Recent data signals a trying time for American citizens and could be causing a dip in the current administration’s popularity.
A LendingClub study reveals that around 60% of U.S. residents are now getting by on a monthly salary, with this statistic looming over the forthcoming festive season. Inflation rates and fuel expenses are both noticeably steeper compared to when the current leadership assumed power.
Furthermore, the study showed a worrying trend where 40% of shoppers believe their financial standing has deteriorated since 2022, as shared in a CNBC article referencing LendingClub findings. This information was gathered in October, a mere month before the onset of the holiday shopping spree.
Simultaneously, a contrasting survey by TD Bank indicates a resurgence in credit card debt, which has now exceeded $1 trillion. Disturbingly, a considerable 96% of buyers predict exceeding their spending budget this holiday season, as reported by CNBC, further adding to the growing consumer debt.
Half of these consumers are contemplating incurring additional debt to finance their holiday expenses, according to a separate study by Ally Bank. Only about 23% of those borrowers have hatched repayment plans for the next one to two months.
A substantial 74% of Americans are anxious about their current financial state—a stat derived from another CNBC Your Money survey conducted in August.
This distress is directly linked to inflation, increased interest rates, and a dwindling savings pool. This CNBC survey added another fact to this grim projection: 61% of American citizens are living from paycheck to paycheck, a percentage that has risen from 58% in March.
Furthermore, a substantial number of American households have started dipping into their savings reserves over recent months. Even more concerning is that over a third have confessed they’ll probably make more withdrawals from their savings for their holiday expenditures, as per data from LendingClub.
Despite this, the present leadership has often underscored the efficiency of the president’s economic strategies, collectively regarded as ‘Bidenomics.’ These affirmations continue, even as Americans increasingly feel their monthly earnings stretched thin and savings accounts depleted.
Housing and automobile prices have seen significant climbs owing to the Federal Reserve’s adjusted interest rates, aimed at curbing inflation. A late October survey showed that only around 39% of voters in four key swing states—Wisconsin, Arizona, Georgia, and North Carolina—trust the president’s capabilities in managing the economy.
Steve Cortes, the founder and chairman of the League of American Workers, pens that the overwhelming belief by 77% of surveyed voters that the country is headed in the wrong direction is due to economic reasons. Among those who viewed the president’s management of the economy favorably, a scarce 9% gave him a ‘strong approval’ rating.
Many believe that despite the media’s mitigating narrative and selective use of data, voters are acutely aware of the harsh economic situation they’re in, and they rightfully assign responsibility to Biden and his team. These voters’ economic anxieties are becoming more palpable, specifically among those of modest means.
Recent polls illustrate the concerns American workers have about the diminishing value of their earnings, accompanied by their mounting inability to afford towering housing costs, be it rent or mortgages. The impact of persistent, harsh inflation effects is a major worry for 39% of voters in these four states.
Additionally, a particular concern mentioned is ‘Income Erosion.’ Hardworking Americans find it increasingly challenging to afford even the basics due to consistent decreases in real wages for 24 consecutive months under the current leadership.
This points to a pay scale that, when adjusted for daily living expenses, falls short of workers’ needs. To put into perspective, homeowners and renters alike are budgeting more frugally, working more, and yet, they are still unable to meet the mounting costs of living.