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There were some statements made a few days ago that require some context.
Sugar, people are fighting to survive with inflation taking everything and more than they make.
We do have a problem in the United States and in other parts of the world with the cost of living growing faster than wages. During 1990 a loaf of bread cost .73 and a gallon of gas cost 1.22. A “market basket” in 1990 that cost 1.00 would cost 2.41 today. . . a 141% increase. The average wage in 1990 was $19.00 and today is $35.36. . .an increase of 86% which is painful. We have less buying power.
Inflation is not isolated to the United States. In fact, inflation in the United States is favorable compared to the world as a whole. A lot of the current inflation rate is due to the Russia - Ukraine war and its impact on energy prices.
However, economists have shown that an increase in wages has outstripped "inflation” in the United States over the last four years. Over the last four years, wages have gone up 21% while inflation has gone up 19%.
There are distinct pain points. The cost of daycare is now more for many people than their rent. Rent is obscene. Education costs have skyrocketed. My alma mater charges $8,800 a year now for tuition. When I attended, it was $330. That cost has outstripped inflation three to one.
Government destroyed millions of mom and pop businesses with the Covid shut down.
There are about thirty-three million small businesses in the United States. It’s estimated that about thirty-one percent of them went out of business during the pandemic. There is actually no valid way to say how many went out of business due to government actions. As a small business owner, I think the government went far beyond what it needed to do to keep small businesses going during the pandemic. I believe the government printed too much money, which resulted in a portion of the recent inflation. However, the $350B paid out in PPP was a drop in the bucket compared to the tax cuts for the wealthy.
Consider this: about ten million small businesses failed during the pandemic. Historically 50% of small businesses fail during their first five years. That failure rate fits closely with historical failure rates.
Think of the lives, families destroyed, the homes, businesses, manufacturing destroyed, close to a trillion dollars. (Hurricane Helene)
The actual property loss is estimated at about $forty-seven billion. The people who do these property loss estimates are remarkably accurate.
The world is not going to hell in a handbasket. There are many good things happening. The sun will come out tomorrow.
Jill
Comments
Cost of living
Here in Germany the Russian invasion of Ukraine caused a huge price spike that largely rolled back during the second half of 2023. Though prices are again slowly on the rise.
Since I do not own nor drive a car, I have not paid all that much attention to fuel prices. Though, diesel went from approximately €1.25 to €2.30 and is now €1.35 per liter, while top grade gasoline was €1.60 to €2.20 to now €1.70 per liter.
On the other hand, back in 2021 one liter of store brand milk with 1.5% fat cost €0.86, right after Ukraine war started the price of milk went as high as €1.10. Then late last year it went back down to €0.95. But last week the price rose to €0.99 per liter.
Please bear in mind, that here in Germany all posted prices include all taxes and are the actual price paid by the consumer.
The
Knock on effects of lower disposable income, wherever you are, is that folk like myself who rely on people buying ‘discretionary’ items are hit doubly hard, literally if no one buys my product I get less income which in turn is squeezed by the higher prices. I don’t qualify for any government support, I don’t have any safety net, my income falls well short of taxable levels too so I guess that’s quid pro quo.
What about your travels I hear you ask, well the trip to Germany was 80% funded by my brother. Without his contribution I wouldn’t have gone, simple as. When my bikes break, I have to cut back on other stuff to cover those costs, I don’t drive so it’s a bit of Hobson Choice. This year I’ve spent something like 3 months income (think $1000) fixing bikes, that doesn’t count normal maintenance items like tubes and lube. Pursuing my other hobbies depends very much on frugality, so buying books, modelling, even just casual days out are pretty much at a level of only happening if I generate extra from EBay or Vinted etc. The stress of day to day survival let alone any other issues, impacts my mental health to the point that some days I’m barely functioning, I force myself out for a ride/walk to maintain at least some semblance of sanity.
Each month BC begs for funds to keep going, it seems it was ever thus, in the current economic climate I can’t see either my nor this site getting the income we need to survive, least not without developing some more reliable income streams.
The end of the world isn’t quite nigh but there will be casualties, the meek will not inherit the earth or even their family inheritance. If you are lucky enough to be sound financially, good for you.
Madeline Anafrid Bell