New Report Shows Inflation’s Uneven Burden On Middle-Class

A recent analysis of government data found that the typical US household has to spend an additional $11,434 annually to maintain the same standard of living they had before Joe Biden took office, CBS News reported.

The analysis provided by Republicans on the Senate Joint Economic Committee used government data including the Consumer Expenditure Survey and the Consumer Price Index to determine the impact of inflation in each state. The data reveals the continued financial pressure many American families are facing despite the rate of inflation slowing.

Many Americans have said that they aren’t feeling any improvement in their economic situation, despite the low jobless rate, wage increases, and the strength of some economic measures, and report that they are still struggling financially, according to recent polling by CBS News.

Americans point to persistent inflation as the primary reason they are pessimistic about the economy.

Meanwhile, economists continue to blame inflation on several pandemic-related issues, particularly the spending bills signed both by President Joe Biden and his predecessor former President Donald Trump that fueled the current inflation by flooding the economy with cash.

But even as the rate of inflation slows, many consumers are still feeling the pinch.

A recent survey by Bankrate found that 60 percent of working Americans said their income has lagged behind inflation over the last year.

Gene Ludwig, the chairman of the Ludwig Institute for Shared Economic Prosperity said middle-class and lower-class Americans are “living fragilely on the edge.”

The Ludwig Institute’s own analysis found that in 2022, the income required to cover a household’s basic needs fell short on average by nearly $14,000.

At the same time, areas with a higher cost of living don’t necessarily result in households having financial difficulty.

The Ludwig Institute recently found that some of the most expensive cities in the country provide the best quality of life for the working class, due in large part to the higher incomes they can earn in those cities.