Financial Distress and Inflation's Impact

Nearly 40% of Americans express constant worries about paying bills, surpassing anxiety levels during the 2008 financial crisis. This growing concern is largely attributed to inflation, which has resulted in a significant gap between nominal wages and inflation-adjusted wages, leaving workers with reduced purchasing power. For example, official inflation rates since the pandemic show a 21% increase, yet fast food prices, a common proxy for inflation, have risen more than twice that amount. Consequently, many individuals are compelled to seek part-time jobs to make ends meet, with a significant portion of the population, especially younger demographics and minorities, increasingly relying on gig work to cope with rising costs.