Inflation is Sinking Americans Further into Debt
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Key Takeaways
- Inflation has led to increased loan delinquency rates as American households struggle to make ends meet.
- Rising charge-off rates show that more debts are being written off as uncollectible, indicating significant economic pressure on both consumers and banks.
- Public discussions coincide with Federal Reserve data to paint a picture of financial instability and uncertainty for the future.
Our Methodology
Demographics
All Voters
Sample Size
18,500
Geographical Breakdown
National
Time Period
7 Days
MIG Reports leverages EyesOver technology, employing Advanced AI for precise analysis. This ensures unparalleled precision, setting a new standard. Find out more about the unique data pull for this article.
The American public continues to languish in negativity about inflation, a sustained cause for attention and concern. The reality of economic hardship for average citizens causes talk of high prices, financial insecurity, and uncertain futures.
MIG Reports data shows voters are unhappy and fear the country's economic trajectory. While sentiment is polarized, significant blame is directed at the Biden-Harris administration for worsening inflation and mismanaging the economy.
Mortgage applications are down, and loan delinquencies are up, causing many voters to express a sense of despair.
Mortgage applications dropped another 4%, despite rates being at their lowest level since February 2024. pic.twitter.com/jADX1k00u1
— TheStreet (@TheStreet) July 24, 2024
A Dollar Only Goes So Far
Conversations regularly turn to the noticeable increase in cost of living. Voters mention record high grocery prices, high gas prices, housing costs, and recent market crashes. They blame their financial struggles on runaway inflation and the resulting erosion of purchasing power. This, combined with wage stagnation, degrades quality of life.
The Inflation Reduction Act (IRA) is a specific point of contention. Many view it as misleading, criticizing it for exacerbating inflation rather than alleviating it. Those associating the IRA with "reparation-style payments for minority farmers" further fuels debate, as some use it as an example of misallocated resources.
Kamala Harris and Joe Biden receive much of the negativity and blame. Terms like "Kamala’s economy" and "Bidenomics" are used with "economic shambles" and "market downturn." People feel the Biden-Harris administration is causing their current economic woes.
Voters discuss Kamala Harris’s role as VP and often being the deciding vote in passing key legislation like the American Rescue Plan and the Inflation Reduction Act. They view her as a primary cause of the economic challenges they face.
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Americans are Demoralized
Voter sentiment is predominantly critical and pessimistic. The use words like "failure," "crisis," "disaster," to describe the Biden-Harris economy. A prevailing sense of displeasure and frustration crosses party lines as Republicans and Democrats both feel the economic hardship. There is a sense of urgency and demand for change with calls to vote for Trump and save America.
The predominant sentiment is that current economic policies are failing. Voters deny Biden’s claims of fixing the economy, calling it an inflation crisis and expressing disillusionment. Most households are concerned about the future, with many comments forecasting continued financial difficulties and a looming recession.
Despite media and Democrats attempting to blame the economy on Trump-era tax cuts, voter call for more cuts. They also say things like, "drill baby drill," suggesting the U.S. tap into domestic oil. Many also say the economic situation could be improved by closing the border.
There are some defending the administration, emphasizing benefits like "capping insulin prices" and "creating good-paying union jobs." However, these voices are fewer and often drowned out by the overwhelming criticism.
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Drowning in Debt
Federal Reserve data illustrates the extent of economic hardship Americans are facing. Since 2021, loan delinquency rates have increased across real estate, consumer, and credit card loans. This mirrors complaints average Americans have of rising costs of living and stagnant wages.
Voters blame the Biden-Harris administration for high interest rates and skyrocketing prices. The confluence of economic pressures including poor job prospects and reduced purchasing power makes it difficult for Americans to meet their financial obligations.
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As charge-off rates, which is a percentage of defaulted credit, climb, banks are writing off more debts as uncollectible. This is a sign of financial distress that is echoed in public sentiment. The upward trends in the graph parallels voter criticisms, depicting the tangible effects of inflation on people’s finances.
The bleak economic outlook is supported by federal data, validating people’s fears of recession or even depression.
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Implications Going Forward
Rising delinquency and charge-off rates, especially in consumer sectors, suggest potential economic mismanagement. Inflationary pressures caused by monetary policy and reduced purchasing power cause many to demand new leadership. This situation is aggravated by high interest rates, making borrowing more expensive for individuals and businesses.
Increasing reliance on credit and the rise in delinquencies does not inspire confidence among voters. Their high living costs and potential employment challenges could increase loan defaults. This may also lead to a cyclical problem of decreased consumer confidence and economic slowdown.
With mortgage applications down, mortgage loan delinquency increasing, and sustained high real estate prices, American families will not easily afford a home. Business investments may also decrease, and a real estate market crash could spell disaster.
Americans believe worsening financial conditions for both consumers and businesses are critically urgent. Some say rising debt delinquency could be mitigated with better policy interventions. They call for a renewed focus on reducing inflation, stabilizing interest rates, cutting taxes, and improving the job market. Voters want a president who can address these concerns promptly and effectively.
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