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Poll: Finances of many in U.S. are strong

As more save in face of uncertainty, economy may stall

By JOSH BOAK and EMILY SWANSON, Associated Press
Published: August 25, 2020, 5:40pm

WASHINGTON — It’s the paradox of a pandemic that has crushed the U.S. economy: 12.9 million lost jobs and a dangerous rash of businesses closing, yet the personal finances of many Americans have remained strong — and in some ways have even improved.

A new poll from The Associated Press-NORC Center for Public Affairs Research finds that 45 percent of Americans say they’re setting aside more money than usual. Twenty-six percent are paying down debt faster than they were before the coronavirus pandemic. In total, about half of Americans say they’ve either saved more or paid down debt since the outbreak began.

The findings highlight the unique nature of the current crisis. Nearly $3 trillion in government aid in the form of direct payments, expanded jobless benefits and forgivable payroll loans helped cushion against the fastest economic downturn in American history. Meanwhile, health fears and mandated closures prompted many Americans to spend less on restaurant meals, clothing and travel.

About two-thirds say they’re spending less than usual during the pandemic. Since February, there has been a $1.3 trillion jump in money kept in checking accounts — a 56 percent increase tracked by the Federal Reserve. While the greater savings helps to keep families more financially secure, it may also limit the scope of any recovery in a country that relies on consumer spending for growth.

The findings shed light on a persistent riddle of a global pandemic in which a weakened economy has somehow spared most U.S. families from the worst of the financial toll. Just 37 percent call the national economy good, down from 67 percent in January. But at the same time, 63 percent describe their personal financial situation as good, largely in line with what it was before the pandemic began more than six months ago.

People’s positive feelings about their own finances might also be helping President Donald Trump as he seeks reelection this November against former Vice President Joe Biden. About half of Americans, 47 percent, approve of how Trump is handling the economy. That’s significantly higher than his overall favorable rating of 35 percent.

Inequality exposed

But while the initial burst of aid helped Americans, Trump — who touted his ability as a dealmaker in real estate — could not reach an agreement with Democrats to keep the money flowing after many of the benefits expired this month.

About a quarter of Americans say they’ve been unable to pay at least one bill because of the pandemic, including 14 percent who’ve been unable to make a rent or mortgage payment, 14 percent who have been unable to pay a credit card bill and 21 percent who have been unable to pay another type of bill. Seventeen percent have been unable to pay multiple types of bills.

The downturn has also exposed the depth of inequality in the United States.

About half of Black Americans and roughly 4 in 10 Hispanic Americans say they’ve been unable to pay a bill, compared with about 2 in 10 white Americans. And 66 percent of Hispanic Americans say they’ve experienced household income loss, compared with 50 percent of Black Americans and 44 percent of white Americans.

Overall, about half of Americans say they’ve experienced at least one form of household income loss. That includes 23 percent who say they’ve experienced a household layoff, 34 percent who say someone in the household has been scheduled for fewer hours, 22 percent who’ve taken unpaid time off and 25 percent who’ve had their wages or salaries reduced.

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