The American Dream is under siege. With the average full-time worker earning just $79,000 a year, the harsh reality is that most are struggling to keep their heads above water. The numbers are staggering: to live comfortably in today’s economy, the average American needs a staggering $186,000—more than double what they’re making. This shocking gap is a ticking time bomb, pushing 40% of Americans to the brink, worrying they can’t pay their bills most or all of the time. That’s up a third since the worst days of Bidenflation, a crisis even more brutal than the 2008 Financial meltdown.
The illusion of job growth is a cruel joke, masking the desperation of a nation. One in three Americans now has to juggle a part-time job just to stay afloat, a grim testament to how far we’ve fallen. But the nightmare doesn’t end there. Serious delinquency rates for credit cards have rocketed to 7% in Q2 2024, the highest in over a decade. Since 2022, delinquencies of 90+ days have more than doubled, a clear sign that the financial pressure is reaching a breaking point.
Auto loans are faring no better, with serious delinquencies surging to 3%, the worst in 14 years. With 600 million credit card accounts and 110 million auto loan accounts in the U.S., that translates to 42 million credit cards and 3.3 million auto loan accounts teetering on the edge of default. The financial strain on U.S. consumers is relentless, and the consequences could be catastrophic.
The foundation of the American economy is cracking, and the warning signs are impossible to ignore. As the gap between earnings and the cost of living continues to widen, the question isn’t if we’ll face another financial crisis—it’s when.
Sources:
www.usatoday.com/story/money/2024/07/05/average-salary-needed-live-comfortably/74295169007/
www.newyorkfed.org/newsevents/news/research/2024/20240806