Hoyer Report Highlights US Economy

House Majority Leader Steny H. Hoyer (D-MD) sends weekly economic reports to members of the House of Representatives as his concern with the economy grows. He says the reports contain news the members can use as they discuss the state of the economy and highlights how House Democrats are working to spur economic growth, support job creation, and raise wages.

• Stat of the Week: Americans are running out of money before each paycheck. “For about a third of Americans, this is a regular financial stress, with 32% running out of money before their next paycheck hits. … About 31% of respondents earning over $100,000 also regularly experience a budget shortfall before payday. For many, it’s the rising cost of living — including food, housing, education and medical expenses — that creates the squeeze. Over the past year, basic costs increased by 2.3%, according to the Bureau of Labor Statistics’ Consumer Price Index. The cost of medical care rose 4.6% in 2019, the largest year-over-year increase since 2007, the BLS reports. Housing also jumped 3.2% last year, while education expenses rose 2.1% and food prices increased about 1.8%. For others, it’s stagnant wages. Real wages effectively remained stalled last year, showing only a 0.2% year-over-year increase, according to the Payscale Index. But looking longer term, Payscale found median wages, when adjusted for inflation, actually declined 9% since 2006.” [CNBC Make It, 2/12/20]
• Student loan debt is higher than credit card debt. “… The country’s unpaid student loan debt has long surpassed credit card debt or auto loan balances, and is second only to mortgages. The average balance today is around $30,000, up from $10,000 in the 1990s. As student loan bills have climbed, incomes haven’t. The average hourly wage in 2018 had no more purchasing power than it did in 1978, according to the Pew Research Center. That math backs many borrowers into a corner. ‘I have to either pay my rent and get health care, or pay down my loans,’ said [Sandy] Nurse, who got her bachelor’s degree in political science from Emmanuel College in Boston. ‘It’s one of the reasons I don’t even think about having children. How can anyone afford it?’” – [CNBC, 2/12/20]
• The coronavirus’ impact reaches our global economy. “The economic casualties from China’s coronavirus epidemic are mounting as Asian and European auto plants run short of parts, free-spending Chinese tourists stay home and American companies brace for unpredictable turbulence. That’s just the start of a financial hangover that is expected to linger for months even if the flulike illness is soon brought under control, economists and supply chain experts say. The Chinese epidemic’s aftereffects will probably cause the global economy to shrink this quarter for the first time since the depths of the 2009 financial crisis, according to Capital Economics in London.” [The Washington Post, 02/13/20]

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For more information about House Majority Leader Steny H. Hoyer, visit his Leader member page.