Inflation Driving Economic Anxiety Across Income Levels

The pressure of a potential recession and persistently high inflation is leading to serious concerns of Americans at every income level about their personal financial well-being. The effects of inflation are often cited as the number one concern among Americans in recent polls.

While the issues are pressuring many lower and middle-income citizens, it’s no different even for those making more than $100,000 per year. A recent survey found that 70% of those at all income levels are stressed regarding their personal financial standing.

That number includes 57% of those earning more than $100,000. Furthermore, more than half of Americans are living paycheck-to-paycheck, including approximately one-third of those earning the higher income threshold.

When asked about the factors that were causing financial stress, the respondents consistently cited inflation as the leading factor. Almost 60% of all Americans referenced inflation in the survey. Even more strikingly, 61% of those earning more than $100,000 stated the same.

Fears regarding both the general state of the economy and inflation will likely persist through the end of the year. This week’s inflation figures show that prices are continuing to increase at an alarmingly high rate.

Much of the increase in inflation was caused by increases in the price of both fuel and housing.

Furthermore, released Federal Reserve minutes show that members of the central bank fear that bank failures will tip the country into a recession later in 2023.

The Fed expects overall economic growth of just 0.4% for the entire year, which would mean a negative growth rate by the end of the year, considering quarter-one growth of 2.2%.

One poll from earlier this year had similar findings, with most Americans citing inflation as a prime concern.

More than half of Americans, 57%, said that they had less money than a year prior. This was more than double the figure from February 2018, during the administration of former President Donald Trump.

The effects of slow economic growth and rising prices led to a decline in average inflation-adjusted earnings.