According to a price index review, about 67% of Americans are worried about their cost of living.
Economists warn that as global inflation continues to increase, the United States is on the cusp of a cost-of-living disaster. The U.S. Federal Reserve raised interest rates for the first time in more than two decades, stepping up its fight against rapidly growing prices, according to the BBC. Federal Reserve Chairman Jerome Powell said in a press conference, "Inflation is much too high and we understand the hardship it is causing. We are moving expeditiously to bring it back down."
Banks will make borrowing more expensive for individuals, corporations and governments by hiking interest rates. They anticipate that this will reduce demand for products and services, hence reducing price inflation. Nonetheless, according to a price index review, about 67% of Americans are worried about their cost of living.
-20 years ago, working as a server, I lived in a corner 1 bdrm apt downtown with amazing water views for $700/month.— NTK (@ntkallday) October 10, 2022
-A similar apt now $3,600/month, more than 5x as much.
-As a lawyer at age 47 I am unable to afford living in the apartment I did at age 27 while waiting tables
Nicole Thomas-Kennedy, who campaigned for Seattle city attorney in 2021 in Washington, reportedly compared her present financial status to that of two decades earlier. She wrote in a tweet, "20 years ago, working as a server, I lived in a corner 1 bdrm apt downtown with amazing water views for $700/month." She further added, "A similar apt now $3,600/month, more than 5x as much. As a lawyer at age 47 I am unable to afford living in the apartment I did at age 27 while waiting tables."
She further explained she now has "a small family" and "practice public interest law which is not the best paying." She also has six figures in student debt and is struggling. She added in a subsequent tweet, "Despite these differences, I still make significantly more money now than I did back then, but because of the astronomical cost of housing I have a very similar standard of living."
This is also why disabled Americans end up in tent cities. We can’t afford housing!— genXsamantha ☮️ (@GenXsamantha) October 11, 2022
She said that after adding "medical and childcare along with housing into running in place mix," the financial stress is a lot. She added that her partner is a therapist and she is not going through the financial burdens alone but it is still difficult to manage. "I cannot imagine what it's like for single parents. I really and truly do not get how they are doing it," she wrote.
Several people on Twitter started pulling out their household incomes to emphasize inflation. A Twitter user shared, "The apartment I lived in back in 1996 with a roommate while I was in grad school most recently was listed for $2.2 million & the monthly condo fee is $3,100. I paid $400." Another added, "Long story short. If your family didn’t own a home before 2008 there is a very slim chance that you will ever own a home. The only way to get a home now is to be given one by your family. And people say this generation doesn’t want to work. Work for what?"
The problem isn't really supply of housing – that's a major issue. The problem is commodification of housing. https://t.co/wFaxgXi9rd— Colin Kalmbacher (@colinkalmbacher) October 11, 2022
"What I find funny and sad is that the ultra-wealthy in many places have priced out the poor, the people who do service jobs. There’s no one to work at restaurants and gas stations because no one can afford to live there," noted another.