26/3/20: Why "Families First Coronavirus Response Act" Can't Fix America

I have written extensively about the fact that U.S. public has severely restricted access to healthcare and other basic services, primarily because of the illusion of insurance: the fact that many people in the U.S., even when covered pro-forma by insurance contracts, have no cash to cover the massive deductibles carried by these contracts.

Here is some recent (2018) evidence on the fact, via https://www.axios.com/newsletters/axios-markets-3c6856b0-31c2-485d-a8be-0f0b0dae267c.html/:

"AARP's latest study tracking U.S. household savings is based on a “yes” or “no” response to the following question: “Does your household have an emergency savings account?” ... A majority of respondents answered "no," and even respondents who answered "yes" may not have a significant amount saved."

• "...researchers note, "A broad interpretation of the question could count any plan for coping with an emergency, including borrowing from family and friends, as having an emergency savings account. Under this interpretation, even a household without savings in cash or a bank account may still answer 'yes' to the survey question."
• "Fed data shows that 40% of US households would not be able to come up with $400 for an emergency expense," Deutsche Bank Securities chief economist Torsten Sløk notes.

Now, average deductible for U.S. healthcare insurance plan is now in excess of $1700 per person per annum. That is more than 4 times the $400 amount referenced in the Fed study.

Look at  higher earners in this:

A full quarter of those with household incomes in excess of $150,000 have no emergency savings. These families are  not covered by the Congressional aid passed yesterday. For those who are covered, the entire package will not cover average health insurance deductibles for two people in a household, let alone leave any money to help with rents, mortgages, utility and credit cards payments. 

1/1/2013: US Household Income: down 7.8% on January 2000

Sentier Research have published analysis new series on the US Household Income data (see report here).

Topline analysis, quoted directly from the report (emphasis mine):

• According to new data derived from the monthly Current Population Survey (CPS), real median annual household income in November 2012 was  $51,310, statistically unchanged from the October 2012 median of $51,134. 
• This is the second month in a row that real median annual household income has failed to show a statistically significant change. I
• With the exception of a 0.7 percent increase between April and May, all of the other month-to-month changes in real median annual household income since January 2012 have not been statistically significant. 

But wait, things are even worse:

• The November 2012 median annual household income of $51,310 was 4.4 percent lower than the median of $53,681 in June 2009, the end of the recent recession and beginning of the “economic recovery.” 
• The November 2012 median was 6.9 percent lower than the median of $55,093 in December 2007, the beginning month of the recession that occurred more than four years ago. 
• And the November 2012 median was 7.8 percent lower than the median of $55,650 in January 2000, the beginning of this statistical series. 
• These comparisons demonstrate how significantly real median annual household income has fallen over the past decade, and how much ground needs to be recovered to return to income levels that existed more than ten years ago.

And two charts to illustrate: