99% of Americans Will Be Financially Worse Off Halfway Into 2024 Than Pre-Pandemic

JPMorgan analysts predict by June 2024, 99% of Americans will have less money than they had before the pandemic started

JPMorgan analysts predict that by June 2024, 99% of Americans will have less money than pre-COVID.

According to a JPMorgan research note, all but the wealthiest 1% will have burned through the savings they accumulated during the pandemic. During the pandemic, the government was in a giving mood as multiple stimulus checks were given to Americans, and programs, including the Paycheck Protection Program, provided money to businesses to keep them afloat.

Additionally, many Americans could work from home, saving them money on daily food and transportation costs, and the rise of basic guaranteed income programs also grew across the country.

JPMorgan Market Strategist Marko Kolanovic, who helped draft the note, said most Americans have burned through the savings they accumulated as higher interest rates have led to higher credit card bills and auto loan repayments. Americans have also seen gas, groceries, rent, and even public transportation prices rise.

“Inflation has played a significant role in propping up corporate earnings, which were in many cases delivered by selling fewer units at higher prices or by cost-cutting,’ said Kolanovic, according to the Daily Mail. “We think that the decline in inflation and economic activity that we forecast for 2024 will at some point make investors worry or perhaps even panic.”

Kolanovic added that a recession in 2024, which many economists were forecasting to happen this year but was avoided largely due to consumer spending, a low unemployment rate, and a strong stock market, could worsen things.

With 2024 being an election year, a recession leaving Americans unemployed with little savings could have dire consequences for the Democratic Party and President Joe Biden. Presidents are favored for reelection unless a significant event changes people’s outlook and finances. One example is the pandemic, which was one of the biggest reasons Donald Trump lost his reelection bid.