Lower Income Households Hit Hardest as Majority Describe Economy as 'Horrible'
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72% of Americans surveyed described the economy negatively using words like "horrible," "terrible," and "disastrous." Only 22% described it positively.
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Majority of lower income households (<$50k) are dramatically cutting back spending across all categories like food, clothing, and utilities. Higher income households (>$100k) are only cutting back significantly in restaurants and retail.
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50% of lower income households will spend less this holiday season compared to 38% of higher income households. Lower income households relied more heavily on stimulus checks during the pandemic.
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Lower income households report more addiction problems like drugs, alcohol, and gambling, exacerbating their economic struggles.
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Possible solutions include targeted stimulus for <$50k earners, Fed pausing rate hikes to avoid slowing economy further, or even rate cuts to stimulate growth.