Say It's a Crisis. 54% Say Neither Party Can Fix It. The Data on America's Affordability Collapse
By The Squirrels·
The Numbers That Cross Every Line
A new Harris Poll survey — conducted for The Guardian — has produced data on American economic sentiment that is remarkable not for any single finding, but for the uniformity of the despair.
95% of Americans say the country faces a cost-of-living crisis.
57% believe the economy is getting worse — up from 46% in February, before the Iran war.
Only 16% believe the economy is getting better — down from 28% in February.
And here is the finding that should concern every political strategist in Washington: the affordability crisis is bipartisan. Approximately half of Democrats, half of Republicans, and half of Independents say they are struggling to afford everyday necessities — gas and groceries. Two-thirds of Americans — including 49% of Republicans — say they have little faith the federal government will improve the crisis.
This is not a partisan grievance. It is a national condition.
What Americans Cannot Afford
The survey ranked the expenses Americans are struggling with most:
Expense | % Struggling to Afford |
|---|---|
Gas | 52% |
Groceries | 50%+ |
Loan payments | 46% |
Utilities | 46% |
Debt (including student loans) | ~50% |
More than half the country cannot comfortably fill their tank or their grocery cart.
Supporting data from other sources reinforces the picture:
Brookings Institution (May 2026): 45.5% of US households did not earn enough to cover necessities in 2024 — and a mere $1,000 increase in annual costs would push 3 million more households over the edge.
Urban Institute: Nearly half of American families cannot afford the true cost of living.
Federal Reserve Bank of New York: Food insecurity has reached levels not seen since 2020 — the depth of the pandemic.
LendingTree:86% of Americans have changed how they shop for groceries. 84% have changed how they eat at restaurants.
The Iran War's Domestic Price Tag
The timing of the economic deterioration is not random. It maps directly onto the Iran-Hormuz crisis that The Squirrels has tracked across nine articles.
Gas prices rose 50% from late February 2026 — when the US-Israel strikes on Iran began — through June. The average national price reached $3.79/gallon and has not fallen proportionally despite the peace deal and the Strait's reopening. Oil companies are maintaining elevated margins even as crude prices decline — a pattern economists call "rockets and feathers" (prices rise quickly when costs go up, fall slowly when costs come down).
May inflation: 4.2% annual rate — well above the Federal Reserve's 2% target.
Real wages are falling: Average hourly earnings decreased 0.7% year-over-year when adjusted for inflation. Americans are earning less in real terms than they were a year ago — even as headline employment numbers remain stable (111,000 new jobs/month average).
Utility bills: up $110/year (6.4% increase) — driven partly by the elimination of clean energy tax credits and the expansion of energy-intensive AI data centres.
The war that The Squirrels documented from India's perspective — ₹1,000 crore/day OMC losses, $20 billion FPI outflows, rupee at record lows — had a domestic American equivalent. American families absorbed the same oil price shock through higher gas prices, higher food prices (transport costs embedded in groceries), and higher utility bills.
What the President Said — and What the Data Says
Three statements by President Trump, placed alongside the Harris Poll data:
May 2026: Trump said he did not "think about Americans' financial situation" while negotiating the Iran deal.
Harris Poll: 57% say the economy is getting worse. 52% cannot afford gas.
April 2026: Trump said the federal government "can't take care of daycare" and healthcare because it was focused on "military protection."
Harris Poll: 46% are struggling to afford utilities. Food insecurity at pandemic-era levels.
June 2026: Trump refused to sign affordable housing legislation, calling the bipartisan bill "a big yawn."
Harris Poll: 95% say the country faces a cost-of-living crisis. 2/3 have no faith the government will fix it.
The data and the statements describe the same reality from different altitudes. At the presidential altitude, the economy is secondary to military and geopolitical priorities. At the household altitude, the economy is the only priority that matters.
The Finding Neither Party Wants to Hear
54% of Americans say neither the Republican Party nor the Democratic Party has a solution to the affordability crisis.
This is the survey's most politically explosive finding. A majority has concluded that the two-party system itself is structurally incapable of addressing the cost of living.
The bipartisan nature of the despair (half of each party's voters struggling) combined with bipartisan distrust of solutions (54% say neither party can fix it) creates a political vacuum. Into that vacuum have stepped candidates running on economic populism — democratic socialists in New York, progressive challengers in Colorado, candidates explicitly demanding universal childcare, wealth taxes, and Medicare for All.
Whether these candidates represent a viable alternative or a protest vote is a question the midterm elections will answer. But the data says the electorate is ready for someone who speaks to their grocery bill rather than their geopolitical position.
What This Tells India
The world's largest economy — $28 trillion GDP, $85,000 per capita — has half its population struggling to afford food and fuel. The Squirrels documented RSS chief Bhagwat's observation that the US consumption model would require "six Earths" if universalised. The Harris Poll data adds a domestic dimension: the model isn't working for Americans either.
For India's policymakers, the data raises three questions:
1. Growth without affordability is not development. The US has record stock markets, stable employment, and rising GDP — and 52% of its people cannot comfortably afford gas. GDP is not a sufficient measure of economic wellbeing. India's own experience — GDP doubled to $4.3 trillion while youth unemployment remains at 9.9% — mirrors this disconnect.
2. War has domestic economic costs. The Iran war cost India ₹1,000 crore/day in OMC losses. It cost American households 50% higher gas prices, 4.2% inflation, and falling real wages. Military action abroad and economic stability at home are in tension — a tension India must weigh as it deepens defence partnerships.
3. The consumer model has limits. If the US — the world's most consumer-driven economy — cannot ensure its own citizens can afford groceries, the model's exportability is questionable. India's development strategy, which increasingly references American-style consumption as an aspiration, may need to account for the model's domestic failures, not just its visible successes.
Frequently Asked Questions
How many Americans are struggling to afford groceries?
More than half, according to the Harris Poll (July 2026). 52% are struggling to afford gas, and a similar proportion report difficulty with groceries.
Is the affordability crisis partisan?
No. Approximately half of Democrats, Republicans, and Independents report struggling to afford everyday necessities. 54% say neither party has a solution.
Did the Iran war affect US household costs?
Yes. Gas prices rose 50% after the US-Israel strikes on Iran in February 2026. May inflation hit 4.2%. Real wages fell 0.7% year-over-year.
The Bottom Line
The world's richest country has half its population struggling to afford food and fuel. The crisis crosses every party line, every demographic, and every income bracket except the top. And 54% of Americans have concluded that neither political party can fix it.
For India — a country that looks to the US model as both aspiration and benchmark — the data offers a corrective: GDP growth, stock market records, and employment numbers can coexist with a population that cannot afford groceries. The US is living proof.