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/ Wednesday, December 15, 2021
Poll: Income is up,
but Americans focus on inflation Fast-rising prices have forced many Americans to change their spending habits
W
The Associated Press
ASHINGTON — Americans’ overall income has accelerated since the pandemic, but so has inflation — and a new poll finds that far more people are noticing the higher prices than the pay gains. Two-thirds say their household costs have risen since the pandemic, compared with only about a quarter who say their incomes have increased, according to a poll by The Associated Press-NORC Center for Public Affairs Research. Half say their incomes have stayed the same. Roughly a quarter report that their incomes have dropped.
Impact on Spending Habits
The fast-rising prices that have been surging through the economy have forced many Americans to change their spending habits. About one-third said, for example, that they’re driving less often, and roughly 3 in 10 Americans say they’re buying less meat than they usually do. In the past year, gas prices have jumped nearly 50%, and the cost of meat is up 15%. Most people say the sharply higher prices for goods and services in recent months have had at least a minor effect on their financial lives, including about 4 in 10 who say the hit has been substantial. The poll confirms that the burden has been especially hard on low-income households. The findings in the AP-NORC poll underscore the
financial pressures that this year’s spike in inflation has imposed on many Americans’ finances. Still, as they have since before the pandemic struck in March 2020, a majority say their own finances remain good.
pandemic. Wages and salaries grew 4.2% in September compared with a year earlier, the largest annual increase in two decades of records. And the government provided a $1,400 stimulus check to all households in March as well as a $300-a-week unemployment aid supplement from March to September. Most households with Perceptions On The Economy children began receiving the $300 monthly child Yet, many Americans have soured on the tax credit in July. economy in the past year, even though most Those government measures, combined economic indicators point to a still-steady with higher paychecks, lifted Americans’ overall recovery, with near-record job openings, solid household incomes by 5.9% in retail spending and a rebound October compared with a year in manufacturing. Only about earlier. Yet inflation jumped to one-third said the economy is 6.2% that month, the highest “good,” down from about half reading in three decades, who said so in March. That negating the income gain. may illustrate why President 85% of Americans Jason Furman, President Joe Biden hasn’t benefited surveyed say they Barack Obama’s former top politically from positive paid higher-than-usual economic adviser, suggested readings on the economy. prices for food and gas that many people don’t think The poll, though, finds a in recent months. about government payments, sharp partisan split: Only about such as stimulus checks, when 1 in 10 Republicans describe Source: The Associated considering their own incomes the economy as “good”; more Press-NORC Center for Public because those payments are than half of Democrats say so. Affairs Research generally one-time windfalls. Yet when asked about their own A likely factor in Americans’ financial situations, people are worries about inflation is that more positive and less divided rising prices have been concentrated in highly along party lines. About two-thirds of Americans visible categories: The poll finds that 85% say they say their personal finances are in good shape. paid higher-than-usual prices for food and gas Roughly 7 in 10 Democrats and about 6 in 10 in recent months. Nearly 6 in 10 say the same Republicans say so. about electricity. About 4 in 10 say they bought Analysts generally expect the economy to appliances recently and that the prices were higher grow at a brisk 7% annual rate in the final three than normal. months of this year, boosting growth for all of The effect is even more pronounced among 2021 to its fastest calendar-year pace since 1984. middle- and lower-income Americans: Half of The unemployment rate has dwindled to 4.2%, people in households earning less than $50,000 from 6.7% a year ago. And with many employers a year say the price increases have had a major struggling to hire, the economy still has nearly 4 million fewer jobs than it did before the pandemic. impact on their finances. Only a third of those in households earning more than $50,000 say the U.S. households, on average, are earning same. higher incomes than they did before the
In fact,
