Search on TFTC
Financial Crisis Hits 65% of Middle-Class Americans

Financial Crisis Hits 65% of Middle-Class Americans

Jun 12, 2024

Financial Crisis Hits 65% of Middle-Class Americans

In a sobering assessment of America's economy, a recent survey has revealed a stark picture: 65% of middle-class Americans find themselves in financial distress, with no optimism for improvement. The survey, conducted by the Cost of Living Coalition, encompassed the sentiments of 2,500 Americans across various income brackets.

Fox News

The findings indicate that the once comfortable income of $60,000 a year no longer guarantees financial security, with two-thirds of earners in this category struggling to meet their financial obligations. Even amongst those earning $150,000 annually, a quarter expressed concerns about bill payments, exacerbated by significant expenses such as high mortgages in cities like San Francisco and the costs of private education to avoid underperforming public schools.

A staggering 40% of respondents are unable to look beyond their immediate paycheck, trapped in a cycle of living from one to the next. Alarmingly, nearly half of those surveyed don't possess a $500 safety net for unexpected expenses, with one in five only able to muster a maximum of $100 for emergencies. The psychological toll is evident as a third report extreme stress regarding savings or emergency funds, and a quarter are worried about their ability to cover medical expenses. Additionally, utility bills are a source of extreme stress for a fifth of the respondents.

These financial strains are not limited by political affiliations; Republicans, Democrats, and Independents all share similar concerns. This is particularly noteworthy considering that middle-class voters often play a pivotal role in elections, potentially signaling a shift in voter sentiment based on economic circumstances rather than party loyalty.

The survey points to various factors contributing to this economic strain, including rising interest rates and record-high debt levels. Surprisingly, the role of inflation was notably absent from the discussion, which may suggest editorial discretion influenced by the upcoming election. Inflation has not only eroded purchasing power but has also compounded debt through increased costs and interest rates.

The housing market serves as a prime example, with the cost of buying a house now double what it was pre-pandemic. This ripple effect extends to consumer credit, where individuals face steep interest rates on necessary expenditures such as home repairs.

With inflation already taking its toll and a potential jobs and consumer spending downturn on the horizon, the American middle class could face setbacks reminiscent of past economic crises.

Recent polling indicates a shift away from traditional media narratives toward voting based on economic interests. Donald Trump seems to be gaining traction across diverse voter demographics, including those traditionally aligned with the Democratic Party. Should this trend continue, it could signal a profound realignment driven by economic discontent.

Cost of Living Coalition Survey


Current Block Height

Current Mempool Size

Current Difficulty