‘I’ve never felt poor before’: Inflation and higher gas prices are stretching workers to their limit

A 57-year-old nurse practitioner in Nashville, Kris Massey, who earns six figures annually, recently attempted to sell her grandmother’s heirlooms to cover bills after years of high inflation and a period of unemployment drained her savings. She worked two jobs until back surgery made that impossible, leaving her financially stretched despite her income level. Consumer sentiment in the U.S. has reached its lowest point in history, surpassing levels seen during the Vietnam War, 1970s oil crisis, 9/11, the Great Recession, and the COVID-19 pandemic. The surge in gas prices, driven by a Middle East conflict and oil supply constraints, has worsened financial pressures, with inflation pushing everyday goods and services up by 25% since 2021—more than double pre-pandemic rates. Lower-income households face the brunt of these increases, as a larger portion of their earnings goes toward essentials like groceries and fuel. Even higher-income earners are trading down to cheaper alternatives, increasing demand for lower-cost goods. David Ortega, a food economics professor at Michigan State University, noted that those already buying budget options have no further room to cut spending. Despite the economic strain, consumer spending remains resilient, growing at a 4% annual rate in April, excluding gasoline, according to Bank of America data. The persistence of strong tax refunds and a K-shaped economic recovery—where high earners fare better than low-income groups—has helped sustain spending. However, bankruptcy filings have risen 10.6% over three years, and personal savings rates are near historic lows, signaling growing financial instability. The stock market continues to perform well, but this does not reflect the broader economic struggles of many Americans. Delinquency rates are climbing, and debt levels remain elevated, painting a stark contrast between Wall Street’s success and the financial hardship faced by everyday workers. Massey, who lives in a relatively low-cost suburb, expressed frustration, saying she should be securely middle-class but is now struggling to make ends meet.