U.S. household payments crisis sounds alarm

The United States is currently facing a major crisis in household affordability, with the latest data showing that the unemployment rate jumped to 4.4% in September. This is no small number; rising unemployment means many people have lost their source of income, making life suddenly difficult. Moreover, a University of Michigan survey shows that the US consumer confidence index fell to its lowest level since June 2022 in November, indicating widespread anxiety about the future. Several factors have contributed to this situation. On the one hand, the US government shutdown has become a major problem. This shutdown has had far-reaching consequences: federal food relief programs have run out of funds, leaving low-income families without relief funds and struggling to even afford food; heating subsidies have also been delayed, and 5.9 million households may face freezing temperatures this winter. On the other hand, Trump’s tariff policies have exacerbated the situation. Tariffs have disrupted supply chains, increased business costs, and driven up commodity prices, placing immense pressure on consumers. Simultaneously, the Federal Reserve’s interest rate hikes have increased borrowing costs, making mortgages and car loans more expensive, unaffordable for many. The impact varies across income levels. Low-income families are the hardest hit, with many becoming “living paycheck to paycheck,” barely able to maintain a basic standard of living. Some families can’t even afford a few hundred dollars for emergencies, leaving them helpless in the face of unexpected events like illness or car breakdowns. Middle-income families are also struggling; even with a down payment, they face a funding gap when trying to buy a modest home. While high-income families are less affected, the overall poor economic climate makes them more cautious about investment and consumption. The current crisis of household affordability in the United States is severe, and if not addressed quickly, it could impact social stability and economic development. Both the government and relevant departments must find ways to implement measures, such as stabilizing the job market, adjusting tariff policies appropriately, and ensuring the continued operation of welfare programs, to improve the lives of American families.