The current inflation, which is at an all-time high, is not hidden from anyone. Be it the rich investors or the middle class, everyone is equally anxious about it. According to Statista, the current inflation rate in the United States has been the highest in the last 50 years.
This means that American consumers are paying the highest rates for day-to-day essentials, something that was not seen in the last five decades. The cost of everything is kissing the sky. Be it groceries, fuel price, or cost of living, everything is at an all-time high rate. Thus, everyone is worried – and impacted – by the staggering inflation rate.
Surely, this high inflation rate was not seen even during the Great Depression of 2008. Although it was one of the most gruesome financial crises in the history of the U.S., there was no such inflation – as is the case today. This makes the poor folks particlarly worried. They are panicked about the unseen future where a looming recession awaits them ahead. Likewise, they are struggling with making ends meet. Consequently, a mass panic is bound to happen.
The Cost of Living Crisis is No Different Than the Pandemic for Poor Folks
In this article, we will see what this insane cost of living means for poor folks. Although the rich class is also suffering from financial crises, the amount of impact is not the same. And it makes sense: Unlike the poor class, the elites have enough savings in place. Even if things do not work out for them, they can still sustain a smooth lifestyle. Likewise, they have enough revenue coming in that can secure the future of their kids.
But for the poor, it is a whole different story. They simply can not make enough money to bring something to the table for their kids., Let alone secure the future. Thus, the cost of living crisis has some serious impacts on the poor class throughout the country.
That is why experts argue that the current cost of living crisis is no different than the COVID-19 pandemic folks. The sense of insecurity and uncertainty are the same.
During the COVID pandemic, the poor class could not imagine a secure future for their family and kids. The same is true now. Since they can not sustain a reliable lifestyle themselves, they are not in a position to give a secure future to their kids.
What Does the Poor Class Do to Cope With the Cost of Living Crisis?
Apparently, this poor class has to compromise on something to cope with this crisis. Whether they like it or not, they do ‘extra’ stuff to cope with the crisis.
Here is what the poor class is doing to sustain life during the cost of living crisis:
- They do extra jobs and work extra hours.
- Limiting their spending.
- Compromising on luxury stuff.
- Avoiding dine-outs.