(VitalNews.org) – Americans have been very negative about the United States economy despite the Federal Reserve saying the economy is in good shape, with an expanded GDP and low unemployment rates.
When looking at the United States as a whole, the statistics give reason for optimism, with people being employed and income finally starting to rise above inflation; things seem to balance back out a bit. Regardless, Americans are still very unhappy with the economy, but why?
An analysis from the Treasury recently revealed that Americans can still afford the same things they did in 2019, and they also have $1,000 on average more in their pocket than they did in 2019.
Ben Harris, who is director of the Economic Studies program at the Brookings Institution said, “There are three plausible explanations — the first is self-evident, that people truly find the current economy unsatisfactory.” He continued to say this may be because of unhappiness with the prices or with housing affordability.
Financial distress after the help during the pandemic could also be a factor. Most families can feel like they are not doing as well because they were receiving benefits such as the Child Tax Credit and stimulus checks during that time that helped them to be on top of their funds more. Now, without those benefits, families could feel like they’re struggling a bit more.
Even with income surpassing inflation and the expanding economy, 43 million Americans claim that they have had trouble paying their bills, which is up from the 26 million seen in 2021.
Another huge factor here is housing and housing market prices that many people have to consider when taking on a mortgage. People aren’t able to buy homes as easily, which can make many feel like they are struggling financially, or that the economy is bad. However, this isn’t necessarily the case when it comes to the health of the economy. With that being said, more than half the large U.S. cities require you to make more than $100,000 a year to purchase a home.
An Indeed report stated that the average income a person makes is $71,000 and this is still not enough to get a home in most places. In fact, in 99% of U.S. counties, home prices are unaffordable for an average income earner.
All of these factors can cause added stress to families in their own unique situations. Although the economy is stabilizing slightly, there has been a lot of pushback from Americans claiming that the economy is not doing better. These factors could point out the real problems that are causing Americans to feel this economic pressure.
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