Top consumer and personal finance stories of 2023

It’s that time of year again. It’s unbelievable that 2023 has rolled by so fast. That means that the 2024 election is getting even closer and closer, an election with so many consequences for consumers and their financial lives.

As usual, I’m one of the few reporters writing about the top consumer and personal finance stories of the year, research that I enjoy.

Here’s my 2023 top 10 list:

1. The economy. With inflation keeping prices high, consumer angst about the economy has continued. Since the Fed continued to raise interest rates to curb inflation this year, a lot of analysts thought that the country would be in a recession by year’s end or heading into one. However, the latest report showed unemployment was historically low at 3.7 percent. In addition to a strong labor market, cheaper gas prices, slowing inflation, and a stock-market rally have given consumers more confidence in the economy with consumer sentiment finishing 2023 at a five-month high.

2. AI. With AI advancements this year, public concerns about untruthful, biased, and other toxic information, as well as loss of jobs, grew. AI and technology leaders, researchers, and others expressed worries as well with more than 27,000 signing a letter saying that the latest systems, such as GPT-4 (the technology introduced by OpenAI), could cause harm to society. They said they believe future systems will be even more dangerous. Although President Biden issued an executive order in October to tackle the risks of AI, government regulation remains in its infancy.

3. Weight loss drugs. Excitement among consumers about the new injectable weight-loss drugs, such as Ozempic and Wegovy, grew this year. Although the drugs reduce appetite by slowing how fast food is passed through the digestive system, there are questions about long-term safety and affordability. While scientists are exploring whether the drugs may be beneficial in treating chronic illnesses, such as heart disease and even addiction, alarming side effects, apart from the nausea and diarrhea most people experience, such as abdominal blockages. A big problem is that these drugs need to be used throughout life, like diabetes medications, or else the benefits are lost. The cost is about $1,000 to $1,500 a month.

4. Consumer protection. Among the Consumer Financial Protection Bureau’s 2023 work, it: (1) cracked down on hidden fees, (2) issued a report on medical debt which led the three major credit bureaus to erase paid medical debt from credit reports, (3) warned about the risks of digital payment apps, (4) issued a proposed rule that would reduce standard credit card late fees from up to $41 to $8, and (4) issued guidance on subscription services that lock consumers into renewals. In addition, the CFPB again returned billions of dollars to consumers, unlike the Trump years when consumer relief dropped sharply.

5. Union power. More than 525,000 workers in the United States walked off the job in 2023, making it one of the three biggest strike years since 1990. Many of those strikes led to big concessions from employers, such as the landmark deal reached by the United Auto Workers in October. The wins included increased retirement benefits.

6. Violence. How Americans perceive violence is important in how they vote. With media and social media videos of flash-mob-style shoplifting incidents, cars crashing into businesses before robberies, and guys in hoodies stealing cars, including Kia gangs, many consumers believe crime is on the rise. However, the country is on track for a record drop in homicides, and many other categories of crime are also in decline, according to the FBI.

7. Climate change. It’s no surprise that 2023 was the hottest year on record. As a result, more intense forest fires, hurricanes, tornadoes, rain storms, and wind events occurred in the U.S. In addition, 2023 was a record year for greenhouse-gas emissions from fossil fuels. One positive thing, this year also saw record investment in clean energy, with global total spending of $1.7 trillion. About three-quarters of Americans support U.S. participation in international efforts to reduce the effects of climate change, although there’s less agreement in how to go about it.

8. Democracy. On a daily basis during 2023, the right wing, including the leading GOP presidential candidate, Donald Trump, attacked democratic institutions in the U.S. With Republican obstructionism, Americans view politicians and government as apparently not capable of agreeing on important and difficult problems such as immigration, climate change, guns, inequality, debt, and deficits. There’s no indication that this is going to change. Under the governmental system set up by the founding fathers, a minority can exert an outsize influence on policies and leadership, which leads more and more Americans to think that the government is a captive of minority rule.

9. Data privacy. It’s been another monumental year for data breaches, which increase the chances of consumers’ credit scores being damaged or their identities stolen. Cyber criminals also sell Social Security numbers, login credentials, and demographic information to scammers or other bad actors. Among the well-known companies announcing breaches in 2023 were 23andMe, T-Mobile, MGM Resorts, Cesars Entertainment, Samsung, Dish, Microsoft, Chat GPT, Yumi Brands (parent company of KFC, Taco Bell, and Pizza Hut), Chick-fil-A, Google Fi, Dish, and more.

10. Health care. More than 70 percent of U.S. adults think the health care system is failing to meet their needs in at least one way, according to a survey. Despite spending more money per capita on health care than any other wealthy country in the world, patient satisfaction is suffering due to the high costs, inaccessibility, and confusing logistics of U.S. medical care.

That’s it for this year. I wonder what 2024 will bring for consumers?