US EditionUS economy at risk of wobble as lower-income consumers get squeezed
Lower-income U.S. families face rising healthcare costs and potential food benefit losses amid layoffs, straining holiday spending for nearly 42 million affected people, experts say.
- On Nov 3, U.S. consumer durability may be tested in coming weeks as rising healthcare costs, potential loss of federal food benefits, and a wobbly job market strain family budgets during the holiday shopping season.
- Funding for SNAP was scheduled to lapse on November 1, affecting nearly 42 million low-income people, but a Rhode Island judge ruled the suspension illegal, leaving payment uncertainty.
- Federal Reserve Chair Jerome Powell noted consumer spending sustained growth but described a 'bifurcated' K-shaped pattern and said, `There is so much anecdotal information on that, we think there is something there,` while layoffs at Amazon.com and UPS raise job risks.
- Economists cautioned this is one channel through which the shutdown will weigh on household spending and GDP, with Jackie Doherty saying `There will literally be fewer people shopping in the U.S. this holiday , and those who are say they'll be spending less this season.`
- The budget fight over ACA tax credits means more than 20 million people insured through the ACA could pay over $1,000 more annually, Kaiser estimated, risking growth as Brusuelas warned the economy may slip to 1%.
7 Articles
7 Articles
Squeezed Consumers, Struggling Economy: The Low-Income Crack-Up
The resilience of U. S. consumers as a support for the economy may be tested in the coming weeks due to financial pressures on families, especially those with lower incomes. These pressures stem from increasing healthcare costs, potential loss of federal food benefits amid a government shutdown, and a shaky job market, which are already […] The post Squeezed Consumers, Struggling Economy: The Low-Income Crack-Up appeared first on Modern Diplomac…
US economy at risk of wobble as lower-income consumers get squeezed
The U.S. consumer's durability as a prop for the economy may be tested in coming weeks as family budgets, particularly among the less affluent, are stressed by rising healthcare costs, the potential loss of federal food benefits, and a wobbly job market outlook that is already taking a toll on earnings.
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