American families believe they need almost triple the federal poverty rate to just “get by” as they face skyrocketing prices of basic necessities like food, clothing, and fuel. The inflation surge is hitting households hard, forcing them to find multiple jobs or side hustles to pay the bills.
The state of the American economy is in shambles and it’s getting worse by the minute. Families are struggling to make ends meet as they are hit with skyrocketing prices for basic necessities such as food, clothing, and fuel.
To make matters worse, inflation rates are through the roof, making it harder for hardworking families to keep up with the rising costs of living. It’s no surprise that families believe they need at least $85,000 just to “get by,” which is nearly triple the federal poverty rate and a whopping $27,000 more than what they needed just a decade ago.
To add insult to injury, families of four say that even the poverty rate of $30,000 falls short of what’s needed to survive in today’s economic climate. Those who make $100,000 or more are barely able to make ends meet with their get-by floor.
It’s alarming that Americans’ perceptions of the minimum income a family of four needs are influenced by their own financial circumstances. The ones who have an annual household income of $100,000 or more project $100,000, on average, as necessary for a family to get by. Middle-income respondents, those with between $40,000 and $99,999 in annual income, estimate a family needs about $80,000. Meanwhile, those earning less than $40,000 believe an income of about $66,000 would suffice.
According to Gallup, the poverty line for a family of four was $23,550 in 2013. Accounting for inflation and the subsequent change in purchasing power, Americans’ 2013 estimate translates to $75,668 in 2023 dollars. Americans’ 2023 estimate reflects an increase of about $9,000 in perceived family needs beyond what inflation alone would account for. This emphasizes the economic pressure facing American households as high inflation stretches into its second year, and the future looks bleak.
This dire situation is easy to understand, as more people are being forced to find second jobs or side hustles to make ends meet. The American dream has become unattainable for the average hard working citizen. It’s no surprise that just 18% of Americans feel good about the state of the nation, which is half of the past average. President Joe Biden is suffering from some of his worst approval rates ever, further highlighting this grim reality.
The economic pressure on American households due to the surge in inflation is beyond alarming. This dramatic increase has led to widespread financial struggles and a never-ending battle to make ends meet. As prices continue to rise with no end in sight, Americans are being squeezed tighter than ever before.
