Why do Americans feel so bad?, [Perspective] US Media Questions: If Inflation Alleviates

Screenshot of USA Today website report

China Daily, September 19th (Xinhua) - According to a recent journal article on the website of USA Today, American economists have praised the strong job market and believe that at least so far, the "soft landing" of the economy has eased inflation. However, most Americans use words such as "terrifying" and "chaotic" to describe their current economic situation.

According to a recent survey by the Sawyer School of Business at Suffolk University/USA Today, 70% of respondents believe that the economy is deteriorating. Palologos, director of the Center for Political Studies at Suffolk University, said, "My interpretation of these data is that there is no 'soft landing'."

The article suggests that if economic data is very impressive, why do Americans feel so bad? The following are six findings from this survey that help explain this disconnect. The survey surveyed 1000 people from September 6th to 11th using landline and mobile phones, with an error rate of plus or minus 3.1 percentage points.

The prices of groceries are still rising

84% of respondents believe that the cost of living is still rising. Among respondents who believe that inflation is still continuing, 49% believe that food prices are the main culprit. 16% of respondents believe that housing prices are the main culprit, while 11% mentioned utilities, gasoline prices, and other transportation costs.

Household debt increases and savings decrease

Four out of ten respondents reported an increase in their household debt over the past year. Nearly nine out of ten respondents stated that they do not intend to purchase or sell a house in the next 12 months, with over one-third of respondents citing the reason that they cannot afford it now.

30% of respondents said they had to cut their savings to pay their bills, and almost the same number of people said they had saved less than usual in the past year.

The epidemic subsidy has been exhausted

55% of respondents reported receiving some federal stimulus funds or other federal aid during the pandemic, which is important for many of them. More than one-third of the recipients said this was "very important" for them to get through the most severe period of the epidemic; Another quarter of the recipients said this was "a bit important".

However, the three rounds of economic stimulus plans have come to an end, and Congress has rejected proposals to further expand assistance in paying for childcare costs. This is also one of the reasons why the data released by the Census Bureau on Tuesday showed that the child poverty rate has increased from 5.2% in 2021 to 12.4% in 2022.

Purchase new clothes? Going out to play at night? Forget it

Due to economic concerns, most Americans have reduced some of their enjoyment of life.

About seven out of ten respondents reduced their frequency of dining out and spending less on clothing. Nearly six out of ten respondents postponed their home renovation and cancelled their vacation. More than half of the people have reduced their grocery expenses and are trying to save on electricity by lowering the setting of their air conditioning thermometers at home.

People with lower incomes have been hit

Americans with an annual income of less than $50000 have been hit the hardest.

They are most likely to see their savings depleted and household debt increasing. Compared to those with higher incomes, more of them have received pandemic subsidies, which are more important for them in maintaining their livelihoods. Their likelihood of reducing food and grocery expenses is twice that of high-income families with an annual income of over $100000. There is a problem of drug abuse, alcoholism, or gambling among low-income family members. In households with an annual income below $50000, 24% of people are affected by this situation and the pressure it brings, while in households with an annual income exceeding $100000, this proportion is only 14%.

Christmas consumption will reduce expenses

44% of respondents said they plan to reduce expenses on Christmas shopping this year, rather than increase them. Four out of every ten Americans indicate that their expenses will remain unchanged.

This cautious attitude itself can also have an impact on the economy. Retailers rely on consumer spending, including a surge in traditional holiday spending, to increase their sales revenue.

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