‘I haven’t taken a vacation in 6 years’: More Americans struggle to pay for basic needs

Nearly one in three Americans is working and falls above the poverty line, but still struggles to make ends meet. One group refers to this growing population as ALICE, which stands for Asset Limited, Income Constrained, Employed.

Here & Now’s Deepa Fernandes speaks with Stephanie Hoopes, the national director of United for ALICE, about why life for so many does not square with news of a strong economy. She also hears about the personal experience of Jessica Fernandez, a working single mother in New Jersey.

On the term ALICE and people who fall under the category

Stephanie Hoopes: "ALICE is an acronym for Asset Limited, Income Constrained, Employed. They live in every community across the country. ... We don't want to feed any stereotypes that there's a structural problem in our economy and it's not that folks aren't trying hard.

"Folks had probably run into several ALICE workers by the time they got to their office today. At the coffee shop, child care, their bank and the security guard at the parking lot. They're people that are very familiar to us — the essential workers in our economy."

On how ALICE is tracked across the country  

Hoopes: "What we track at United for ALICE is not only wages, but also the cost of living. We see a huge variation across this country. For example, for a family of four, two adults, an infant and childcare, can range from $68,000 in El Paso, Texas, to $91,000 in Columbus, Ohio, to $133,000 in Arlington, Virginia.

"And you compare that to the federal poverty level, which is only $27,000 everywhere in the country. Our official statistics really are not telling us what's happening."

On the disconnect between Americans' cost of living and the official economic indicators

Hoopes: "What we're seeing is a big increase in the cost of living. At the same time, a lot of conflicting forces are happening, like inflation and public assistance going away. So as people may feel that they're doing better in terms of wages, those wages are not keeping up with inflation. ... It's almost like walking up a mountain of sand, and you take two steps up and then you slide back down.

"Whereas the economic statistics that we're hearing at the macro level are looking at the overall economy and not people's individual experience."

On the matter of addressing the federal poverty level to enable more individuals to qualify for assistance

Hoopes: "Currently, 13% of households are below that federal poverty level, and we're seeing another 29% are ALICE. So 42% of folks are struggling. Providing more assistance to those ALICE households would make a big difference. We're also seeing lots of ways that folks can address this challenge from state agencies, taking the long view, planning transportation and social services, smoothing benefits cliffs, etc.

"Companies can also play a big part. They can do things in terms of wages and benefits that make a huge difference for ALICE, but also scheduling, career development, and resources. We're seeing some sparks of hope there, but we know that a lot more needs to happen."

This interview has been edited for clarity.

Ashley Locke produced and edited this interview for broadcast with Michael Scotto. Sydney Ko adapted it for the web.