Over the last five years, the poverty rate in the United States has begun to drop steadily, possibly hinting at economic boons for the populace at large. This is wholly a good thing, but it’s important to understand why, if for no other reason than so we can continue to replicate the results. While there are some places in the country where the poverty rate has increased, such as Delaware and West Virginia, the United States sees improvement as a whole.
City By City
The United States isn’t just improving as a whole, but city by city. While that seems obvious, it’s truly an important distinction, as it’s possible for city economies to fail while international economies boost. Cities such as Austin, Texas and Jacksonville, Florida are seeing a considerable drop in unemployment around the 3% mark. Economy starts in cities, and the more of them that continue to flourish, the better the country’s economy will be.
People Are Saving More
Savings accounts are a myth to many Americans, but they’re vital to understand and implement. With the economy flourishing, employed citizens are starting to be able to put more into savings. Typically, Americans will add more as they age, meaning that older citizens are likely to have more in their savings accounts than their younger counterparts.
That said, many have reported that alternate forms of savings are rising. The stock market is a popular way to save money, as the money cannot be used immediately and must be attended to. While it’s a bit of a gamble, many Americans have begun letting their savings accounts be tied up in stock markets. Those that don’t follow this method may instead be going for 401ks or other such saving plans.
Unemployment Is Dropping
A look at most news outlets might have you thinking that the American economy is failing, or you may get caught up in the politics of who gets the credit. Either way, unemployment is dropping steadily to points that haven’t been seen in decades. Hundreds of thousands of jobs are being created in health care, construction, factory jobs, and many other fields.
The Population Is Dropping
It’s only fair to follow up the drop in unemployment with another explanation as to why. The United States population growth has been dropping, leading to fewer people in jobs. Unemployment will inevitably drop when there are fewer people to be unemployed, and this is ultimately translating to a drop in the poverty rate as well.
The United States economy has been in an upswing over the last few years for a variety of reasons. As the dominos continue to fall into each other, there are boons to be spread to every facet of the United States. A drop in unemployment will almost always correlate with a healthier economy, leading to higher wages, higher savings, and of course, a drop in the poverty rate. If this trend of growth continues, there’s bright things in the future for everyone.