If you haven’t already started to do so, now’s the time to worry about the future of the economy. Americans traditionally pay their car bills ahead of almost anything else. We need cars to get to work, after all.
But, according to Business Insider, people are starting not to do so. Notes the magazine, “According to a new report from the Federal Reserve Bank of New York, more than 7 million Americans have reached serious delinquency status on their auto loans, meaning they’re at least 90 days behind on payments.”
If this is the case, then we need to worry about the state of the economy, and in particular, we need to ask if the much vaulted full employment really means anything. The articles quotes a Fed economist as saying, “The substantial and growing number of distressed borrowers suggests that not all Americans have benefitted from the strong labor market and warrants continued monitoring and analysis of this sector…”
In short, just because people have jobs doesn’t mean they can pay their bills — something that Walmart employees using food stamps could have told the Fed a long time ago.