The recent statistics from the Social Security Administration reveal a worrying economic trend in the U.S. The median wage in 2022 was only $40,847.18, equating to roughly $3,400 per month before taxes, insufficient for a middle-class lifestyle. As a result, many households have multiple earners, some holding multiple jobs. This financial strain is exacerbated by the ongoing inflation crisis, which has increased living costs more rapidly than wages.
The national median rent is now $1,978 per month, consuming a significant portion of the average worker’s earnings. Moreover, home ownership has reached its highest unaffordability level since 1984, with mortgage payments now requiring nearly 41% of the median household income.
Beyond housing, prices for various essentials have dramatically risen. Since January 2021, just before the inflation crisis, there’s been a staggering 17.62% increase in prices, heavily impacting low-income families.
Many Americans are resorting to debt to maintain their lifestyles, leading to an unprecedented consumer debt bubble. Non-housing loan balances have soared, particularly credit card debts, which have increased by about 34% since fall 2021.
Financial institutions are now tightening their lending, signaling the onset of a credit crunch. This is further contributing to the decline of the middle class, with more individuals slipping into poverty. The demand for food banks has surged, and homelessness is at its fastest ever recorded increase in 2023.
Instances of extreme behavior, like a woman driving her SUV into a Popeyes over a missing order of biscuits, reflect the rising tensions and frustrations among people. With economic conditions worsening in 2023, there is a grim outlook for 2024, raising concerns about the societal impact of these financial challenges.
