25 votes

It is getting more expensive to be poor.

Inflation May Hit the Poor Hardest
By Ben Casselman | fivethirtyeight.com

It’s getting more expensive to be poor.

Over the past two years, prices have risen more quickly for many of the things that low-income households spend a lot of their money on, such as rent and utilities. As a result, these households — families earning less than $20,000 — are experiencing a higher rate of inflation than the public at large even as their wages have stagnated, according to a FiveThirtyEight analysis of government data.

We tend to talk about inflation as a single number affecting the whole economy. But everyone experiences a slightly different rate of inflation for the simple reason that we all spend money on different things. The price of cigarettes matters primarily to smokers; the price of diapers affects mostly parents of young children; and the price of gas is a much bigger deal to someone with an 80-mile daily commute than to someone who only takes the car out for weekend excursions.

Overall inflation has been muted in recent years; consumer prices were up just 1.1 percent in February from a year earlier, far below their long-run average. But prices are rising a bit faster for both the poor and the wealthy, who have been hit harder by the ongoing increase in college tuitions. The result: from February 2012 to February 2014, the poorest fifth of households have experienced an annual rate of inflation that’s about two tenths of a percentage point higher than the population as a whole. The richest fifth have experienced inflation about a tenth of a point higher.

Continue:
http://fivethirtyeight.com/features/inflation-may-hit-the-po...



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

anyone notice

Gas has gone up decently in the past month or so?

"Once you become knowledgeable, you have an obligation to do something about it."- Ron Paul

Why would you want to be rich?

What is wrong with being poor?

Is it truly the "lack" of things that makes people poor?
Giving them more things surely won't fix the problem.

Or is it something else that is restricting our poor...

Southern Agrarian

Yes, it *can* be "truly the 'lack' of things" that makes

people poor. Like food, for one. Those expenses mentioned in the article are fixed expenses, expenses you have no control over, like a monthly rent or mortgage payment or auto insurance. So you cut back wherever you can. You do things like put the heat down ridiculously low and wear outdoor clothing indoors and substitute more and more starches for proteins and fresh fruits and vegetables. Your comment is expressed indirectly. I don't understand the point you're trying to make.

When we try to pick out anything by itself, we find it hitched to everything else in the Universe.
~ John Muir

Inflation...MAY be hitting the poor the hardest......

That is so profound a statement, I cannot believe someone actually thinks that is even a possibility.. I guess if we were having deflation, an article would be written titled Deflation may be hitting the rich somewhat hard. Listen to Ron Paul getting Ben Bernanke to admit the obvious: http://www.youtube.com/watch?v=2JBsGn6XtaM&feature=youtu.be

With all due respect, I will no longer be a voting prostitute for Constitution rejecting harlots.

There are other expense experienced by the poor

which cause it to be very expensive to be poor. One of them is the phony crime I call "DWB" (driving while broke), which was a bane to myself and my wife a few years back while I was unemployed and we were homeless and living in my car in a Safeway parking lot.

It starts off fairly simply, you can't quite pay your auto insurance because you don't have enough money, then you are stopped because your turn signals don't work cause you can't afford to get them fixed. You get ticketed for not having insurance, then in coming up with the money to pay that ticket you can't renew your vehicle registration. Then you get ticket after ticket for not having registration or insurance, including parking tickets at $100.00 a pop for parking in public places such as parks without vehicle registration.

When I got some part time work in Montana, I was barely able to escape California, being stopped in Washington State on my way to Montana and being given a $1,500.00 ticket for no insurance. I literally now owe several thousand dollars to state and local government agencies which I am going to have difficulty ever paying back.

Honestly I don't think cops realize how cruel they are for harassing the homeless.

Featured in The Morning Roar @ Lions Of Liberty

I featured this article in The Morning Roar today.

http://lionsofliberty.com/2014/04/08/the-morning-roar-tuesda...

I'm a big fan of Five Thirty Eight, the articles are great conversation starters for libertarians.

Time to go hunting

Deer, raccoon, squirrels etc. If you cannot do that there are plenty of wild foraging options depending on where you live in the country. Regarding toilet paper, get a bucket and some wash clothes. Water wipe your butt and wash the wash clothes. Telecommute to work, crap in a bucket to save money on water. Rinse you plastic zip lock bags and dry them.

Some ideas above. Not all of them are palatable to all folks but should be workable. I would recommend the cheap skate gazette series to anyone interested they have a ton of tips for squeezing money out of thin air so to speak. I think everyone is seeing that they are getting less for their money regardless of how frugal their shopping habits too.

I believe you meant the

I believe you meant the Tightwad Gazette; if not then I apologize.

Chicks were $3 ea.

Six will keep the two of us swimming in eggs. Some to trade.

Lawn makes great hay for chickens. Just add minerals.

Free includes debt-free!

The gov't is

knowingly misrepresenting inflation to the US public.

It is far higher than 1.1%... at least for all things that really matter to the majority of families.

If we are noticing much higher prices for smaller quantities of goods, then the majority of other Americans must also be noticing it.

When will the public have had enough of the lies and force the gov't to admit the truth?

I say bring on SHTF. Ready or not the outcome has to be better than whithering away slowly over many years.

Our family's journey from the Rocket City to the Redoubt: www.suburbiatosimplicity.com

inflation may hit the poor hardest...

https://www.youtube.com/watch?v=9CTIWqLOYJo i hope people can start connecting the dots between inflation and the federal reserve system...

Albert Camus — 'The only way to deal with an unfree world is to become so absolutely free that your very existence is an act of rebellion.'

I've noticed a small increase

in the price of certain groceries over the last two months, mostly anything with turkey in it. The 'bargain' grocery store jacked up their prices more than the 'fancy' store did. My electric has probably gone up $15/month, despite using less electricity.

Used vehicles have also shot up in price, but only because people burned through their tax returns to buy a 'new' used car.

A signature used to be here!

You Might Have Missed A Big One

Did you notice the price of a gallon of milk lately? In Lancaster PA, where dairy farms are no further than a literal stone's throw away from any resident's home, milk is $4.50 a gallon. It is literally cheaper to drink craft beer than to drink milk.

We have noticed significant price increases at the grocery

store lately.
All meats have gone up - but beef especially.
A jar of peanut butter - SEVEN dollars!!
This is the staple product of the poor - that is at least 25% higher than a year ago.
Milk- last year - 2 for 5.00 - now - 3.50 a gallon.
Chicken breast - on sale now for 2.99 a pound - used to get it for 1.99 all the time.
Cheerios - 6 dollars a box.

And like the earlier poster said -things that have only gone up a little -have actually gone up a lot since they dont give you as much. Ice Cream is a good example of this.

LOL- funny as it may seem - pacific seafood was actually relatively cheap - wonder why.

Damn, I pay $4.29 for a

Damn, I pay $4.29 for a gallon of milk. However, I only pay 2.49 for a jar of peanut butter, and we still get boneless skinless chicken breasts for as low as $1.79 on sale from time-to-time.

In my area, Beef has gone up

In my area, Beef has gone up more than a $1 per pound since this time last year, but gas is at $3.60 per gallon. These are two which effect me most, but I've noticed almost everything in the grocery store has increased, and in some cases quite substantially. I feel really bad for the poor among us.

Big reason for beef

is the lack of rain, and therefore feed, in places like CA.

I've read about that. I also

I've read about that. I also have seen ranchers who could not afford the feed for their cattle, sell off their entire herd -which were anorexic looking- just to be able to pay off what debt he had. His family had been ranchers for generations, and he is the last one, he could no longer afford to continue due to the prices of food for his cattle and the property taxes and such.

It's ridiculous, which is why I advocate smaller -permaculture-esq- operations whereby the family farm supports the family and left-over to provide some income to pay bills; while working to lower and lowering the cost of operating unlike the modern small family farming and ranching businesses which incur financial servitude just to operate.

The only thing that hasn't changed value

Is a $0 balance bank account

bigmikedude's picture

Most people aren't even noticing all of the inflation either

Often it is disguised when you purchase a product, hidden from being an obvious price increase.

When you go to the grocery stores lately, you'll notice that instead of obviously raising their prices to the consumer, corporate America has another neat trick to hide inflation that I have noticed a great many of them using lately -

The price stays the same, but the weight, package, or serving size that you used to get for that same price before, shrinks significantly.

Just saw it today on what WAS my Glad "Megapack 100" Drawstring Tall Kitchen Bags, that are now my "Megapack 90" Drawstring Tall Kitchen Bags.

Thank you, Federal Reserve Thieves, and Keynesian Economic Supporters of printing money out of thin air.

OJ

Watch for items formerly priced in ounces and gallons to go to ml and liters. Noticed that on some minute maid OJ the other day. BTW, regular national brand OJ is like $7.30 for 118 oz (largest family size which is 10oz less than a gallon) which comes out to 7.91 a gallon. Craziness!

So true. The inner cardboard

So true. The inner cardboard roll of toilet paper is now large enough that a child can stick an arm through it...yet the roll appears to be the same size when you look at the outer packaging. we're just buying a lot more air now.

"Villains wear many masks, but none as dangerous as the mask of virtue." - Washington Irvin

deacon's picture

A mega roll tp

Used to come with an extender so it fit onto the TP holder,now they fit right in with room to spare
When I go shopping (which isn't very often),I make comments loud enough to be heard by other shoppers concerning the size differences.
What some people do not look at is the same sized container,but smaller weight inside,It is fun to point this out,open some eyes.
D

If we deny truth before your very eyes,then the rest of what we have to say,is of little consequence

Speaking of that, I remember

Speaking of that, I remember when a normal carton of ice cream was 64 oz. (1/2 gallon), and then it was 56 oz., now it's 48 oz. It's incredible. I also noticed a box of cereal which was so damn thin it might as well not exist. It's getting crazy, all of the things one notices when one pays attention.