The results of a new Gallup survey have revealed the extent of inflation’s devastation upon American households. These results emerge during the same week that Federal Reserve Chairman Jerome Powell ordered Congress to stop referring to inflation as “transitory,” as prices continue to rise as a result of the Biden administration’s varied economic policies.
Almost half of all households across the United States, or 45 percent, have reported significant “financial hardship” due to price increases. Prices are presently elevated in grocery stores, gas stations, and utilities, to the extent that upwards of 10 percent of Americans are reporting a reduced standard of living.
45% of US adults say recent price increases are causing financial hardship for them or their household, including 10% who say they're causing severe hardship, per new @GallupNews survey. Among those earning less than $40,000, 71% report financial hardship. https://t.co/iD34TpbzSZ pic.twitter.com/ZIFIebk1gm
— John Gramlich (@johngramlich) December 2, 2021
The Americans most significantly affected by the Biden administration’s economic policies include “lower income” Americans, who are absorbing a significant percentage of inflationary pain. Specifically, 71 percent of individuals making under $40,000 per year have reported additional hardship due to rising inflation levels.
Approximately 47 percent of individuals making above $40,000 but below $100,000 per year report increased financial hardship, whereas 26 percent of individuals making over $100,000 per year report additional financial stress.
According to the Gallup report accompanying the quantitative results, “nearly half of [American] adults already report that price increases are causing them financial hardship,” just as U.S. consumers are “[sailing] into peak holiday shopping season. The same consumers are also enduring “bigger heating bills” as a result of inflationary pressures on utilities.
“Rising prices are expected to persist,” the report continues ominously, which “[means] more Americans are likely to report hardship and those most vulnerable are likely to see things get worse before they improve.”
The results of the Gallup survey align with the economic forecast that Powell provided earlier in the week. Given that Powell called for the retirement of the word “transitory” with regards to inflation, it is unlikely that price levels will decline at any point in the near term.
The additional financial hardship endured by many Americans is ironic, given that the Democrats have long insisted that their policies align with the needs of working-class Americans. The Democrat Party has also claimed that its policies promote a better quality of life for all Americans.
In general, White House Press Secretary Jen Psaki has downplayed the serious, ongoing issues regarding inflation and supply chains, going as far as to mock the “tragedy” of exercise equipment, such as treadmills, taking longer to arrive to consumers.
It remains to be seen how Psaki or the White House will respond to the results of the latest Gallup survey.