Seven million Americans, according to numbers from the US Federal Reserve Bank of New York, are at least three months behind on their car payments. By the summer of 2018 Americans owed more than 1.26 trillion, more than they did at the end of the recession in 2009. It paints a troubling picture. Car delinquencies usually come after housing but nevertheless are used to reflect a measure of inequality. While some do own cars they cannot afford, car ownership which is a necessity for many to be able to go to work, is associated with more stability and a bank account that may have a bit of a balance. Experts say that the number of people defaulting on their car loan points to “financial duress”. People are delinquent on their house first, their credit cards second and their car third. So the increase in delinquencies with car debt is more significant than it first appears. It means that too many people are not able to hold on to something they consider an important or necessary asset.
We hear about near full employment, about the economy doing well and it’s easy to forget about income inequality and how it manifests itself, but it is a mistake to do so. It’s not only a question of remembering those who are struggling, it’s also seeing what lies behind a prosperity that benefits too few.