Report: Americans Who Make Over $100,000 A Year Are More Likely Preparing For Recession

Report: Americans Who Make Over $100,000 A Year Are More Likely Preparing For Recession


Photo by Tima Miroshnichenko

While the economists debate over whether or not the U.S. is in recession, there are some Americans who are already preparing for the worst.

Investopedia defines a recession as “a significant, widespread, and prolonged downturn in economic activity. A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth mean recession, although more complex formulas are also used.”

The jury is still out on if the U.S. is in a recession or about to enter one, but in any case, Americans are feeling the pinch of inflation are concerned about money.

According to a new poll by Morning Consult, nearly half of respondents believed the nation was already in a recession. The poll also revealed about 41 percent of Americans surveyed were preparing for a recession by increasing their savings. The survey showed that there was a discrepancy when it came to recession preparedness based on income.

Adults who make over $100,000 were more likely than people with lower incomes to prepare for an economic downturn or recession. Some 52 percent of high-earners said they’d taken to stockpiling goods or food, cut back on spending, or other steps.

Households that earned under $50,000 annually were more likely to say they had not yet begun to make preparations “but wish they could.”

The Morning Consult survey found that 1 in 10 recession preppers are stockpiling goods or food. And, 2 in 5 adults have taken steps to prepare for a downturn. 

In order to deal with higher prices, Americans are turning to credit. A March study from Wallethub found “credit card debt increased by $85.8 billion during Q4 2022 — the highest quarterly increase ever recorded.”

And more consumers earning over $100,000 per year share that they’re living paycheck to paycheck, The Hill reported.

Photo by Tima Miroshnichenko: https://www.pexels.com/photo/a-man-counting-money-6694530/