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Report Reveals How Inflation Made Americans’ Lives Worse

Report Reveals How Inflation Made Americans’ Lives Worse
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Report Reveals How Inflation Made Americans' Lives Worse

Source: Pinterest

Over the years, inflation has become a huge global problem. A recent report has revealed that it has also significantly worsened the quality of Americans’ lives.

The Report

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The Federal Reserve in America released a report that took a deep dive into the financial problems of American citizens struggling due to inflation in 2023. The results of this report were quite worrisome, as it found that one in six Americans could not pay their bills. In addition, 65% of Americans are having difficulty with their finances, thanks to constant inflation. 

The State of the Economy

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Since 2013, the Federal Reserve Board has conducted yearly surveys to determine the level of stability of American households. This is called the “Survey of Household Economics and Decisionmaking.”

Therefore, the 2023 survey was conducted among 11,000 adult Americans in October, using a variety of subjects from different households. However, the results were quite disappointing. 

People Do Not Have Enough

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The report also found that some groups of people in lower-income brackets are struggling more than others. The survey said that lower-income adults are more likely to experience several forms of material hardships compared to those who earn higher. They struggle to pay their bills and do not always have enough food to eat. They also cannot afford medical care. 

People Skip Meals

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Skipping meals is another significant problem for lower-income adults in the U.S. A survey by Dunnhumby in 2023 showed that 36% of families in the U.S. skipped their meals due to financial difficulties.

The most likely age groups to skip meals were those aged 18-34 and 35-44. When asked, 38% of the first group reported skipping meals, and 37% of the latter also said the same thing. 

ALSO READ: Critics Blast Biden’s Claim That Inflation Was 9% When He Took Office, Say It Was 1.4%

Things Are Worse

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According to the Federal report, the recent wave of inflation has negatively affected the lives of 65% of US households. Only about 4% of the country’s adults said that the inflation and price changes improved their lives. Some noted that the inflation had “little to no effect,” and they made up 31% of the report’s population. 

Increase in Rent

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Inflation has affected several aspects of the economy, and one of the most significant is rent. The cost of housing and renting has skyrocketed, and people are finding it difficult to live comfortably.

The report also said, “The median monthly rent payment was $1,100 in 2023, up 10 percent from 2022. In addition, 19 percent of renters reported being behind on their rent at some point in the past year, up two percentage points from 2022.”

A Noticeable Trend

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A brief relief was noted in 2023 compared to 2022’s high inflation rates. However, the overall well-being of Americans did not change significantly, as they are still reeling from the high prices.

The report also noted that 78 percent of the adults reported that they were doing “at least okay” financially, compared to 73 percent in 2022. This is part of a continuing trend that has been decreasing over time. 

POLL—Should the Government Increase Taxes on the Wealthy To Reduce Economic Inequality?

Inflation Is a Top Priority

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While the difference between 2023 and 2022 only showed a 5 percent decrease, it is still a significant difference. The inflation rate is lower than that of 2022, but people are still having significant financial problems. The report said that inflation is still one of the top concerns on the minds of Americans, making it a top priority for people of different ages, especially those with children. 

The Spiking Inflation Rate

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The inflation rate in the U.S. skyrocketed during the COVID-19 pandemic. This was the eventual result of a slowed economy, which quickly caused the inflation rate to increase rapidly.

In 2022, inflation reached a record high of 9.1%, the highest it has been in 40 years. Just two years before that, in the same month in 2020, it was at 0.6%.

ALSO READ: Putin Apologises to Russians over Rising Cost of Living as Inflation Soars  

People With Bank Accounts

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94 percent of the survey’s respondents reported that they had their own bank accounts. While nearly all the adults with an income of $100,000 had bank accounts, 77% of those with low net incomes of $25,000 said they owned bank accounts. Therefore, this shows a significant difference between those earning higher and those in the lower bracket. 

Many Credit Denials

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The number of Americans who have applied for credit in the country has increased significantly over the past couple of years. However, the number of approved credits has not increased at all. Those who got denied or approved for less credit were 2% from 2022 to 5% in 2021. Therefore, people cannot access credit, which would help with the current inflation.

People Are Hopeful

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Surprisingly, people still have hope despite the many challenges that inflation is causing. In the 2023 report, 42% of the respondents believe the current economy is “good or excellent.”

This was a good 4% increase compared to the 38% response from those who took the survey in 2022. However, it is still significantly lower than the 50% recorded in 2019 before the COVID-19 pandemic. 

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