SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Starbucks workers and supporters joined the Poor People's Campaign's march in Washington, D.C. on June 18, 2022. (Photo: Starbucks Workers United/Facebook)
59% in US Living Paycheck to Paycheck as Corporate Profits Surge to All-Time Highs
Corporate profits hit a record $2 trillion in the second quarter. Meanwhile, many workers are unable to afford a $400 emergency payment.
Aug 30, 2022
A new report out Monday shows that 59% of U.S. consumers were living paycheck to paycheck last month and many were unable to afford an emergency expense of $400--all while the country's corporations enjoy record-shattering profits.
Compiled by PYMTS and LendingClub, the analysis finds that nearly three in five consumers were living paycheck to paycheck in July as high inflation continues to eat into workers' inadequate wages.
"A large share of consumers are essentially living on the razor's edge."
While the July figure represents a slight decline from the June level of 61%--leading the corporate press to put a positive spin on the data--the report stresses that the share of consumers living paycheck to paycheck "has trended upward" over the past year, "increasing from 54% in July 2021."
According to the data for last month, a third of those living paycheck to paycheck say they would be unable to afford a $400 payment in the case of an emergency such as a health crisis, a leading cause of bankruptcy in the U.S.
"A large share of consumers," the new report observes, "are essentially living on the razor's edge."
Corporations and their top executives, by contrast, have never had it better.
Last week, the Commerce Department's Bureau of Economic Analysis released data showing that nonfinancial corporate profits in the U.S. reached an all-time high of $2 trillion in the second quarter of this year as companies push rising costs onto customers.
And while many of their employees struggle to afford basic necessities, top CEOs brought in an average compensation package of $18.3 million last year, according to a recent report by the AFL-CIO.
"In 2021, corporate CEOs were quick to blame worker wages for causing inflation. But workers' real wages actually fell 2.4% in 2021 after adjusting for inflation," the union's analysis notes. "Working people experienced a pay cut with every price increase while U.S. companies enjoyed record profits and CEO pay increased at an even faster rate."
On January 20th, it begins...
Political revenge. Mass deportations. Project 2025. Unfathomable corruption. Attacks on Social Security, Medicare, and Medicaid. Pardons for insurrectionists. An all-out assault on democracy. Republicans in Congress are scrambling to give Trump broad new powers to strip the tax-exempt status of any nonprofit he doesn’t like by declaring it a “terrorist-supporting organization.” Trump has already begun filing lawsuits against news outlets that criticize him. At Common Dreams, we won’t back down, but we must get ready for whatever Trump and his thugs throw at us. As a people-powered nonprofit news outlet, we cover issues the corporate media never will, but we can only continue with our readers’ support. By donating today, please help us fight the dangers of a second Trump presidency. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
A new report out Monday shows that 59% of U.S. consumers were living paycheck to paycheck last month and many were unable to afford an emergency expense of $400--all while the country's corporations enjoy record-shattering profits.
Compiled by PYMTS and LendingClub, the analysis finds that nearly three in five consumers were living paycheck to paycheck in July as high inflation continues to eat into workers' inadequate wages.
"A large share of consumers are essentially living on the razor's edge."
While the July figure represents a slight decline from the June level of 61%--leading the corporate press to put a positive spin on the data--the report stresses that the share of consumers living paycheck to paycheck "has trended upward" over the past year, "increasing from 54% in July 2021."
According to the data for last month, a third of those living paycheck to paycheck say they would be unable to afford a $400 payment in the case of an emergency such as a health crisis, a leading cause of bankruptcy in the U.S.
"A large share of consumers," the new report observes, "are essentially living on the razor's edge."
Corporations and their top executives, by contrast, have never had it better.
Last week, the Commerce Department's Bureau of Economic Analysis released data showing that nonfinancial corporate profits in the U.S. reached an all-time high of $2 trillion in the second quarter of this year as companies push rising costs onto customers.
And while many of their employees struggle to afford basic necessities, top CEOs brought in an average compensation package of $18.3 million last year, according to a recent report by the AFL-CIO.
"In 2021, corporate CEOs were quick to blame worker wages for causing inflation. But workers' real wages actually fell 2.4% in 2021 after adjusting for inflation," the union's analysis notes. "Working people experienced a pay cut with every price increase while U.S. companies enjoyed record profits and CEO pay increased at an even faster rate."
A new report out Monday shows that 59% of U.S. consumers were living paycheck to paycheck last month and many were unable to afford an emergency expense of $400--all while the country's corporations enjoy record-shattering profits.
Compiled by PYMTS and LendingClub, the analysis finds that nearly three in five consumers were living paycheck to paycheck in July as high inflation continues to eat into workers' inadequate wages.
"A large share of consumers are essentially living on the razor's edge."
While the July figure represents a slight decline from the June level of 61%--leading the corporate press to put a positive spin on the data--the report stresses that the share of consumers living paycheck to paycheck "has trended upward" over the past year, "increasing from 54% in July 2021."
According to the data for last month, a third of those living paycheck to paycheck say they would be unable to afford a $400 payment in the case of an emergency such as a health crisis, a leading cause of bankruptcy in the U.S.
"A large share of consumers," the new report observes, "are essentially living on the razor's edge."
Corporations and their top executives, by contrast, have never had it better.
Last week, the Commerce Department's Bureau of Economic Analysis released data showing that nonfinancial corporate profits in the U.S. reached an all-time high of $2 trillion in the second quarter of this year as companies push rising costs onto customers.
And while many of their employees struggle to afford basic necessities, top CEOs brought in an average compensation package of $18.3 million last year, according to a recent report by the AFL-CIO.
"In 2021, corporate CEOs were quick to blame worker wages for causing inflation. But workers' real wages actually fell 2.4% in 2021 after adjusting for inflation," the union's analysis notes. "Working people experienced a pay cut with every price increase while U.S. companies enjoyed record profits and CEO pay increased at an even faster rate."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.