Americans Say They’re Financially Worse Off Than A Year Ago

President Donald Trump won the 2024 election largely due to his promises to lower prices amid dissatisfaction with the Biden administration’s handling of the economy. We’re firmly into year two of Trump’s second term, and much of his administration’s actions have only exacerbated the cost-of-living crisis. So it should come as no surprise that roughly half of Americans believe they’re worse off financially than they were a year ago. 

CBS News reports that the Federal Reserve Bank of New York’s Survey of Consumer Expectations found that 48% of respondents said their finances were worse than they were last May. The survey also found a distinct lack of optimism among respondents, with the share of people expecting their finances to improve within the next year falling to its lowest level since October 2022. 

The lack of optimism isn’t terribly surprising, as the Trump administration has made several moves over the last year that have exacerbated the cost-of-living crisis. Trump’s pressure on congressional Republicans to allow tax subsidies for insurance purchased through the Affordable Care Act (ACA) has resulted in a drastic increase in monthly premiums for marketplace plans. 

The ongoing war in Iran has only exacerbated the affordability crisis. The Strait of Hormuz, where nearly a quarter of the world’s oil is transported through, has effectively been closed since late February when the conflict started. Oil prices have skyrocketed as a result, with the average price of gas in all 50 states hitting $4 last month, the highest they’ve been in four years. 

The increase in oil prices has led to higher grocery and goods prices, since they are largely transported by diesel-fueled trucks. 

Confidence in finding a new job has steadily fallen, with 15% of respondents believing that they could lose their job within the next year. The Trump administration hasn’t exactly helped with this problem, as it spent much of its first year conducting rampant layoffs throughout the federal government. Hundreds of thousands of federal workers lost their jobs last year, with many of them still being unable to find new work. 

Even if someone has job security, they’re not insulated from the affordability crisis. While wages increased by 3.4% last month, inflation increased by 3.8%, effectively neutralizing those gains. Three-quarters of respondents to a poll conducted by CBS News believed that their wages weren’t keeping up with inflation. 

With all these financial roadblocks, it should come as no surprise that credit card delinquencies are hitting their highest rate since 2011, when the economy was still recovering from the Great Recession. The Trump administration continually points to the stock market as a sign of the economy’s strength, but it has largely been propped up by speculative investing in AI companies. When (former) shoe company Allbirds saw its stock price surge after announcing its pivot to AI, that should be a sign that current market conditions are unsustainable. 

This feeling has only been exacerbated this week after Bank of America advised investors to sell their stocks, as several bear market indicators have triggered. A bear market is when stocks decline 20% from a recent high. 

So whether you’re a working-class American or a white-collar investor, it’s becoming increasingly apparent that Trump’s economy isn’t really working for anyone. 

SEE ALSO:

Senate Democrats Estimate Iran War Cost Americans $8.4B In Gas Prices

Poll Shows A Third Of Americans Skipping Meals To Cover Health Care Costs 

Nearly Half Of Americans Say They’re Financially Worse Off Than A Year Ago was originally published on newsone.com