Quote:
Originally Posted by Tyga11
Why would people just 'run out of money?'
The price of groceries isn't going to put most people homeless. Having shredded cheese go up $2 (or 50%) isn't a huge deal to most people.
Most of the inflation we've seen is in the travel sector and obviously home / car insurance.
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This being a BMW forum you can be forgiven for maybe being a little out of touch, but literally 1/2 of the households in this country live paycheck-to-paycheck and have almost zero savings for emergencies. COVID changed that through a combination of (for some) reduced expenses and plenty of free gub'mint cash, but alas that has proved to be ephemeral, whether because of inflation, poor spending choices, or both. The extra money is long gone at this point.
Those households live on a shoestring and, in fact, the price of groceries (which was also temporarily heavily subsidized during COVID through expanded SNAP benefits), is a huge issue. Food prices across the board are up quite a lot. Many are having to choose between buying groceries for their families or paying the utility bill. Pile on the other inflated costs that they face, many of which are essentials like rent, car insurance, gas, etc., and they are truly hurting in a way that hasn't been seen in a couple of generations.
Inflation may annoy those of us with 2.5% mortgages and healthy stock portfolios, but it crushes the lower income demographics.