Millions of Americans face deportation in coming months
The economy is doing well, we are told. There is no recession, we are told. The Federal Reserve has everything under control, we are told. Meanwhile, 3.8 million Americans say they could face eviction within the next two months.
It doesn’t look like all is well.
The median rent in the United States exceeded $2,000 a month in June for the first time ever. It’s another symptom of the creeping inflation burning in the US economy.
While the CPI edged down in July, housing costs still rose 0.5% month-on-month. On an annual basis, housing costs have climbed 5.7%, according to government figures. And the CPI significantly underestimates the cost of housing. Actual rents have risen more than 15% over the past 12 months, according to data compiled by Zillow.
With skyrocketing rents, households representing 8.5 million people are behind on their rent, according to the Census Bureau. Of these, 3.8 million say they are somewhat or very likely to be deported in the next two months.
According Yahoo finance“The combination of runaway inflation, the end of most eviction moratoriums and housing assistance payments, and an extremely low vacancy rate has driven rents up – and many tenants have left. “
Nearly half of all renters have experienced rent increases in the past 12 months, according to Census Bureau data. Eleven percent saw rent increases of more than $250 per month.
To make ends meet, people are turning to credit cards and loans, plundering savings, selling assets, and dipping into retirement funds. According to the Census Bureau, 57% of renters said they had to resort to one of these desperate measures to maintain their rent.
This is consistent with skyrocketing household debt levels. Americans added another $40.1 billion to their debt load in June alone. This represents a 10.5% year-over-year increase. Credit card balances increased by $46 billion in the second quarter of this year. Over the past year, credit card debt has skyrocketed 13%, the biggest increase in more than 20 years.
According Yahoo finance, the Fed’s efforts to stem inflation are adding to the pain. With rising mortgage rates, renters hoping to buy homes have been pushed out of the market.
The number of evictions is already increasing. According to the Princeton University Eviction Lab, evictions were 52% above average in Tampa, 90% above average in Houston, and 94% above average in Minneapolis-St. Paul this month.
This is yet another sign that the economy is not as strong as the powers that be would have you believe.
Despite private sector economic activity dropping to its lowest levels since the start of the COVID shutdowns, the housing market collapsing and the economy recording two straight months of negative GDP growth , the mainstream continues to point to the strength of the labor market. But if the labor market is so strong, why are so many people threatened with deportation?
Peter Schiff said the labor market is not as robust as people think. There may be lots of jobs, but real wages are falling. “I don’t care how many jobs are created. What I’m looking at is: are workers getting pay raises or taking pay cuts? Because in a strong job market, you get a raise,” Schiff said.
It’s clear; strong job market or not, many Americans are struggling. And it looks like a large number could soon find themselves on the streets.
Photo by Rickioine via Flickr
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