In the United States, nearly one-third of adults, about 76 million people, are either “struggling to get by” or “just getting by,” according to the third annual survey of households by the Federal Reserve Board.  That finding, dismal though it is, represents a mild improvement in general well-being last year, compared with the two years before. The improvement, however, was clearly too little to raise Americans’ spirits: The new survey, which was conducted in late 2015 and released last week, also shows that optimism about the future has tempered.  The Fed policy committee should take the survey to heart when it meets this month to decide whether to raise interest rates. Higher rates are a way to slow an economy that is at risk of overheating — a far-fetched proposition when tens of millions of Americans are barely hanging in there.  Congress and other economic policy makers, as well as the presidential candidates, could also use the survey to get some insight into Americans’ real economic problems. Among them is deep insecurity. Nearly 70 percent of adults said they were “living comfortably” or “doing O.K.” — up a bit from previous years — but nearly half of all respondents said they could not cover an unexpected expense of $400, or could do so only by selling something or borrowing money.  Americans seeking a path upward through education are staggering under a load of debt. The median debt load for someone with a bachelor’s degree was $19,162. For a master’s, it was $36,000, and for a professional degree, $100,000. Many students with debt use deferments or other plans to delay or extend repayments, but in most cases that increases the balance they owe. For those making payments, the average monthly bill was $533.  By all indications, however, they are the relatively lucky ones. Americans who had attended college accounted for most of the improvement reported in the survey. Financial stress was more prevalent among less-educated people who responded to the survey, as well as racial and ethnic minorities and adults making less than $40,000 a year.  Over all, the survey depicts an economy in which many Americans face daily hardship, while even the college educated — the presumed winners in the economy — still face big obstacles. The findings argue for continued low interest rates; for government policies and federal spending to help create good jobs at good pay; for affordable education that starts at preschool, thus fostering college-ready students; and for a safety net that can withstand today’s potent economic forces.
A Fed survey documenting Americans’ struggles offers insight to politicians while giving policy makers cause to hesitate before raising interest rates.