The rich are getting richer (Less than 1% owns 90% of the wealth!), while the poor are getting poorer. That includes the working poor. During Trump’s presidential administration we saw Congress, and the President, pass trillions of dollars in tax cuts that disproportionately benefited the wealthy. There has not been any similar expenditure for low income individuals in recent decades. In fact, one has to go back over 50 years to the Johnson presidential administration to see significant spending on the poor. When it comes to helping the poor the Republicans and Democrats are united in their apathy sadly. Did you notice that nearly every single politician is wealthy? I think in the last Congress it was revealed that every single member of the Senate (50 Senators) was a millionaire. Both Republicans and Democrats are willfully ignorant, and out of touch with the concerns and problems facing millions of Americans.
It may come as no surprise that it’s very challenging and difficult being poor, but in recent years the pressures and difficulties have become worse than ever. We are reaching, in my view, a tipping point as a perfect storm of economic factors are converging to make life for the working poor and those on fixed low incomes, such as Social Security for senior citizens, as well as SSI and SSD, hell on earth.
Here are some factors that are making life so difficult for those who are on low incomes.
Inflation
In December, 2021 we saw the worst inflation in 40 years at 9.1%. Since COVID started we have seen the price of food double or even triple. This has disproportionately adversely affected those on low incomes.
Gasoline
In the past 3 years of the Biden presidential administration, we went from very low gas prices, and being energy independent, to skyrocketing gas prices. The increase was about 300% (3 times as much).
Utilities
In the past 3 years of the Biden presidential administration, the price of utilities such as electricity and natural gas have skyrocketed.
Buying Power
The purchasing power of the US dollar has been in steep decline in recent decades, currently it is at an all time low.
Wages
Wages are not keeping up with inflation! In the past 20-25 years wages have risen much too slowly as a percentage of GDP (Gross Domestic Product).
SNAP (Food Stamps)
The amount of SNAP that qualified recipients get now is much lower, when adjusted for inflation, than it was in previous decades.
Groceries
The cost of groceries has increased astronomically in the past 2-3 years. Many low income consumers are spending as much as 25% to 33% of their gross income on groceries alone! That is truly appalling. As recently as August 2022, the year-over-year level at 13.5% was the highest inflation rate for groceries since March 1979.
Higher Education
University costs have skyrocketed in recent decades, they’ve increased much higher a rate than inflation.
Home Mortgages
Home mortgages are at record highs. The vast majority of low income individuals are priced out of home ownership.
Zach Uram's Blog 