Poll: More Than Half of Americans Think Life Is Worse Than Four Years Ago
The data released by the U.S. Department of Commerce on the 17th shows that after adjusting for seasonal factors, U.S. consumer spending continued to grow in September, with retail sales increasing by 0.4% month-on-month, better than the market's widely expected growth of 0.3%.
The U.S. Bureau of Labor Statistics recently released inflation data for the United States in September this year, showing that the U.S. Consumer Price Index (CPI) year-on-year growth rate in September fell to 2.4%, and the U.S. Producer Price Index (PPI) remained unchanged month-on-month in September, lower than the market's widely expected slight increase of 0.1%.
On paper, this series of economic data indeed looks good, and inflation data has also been somewhat controlled. However, the United States is far from having completely resolved the series of issues brought about by inflation, which continues to plague the U.S. economy.
"We and our family's life is worse now than four years ago."
U.S. Treasury Secretary Yellen said on the 17th that even though inflation is close to the Federal Reserve's target, high living costs still plague many American families, especially in terms of housing costs, medical and energy prices, and child care.
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On October 17, 2024, Yellen spoke at a seminar on the global economy hosted by the Council on Foreign Relations.
The data also shows that compared with February 2020, the cost of consumer goods and services purchased in August this year has increased by about 20%. This means that ordinary American consumers are facing generally higher prices in their daily lives, with a significant increase in living costs. Taking traditional American fast-food restaurants as an example, the most common food they offer has seen an average price increase of 40%, and the public's perception can be imagined.
Barron's reported: In recent years, the soaring prices of American fast food have led to fewer visits to chain restaurants by many customers, especially those from low-income families.
A public opinion survey result announced by the U.S. Gallup Consulting Company on the 18th shows that 52% of American respondents said that they and their families' lives are worse now than four years ago. Another 46% of respondents said they think the current economic situation is "bad", and 62% of respondents believe the economy is "deteriorating".
Previously, a series of data also showed the life anxiety of ordinary Americans:A poll conducted by The New York Times earlier this month showed that 28% of American citizens consider economic issues as the most critical, with 6% of respondents specifically highlighting the pressure of inflation on their daily lives. A poll conducted by NBC last month revealed that 66% of surveyed voters believe their household income is not keeping up with the rise in the cost of living. The University of Michigan's monthly survey indicates that among the nearly 40% of American voters who have felt their economic situation deteriorating over the past two years, nearly four in ten attribute the issue to rising prices. In other words, although the decline in the U.S. economy has shown a so-called "slowing" trend in overall indicators, the dissatisfaction felt by the American public has not diminished.
"Our wage increases can never outpace inflation."
The continuous rise in production and living costs has squeezed the income of the working class, and there is a clear gap between the actual feelings of the people and the optimistic assessment of the economy by the U.S. government. The ongoing strikes in various industries in the U.S. are the most direct manifestation of the American public's dissatisfaction with income growth far below the rise in prices. From the strike of nearly 10,000 hotel service workers in early September, to the strike of tens of thousands of dockworkers at important ports along the East Coast and the Gulf Coast in October, and the ongoing strike of Boeing employees, in the eyes of ordinary Americans, the Federal Reserve's fight against inflation over the years has never allowed their wage increases to outpace inflation.
BBC reported on September 19th: Boeing employees participating in the strike said that a wage of $28 per hour is not enough to make ends meet. Solab Gupta, a senior fellow at the China-U.S. Research Center, pointed out that although data shows that U.S. inflation continues to decline, the crisis of living costs that the American public is generally facing has never been alleviated."Due to the federal government's mismanagement of the interest rate cycle, the cost of living crisis is intensifying, with long-term interest rates remaining high, commodity pricing elevated, and the costs of corporate borrowing and mortgages also high, negatively impacting many households with excessive prices. People's lives are not as good as the economic data appears to indicate."
It is noteworthy that the University of Michigan recently released the consumer confidence index for October, which unexpectedly recorded its first decline in three months. Analysts believe that the persistent frustration with high living costs has offset a more optimistic view of the job market.
American economist E.J. Anthony emphasized that the polarization of consumer spending in American society will ultimately lead to a technical recession in the economy.
"When more and more Americans rely on credit cards and government relief payments to live, gradually losing their ability to be self-sufficient, it is the high-income population, which constitutes a smaller proportion of the total U.S. population, that supports American consumption, which will eventually lead to the occurrence of an economic recession. If the U.S. government is willing to spend, borrow, and print money, it can postpone the occurrence of a technical recession for a long time, but the reality is that nothing will be fundamentally improved."
As the Federal Reserve begins the interest rate reduction cycle, the United States is currently shifting its focus from curbing inflation to promoting economic growth. There are concerns in the industry that the Federal Reserve is making the same old mistake as it did with aggressive interest rate hikes, and "aggressive rate cuts" could bring back inflation. The soft landing envisioned by Federal Reserve Chairman Powell for the economy might turn out to be an illusion.
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