Despite the rosy state of affairs often portrayed by the White House, America’s economy really isn’t doing so well.
The nation still faces a recession, due to the gross domestic product rate declining for two quarters in a row. Amid the ongoing recession, many Americans are turning to dollar stores as alternatives to grocery store shopping because of growing prices.
To say America’s economy has a long way to go before it bounces back doesn’t do the current situation justice. However, no one should hold their breath waiting for the Biden administration to provide an honest account of where the economy stands.
Now, a new survey shines a light on just how poorly things are going for the average American.
The decline of Americans’ savings accounts
A survey by Wealth Watch with New York’s Life shows that Americans with the luxury of having savings accounts are forced to use these emergency funds. Since this year’s begun, 36% of Americans opted to withdraw over $600 from these accounts.
Ironically, this news comes within several weeks of Biden claiming savings accounts are on the rise.
At the start of this year, a decent amount of Americans shared optimism about their finances. However, repeated rises in inflation and interest rates significantly dampened this enthusiasm.
Dipping into savings accounts is just the start of it, though. Many Americans are turning to other methods to make their dollars go further. In growing numbers of cases, this means less eating out/ordering in, reduced travel, and even sitting out events.
Worse times to come?
It’s only a matter of time before the Inflation Reduction Act becomes law. In spite of this bill’s name, it comes with massive tax hikes and federal spending, along with serious IRS beef-ups.
Conservatives warn this bill is a disaster that will worsen life for the middle-class. However, Democrats remain determined to get this bill into law.
Economists’ predictions, thus far, have inflation lasting for another several years. This means Americans should prepare themselves for higher costs into 2023 and possibly beyond.
Republicans remain adamant that the current state of the economy is why Americans will ultimately vote Democrats out of office in November.