(Dmytro “Henry” Aleksandrov, Headline USA) A staggering 70% of Americans are feeling financially stressed, as the Biden administration continues to fumble its way through a series of disastrous domestic economic policies.
The shocking news was revealed in a new CNBC survey, which showed a sour economic view pervasive across the country, according to the economic blog MishTalk. In addition to nearly three-quarters of respondents claiming financial distress, another CNBC survey showed that 58% of Americans are living paycheck-to-paycheck.
“People are worried that the money they’ve saved won’t last and are worried they’re going to have to lean more on their credit cards and other sources of debt just to get by,” Bruce McClary, a senior vice president at the National Foundation for Credit Counseling, said.
According to MishTalk, for 14 consecutive months, the cost of shelter has risen at least 0.5% from the preceding month, with shelter comprising 34.47% of the Consumer Price Index.
“Owners’ Equivalent Rent, is the estimated price one would pay to rent one’s own house, unfurnished and without utilities. It is the single largest CPI component at 25.41%,” MishTalk reported. “The shelter index increased 8.2% over the last year, accounting for over 60 percent of the total increase in all items less food and energy.”
However, even if Americans think that they will get credit to pay for things they need, like rent, it is not going to work because consumers are now having a much harder time getting the credit than they did just one year ago.
The forecast doesn’t improve, with the Federal Reserve predicting a recession this year, along with high unemployment.
“The Fed forecasts a recession, calls for higher unemployment and below trend growth, with risks to the downside,” MishTalk reported, citing the Fed’s meeting notes.
“The staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years. The unemployment rate was projected to rise above the staff’s estimate of its natural rate early next year.”