Americans are deeply invested in their finances.

 Americans are deeply invested in their finances. It is how many people survive day to day and one of the means people use to “make it” in this country. However, when doing the calculations for gains minus costs, many people have come to find themselves coming up disappointed. According to Gallup, approximately 50% of people say they are worse off than a year ago. This has led to much uncertainty among most people about what the future will bring about.

                There are many reasons why people feel discouraged. According to the article, Opinion|Why Americans are so pessimistic about their finances, by Catherine Rampell, the malaise is centered around costs. Specifically, day-to-day costs such as groceries or gas, which have all increased in price because of inflation. The article explores the subject by paying attention to a group of families and how the prices on their receipts have changed over the years. Overall, everything has increased in price. To quote, “The prices of many frequently purchased items have increased, ranging from 2 percent to 115 percent.” It should be noted that this is also supplemented by costs such as rent, taxes and bills, which have all been exacerbated by inflation. Even so, it should be noted that people have not been affected equally.

                During this period of recession, the poor have gotten poorer and the rich even richer. According to Gallop, 61% of lower-income people have reported being “worse of” than last year, while the upper-income bracket stands at just 43%. In addition, the Washington Post reported that households which earn $20K annually reported that for every $1 that they earn, they are spending $4.03. This is while households that earn $150k annually work at an income-to-spending rate of $1 earned to $0.45 spent. That is a 9 times differential between the 2 ratios.

                Even so, some people still have hope. According to the article by Gallup, even though most people are pessimistic about the following months, most people are optimistic for the next year. According to the article 60% of people are looking forward to next year for better prospects for themselves. However it should be noted that Americans have had positive outlooks since 1977. From all of this we see how people have struggled with the increasing price of living, and in truth it seems like a trend that will continue. Despite that, there remains optimism that things may become better.

-          Half in U.S. Say They Are Worse Off, Highest Since 2009, Jeffrey M. Jones

-          Opinion|Why Americans are so pessimistic about their finances, Catherine Rampell