Nearly two-thirds of Americans are feeling pinched by inflation.
- LendingClub’s newest research shows that 61% of adults lived paycheck-to-paycheck in July 2023, increasing from 59% in July 2022.
- Even with inflation decreasing from 8.5% to 3.2% in 12 months, consumers still struggle to get by.
- A portion of this is attributed to irresponsible spending, with 21% of survey respondents saying nonessential spending is responsible for their financial issues.
- Low-income consumers—making less than $50,000 per year—were among the hardest hit by tightening wallets, Fortune reports.
- Bankrate’s Annual Emergency Fund Report earlier this year found that 57% of Americans cannot afford a $1,000 emergency.
Why It’s Important
The economy continues to act very strangely. Inflation (3.2%) and unemployment (3.8%) are relatively low, and analysts predict a recession is unlikely. And yet, the market shows clear signs of stress—with a tense housing market, a tightening jobs market, and voluntary job quitting decreasing, suggesting that workers do not feel confident in the market.
As we previously reported, the economy is facing numerous paradoxes—with many people believing it is worse off than it actually is. However, nearly two-thirds of the public are showing signs that their wallets are being pinched. It shows 71% of Americans feel the economy is “not so good” or “poor,” while 51% of Americans think the economy is getting worse.
“You wonder what’s going on. Everything has just skyrocketed,” says Seattle Rideshare Drivers Association Executive Director Ahmed Mumin. “A trip to the grocery store, gas, let alone eating out and even taking my kids. My own kids to go get school supplies were just super expensive.”
“When you listen to the news, they tell you inflation is coming down, and it doesn’t translate to the pocket. When you go to get groceries, you’re going to spend $100 with only one bag for Safeway,” one individual told KIRO 7 News in Seattle.