Rich people are just living it up these days. 😎💸 Did you get a load of Jeff Bezos’ wedding? We’d give an arm and a leg to get on that guest list. Mainly just to throw tomatoes at Kris Jenner. 🍅
While the wealthy party on their yachts, the middle class continues to navigate choppy seas. 🏄 A recent WSJ write up covered how persistent inflation keeps kicking the little guys.
Here’s Five Fast Facts on inflation and the middle class:
- 🛒 Label Maker - Who’s considered “middle class”? When it comes to career types, it ranges from white-collar cubicle dwellers to your neighborhood handyman. Income wise, the middle class makes between $66K and $200K. Where you fall in that range also depends on where you live.
- 🙇 The Good Ol’ Days - If we hop in a time machine to right after the 2008/09 financial crisis, the middle-class had it pretty good. Low interest rates were great for homebuying. During the pandemic, middle-class Americans also got a savings boost, thanks to stimmy checks and child care tax credits.
- 📈 High Times - Then, in 2021, inflation reared its ugly head. By June of 2022, we hit a peak inflation rate of 9.1%. Fast forward to the start of this year: studies report that more and more middle-class folks are draining their savings to cope with cost increases. Even if you did get a raise, wage increases haven’t been enough.
- 🛍️ Battle of the Bulge - Compared to 2020, the cost of goods and services are 25% higher now. Although inflation’s down from the 2022 peak, the price tag on many essentials is still sky-high. Car repairs, coffee, and ground beef are all up this year.
- 🥴 Sentimental Stats - According to a recent survey, 44% of middle-class respondents feel like their financial situation is worse than it was last year. Only 23% reported things were better. The main reason for their bad vibes? Higher prices.
🔥Bottom line: The inflation crazy train we rode for the last few years is still leaving a bad taste in our mouths. If you feel like you’re being gaslit into thinking the problem’s over, you’re so not alone. And if you’ve been wondering how you’re ever going to retire, you’re not alone in that either. Check out this article to read why many Americans can’t afford it.
Where has inflation hit you the hardest?
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