A new Brookings Institution report reveals that 45.5% of U.S. households could not afford basic necessities in 2024, driven by a gap between wage growth and inflation.
- National wages rose only 1.3% in 2024, while inflation was 2.9%. - A $1,000 increase in annual costs would push 3 million more households into precarity.
- Housing, healthcare, and childcare are the biggest burdens, leading to skipped meals and delayed medical care. - Higher-income families saw 6% wage growth, while lower earners saw just 1%, reflecting a K-shaped economy.
The report highlights that pandemic stimulus checks provided temporary relief, but current pressures like rising gas prices and expiring aid are worsening the crisis.