A new report shows how close American households are to the financial edge

A new report shows how close American households are to the financial edge

Affordability has been a politically potent word, but an ill-defined measure of financial pain, often used as a reference to inflated prices.But new research from the Brookings Institution released Wednesday describes affordability by comparing the rising costs of essentials against family incomes. By that measure, the report found, in 2024 45.5% of U.S. households did not earn enough to cover their necessities.The report concluded that a mere $…

Americans aren't just on the financial edge because of inflation. Wages are falling behind too

In 2024, nearly half of U.S. households did not earn enough to cover their necessities.

This is how close American households are to the financial edge

A customer shops for produce in an H-E-B grocery store on May 11 in Austin, Texas.(Brandon Bell)Sign up for the Planet Money newsletter. The world is confusing. Economics can help. Affordability has been a politically potent word, but an ill-defined measure of financial pain, often used as a reference to inflated prices. But new research from the Brookings Institution released Wednesday describes affordability by comparing the rising costs of e…