Report: 64% of Americans Living Paycheck-to-Paycheck
As of December 2022, 64% of Americans say they are living "paycheck-to-paycheck," according to a recent LendingClub survey. This is up from 61% in 2021 and equivalent to the historic high reached in March 2020.
Facts
- As of December 2022, 64% of Americans say they are living "paycheck-to-paycheck," according to a recent LendingClub survey. This is up from 61% in 2021 and equivalent to the historic high reached in March 2020.
- 51% of Americans earning $100k or more annually say that they are also living paycheck-to-paycheck. That figure is nine percentage points higher compared to last year’s survey.
- Inflation is considered to be the driving force of financial insecurity as it was up 9.1% in June 2022 — the largest year-over-year increase since the 12-month period ending Nov. 1981, according to the US Bureau of Labor Statistics.
- Although inflation has cooled in recent months, it is still quite high at 6.5% in Dec 2022. Notably, the cost of groceries has jumped nearly 12% in the last year, according to the Consumer Price Index.
- Overall, 9.3M more Americans live paycheck-to-paycheck with 8M (86%) of those earning six figures. 16% of the higher earners struggle to pay monthly bills compared to 66% of those making $50K-$100K and 78% making less than $50K annually.
- Some experts are unsure if and when the consumer spending situation will improve, suggesting that elevated prices and eroding personal savings are driving factors.
Sources: CNBC, New York Post, Finance, and Daily Mail.
Narratives
- Republican narrative, as provided by Daily Caller. The rampant inflation that has soared under Pres. Biden’s administration is causing nearly two-thirds of Americans to struggle to make ends meet. The American people know that Biden’s economy is not working, and the president’s rhetoric cannot cover up the struggle his policies are inflicting on the American people.
- Democratic narrative, as provided by Politico. Despite having to deal with a global inflation crisis — fueled by COVID and Ukraine — President Biden has seen positive developments as he looks to revive the US economy. Americans are not out of the woods yet, but gas prices are down and Gross Domestic Product is higher than expected. This trend bodes well for the president.
