In Joe Biden’s America, the distressing economic picture Americans have faced since 2021 continues to cause stress and worry even as the Christmas holiday approaches. A recent study by LendingClub reveals the shocking reality that 62% of Americans are now living paycheck to paycheck. That figure is up from the 58% finding back in March.
The disturbing statistic reflects the growing dissatisfaction among all working Americans with Biden’s economic policies. Polling indicates that “Bidenomics” is now perceived to have been helpful to only 14% of all voters.
62% of Americans Living Paycheck to Paycheck During Holiday Seasonhttps://t.co/WmluPpu6sD
— EMPIntelligenceNet© (@Megavolts001) December 19, 2023
Reports indicate that despite financial strain and uncertainty, holiday spending is expected to surge to a record $957.3 billion to $966.6 billion. Of course, purchasing the same amount of goods this year cost substantially more than in recent holiday seasons due to the worst inflation to plague the American economy in four decades.
The extra cost of holiday spending comes with costs that will last long after December. With credit card debt exceeding $1 trillion, a TD Bank survey found that nearly all shoppers plan to spend more than they can comfortably afford, and at least half anticipate incurring additional debt.
The Forbes Advisor survey sheds further light on this issue. Nearly half of those living paycheck to paycheck plan to spend the same on holiday shopping as last year, and a significant portion expect to spend more. This trend is alarming, considering that most Americans have less than $2,000 in emergency savings, barely enough to cover a month’s bills.
The skyrocketing interest rates on credit card financing further complicate the situation. Bankrate analyst Sarah Foster emphasizes the importance of carefully budgeting credit purchases, given the potentially disastrous impact of massive interest payments and increased defaults. Alia Dudum with LendingClub points out the danger of the debt cycle perpetuated by credit card use, pointing out that cardholders carrying a balance are more likely to experience financial distress.
The Federal Reserve’s claims that inflation has “eased” over the past year do little to alleviate the financial squeeze on households. Moreover, signals that the Fed could be poised to reduce interest rates might help the stock market, but the move would likely throw fresh fuel on the inflationary blaze.
Sadly, Bidenomics now means that living paycheck to paycheck has become the norm rather than the exception, with the Christmas season bringing more financial strain than cheer to many.