The State of the Economy & Its Effects on the American Household
The sad reality is that the current state of the economy in the U.S., as well as the rest of the world, is objectively bad. The ongoing situation with the, albeit alleviating, pandemic and the war efforts have left the world, and our country, in a true predicament.
However, discussing the inflation and raging about the economic climate that seems to continually be on the decline is one thing, realizing just how hard it’s hit the average American household is something completely different.
Macroeconomics is the study of statistics on a grand scale, mostly devoid of emotion and a true impact you can comprehend. Only once you zoom in and investigate just how affected the households across the nation are can you begin to understand how much ordinary citizens are struggling.
One of the rare light-at-the-end-of-the-tunnel solutions remains contacting experienced bankruptcy attorneys in Oceanside and kickstarting your claim toward a fresh, stable, and more positive financial future. First, however, you deserve an explanation on why you’re struggling in the first place.
How bad is the inflation in the United States?
Over the course of the last couple of years, real-life economic conditions have been steadily worsening. There’ve been too many reports on individuals losing their jobs, people having to close their businesses, and entire industries shutting down. Now, the industries are operational, but the consequences for families and individuals don’t seem to be letting off.
It’s important to emphasize that the country currently isn’t technically in recession, as it’s rebounded from the negative trends of -1.6% during Q1 and -0.6% in Q2. However, the real situation is all but screaming recession, with people struggling with their finances more and more. Even the stock market, which can traditionally be out of step with the existing economic climate, is beginning to reflect the choppy state of the U.S. economy.
However, the depth of the inflation is difficult to describe through numbers and percentages, as they seem to be at least OK. What you can, and should, do is focus on yourself, your household, and your purchasing power. This, for all of us, remains the only tangible sign of good or bad finances.
Is the American household struggling?
Yes, the average American household is struggling to offset recession, inflation, and the overall negative trends of the country’s economy. According to a limited-scope survey conducted by the Census Bureau, over half of the households across the United States of America, or 56%, are experiencing strong financial hardships due to the exceedingly negative economic climate, with a high percentage describing the inflation as “severe”.
To take this even closer to home, it’s essential to not only explore the percentage of individuals finding the current conditions challenging, but also take a look at some of the most common methods they, and you, use to combat the countrywide financial crisis:
- 24% buy less and reduce their spending on essentials.
- 17% cancel vacations and reduce traveling.
- 17% adjust their outings and travel less to spend less gas.
- 12% avoid high-priced goods and services.
- 10% eat out less.
- 8% reduce social and entertainment activities.
Finally, focusing on Southern California, according to the 4th Annual Salary Finance report, the data suggests that:
- 76% reported how the rising costs of consumer goods negatively affected their households.
- 55% reported significantly less cash compared to the year before.
- 75% reported negative impacts of inflation on personal finances.
- 45% reported the highest level of stress due to poor finances in the last three years.
How can I regain financial independence during inflation?
Inflation hits hard and it hits everyone. To add insult to injury, there’s really very little you can do about it, even when actively trying to reduce your costs of living, as you can only take it so far before you find yourself completely unable to afford the necessities, including bills, housing, and much more. This is when you may find yourself at a loss.
However, there’s one solution that trumps all others, especially in trying economic times you’re finding yourself in, and that’s bankruptcy. Hiring respectable attorneys and filing as soon as possible will help you weather the current hardships more easily. It can prove to be the most viable option for resolving your existing struggles while also granting you a fresh slate and a stable basis for dealing with the state of the economy.
Combat worsening economy with the help from reputable bankruptcy attorneys in Oceanside
Getting a clean slate and not worrying about your debts piling up due to the awfully unfavorable economic conditions you cannot control is of the utmost importance. You and your spouse might be struggling financially, but know there’s a solution. Bankruptcy provides a way out and helps you regain secure financial footing, especially if you have experienced attorneys in your corner such as the team at Chang & Diamond.
First, we’ll answer all your questions on how to offset inflation through bankruptcy, from personal loans in Chapter 13 and purchasing a car after bankruptcy to how this procedure will allow you to take the reins as quickly as possible.
We’ll gather the necessary documentation, submit your claim on time, and handle the creditors on your behalf. With our support and professional legal representation, you’ll be visiting the Oceanside Pier worry-free in no time. Reach out to us and set up your free consultation!