The Impact on Households
Debt and Savings Modern households are burdened with significant debt, particularly student loans and credit card debt. The average student loan debt for recent graduates is about $30,000. During the Great Depression, debt was less common, though many lost their savings due to bank failures.
Job Security While the unemployment rate today is lower than during the Great Depression, job security remains a concern with the rise of gig economy jobs and part-time positions lacking benefits. This insecurity contributes to the feeling of living in a Silent Depression.
Income Inequality Income inequality has widened significantly. In the 1930s, the wealth gap was stark, but modern inequality levels are comparable, if not worse. The top 1% hold a substantial portion of the nation’s wealth, while many workers face stagnant wages.
Just 4 Years Ago
Things were different just four years ago in 2020.
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To take it one step further, author and motivational speaker Jenn Kish shared a screen shot recently of a grocery bill in 2020, and that exact same grocery bill in 2024. The exact same purchase through the Walmart grocery app just four years later is more than double what it was at the peak of COVID.
The Silent Depression describes the pervasive economic struggles that, while less visible than the Great Depression, are deeply felt by many Americans today. The comparison of household income and the cost of living between the two periods highlights the challenges of rising living costs, stagnant wages, and growing debt. Addressing these issues requires a multifaceted approach, including policy changes to support wage growth, affordable housing, healthcare reform, and educational affordability.
Understanding this economic landscape is crucial for developing solutions that ensure a more equitable and prosperous future for all. As we approach the 2024 Paris Olympics, it’s a timely reminder of the resilience needed to overcome economic hardships and the collective effort required to build a better world.
