Due to inflation, the income level needed to maintain a satisfactory quality of life for a family of four in the United States is quickly moving out of reach for many Americans. A new study indicates that the average family of four needs an annual income of $177,798 to maintain their quality of life, well above the average US annual salary of $59,428 as of May 2024.
Inflation continues to plague the American economy, with high prices causing consumers to pare back spending on even essential household items. For several months, major economic indexes, including the Consumer Price Index (CPI) and Producer Price Index (PPI), have shown a re-acceleration in inflation.
This re-acceleration likely means the Federal Reserve Bank will not move to lower interest rates in the near future, adding additional financial burdens to American families. Additionally, many small businesses are expressing increasing concern about their survival under a second Biden term in office.
While the Biden government insists that the inflation rate remains low, everyday Americans face a real cost-of-living crisis. Due to rapidly increasing costs, Americans’ hard-earned wages don’t stretch as far as they previously did. Home prices have risen by over 47 percent since the beginning of the decade, making it increasingly difficult for the average American to afford housing. For families to live comfortably across the United States today, higher incomes are required, the highest being nearly $300,000 in Massachusetts due to high inflation.
Joe Biden has repeatedly claimed, incorrectly, that inflation was at 9 percent when he took office. In reality, the inflation rate was only 1.4 percent when Biden was inaugurated in 2021. The 81-year-old incumbent Democrat’s top White House economic adviser, Jared Bernstein, has also repeated the false claim.
