MILLIONS Are Being WIPED OUT By Out Of Control Cost Of Living Crisis!

living in the US is changing.

How many Americans, particularly women, are not making enough money?

All across the US, families are facing unprecedented challenges.

After a year of higher prices, fewer families are able to make the bills at the end of the month.

Less than half of Americans have less than $1,000 in their savings.

And the internet is getting flooded with memes showing the good old days.

Some are even calling all of this a silent depression and comparing how things were 50 or 100 years ago

to how they are today.

In the much touted land of the free and the home of the brave, a silent struggle unfolds as millions of Americans find themselves caught in the relentless grip of a cost of living crisis that threatens to unravel the fabric of their lives.

From the bustling streets of New York to the sun drenched suburbs of California, the weight of soaring expenses and stagnant wages is bearing down on households across the nation, leaving them stretched to the breaking point

and grasping for relief.

The numbers are as alarming as they are eye-popping.

Data from the Consumer Price Index or CPI, a key metric from the Bureau of Labor Statistics used to measure inflation, shows that prices increased 3.2% between February 2023 and February 2024.

This is a significant dip from the staggering 9.1% peak in June 2022, the highest in more than 40 years.

For the average American family, this means that the basic necessities of life

food, housing, health care, and education consume an ever-larger share of their hard-earned paychecks, leaving little room for savings, leisure, or the pursuit of the American dream.

51% of would-be homeowners who responded to Bankrate's down payment survey said that the high cost of living has held them back from affording a down payment and closing costs for a

home.

This financial barrier not only delays the dream of home ownership, but also perpetuates the cycle of renting, where escalating rents consume a significant portion of income.

Three in five workers, or 60%, said their incomes hadn't kept up with inflation throughout 2023, according to Bankrate's pay raise survey.

The widening gap between wages and living costs has forced many to dip into their savings or rely on credit to cover basic expenses.

It's no longer a secret that financial insecurity is becoming a pervasive issue in America's economy, threatening the economic stability of countless American households and making it elusive for many to build equity and secure long-term financial stability.

In this video, we will delve into the root causes of America's escalating cost of living and its profound impact on the average citizen.

We will explore how inflation, stagnant wages, and rising housing costs create a perfect storm that leaves millions struggling to make ends meet.

Over the last three decades, American families have experienced a rise in the costs of many necessities, making it difficult for them to attain economic security.

Researchers estimate, for example, that 80% of families saw their share of budget dedicated to spending on needs such as housing and healthcare increase by more than 7 percentage points between 1984 and 2014.

potentially crowding out spending on other categories like leisure, long-term investments in education, and saving for retirement.

A 2019 Pew survey found that 35% of middle-income families frequently worry about paying their bills.

Similarly, 37% worry about the cost of health care for themselves and their families.

The housing market in particular has become a battleground of affordability, as the lack of supply and the surge in demand have driven prices to unprecedented heights.

In 2022, the median home price in the United States reached a record-breaking $428,700, up a staggering 14.8% from the previous year and more than double the median price from just a decade ago.

For many Americans, the dream of homeownership has become an increasingly elusive fantasy, as they struggle to keep pace with the soaring costs of rent and mortgages.

But it's not just housing that is putting the squeeze on American households.

Healthcare costs have also skyrocketed in recent years, with the average annual premium for employer-sponsored health insurance rising to $22,463 per family in 2023, up from just $12,298 in 2008.

For the 27 million Americans who lack health insurance altogether, the cost of medical care has become a crushing burden, forcing them to choose between their health and their financial well-being.

The toll of this cost of living crisis is evident in the daily lives of Americans across the country.

A 2023 survey by the American Psychological Association found that 83% of Americans are experiencing increased stress due to rising prices, with nearly half reporting that they have had to cut back on essential expenses like

food and healthcare just to make ends meet.

The same survey found that 60% of Americans are worried about their ability to pay for housing, while 45% are concerned about their ability to afford groceries.

So what is driving this relentless surge in the cost of living?

While there are many factors at play, three key culprits stand out.

Inflation, low housing supply, and high interest rates.

Inflation

The steady rise in the price of goods and services over time has been a persistent thorn in the side of American consumers in recent years.

According to the Bureau of Labor Statistics, the Consumer Price Index rose by 8.5% in 2022, the highest rate of inflation since 1981.

This means that the same basket of goods and services that cost $100 in January 2022 would have cost $108.50 by December of that year, eroding the purchasing power of the dollar and putting a strain on household budgets.

Meanwhile, if you're wondering how the Consumer Price Index became such a holy grail and indispensable tool for economists, it's important to understand its provenance as well.

Americans have been complaining about the cost of living since colonial days, but it has always been a challenge to actually measure it and determine how it changes over time.

It was just a century ago in 1921 that the US government started publishing a National Consumer Price Index, or CPI, based on living costs in major cities.

The CPI remains the most quoted measure of living costs today, providing a record of how costs have changed from year to year, along with ample evidence for the complainers that few things are as cheap as they once were.

It is also used as a proxy for inflation in adjusting union wages, social security payments, income tax brackets, and other financial calculations that play a major role in Americans' lives.

While some degree of inflation is normal in a healthy economy, the recent surge has been driven in part by supply chain disruptions, labor shortages, and the massive influx of government stimulus in response to the COVID-19 pandemic.

As businesses struggle to keep pace with rising costs in

and consumers compete for limited goods and services, prices have continued to climb, leaving many Americans struggling to keep up.

The housing market meanwhile has been grappling with a chronic shortage of supply as the construction of new homes has failed to keep pace with population growth and changing demographics.

The United States is reportedly facing a shortfall of nearly 6.5 million housing units, with the deficit particularly acute in the affordable and entry-level segments of the market.

This shortage has been exacerbated by a range of factors, from restrictive zoning laws and cumbersome permitting processes to the rising cost of building materials and labor.

As a result, the supply of available homes has remained tight, driving up prices and fueling bidding wars among eager buyers.

For many Americans, particularly those in high-cost urban areas, the dream of home ownership has become increasingly out of reach as they struggle to save for a down payment and compete with cash-flush investors.

At the same time, the era of historically low interest rates that fueled the housing boom of the past decade has come to an end as the Federal Reserve has begun to raise rates in an effort to tame inflation and cool the overheated economy.

While higher interest rates can help to rein in rising prices, they also make borrowing more expensive, putting a strain on businesses and consumers alike.

For the housing market, this means that the cost of a mortgage has risen sharply, with the average 30-year fixed-rate mortgage climbing to 6.73% in March 2023.

up from just 2.65% in January 2021.

For a median-priced home, that translates to an additional $679 per month in mortgage payments, a significant burden for many households already struggling to make ends meet.

But the impact of the cost-of-living crisis goes beyond just the financial strain on individual households.

It also has far-reaching consequences for the broader economy and society as a whole.

One of the most significant impacts is on consumer spending, which accounts for more than two-thirds of economic activity in the United States.

When households are forced to devote an ever larger share of their income to essential expenses like housing, healthcare, and food, they have less money left over for discretionary purchases like dining out, travel, and entertainment.

This can lead to a slowdown in economic growth as businesses struggle to attract customers and generate revenue.

Another significant impact is on savings and retirement security.

When households are living paycheck to paycheck and struggling to make ends meet, they have little ability to save for the future or plan for a comfortable retirement.

According to a 2022 report by the Federal Reserve, 28% of American adults have no retirement savings at all.

While most non-retired adults had some type of retirement savings, only 31% of non-retirees thought their retirement savings was on track, down from 40% in 2021.

This lack of financial security can leave households vulnerable to unexpected expenses and emergencies, and can put a strain on social safety net programs like Social Security and Medicare.

The cost of living crisis is also exacerbating long-standing inequalities in American society, particularly along racial and socioeconomic lines.

A 2023 report by the Brookings Institution found that black and Hispanic households are disproportionately burdened by rising housing costs, with nearly 30% of black renters and 27% of Hispanic renters spending more than half of their income on rent, compared to just 21% of white renters.

similarly low-income households are more likely to struggle with rising food and health care costs as they have less disposable income to absorb price increases the mental health impacts of financial stress and insecurity cannot be overstated a growing body of research has linked financial hardship to a range of mental health problems from anxiety and depression to substance abuse and suicide

52% of US adults say money has a negative impact on their mental health, up from 42% in 2022, with 1 in 5 reporting that they have had to skip or delay mental health care due to cost.

For many Americans, the cost of living crisis is not just a financial burden, but a source of chronic stress and anxiety that permeates every aspect of their lives.

The constant worry about how to pay the bills, put food on the table and keep a roof over their heads can take a toll on mental and physical health, straining relationships and eroding overall quality of life.

Despite the problem's scale and severity, solutions to the cost-of-living crisis remain elusive, a driver of widening social inequality and disparities.

As prices for essential goods and services continue to rise, low-income families, minorities and marginalized communities find themselves disproportionately affected

struggling to keep up with the mounting expenses.

According to a 2022 Brookings Institution report, the poorest 20% of low-income households spend more than a third of their income on housing alone, compared to high-income households.

This leaves little room for other essential expenses like food, healthcare, and education, perpetuating a cycle of poverty and limiting upward mobility.

The racial wealth gap is also exacerbated by the high cost of living.

A 2023 study by the Federal Reserve Bank of Boston found that the median net worth of white households was $247,500 compared to less for black and Hispanic households.

This disparity is reinforced by the disproportionate impact of rising costs on communities of color who are more likely to experience housing insecurity, food deserts, and limited access to affordable health care.

As the cost of living continues its relentless climb, the specter of economic ruin looms large over the American populace.

The promises of the American dream fade into the distance, replaced by a grim vision of a future where the simple pleasures of life have become luxuries beyond the reach of the common citizen.

The foundations of prosperity, so carefully built by generations past, now crumble beneath the weight of unchecked inflation, leaving the people of the United States to wonder if their once great nation is destined for the ash heap of history.

The road ahead may be long and difficult, but the stakes could not be higher.

The well-being of millions of Americans hangs in the balance, and America's future now depends on policymakers' ability to rise to the challenge.

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