56% of black households have faced serious financial problems in recent months amid COVID
Several reports show that black Americans have already been struck by the destructive sting of COVID-19.
Today, the dilemma resurfaces. Some 38% of American households say they have faced serious financial problems in the past few months, according to a survey by NPR, the Robert Wood Johnson Foundation and the Harvard TH Chan School of Public Health.
For black and Latino households, over 55% reported serious financial problems. That’s a lot more than the 29% of white households. The results, reported by NPR, were based on a survey of 3,616 adults between early August and early September.
Lack of savings is a major factor contributing to the pandemic’s uneven financial toll.
“The racial wealth gap is real, and one of its most fundamental manifestations is not having liquid assets,” says William spriggs, Professor of Economics at Howard University and Chief Economist of the AFL-CIO.
Almost 19% of all households report losing all of their savings during the COVID-19 epidemic, leaving them no one to turn to. It’s even worse for black households, as around 31% said they lost all of those funds.
And asked if anyone in their household has had any serious issues in the past few months – like paying the mortgage or rent, making car payments, covering credit cards / loans / other debts, and paying for self-care medical – the numbers were troubling. For example, 56% of black households reported having problems. This was the second highest percentage among the five racial groups that responded.
For starters, the recent expiration of federal unemployment benefits that gave millions of Americans a financial lifeline to help them make ends meet has been a blow.
“It’s all gone,” Spriggs said. “So that’s, I think, the number one reason you’ve seen particular stress in Latino and black households – because without the unemployment check boost, without the stimulus checks still out there, these households. just don’t have the savings to bear and be resilient during downturns.