Living paycheck to paycheck has become a mainstream financial lifestyle for US consumers

Living paycheck to paycheck has become a mainstream financial lifestyle for US consumers
Living paycheck to paycheck has become a mainstream financial lifestyle for US consumers

/ While our politicians in Washington are borrowing and spending trillions of dollars we don’t have in a desperate attempt to prop up the economy, living paycheck to paycheck has become a permanent way of life for most Americans. In other words, more than half of the country’s population literally lives on the brink of financial disaster. When you’re living paycheck to paycheck, there’s no room for error. A job loss, business failure, or medical emergency can mean total financial ruin if you don’t have a safety net to fall back on.

That’s why the results of the new study are so alarming. According to a report just released by LendingClub, 62% of all American adults lived paycheck to paycheck last month…

High inflation and higher interest rates continue to weigh on American households.

For years, people like me have been warning Americans not to allow themselves to live like this.

Living paycheck to paycheck only works if the checks come in consistently each month.

Once they stop coming, you risk losing everything.

Unfortunately, living paycheck to paycheck is currently “the dominant financial lifestyle among US consumers”…

When you’re living on the edge, even a relatively minor event like an unexpected car repair can turn into a major crisis.

About 74 percent of Americans say they are stressed about finances, according to a separate CNBC Financial Confidence Survey conducted in August. Inflation, rising interest rates and a lack of savings add to these feelings.

When millions of workers lost their jobs in 2008 and 2009, huge numbers of Americans living paycheck to paycheck lost their homes because they could no longer pay their mortgages.

Unfortunately, another wave of mass layoffs has begun.

In fact, layoffs in the tech sector appear to be on the rise again this month.

In October, Nokia announced it would cut 14,000 jobs after a quarter in which profits fell 69%, and other big tech companies such as Qualcomm, Qualtrix and LinkedIn also announced significant layoffs.

Unfortunately, much more serious economic problems lie ahead, and most Americans are deeply concerned about what the coming months will bring.

According to a poll just released by Chapman University, 55% are “afraid” or “very afraid” that we are headed for an economic or financial collapse…

Meanwhile, the survey showed, economic fears in America are intensifying. Since the first such survey, conducted by Chapman University in 2013, at least one fear related to the economy has appeared in the top 10.

This year, the fear of economic or financial collapse ranked second on the list, up from last year when it was ranked 8th. This year, almost 55% of respondents said they were very afraid of this problem.

“Given this year’s high interest rates, high inflation and the unexpected banking crisis, an economic downturn was something many Americans feared, which helps explain why the fear of an economic/financial collapse was so great,” said Mr. Andrews.

We have already experienced severe economic turmoil in the past few years.

But even bigger trouble lies ahead.

It’s so obvious at this point that even the usually wildly optimistic National Association of Business Economists is warning of “more challenging business conditions as the economy slows”…

The nation’s top economists have refrained from predicting a full-blown recession, but see headwinds for the U.S. economy.

“Results from the October 2023 survey of business conditions point to a more challenging business environment as the economy slows,” said National Association of Business Economists President Ellen Zentner, chief U.S. economist at Morgan Stanley.

This time they were right on target.

The US economy is indeed slowing down.

And the European economy is also slowing down…

The eurozone economy risks slipping into recession later this year after official data on Tuesday showed output shrank slightly in the third quarter.

Gross domestic product in the 20 countries that use the euro fell 0.1 percent in July-September compared with the previous three months, according to a preliminary estimate released by Eurostat, the European Union’s statistics office.

The drop comes after growth of just 0.2% in April-June and highlights the fine line between contraction and growth in the eurozone. GDP remained unchanged in the last three months of 2022 and the first quarter of this year.

Even in the best case scenario, the road ahead will be very difficult for the global economy.

But what happens if the flow of oil from the Middle East is restricted or stopped for an extended period of time?

As I said yesterday, it would really be an economic nightmare for the whole world because 31% of the world’s oil comes from the Middle East.

The global oil crisis will affect us all deeply because our entire way of life is based on cheap energy.

It will therefore be important to closely monitor developments in the Middle East.

If Hezbollah and Iran go to war, things are going to get really crazy real quick.

Translation: V. Sergeev

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The article is in bulgaria

Tags: Living paycheck paycheck mainstream financial lifestyle consumers


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