Americans are spending nearly $800 this summer just to cool their homes, a 40% increase from 2020 and 10.5% higher than last year, according to Mark Wolfe, executive director of the National Energy Assistance Directors Association. While the stock market has more than doubled since 2020, benefiting wealthy asset owners, ordinary families face a starkly different reality.
Rising Debt and Financial Strain
Americans now carry over $1.2 trillion in credit card debt, with nearly 60% living paycheck to paycheck. One in six households is behind on utility bills, and utilities disconnect electric service more than 13 million times annually. Nearly 40% of lower-income households struggle to pay energy bills.
Disconnect Between Wall Street and Main Street
Wolfe criticizes the Trump administration for touting stock market gains as a sign of economic health, arguing that record stock prices and corporate profits reveal little about ordinary families. For millions, the economy is measured at the gas pump, grocery store, and when the monthly electric bill arrives.
Middle-Class Families Also Affected
Middle-class families who thought they were doing everything right are now draining savings, carrying larger credit card balances, and postponing major purchases. A $100 monthly expense increase can mean the difference between paying all bills and falling behind. Recent oil market disruptions have cost the average family $450, according to Moody's, reducing funds for groceries, healthcare, and electricity.
Worsening Outlook
The conflict with Iran threatens global oil supplies, pushing gasoline prices higher. Data centers strain electric grids in regions with rising costs, and healthcare expenses continue to climb. Higher energy prices ripple through the entire economy, meaning many costs families face today will likely increase tomorrow.
Misguided Priorities
Wolfe argues that Washington celebrates asset prices instead of addressing affordability. Billions are spent on wars with unclear objectives rather than helping struggling families. Instead of investing in cheaper, cleaner, stable electricity sources, the US relies on volatile oil and gas markets, forcing families to absorb higher utility and gasoline costs.
Call for Change
The US has the resources to ensure working families can afford necessities like electricity, housing, healthcare, and food. Wolfe insists an economy cannot be considered successful when stock portfolios and corporate profits boom while millions of households fall behind on bills. Policymakers must focus on kitchen-table economics, not just Wall Street, or average Americans will continue to struggle while wealthy asset owners hoard stock earnings.
Mark Wolfe is an energy economist and executive director of the National Energy Assistance Directors Association, representing state directors of the Low Income Home Energy Assistance Program, and co-director of the Center on Energy Poverty and Climate. He is also an adjunct professor at the Trachtenberg School of Public Policy at George Washington University.
