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US inflation means families are spending $709 more per month than two years ago

cnn.com

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Re: US inflation means families are spending $709 more per month than two years ago

#11

Post by l5870uoo9y »

> Most of that increase in spending is driven by housing costs…

I am casually investigating the possibility of moving from Berlin to Copenhagen and some of the apartments in Copenhagen that I am looking at have risen close to 30% in the last few years. This burden of course mainly falls on the younger generations.

Re: US inflation means families are spending $709 more per month than two years ago

#12

Post by Geee »

01100011 wrote: post #7
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

I don't know how most people are doing it. For me it's because the asset bubble has inflated my stock income. I suspect a lot of folks who owned homes, stocks and other assets are feeling the wealth effect. For the rest of society, I don't know why they're not in the streets with pitchforks.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

- Henry Ford

Re: US inflation means families are spending $709 more per month than two years ago

#13

Post by 01100011 »

fullshark wrote: post #6
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

> Is everyone swimming in debt? Probably https://fred.stlouisfed.org/series/CCLACBW027SBOG

Not so bad when adjusted for inflation but not great: https://usafacts.org/articles/the-state-of-household-debt-in...

I'm not sure what it looks like if you adjust for population growth.

Debt to GDP is looking good, but with wealth inequality as bad as it is(thanks Jerome!) I'm not sure that matters as much.

Re: US inflation means families are spending $709 more per month than two years ago

#14

Post by ModernMech »

Every year for the past 5 years I’ve gotten a “merit raise” which hasn’t met inflation, so I’m effectively making less than I was when I started at my job despite having 5 years more experience. My organization puts a negative value on experience, and the only way I can get an actual raise is to jump ship. The story of my generation.

Meanwhile they complain about a hiring and retention problem. Gee, I wonder why?

Re: US inflation means families are spending $709 more per month than two years ago

#15

Post by itake »

01100011 wrote: post #7
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

I don't know how most people are doing it. For me it's because the asset bubble has inflated my stock income. I suspect a lot of folks who owned homes, stocks and other assets are feeling the wealth effect. For the rest of society, I don't know why they're not in the streets with pitchforks.

> my stock income

My investment portfolio profits (or RSU vests or bonuses) never make their way to my checking account.

Are people really dipping into their investment accounts to cover living costs? Maybe for home or car purchases?

Re: US inflation means families are spending $709 more per month than two years ago

#16

Post by qbasic_forever »

candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

There is a _LOT_ of debt being added, household debt is up to something like 17 trillion dollars from like under 10 trillion pre pandemic.

IMHO vehicles are huge drivers of debt. There are almost no cars under $30k now, and the average sale price of new cars is pushing up near $50k. This is for bog standard stuff like Hondas and Fords, not luxury cars. Used cars are incredibly expensive too. People are financing cars for well over 5 years now--I've heard of people on 6 and 7 year loans now just to make monthly payments possible. It's nuts.

Re: US inflation means families are spending $709 more per month than two years ago

#17

Post by bko »

What I don't understand is this 2% price target. Prices could go up 10% one year, and well call it a success if next year we "tame inflation" by only having our prices go up 2%. Why can't we target to get prices back down? For those on a fixed income, this is money we lost forever. We expect (and see) some prices go down every year (mainly electronics) and it works fine. But god forbid the price of milk goes down a bit after rising 20% in two years.

Re: US inflation means families are spending $709 more per month than two years ago

#19

Post by allthecybers »

My spouse and I have been talking about this quite a bit lately. Even with two incomes from tech employment we are watching our budget since it feels like everything is extra expensive lately. The income gains we’ve made have only allowed us to maintain versus climb to the next level of lifestyle. It makes me wonder where we will start falling behind.

Obviously we are fortunate to not live on credit cards and have our bills paid, but it feels like we worked hard to get here to be no better off than we were.

I wonder how other folks in the middle class are making ends meet especially trying to afford a home with employers forcing RTO/RTH to HCOL in many cases.

Re: US inflation means families are spending $709 more per month than two years ago

#20

Post by coffeebeqn »

throwaway2203 wrote: post #5
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

yup, with daycare costs we're technically top 10% and still kinda hand to mouth in a MCOL area.

My savings accounts look wistfully as I spend more on daycare per kid per month than I used to pay for rent not too long ago
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