Restaurant Tipping Hits Six-Year Low as Americans Cut Back on Gratuities
New data reveals restaurant tips have fallen to 19.3% in Q3 2023, down from the 19.9% peak in early 2021. Rising menu prices, mandatory service charges, and inflationary pressures are driving this shift in consumer tipping behavior.
US Service Sector Growth Accelerates as Price Pressures Mount
The ISM services index climbed to 54.1 in December 2023, with the prices paid component hitting its highest level in nearly a year. While the sector shows resilience, rising costs and potential policy shifts create uncertainty for businesses navigating inflation pressures.
Health Insurance Premiums Set to Surge 7% in 2025, Continuing Multi-Year Upward Trend
Private health insurance costs will hit record levels in 2025, with average premiums reaching $7,452 annually across 42 states. While most enrollees qualify for subsidies, the potential expiration of enhanced assistance programs threatens affordable coverage beyond 2025.
The Great Decoupling Myth: Rethinking the Productivity-Wage Gap
Recent economic analysis challenges the popular narrative of a widening gap between worker productivity and compensation since the 1970s. The data reveals that when including total compensation and using consistent inflation measures, productivity and worker earnings have grown in tandem over the past 75 years.
Holiday Spending Hangover: Americans Face Record Credit Card Debt in 2024
A LendingTree survey reveals 36% of Americans accumulated holiday debt averaging $1,181 in 2023, with millennials and parents most affected. Financial experts offer strategic approaches to tackle post-holiday credit card bills through balance transfers, debt repayment methods, and smart savings tactics.
The New American Wealth: 7 Key Salary Thresholds Defining Rich in 2024
From tax brackets to generational expectations, new data reveals the evolving salary benchmarks that define wealth in America today. Analysis shows Americans now believe they need $520,000 annually to feel rich, while persistent inflation continues reshaping financial aspirations.
Buy Now, Pay Later Services Expand into Auto Repairs and Healthcare as Inflation Bites
Americans increasingly turn to BNPL payment options for essential car repairs and medical procedures as household budgets tighten under inflation. Auto shops and healthcare providers are partnering with BNPL companies to offer flexible installment plans, though experts urge careful review of terms.
GoFundMe Housing Campaigns Surge 400% Amid Cost-of-Living Crisis
GoFundMe reports a fourfold increase in campaigns for basic necessities like housing in 2023, reflecting widespread economic hardship. The surge highlights how rising inflation and housing costs are pushing more Americans to seek crowdfunding assistance for essential needs.
Real Wages Fall Behind: Inflation Outpaces US Worker Pay Gains Since 2021
Despite steady increases in private sector hourly wages reaching $34.61 by late 2024, persistent inflation has eroded Americans' purchasing power. The trend became particularly severe in 2022 when inflation hit 8% while wages grew only 4.14%, creating one of the largest real wage declines in recent years.