An overwhelming majority of middle-class Americans say they are struggling financially

The majority of middle-class Americans Financial difficulties According to a new poll, they expect it to last a lifetime.

According to a survey released by the National Cost of Living Coalition, 65% of Americans who earn more than 200% of the national poverty line (about $62,300 for a family of four, often considered middle class) say they are struggling financially.

Respondents included high school graduates and graduate school graduates, as well as blue- and white-collar workers in rural and urban America.

Many of these people said they can cover their most basic expenses, but are concerned about not being able to save for the future.Interestingly, about 40% of Americans said they are unable to plan for life beyond their next payday, and a further 46% said they don’t have $500 saved for an emergency.

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“Despite the strength of the economy, many Americans are still struggling financially,” said Jennifer Jones Austin, CEO of the Alliance of Protestant Welfare Agencies and co-chair of the National Cost of Living Coalition. “They can’t afford to plan beyond their current needs.”

By many measures, the economy is healthy. The labor market is growing steadily, but only slowly. Employers add 175,000 More than one million people became employed in April. Job openings remain high and the unemployment rate has remained below 4% for more than two consecutive years.

But Americans are also struggling with the highest interest rates in two decades and chronically high inflation that has dramatically increased the costs of basic necessities like groceries, rent and gasoline.

Inflation has fallen significantly from a peak of 9.1% recorded in June 2022, but remains above the Federal Reserve’s 2% target. And compared to January 2021, just before inflation began to rise, The inflation crisis beganPrices increased by 17.6%.

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A sign advertising an Inflation Relief Sale is hanging in front of a Vacation Supply Company store in Miami Beach, Florida. (Jeffrey Greenberg/Universal Images Group/File/Getty Images)

Many families have yet to receive any material relief. Food prices have risen more than 21% since the start of 2021, and housing costs have risen 18.37%, according to FOX Business calculations. Meanwhile, energy prices have increased 38.4%.

Rising prices are especially devastating for low-income Americans, who tend to spend a large portion of their already stretched paychecks on necessities. Save money.

With inflation still high, the typical U.S. household had to pay $227 more per month in March to buy the same goods and services as a year ago. Americans are paying an average of $784 more per month compared to the same period two years ago, and $1,069 more than they were paying three years ago.

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As spending on everyday items increases, Americans are on fire More and more people are dipping into their savings and turning to credit cards to cover basic expenses.

Shoppers shop at a Kohl’s department store in Miami on March 12, 2024. (Joe Raedl/Getty Images)

The latest survey results come amid growing pessimism about the financial situation of U.S. households under President Biden.

A recently released Gallup poll found that Americans are less optimistic about the state of the economy. U.S. Economy Fewer voters trust Biden to propose or do the right thing for the economy than they have in recent months: In 2020, about 47% of respondents said they trusted former President Trump to do the right thing for the economy.

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“Biden’s poor economic performance could have a major impact on the election because not only does it have the lowest economic rating of any president seeking reelection since Gallup began polling in 2001, but independents also trust his opponent more than they trust Biden,” Gallup said.