Majority of Americans Use Savings to Cover Inflation Costs as Stagflation Concerns Mount, Reports Say
Recently surveyed economists also agree the U.S. is likely to hit a recession in 2023.
The majority of Americans’ finances are worse than they were a year ago and they’re blowing through savings to make ends meet as record-high inflation has caused prices to skyrocket, several reports indicate.
At the same time, financial experts argue stagflation warnings are surfacing as the White House says it hasn’t “missed much” on inflation and boasts of economic growth.
Roughly 70% of Americans are using their savings to cover the higher costs of goods that are blowing through their budgets, a recent survey of 2,000 adults conducted by Forbes found. According to the survey, 67%, or “a full two-thirds of Americans say they’re raiding their savings as prices for goods and services spike.”
Among them, 8% said they’ve completely drained their savings; 23% have depleted a substantial amount and 36% have spent a small amount solely because of inflation. Older Americans are faring better, wit...