Amidst the backdrop of a seemingly robust economy, a startling revelation emerges: nearly two-thirds of middle-class Americans are silently grappling with financial hardship, casting a shadow over their economic prospects and leaving them gasping for financial air.
A recent survey conducted by the National True Cost of Living Coalition revealed that nearly two-thirds of Americans who identify as middle class are grappling with economic challenges and foresee no relief in the foreseeable future. Despite conventional indicators painting a picture of a robust economy—booming labor markets, flourishing housing and stock markets, and steady GDP growth—the survey uncovers a pervasive sense of financial insecurity among many households. The coalition, formed this year to develop tools for measuring the cost of living and economic well-being, highlights that these concerns are often overlooked in official data.
Among the 2,500 adults surveyed, a staggering 65% of individuals earning more than 200% of the federal poverty level—equivalent to at least $60,000 annually for a family of four—admitted to financial struggles. Surprisingly, even a significant portion of higher-income earners are not immune to such anxieties, with 25% of those making over five times the federal poverty level—more than $150,000 annually for a family of four—expressing concerns about meeting their financial obligations.
In a broader context, irrespective of income brackets, nearly six out of ten respondents feel they are currently facing financial difficulties. Jennifer Jones Austin, CEO of the Federation of Protestant Welfare Agencies, part of the coalition behind the survey, remarks, “The economy may be thriving, but for many Americans, financial stability remains elusive. They find themselves unable to plan beyond immediate needs due to the lack of financial breathing space.”
The survey also sheds light on the significant disparities in savings among respondents. While approximately one in five claim to have saved at least $10,000, a troubling 28% report having no savings whatsoever. Moreover, one in six individuals admit to regularly facing the daunting task of deciding which bill to prioritize.
These findings align with the Federal Reserve's recent survey on household economics and decision-making. While nearly half of respondents could cover a $2,000 expense, a concerning 18% of adults indicated that their largest emergency fund would barely cover expenses under $100. Additionally, 14% said they could only afford expenses ranging from $100 to $499.
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