The current state of economics in the United States is pulling many Americans underwater. A report from CNBC, “66% of American workers are worse off financially than a year ago due to inflation” by Jessica Dickler summarizes the findings from a report conducted by Salary Finance. Findings show that an increasing number of Americans are worse off than the previous year. In addition, there isn’t an indication that things will turn around anytime soon.
First and foremost, the current economic trends are attributed to the increasing impact of inflation in the United States. To combat inflation, the Federal Reserve (FED) has been increasing interest rates. Recently, the FED increased interest rates yet again in September. The FED will continue to increase interest rates until there is a clear sign that inflation rates are staggering. Unfortunately, Mark Hamrick, senior economic analyst at Bankrate.com, mentions that “There’s no pivot yet in sight, only a push to higher ground.” Ultimately, this means that Americans, consumers, and the workforce will continue to feel a negative impact on their standard of living.
Furthermore, the current trend in economics is causing the cost of living to increase, meanwhile decreasing the standard of living. It’s doing this by causing financial hardship among many Americans. For example, two-thirds of adults reported that they are worse off than the previous year. This can be attributed to the average hourly earnings have declined by .1% per month and 3% when compared to the previous year. Meaning, many Americans, even those earning six figures, are living a paycheck-to-paycheck lifestyle. The survey concluded that one in three workers exhaust personal funds before payday and to make ends meet, many are dipping into their cash reserves and/or going into debt. Ultimately, consumers have less and less in their savings. The survey showed of 500 adults, 55% reported they had fewer savings than the previous year this past February. Now, the same survey group reports that 72% have less in their savings than the previous year.
All in all, this is a bleak time in economics, pointing to an inevitable recession. Regardless of gender, race, ethnicity, sexual orientation, or income status, Americans feel the negative impact all the same. Many are eagerly waiting for the, hopefully soon, pivot in our economic trajectory.
Full article: https://www.cnbc.com/2022/10/19/report-american-workers-are-worse-off-financially-than-a-year-ago.html