61% of Americans are Still Living Paycheck to Paycheck
Although the economy is slowly recovering, American workers find themselves in a precarious economic condition.
Real wages, which have been increasing, still can’t keep up with the rising cost of living. The cost of living is increasing “at the fastest annual pace in about four decades,” according to a report by CNBC.
In the last year, inflation ate way pay by 1.7%, per a report by the U.S. Department of Labor.
By the conclusion of 2021, 61% of the American population was living by paycheck to paycheck. This represented a decline from 2020, when 65% of Americans were living paycheck to paycheck, according to a report LendingClub recently released.
Among six figure-earners, 42% indicated that they were living paycheck to paycheck.
“Increasing prices are impacting a lot of Americans,” stated Shelly-Ann Eweka, senior director of financial planning strategy at TIAA. “Higher wages will help workers have additional cash flow to cover expenses.”
Even “with higher incomes, often comes higher expenses,” she continued.
In 2022, companies project to give their employees an additional 3.4% raise on average. However, this raise might not be enough for Americans to economically get by.
In a report released by financial services website Personal Capital, Americans revealed that they need to be earning approximately $122,000 annually in order to be on sound financial footing.
Inflation is the new reality in America, which ultimately acts as a stealth tax. As it grows, Americans will continue to live in economic dire straits. A significant portion could be impoverished as a result.
The GOP must get serious about tackling inflation. They can do so by calling for Audit the Federal Reserve legislation, in addition to legislation that strips the Fed of its monopoly powers and allows for cryptocurrencies to operate without much government regulation.
Pushing for tax cuts is not enough.
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