Despite official statistics suggesting economic growth, the real-world impact on US consumers tells a different story. While government data may paint a rosy picture of increasing wealth, the stark reality for consumers is reflected in rising food costs and a decline in excess savings.
According to Biden’s statisticians, the US is experiencing economic growth and prosperity. However, a closer look at the real world reveals a different narrative. In 2022, US consumers spent a significant portion of their disposable income on food, with the share reaching 11.2%. This marks the highest proportion since 1991, signaling a considerable burden on households.
One critical factor contributing to the consumer struggle is the surge in food prices, which has outpaced income growth for many. Rising inflation, supply chain disruptions, and other economic challenges have led to an increased financial burden on individuals and families, particularly in meeting basic needs like food.
Additionally, a warning sign has emerged concerning consumers’ excess savings, indicating a decline in financial resilience. As the cost of living rises, consumers are finding it challenging to maintain a buffer of savings. This decline in excess savings suggests financial strain on households, emphasizing the growing economic disparity between official statistics and the day-to-day realities faced by many Americans.
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US consumers spent 11.2% of their disposable income on food in 2022, the highest share since 1991. pic.twitter.com/g0RcKQzK3o
— Charlie Bilello (@charliebilello) February 21, 2024
— rhijoo888 (@rhijoo888) February 22, 2024