2/3rds of Americans falling behind

Two thirds of voters say their incomes are falling behind the cost of living, and grocery bills EXCEED mortgage repayments for some, as the economy is the top priority in the upcoming midterms

According to the Labor Department’s Consumer Price Index, the overall cost of food rose 11.4 percent, with the food-at-home category, groceries, up 13.5 percent — the steepest rises since the late 1970s.

Speaking with shoppers in Houma, Louisiana, The Wall Street Journal even encountered a 38-year-old mom, Megan Naquin, who now spends more each month on groceries for her family of eight than on her $1,500 monthly mortgage.

https://www.dailymail.co.uk/news/article-11232391/Two-thirds…

Eggs up 40%…milk 17% coffee 18%…breakfast cereal 23% from last year… did I mention gas and diesel prices?

t

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did I mention gas and diesel prices?


Nope because I guess they have dropped in price

Jeff

9 Likes

did I mention gas and diesel prices?


Jeff: “Nope because I guess they have dropped in price”

tele:“U.S. regular retail gasoline prices averaged $2.17 per gallon (gal) in 2020”

It’s 50% higher RIGHt NOW in 2022, and was double just a short time ago.

The current price of diesel is over $5/gal NOW.

Gas likely is $5/gal in California. oops…checked - it’s $5.47 average a gal in CA! $3.57 in CO and DC area.

You drive a truck or diesel powered car, run a diesel generator, or large construction equipment, farm equipment…OUCH! All commercial diesel gets added on the price consumers pay - in food, deliveries, manufacturing, transport, etc.

there is massive demand for diesel. Gas is a ‘byproduct’ they have to make to get diesel out the door so they sell gas for less, and demand is down now that summer is over, and people CAN’t afford to use more gas! Shorter trips or no trips.

t.

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Eggs up 40%…milk 17% coffee 18%…breakfast cereal 23% from last year… did I mention gas and diesel prices?

t

++++++++++++++++++

Much like Antifa and inflation, this too does not exist.

Joe ( I beat Covid!)

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CAN’t afford to use more gas!


I think it was Marie Antoinette who said, if you can’t afford the gas, then take the subway

Jeff
(Who uses his car primarily to drive to Costco because he’s too lazy to change subway lines and then walk a couple of blocks)

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The American public does not want supply side economics.

The millennials are a larger group than the baby boomers. Edging out the old dogs.

Their pay and assets are up. Their expectations around inflation are different than ours. They are not feeling it. They are in business profiting off of it. They are more active voters.

By profiting off of inflation, they are charging the retirees more for goods and services. The rise in prices was long over due. Just because the baby boomers gave themselves pay cuts does not mean anyone else wants to put up with that garbage.

The social issues are now front and center. That is what the country is focused on even if you wish otherwise. People are going to be very unforgiving of the stupidity. Every little stupid self centered blowhard move aimed at minorities and women is going to be completely unforgiven.

The business class young and old, rich, middle and poor, know that supply side econ is fully to blame for every economic disadvantage the country is facing. No one wants supply side economics back.

The people that do not know better are a minority who simply do not get it. Because that minority still is not listening they do not know why they keep losing. Reread what I wrote.

Hopefully this situation is transitory.

Economically speaking if this is real - it’s obviously a big negative if over half of people are falling behind.

If it is not real and rather just perceived - it can also be an economic problem because with humanity - perception often equals reality.

Maybe these people should read posts from online investment forums that used to celebrate “s&p 500” almost daily, and whose most common solution to people’s woes was to bump the minimum wage. Certainly that will assuage people’s fears about falling behind.

What if a deep recession was good for the millennials…and the major business people among them know it.

Meaning the seniors hold more in equities. The market is falling and the seniors are selling at lower prices.

It is a nasty world. We discovered that when the baby boomers quickly got ultra nasty and embraced supply side economics. A screw Americans approach to life and economics.

Now the baby boomers are retired and economically speaking the millennials are picking over the bones.

This recession has opportunity to feed all over it for some folks. Build back better is the mantra.

ewe,

What is telling is 37% are not falling behind. That is the leadership class obviously. And all of this spells opportunity. That leadership class heads up extended families. They all get it. Most of them want demand side economics. The industrial circles I have discussed in depth their need to shift support away from supply side economics back in 2020. It was an overwhelming response to shift the economy.

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Leap:“What if a deep recession was good for the millennials…and the major business people among them know it.”

A good recession is good for few…only those holding lots of cash and willing to commit it just before the recession ends.

If you are working and saving, your savings buy more equities. But nothing says they will quickly to back up. Could be 10 or 20 years like 1929-1945 where people finally got back to where they were in 1929. Meanwhile, those who could invest (not many during the depression) made out fine.


Leap:“Meaning the seniors hold more in equities. The market is falling and the seniors are selling at lower prices.”

seniors likely hold a lot more in equities - and especially home equity as the majority have ‘paid for houses’.

Some seniors are selling to meet their RMDs and living expenses. Many are not and of course SS is inflation protected

Everyone is suffering from higher gas/diesel prices, much higher prices at the grocery store, higher prices eating out, higher medical premium costs, much higher car purchase costs, much higher travel costs.


Leap: “It is a nasty world. We discovered that when the baby boomers quickly got ultra nasty and embraced supply side economics. A screw Americans approach to life and economics.”

Demand regulated economies always flop. Russia…Cuba…Venezuela… the more the government controls, the worse everyone is - other than the fat cat oligarchs.


Leap:“Now the baby boomers are retired and economically speaking the millennials are picking over the bones.”

Hardly. The lower and middle classes are suffering the worst of it. Most baby boomers are doing fine. No families to raise. Health care paid on Medicare. Don’t drive/travel that much any longer - so don’t wear out cars. No giant family food bills. Heck, a teenager or two can eat through $100 a month each in food bills.


Leap:“This recession has opportunity to feed all over it for some folks. Build back better is the mantra.”

the current deficient is going to hurt. Worse, the interest on the federal debt is skyrocketing as treasury rates rise to over 2%. 31 trillion in debt now is costing tens of billions in interest. and going up.

You can buy all the stock you want at current levels. The market might drop another 10 or 20%…or more. Check your crystal ball. You too can lose in the market - no matter how old you are. Most seniors are NOT buying stocks.

This year I sold 0.6% of my stocks…half in Jan at market peak, half in Sept. Wow… to get enough for my RMD in my IRA. Dividends and interest, and SS, a teeny pension, provide all the income I need these days. I’m not ‘going broke’ and the market isn’t going to kill me to sell a teeny bit in a ‘down market’.

There will be two main issues come Nov and one of them is the strain on pocket books - like the original post said.

t

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Demand regulated economies always flop. Russia…Cuba…Venezuela… the more the government controls, the worse everyone is - other than the fat cat oligarchs.

t,

no one said anything about demand “regulated”. It has nothing to do with western Europe, Japan, and Canada. It has nothing to do with US.

But it is why the supply siders are unforgiven by the majority of Americans.

The supply siders do not know what they are doing and are expected to step aside. After 40 years of slow real GDP growth people are fed up. This includes plenty of well educated ex supply siders.

did I mention gas and diesel prices?
_______________________________________________

Nope because I guess they have dropped in price

Jeff

Depends upon where you start counting. Gas prices are still up significantly from the January, 2020.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&…

Cheers!
Murph

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