Sunday, March 7, 2021

Brutal long-term financial impacts of the pandemic

A lot of this could have been avoided, with better leadership and policy from the start. Maybe someday more voters will finally learn.
Still, about half of non-retired adults say the economic impact of the coronavirus outbreak will make it harder for them to achieve their long-term financial goals, according to a new Pew Research Center survey. Among those who say their financial situation has gotten worse during the pandemic, 44% think it will take them three years or more to get back to where they were a year ago – including about one-in-ten who don’t think their finances will ever recover.

The economic fallout from COVID-19 continues to hit some segments of the population harder than others. Lower-income adults, as well as Hispanic and Asian Americans and adults younger than 30, are among the most likely to say they or someone in their household has lost a job or taken a pay cut since the outbreak began in February 2020.1 Among those who’ve had these experiences, lower-income and Black adults are particularly likely to say they have taken on debt or put off paying their bills in order to cover lost wages or salary. - Pew Research

1 comment:

  1. My years in the business world tells me that Rahm Emanuel was correct when he famously said in 2008, “You never want a serious crisis to go to waste" ... as every time my company saw a slowdown, it was a chance to reevaluate manpower and I am afraid that the pandemic will led to changes that we hadn't anticipated ... resulting in less people working.

    Case in point ... for decades, I would resist automatic deposit of stock dividends into my bank account. It was my chance for the bankers to see me and to always have a little cash in my pocket. Well, the pandemic gave Wells Fargo a chance to "temporarily" close a few branches -- essentially leaving some small towns -to this day- without human services. So now, instead of walking in, standing in line for a few minutes, presenting ID if they did not know me, and mindless chit-chat, I use the ATM to deposit the check. Not only is it quicker, but the receipt prints a copy of the check. If I am correct, we should expect to see lower employment at banks ... in fact, BLS projects a 15% decline in tellers over the next year(68,600 workers) ... and those are not exactly high paying jobs with the median pay at $15.02.
    But I might have to change my position on direct deposit as I have noticed the monthly checks that previously would arrive in mail box on the third working day of the month, now not showing up for five to seven days. And Louis DeJoy has a consolidation plan for the U.S. Postal Service to reduce its organizational structure of 67 districts down to 50, a move that will downsize the mailing agency’s workforce ... as they will offer separation incentives to get people to leave. USPS has not announced a number but don't be surprised if it does not result in over 20,000 "career" carrier positions being eliminated ... as the Post Office has been increasing its number of "non-career" employees ... who would not have the same benefits.

    So remember when the Republicans start blaming Biden for failing to deliver jobs, it won't have anything to do with his policies but instead just business shrinking their workforce.

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