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Rich Americans are eager to make ends meet

A growing number of Americans earning six-figure salaries are worried about paying their monthly bills, according to a new survey released by the Federal Reserve Bank of Philadelphia.

The survey shows that more than 30% of respondents earning between $100,000 and $149,999 are concerned about being able to make ends meet in the next six months. This represents a sharp increase from a year ago, when 21.3% of people in this income bracket expressed concern about not making ends meet.

At the same time, about 32.5% of people earning more than $150,000 are worried about not being able to pay their bills, also an increase from the 21.7% figure reported a year ago .

Interestingly, wealthier Americans are actually more concerned about their finances than many individuals who earn less money. About 29.8% of people earning between $40,000 and $69,999 said they were concerned, up from 23.9% last year.

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However, consumers earning less than $40,000 are the most concerned, with about 40% of them fearing they won’t be able to make ends meet, according to the survey.

In many ways, the economy is healthy. The labor market continues to grow at a sustained but moderate pace, employers adding 272,000 new workers in May. Job openings remain high and the unemployment rate remains generally stable at 4%.

But Americans are also grappling with the highest interest rates in two decades and chronically high inflation that has made the cost of basic necessities like groceries, rent and gasoline much more expensive.

While inflation has fallen significantly since peaking at 9.1% in June 2022, it remains above the Federal Reserve’s 2% target. And compared to January 2021, shortly before the the inflation crisis has begunprices are almost 20%.

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Many families have yet to receive material relief. Grocery prices are up more than 21% from the start of 2021 and housing costs are up 18.37%, according to FOX Business calculations. Energy prices, meanwhile, are up 38.4%.

Price hikes are particularly devastating for low-income Americans, as they tend to spend more of their already high wages on necessities and therefore have less flexibility to to save money.

In March, the typical American household had to pay $227 more per month to buy the same goods and services than a year ago, due to continued high inflation. Americans are paying an average of $784 more each month compared to the same period two years ago and $1,069 more than three years ago.

As they spend more on everyday goods, The Americans are burning thanks to their savings and are increasingly turning to credit cards to cover these basic expenses.

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The latest findings come amid growing pessimism among American households about their financial situation under President Biden.

A recent poll released by Gallup found that Americans are less optimistic about the state of American economy than they have been in recent months, and only 38% of voters have confidence in Biden to recommend or do the right thing for the economy. For comparison, in 2020, about 47% of respondents said they trusted former President Trump to do the right thing for the economy.

“Biden’s mediocre rating could have significant electoral implications, because not only does he have the lowest economic rating of any president running for re-election since Gallup began tracking it in 2001, but independents are more trusting to his opponent than to him,” Gallup said.

News Source : www.foxbusiness.com
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