https://thehill.com/homenews/3951579-recession-already-here-for-many-americans-as-buying-power-credit-social-net-shrinks/
The stock market may be closely watching the chance of an official economic recession, but many Americans across the country are already feeling the squeeze as they contend with higher prices and borrowing costs than they saw a year ago.
While Evelyn Canela, 31, a senior program director at a nonprofit based in Harlem, said she thinks she has a “well-paying job,” which paid in the $100,000-range when she first started, she also said she’s been feeling the pressure to save, particularly as various industries have seen more layoffs in recent months.
In a poll released by Morning Consult last month, almost half of respondents believed the nation was already in a recession.
The poll also found that about 41 percent of Americans surveyed had begun taking precautions and steps to beef up savings, but a closer look at the data revealed disparities by income.
Adults in households with annual earnings above $100,000 were more likely than others to say they were beginning to prepare for an economic downturn or recession, with 52 percent saying they’d taken to stockpiling goods or food, cut back on spending or other steps.
By contrast, the poll found that those in households that earned under $50,000 annually were more likely to say they had not yet begun to make preparations “but wish they could.”
The poll comes as recent months have seen more Americans are feeling poorer and pessimistic about the nation’s economic forecast at a time that rising price stickers are putting a squeeze on pockets across the spectrum.
At the same time, data shows credit card debt is also on the rise; a March study from Wallethub found “credit card debt increased by $85.8 billion during Q4 2022 – the highest quarterly increase ever recorded.”
Job losses are cutting into spending power, even for six-figure earners