U.S. inflation is rampant. The picture shows Californians shopping in a supermarket. (Data map)
Overseas Network, January 14th The United States will experience high inflation in 2022, with the CPI once as high as 9.1%, a 40-year high. Seven aggressive interest rate hikes by the Federal Reserve failed to curb high inflation. In the face of rising living costs brought about by high inflation, the financial situation of the American people is deteriorating, and most respondents said in the survey that the situation in 2023 will be worse.
Americans’ financial situation continues to deteriorate, low-income families can’t even raise children
In the second half of 2022, U.S. inflation will be high, and multiple survey reports show that the financial situation of the American people continues to deteriorate. The US Consumer News and Business Channel (CNBC) reported on October 19, 2022 that a survey report showed that due to the continued surge in inflation, as many as 66% of Americans said that their financial situation was worse than a year ago. The latest report released by the American consulting firm Edelman Financial Engines in December 2022 shows that 71% of employees believe that wages cannot keep up with the soaring cost of living, and the “number of people who feel financially secure” has dropped to the lowest level in five years.
In addition to the doubled pressure on the cost of daily life, the American people find it even more difficult to spend on medical care. According to a survey released by the American Gallup Consulting Company on January 5, nearly 40% of American adults have encountered situations such as being unable to pay medical expenses and having difficulty obtaining high-quality medical services. Most of them believe that medical expenses are a daily pressure one of the sources. According to Gallup, according to the results of this survey, about 18 million adults in the United States feel “extremely difficult” to afford medical expenses, which highlights the “dissatisfaction” of the American people with the cost-effectiveness of medical services.
For low-income groups, high inflation hit harder. According to calculations by financial and economic intelligence provider Moody’s Analytics, in September 2022, American households will need to pay an average of $445 more to purchase the same goods and services as they did a year ago. High inflation has led to rising prices of necessities in the United States, and low-income families cannot even afford to raise children. According to a survey by the American mother and child website “Baby Center”, American parents spend at least US$16,000 (about RMB 116,000) in the first year of a baby’s life. However, many low-income families earn as little as $500 a month, and they have been hit particularly hard by soaring prices for baby and toddler supplies.
More Americans living on free food: Single mom eats four meals from a box of pasta
In the face of rising prices, ordinary Americans feel “overwhelmed”. More and more Americans go to food banks to live by receiving free food. CBS reported in August 2022 that a mother of two living in Baltimore said that her salary could no longer cover the rising cost of groceries. In order to make a living, in addition to rushing to buy meat that has been reduced in price the day before in the morning, she also goes to the food bank to collect food. Another interviewee, Jenkins, said that the two bags of food he got from the food bank could feed his family of six for 2 days, “and then I would go to the food bank again and again.”
Hunger in American cities is getting worse. The owner of a coffee shop in New York agonized over the fact that he had to raise the prices of all his products in response to rising costs: “A large percentage of my regular shoppers are construction workers, and if I raise my price by more than 50 cents, they probably won’t come again.” It’s too expensive for them.” Another respondent said that since food prices have risen, he often skips breakfast to save money.
Las Vegas resident Patti Blackmon, 68, has cut back on her grandchildren’s visits to save gas money and hasn’t been to a hairdresser in 18 months. When she saw a half-gallon (about 1.89 liters) of organic milk selling for $6 recently, she couldn’t help sighing, “Who can afford it!” Blackmon also reduced her meat intake. “Steak is almost impossible.” She prefers salads and canned soups.
Elizabeth Mendez Sager, 33, raised her three-and-a-half-year-old son Kayoni alone. Her husband died of sudden heart failure in 2020. “It’s very tricky, figuring out what I can do, what I can’t do, and how can I make more money?” she says. Save money on energy bills, start tutoring, and feed herself four meals with a box of pasta so her son can enjoy his favorite hot dogs and salad.
For novice parents in the United States, the “milk powder shortage” that will hit the United States in early 2022 will make their lives worse. “My heart was torn into 100 pieces.” On April 25, 2022, Sarah Owens, a mother living in South Carolina, posted a post describing her heartbreak in finding milk powder for her 6-month-old daughter Naomi Experience, when she was facing empty shelves in the supermarket, she ran into a father who was on the verge of a mental breakdown. The father told Sarah through tears: “I never thought I would cry, but I couldn’t find what my baby needed.” Sarah said that formula has become a daily concern for people. has turned into fear.
Fed’s big rate hikes fail to pay off, Americans see worse in 2023
Since March 2022, the Federal Reserve has raised interest rates seven times in a row within nine months, with a cumulative rate hike of 425 basis points, the largest rate hike in 40 years. Judging from the U.S. economic situation in 2022, the effect of the Federal Reserve’s substantial interest rate hike is far less than expected. The U.S. annual average consumer price index growth rate is about 8.1%, the highest level in 40 years. In November 2022, the U.S. CPI will rise by 7.1% year-on-year, which is still running at a high level and is far from the long-term inflation target of 2%. The appreciation of the U.S. dollar brought about by the sharp interest rate hike has seriously impacted the international financial market and brought uncertainty to the world economy.
The Wall Street Journal reported on December 16, 2022 that a poll conducted from December 3 to December 7, 2022 showed that the majority of respondents believed that the U.S. economy would be in worse shape in 2023 than in 2022 , about two-thirds of respondents believe that the U.S. economy is “moving in the wrong direction.”
National Public Radio (NPR) reported on January 12 that the rapidly rising prices in the United States are still squeezing people’s wallets and seriously affecting their quality of life. Tennessee resident Lydia Simpson feels the sting of inflation every day, “It feels like every time we get closer to the prize, someone is pulling the can on the chain farther and farther away from us.” (Overseas Network Li Fang)
Editors in charge: Li Fang, Li MengReturn to Sohu to see more
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