The financial outlook in the United States is deeply concerning. The bottom 20% of workers are allocating a staggering 80% of their income to essential goods like food, highlighting the stark inequality. Even those earning $150,000 or more a year are living paycheck to paycheck, relying on credit cards to make ends meet.
Excess savings, which once amounted to $2.1 trillion in August 2021, has dwindled to a mere $148 billion. With the average household income at $75,000, they can afford a mortgage and car payment, but the median home and used car payments far exceed these levels.
As companies benefit from inflation and raise prices, the sustainability of this trend remains uncertain. The growing income gap and rising costs demand urgent attention to avert potentially challenging times ahead.
The bottom 20% of American workers are devoting 80% of expenditures to essential goods like food, per BI.
— unusual_whales (@unusual_whales) November 8, 2023
— Win Smart, CFA (@WinfieldSmart) November 8, 2023
Excess savings in the US peaked in August 2021 at a $2.1 trillion.
It is now down to just $148 billion, per BI.
— unusual_whales (@unusual_whales) November 8, 2023
The average household income is $75,000/yr
They can afford an $1,850 mortgage payment and a single $500/mo car payment.
The median home payment is $3,000
The median USED car payment is $700Let's not pretend we don't know what happens to prices next 😉 pic.twitter.com/HYptSEyGCx
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) November 8, 2023
Companies have indeed been benefiting from inflation so far, it wasn’t too tough to raise prices with all the excess savings in place. Will it continue forever? pic.twitter.com/ucKQGF1sdo
— Michael A. Arouet (@MichaelAArouet) November 8, 2023
Meanwhile during this richsession
Ferrari pic.twitter.com/FhIniZAUhb
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) November 8, 2023