If This Is Economic Growth, A Slowdown In The U.S. Could Have Severe Consequences

If-This-Is-Economic-Growth-a-Slowdown-in-the-U.S.-Could-Have-Severe-Consequences

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Average Americans Struggling Says Economic Growth May Not Be Real

At the time of this writing, the U.S. government is in a partial shutdown, and it has been going on for several weeks. The shutdown has revealed something significant about the U.S. economy: there isn’t much economic growth.

You see, economic growth occurs when the general standard of living improves - when average Americans have savings, better-paying jobs, optimism about the future, and so on and so forth.

This, however, is not the case these days.

The partial U.S. government shutdown means that close to a million government employees have been furloughed.

What happens to furloughed workers? They are not working and are not getting paid. However, they are still promised back pay.

The longer this shutdown has continued, the more evidence we have seen that the government employees are facing severe hardships.

The Brookings Institutes states, “Furloughed workers have already started taking steps all too common to families living paycheck to paycheck: curtailing spending, increasing credit card debt, delaying paying bills, and seeking short-term, small-dollar credit”. (Source: “Furloughed workers are facing an all-too-common problem for many Americans—living paycheck to paycheck,” Brookings Institute, January 17, 2019.)

What does this say? Americans are strapped for cash.

Mind you, federal government workers get paid relatively higher wages compared to workers doing similar jobs in the private sector. So, imagine what would happen if Americans in the private sector were told that they would not be getting their paychecks for a few weeks. Would they be able to sustain themselves for long?

55% of Americans Face Volatility in Their Paychecks

Don’t think it’s only the furloughed government workers who are facing hardships in the U.S. economy. It’s important that you also look at the overall conditions of workers’ paychecks.

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