiss those that are struggling by barking out such phrases as “get a job”, but the truth is that getting a good job is not so easy these days.

The most recent statistics show that there are 7.9 million Americans that are considered to be officially unemployed.  When you add that number to the 94.1 million working age Americans that are considered to be “not in the labor force”, you get a grand total of 102 million working age Americans that do not have a job right now.

And just because you do have a job does not mean that everything is okay.  As I have discussed previously, 51 percent of all U.S. workers make less than $30,000 a year according to the Social Security Administration.

Everywhere you look things seem to be getting worse and not better.  Not too long ago I documented the explosion of tent cities all over the country as poverty continues to rise, and I discussed how one study found that some young women in our impoverished inner cities are so desperate that they are actually trading sex for food.

Sadly, it isn’t just a few hard cases that we are talking about.  Even in areas of the country that are supposed to be “doing well” we are seeing record-setting poverty numbers.  For example, it was recently reported that the number of New Yorkers sleeping in homeless shelters just set a brand new all-time high, and the number of New York families permanently living in homeless shelters is up 60 percent over the past five years.

If things are this bad during an “economic recovery”, what are they going to look like once the economy really starts imploding?

And considering the fact that almost 70 percent of the population has virtually no savings, could our nation handle an extended economic downturn that may be even worse than what we experienced in 2008 and 2009?

As a nation we truly are living on the edge, and it isn’t going to take very much at all to push us into oblivion.

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