Biden’s America: Most Struggling Financially, Including High Earners
Americans Struggling with Mounting Debt, Living Paycheck to Paycheck
A new report reveals that a majority of Americans are facing financial hardship as their debt continues to grow. According to a survey conducted by LendingClub, as of July, 61 percent of adults are living paycheck to paycheck [source].
Financial Struggles Across Income Levels
The study found that in July, 78 percent of consumers earning under $50,000 a year and 65 percent of those making between $50,000 and $100,000 annually were living paycheck to paycheck. Surprisingly, even 44 percent of those earning over $100,000 a year were living check to check [source].
Impact of Inflation and Rising Interest Rates
Chris Fred, the head of TD Bank’s credit cards and unsecured lending, stated, “Consumers are undoubtedly continuing to feel the impact of inflation and rising interest rates“ [source].
Mounting Credit Card Debt
According to The Week, credit card debt reached .03 trillion in the second quarter of the year, with credit card delinquencies hitting 7.2 percent [source]. Mark Zandi, Moody’s Analytics chief economist, explained, ”The increase in delinquencies and defaults is symptomatic of the tough decisions that these households are having to make right now” [source].
Recession Looming
Economist David Rosenberg warns that a recession may be on the horizon, with debt potentially being the catalyst. He compared the current situation to the subprime mortgage crisis of 2008, stating, “This is how a recession starts” [source].
Bidenomics and Financial Strain
House Ways and Means Committee Chairman Jason Smith criticized the Biden administration’s economic policies, stating that Americans are being “throttled” by their agenda. He highlighted the reversal in job growth and wage growth, with lower-income workers now suffering the most. Smith also pointed out the rising cost of living and its impact on Americans’ spending power [source].
The Cost of Living and Inflation
Since President Biden took office, the cost of living has risen by 16 percent due to inflation. This means that Americans have lost 16 percent of their spending power, affecting the least privileged even more significantly [source].
Overall, Americans are facing significant financial challenges, with mounting debt, living paycheck to paycheck, and the potential for a looming recession. The impact of inflation and rising interest rates further exacerbates the situation, making it crucial to address these economic concerns.
The post Biden’s America: Majority Living Paycheck to Paycheck, Even Six-Figure Earners Overwhelmed appeared first on The Western Journal.
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