Inflation Is the Main US Money Challenge: What Does That Mean for the Election?
Written by
Chris Adam
Edited by
Ashley Barnett
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Consumers continue to feel the impacts of inflation — and that may not be great news for Joe Biden or Donald Trump this election year.
Americans are Struggling
Just how well do Americans feel about their financial situations ahead of the November election? Here’s what they report according to December 2023 data from the Federal Reserve:
- More than a quarter of American adults are struggling financially
- 72% reported living “living comfortably” or “doing okay”
- 28% were “just getting by” or “finding it difficult to get by”
Here’s more perspective on those numbers. According to USAFacts, “The 72% at least doing okay is the lowest share since at the onset of the COVID-19 pandemic in April 2020.” In addition, and what may be a key statistic for Biden and Trump, in the last couple of years, more Americans feel worse off financially than feel better off.
Inflation Hurts Families
Inflation, specifically, has been cited more often in the past two years as the top reason for financial difficulties. It was followed by the costs of basic living expenses and then housing.
What does all of this mean for the election and the presidential candidates? It may come down to an issue of trust and who voters think will best help them improve financially by easing inflation and improving the overall economy.
Blame Goes Around
During the recent debate, both candidates blamed each other for the country’s economic woes. However, outside events and factors have greatly impacted the U.S. economy.
CNBC talked to economists who said, in fact, “Biden and Trump are not responsible for much of the inflation consumers have experienced in recent years…” They point to global events like the war in Ukraine that hurt supply-and-demand dynamics and fueled higher prices.
Of course, some Biden and Trump policies have also played roles, and that may play a big part in the election. The economists suggested it may come down to who voters believe will put new policies in place to better help their financial situations.
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