76% of Americans Feel Economically Strained as Cost of Living Skyrockets

Americans are feeling financially strained, despite having the largest economy in the world. According to CNN, 76% of Americans say cost of living is their biggest economic problem.

The key factors driving financial stress include stagnant income growth and rising living costs. The U.S. Census data shows that median household income has seen minimal real growth when adjusted for inflation, particularly following the spike in prices after 2020.

Inflation has played a central role in shaping financial conditions, with consumer prices rising significantly across major spending categories between 2021 and 2023. Although inflation has moderated, price levels remain elevated, reducing households' purchasing power compared to pre-2020 levels.

Rising expenses combined with limited income growth have led many consumers to rely on credit. The Federal Reserve Bank of New York reports that total U.S. credit card debt reached approximately $1.28 trillion in 2025, the highest level on record.