CNBC Marathon examines causes of poverty in the U.S., including rising credit card debt and lifestyle creep.
37.9 million Americans are currently living in poverty, accounting for 11.6% of the total population. That’s despite the fact that America ranks first as the richest nation in the world in terms of GDP. Child poverty alone is estimated to cost the U.S. over $1 trillion based on the latest research.
More than half of Americans earning more than $100,000 a year say they’re living paycheck to paycheck, according to a report from PYMNTS and LendingClub. This may be a result of a sneaky behavioral phenomenon called lifestyle creep, which is when a person’s spending habits expand as their income rises. Almost half of Americans said they held a balance on their credit card because of an emergency expense, according to a September 2022 CreditCards.com survey.
Americans have accumulated a record-breaking $1 trillion in credit card debt. Despite rising costs and higher borrowing rates, a record 200 million consumers shopped over the Thanksgiving holiday weekend in 2023 according to The National Retail Federation. Explore how Americans’ credit card debt ballooned past the $1 trillion threshold, and whether U.S. consumers can keep spending enough to keep a looming recession at bay.
Chapters:
00: Introduction
0:38 Why The U.S. Can’t End Poverty (Published March 2023)
14:47 Why Americans Can’t Keep Their Paychecks (Published January 2024)
24:32 How America’s Credit Card Bill Surpassed $1 Trillion (Published December 2023)
Produced and Edited by: Juhohn Lee, Charlotte Morabito, DeLon Thornton
Edited by: Dain Evans
Reporting by: Paulina Likos and Melissa Repko
Supervising Producer: Lindsey Jacobson, Jeff Morganteen
Graphics: Christina Locopo
Animation: Andrea Schmitz
Additional Editing by: Emily Rabbideau
Additional Camera by: Charlotte Morabito
Additional Footage: Getty Images
Special thanks to: River Fund
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Why More Americans Are Being Pushed Into Poverty | CNBC Marathon
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