In the News

CNBC: Many cash-strapped Americans feel the sting as the cost of living spikes

April 24, 2022

Interviewed by Jessica Dickler for this article at CNBC.

Some relevant quotes in context:

1. Even wealthier Americans are having a harder time getting by. Half of workers earning more than $100,000 said they have little to nothing left over at the end of the month, according to LendingClub’s poll of 3,250 adults.

“The challenge is that this requires them to deplete their savings and their safety net and that can cause other problems,” said Simon Blanchard, an associate professor at Georgetown University’s McDonough School of Business. “They become financially vulnerable,” he said.

2. A hot job market, low unemployment and a historically high rate of savings gave many Americans a boost heading into 2022, making them more willing to pay higher prices for goods and services. But while wages have grown, they have not kept pace with inflation, which is now rising at the fastest annual pace in about four decades.

“There’s a presumption that as the cost of goods increases, income tends to follow, which is not always true,” Blanchard said.
  1. MSN
  2. NBC New York
  3. NBC Miami
  4. NBC DFW
  5. NBC Chicago
  6. NBC Los Angeles
  7. NBC Chicago
  8. NBC Philadelphia

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