Recent reports have shown that despite a majority holding prime or better credit ratings, over sixty percent of Americans are currently living paycheck to paycheck as of November 2o23. Forty percent of consumers even have “super-prime credit scores” according to a study from The LendingClub.
As reported by Breitbart and ZeroHedge, the stock market may be seeing a rosy future, with a staggering 96% of shoppers saying that they plan to “overspend” over the holiday season, according to CNBC. However, citing a study published by PYMNTS, only 43% of consumers are successfully resolving their ballooning credit card balances with 65% struggling to, an increase of six percent year over year.
Startlingly financial account Unusual_Whales noted that half of Americans earning over $100,000 per year are similarly eking by month to month citing CNBC.
50% of American earning over $100,000 a year live paycheck to paycheck, per CNBC.
— unusual_whales (@unusual_whales) December 19, 2023
Brett House, an economics professor at Columbia Business School, noted,
“Many households are seeing their finances stretched thinly by the combination of high prices for goods and services as well as high interest rates. Many are having to make tough choices to defer discretionary spending to stay on top of their loan payments and the costs of necessities,” according to the financial news site.
In May when Forbes‘ Sean Hanlon wrote the “State of the Consumer” for 2023 he observed,
“If consumers are out of savings, but still spending, it means they are taking on more credit card debt, and data shows credit card balances have eclipsed $1 Trillion to reach a new all-time high. For more than a third of US adults, outstanding credit card debt now exceeds their personal savings according to a recent report by Bankrate.com.”
Reportedly, the average credit card interest rate has also increased according to WalletHub from 20% to 22% for new accounts.
Despite the depth and breadth of reporting that the American people are not feeling any marked improvement from “Bideomics” Biden economic advisor Lael Brainard told CNN that despite homelessness hitting a record height in 2023, “People who already have homes … are feeling pretty good!”
House Republicans were quick to remind the administration that the American people are on average feeling the brunt of an $11,400 increase just to maintain the same quality of life.
AS Fox Business observed on December 14th “Since the day President Biden came into office, everything is up about 17%.” comparing the U.S. Bureau of Labor Statistics Seasonally Adjusted Consumer Price Index from 2021 to 2023.
The American people are clearly feeling the pinch in more places than one as the 2024 presidential election looms. Wall Street is happier but Main Street is languishing while the White House continues to put forth the narrative that the American consumer shouldn’t trust their lying bank statements.