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Inflation in 2022 is a heavy burden for American families, especially the middle class.
Even with two income earners, family budgets are stretched to the limit.
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Throughout the year, the low- and high-income segments fared relatively better, or at least better than the middle strata.
As stated therein WSJ,
Purchasing power from paychecks fell 2.9% for middle-income households in 2022 compared to 2021, while it rose 1.5% for households in the bottom fifth and 1.1% in the top…
The colon at the center shows that the majority of middle-class households are forced to adjust to inflation of more than 15% throughout the year, twice the current CPI.
This is primarily due to inflation due to high concentration of goods, incl Food, Fuel, estate and other groceries are primary expenses for middle-income households.
Jamie Quinn, executive director of the Flathead Food Bank, is alarmed by the developments. says,
What worries me is that we have more working families and middle class families to serve.
Redundancies reported in Technology The sector has only made more efforts for space workers.
High-income households were the worst hit by inflation because they had enough of a cushion to protect against rising prices.
Low-income families have seen some relief from federal aid and subsidies and higher hiring of low-skilled workers earlier this year.
Although they are also less able to absorb higher prices, they see their limited savings dwindling.
Food inflation has become even more problematic, insists Daniel DeMartino Booth, former federal counsel and CEO of Quill Intelligence. as,
The Government Accountability Office found that the Biden administration actually abused its authority in increasing the food stamp program by 25% by executive order.
Job insecurity
Going forward, employment for middle-class workers is another major concern, with rates continuing to rise and the government looking to roll back R&D exemptions for small businesses.
As a key engine of employment generation, such legislation would further reduce the backlog of the middle class.
Low-skilled jobs are also at risk, with concerns that the potential for large increases in hiring in this space will begin to dry up. You can also read about this Here.
Also, the demand drive of the middle class will also suffer in some segments, which will further affect job growth.
Even as inflation recedes, middle class baskets have been badly hit and will see severe pressure in the coming months.
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