Money & The Economy

As Inflation Rages On, More Americans Are Living Paycheck To Paycheck

As inflation continues to batter consumers, the number of Americans living paycheck to paycheck climbed to 60% in August, according to a Friday report from financial services company LendingClub.

The increase, up from 57% in September 2021, was driven primarily by a greater portion of six figure earners slipping into a paycheck-to-paycheck lifestyle, according to the LendingClub report. While the proportion of those earning less than $50,000 and those between $50,000 and $100,000 living paycheck to paycheck stayed roughly the same, at 73.6% and 62.4% respectively, earners between $100,000 and $150,000 saw a more than 6.5% increase to 43.8% living paycheck-to-paycheck.

“Fewer consumers not living paycheck to paycheck indicates that consumers are continuing to lose financial stability,” LendingClub said. “Yet, the share of consumers living paycheck to paycheck with issues paying their bills has dropped 7 percentage points in the same period. Many have moved to what now may constitute a stable lifestyle: living paycheck to paycheck without difficulty paying bills.”

Between March 2021 to August 2022, real wages have fallen each month, with real average hourly earnings falling by 2.8% annually as of August. Inflation has remained consistently high, roughly 3 to 4 times higher than the Federal Reserve’s goal of 2%.

The cost of food, which hit its highest rate in more than 40 years in August, was felt disproportionately by those already struggling to pay their bills, with 75.8% of those struggling to pay bills while living paycheck to paycheck believing increased prices for food were “very or extremely considerable.” In contrast, those living paycheck to paycheck but comfortably paying bills and those who did not live paycheck to paycheck reported the same feeling at a rate of 68.3% and 66.9% respectively.

“With inflation expected to continue, it will likely press consumers of all financial lifestyles further,” LendingClub reported. “[T]ime will tell how well they continue to adapt.”

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

John Hugh DeMastri

Share
Published by
John Hugh DeMastri
Tags: inflation

Recent Posts

Red State Slaps Wall Street Titan With Cease And Desist Order Over ‘Fraudulent’ Claims About Green Investments

Mississippi Secretary of State Michael Watson sent a cease and desist letter to investment manager…

2 hours ago

Red State Lawmakers Pass Bill Banning Chinese Land Purchases Near Military Sites After DCNF Investigation

The Kansas House of Representatives passed a bill Wednesday preventing foreign adversaries from buying up…

3 hours ago

Ron DeSantis Signs Bill That Takes Sledgehammer To Squatters’ Rights

Republican Florida Gov. Ron DeSantis signed a bill Wednesday to crack down on squatters taking…

4 hours ago

Disney Drops Lawsuits Against DeSantis-Backed Tourism District

Disney has dropped its lawsuits against a special district backed by Florida Gov. Ron DeSantis…

5 hours ago

What’s Wrong With America’s ‘Elites’?

It is becoming increasingly clear that some of America's most serious problems can be traced…

6 hours ago

Great Readers, Great Tips!

Once again, my very clever readers have reminded me that it's the little ways we…

6 hours ago