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Debt and the increasing cost of living

Unemployment Level

6254.000
Thousands of Persons
November 2023

    Producer Price Index by Commodity: Final Demand: Final Demand Goods

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    FRED Graph

      Note

      The producer price index indicates that over the years companies have been increasing the prices of goods sold. There is a drastic increase after 2020.


      Real Median Household Income in the United States

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      FRED Graph

        CPI percent change from a year ago after 2020

        2.6%
        Change from Year Ago
        January 2020

          Note

          Average household income and percentage of debt by consumers seems to have a slight inverse relationship. As household income increases the percentage of debt goes down and vice versa. What I found interesting was that the household income has not changed much at all and even went down after 2020. This is a problem because the household income is not increasing enough to combat increasing cost of living and rising inflation levels.


          3-Month Treasury Bill Secondary Market Rate, Discount Basis

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          FRED Graph

            Note

            After 2020 inflation has been increasing while average household income has become stagnant and even decreasing. If this continues debt will continue to rise and people will struggle to afford basic costs of living. The government needs to make different fiscal and monetary policies to combat the increased inflation and make sure the average income is above the average cost of living.


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