How Does Inflation In 2022 Affect Families?
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Since the beginning of 2022, the inflation that has taken over the United States has left families in turmoil. I have even found myself wondering geez why is this priced so high now? Or completely bugging out when I see my grocery, electricity, or gas bill. This brings me to think about what is happening to single parents that receive no help. What is the thought process of the elderly that are on a fixed income and were already struggling to make ends meet on a monthly basis?
What causes inflation?
Simply put, inflation happens when too much money is printed and added to an economy. Leading businesses to begin to raise prices drastically decreasing the purchasing power of your money. For instance, I can remember being able to go to the grocery store to buy groceries for my household that would last us almost the entire month. Now I go to the grocery with the same amount of money and get nowhere near as many groceries and I find myself going to stores more often, and spending way more.
According to Forbes.com “The U.S. inflation rate is measured by the CPI, PPI, and PCE indexes. Because no single index captures the full range of price changes in the U.S. economy, economists must consider these multiple indexes to get a comprehensive picture of the rate of inflation.”
Lack Of Affordable Housing
The rise in prices has not only had a negative effect on Gas, CLothing, Utilities, and grocery prices it has also majorly changed the market for affordable housing and its availability for families with lower income. When researching the price of apartments in my area for this post I was absolutely blown away at the prices of decent apartments in my surrounding area. A 2 bed 2 bath apartment costs on average $1400.00 if not more. I mean really, what single parent can afford that?
To be quite honest that is more than many people’s mortgage payments. According to Fool.com “The federally mandated minimum wage is $7.25 per hour. However, the minimum wage is actually different around the country. Some states have a much higher minimum wage than others, and some cities are even higher than the rest of their states. The highest minimum wage is $15 in Washington, DC.”
What Are Lower Income Americans To Do?
What are lower-income Americans to do? This is a question that is extremely hard to answer when it seems as if the world and everything in it seems to be stacked against you. As stated above the current Federally mandated minimum wage is $7.25 an hour. which comes to $290.00 a week if you work a full week, and let’s say four weeks in a month brings you to $1160.00.
If the average rental property is $1400.00 then let’s be real about the situation. With the regular minimum wage amount, you can not afford the majority of apartments on the market today that is located in a decent neighborhood or area. Bring me back to my question of what is a lower-income family supposed to do in an economy that is stacked against them.
Successfully Securing Extra Income
Technology has evolved to the point of allowing us all the ability to work from home. When thinking of ways to secure extra income a work-from-home position may be your best bet. Not only do you have the idea commute you can possibly cut out daycare bills, lower gas, and much more.
As I have stated many times in past blogs I was actually able to take my children out of daycare when the pandemic started, and focus more on my business and overall brand.
Raising Interest Rates
In 2022 the Federal Reserve has raised interest rates twice in hopes of controlling inflation within the United States. The negative side of rising interest rates is that everyday consumers like you and I are not wanting to borrow from financial institutions. Leaving us with less cash in our pockets and less fund being spent with the companies that we have come to love. According to Yahoo News “In April 2022, the unemployment rate in the U.S. was 3.6% and the inflation rate was 8.3%. Based on those figures, the Fed may have its work cut out for it in order to put the economy into a better position.”
To conclude lots of families are struggling in today’s economy. With Covid closing businesses, American’s losing their jobs, and families losing their homes all we can do is continue to push forward and look for productive ways to acquire extra income. As always tomorrow is not promised so live today to the fullest.
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