Why are raging inflation and stagnant wages forcing households into debt according to Congress
Congress highlights how inflation and stagnant wages are putting households into debt.
- Increased Cost of Living: Raging inflation means prices of goods and services are rising faster than wages, making it difficult for households to afford basic necessities.
- Wage Growth Not Keeping Up: Stagnant wages mean that people are not seeing an increase in their income levels to keep pace with the rising cost of living, leading to financial strain.
- Increased Borrowing: With expenses outpacing income, households may resort to borrowing money to make ends meet, further increasing their debt burden.
- Lack of Savings: Inflation erodes the value of savings, making it harder for households to rely on their savings to cover expenses, pushing them towards debt.
- Economic Uncertainty: The combination of inflation and stagnant wages creates financial uncertainty, prompting households to take on debt as a means of managing unpredictable expenses.
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a year ago