That story is from 2017, however the premise that most Americans can't afford $400-$500 is fraudulent and has been debunked numerous times.[1] The real number from the Fed survey is 12%. It keeps getting repeated in various ways, year after year, because it's amazing headline bait. Mostly politicians like using it for propaganda while ignoring the actual original survey details. Harris, Sanders and Warren have all been using it for propaganda purposes.
> It is a myth that a large share of people can’t cover a $400 emergency expense. Why does the story persist?"
> The question comes from the annual “Report on the Economic Well-Being of U.S. Households” by the Federal Reserve. The report finds, in 2018, that 61% of adults would cover a $400 unexpected expense using cash (or its equivalent)."
> The report states: “Twelve percent of adults would be unable to pay the expense by any means.”
> The report also goes out of its way to make clear that some of the 39% who wouldn’t use cash might still have $400 in the bank: “It is possible that some would choose to borrow even if they had $400 available, preserving their cash as a buffer for other expenses.” In a footnote, the report even cites a 2016 study finding that 76 percent of households had $400 in liquid assets, even after taking into account monthly expenses.
> The common misinterpretation of this finding in the study is particularly strange in light of two other questions on the same survey. The Fed asks respondents whether they are able to pay all of their bills in full. Only 17% say they can’t pay some bills.
> The Fed also asks respondents how a $400 emergency expense that they had to pay would affect their ability to pay their other bills. Eighty-five percent report that they would still be able to pay all their bills. Only 14% say that the emergency expense would result in their not being able to pay some bills.
[1] https://www.bloomberg.com/opinion/articles/2019-06-04/the-40...