---Free to Share on Your Media Platforms---
This week the Bureau of Labor Statistics shared the November Consumer Price Index (CPI) report, which continues to highlight the financial strain on everyday Americans, particularly during the holiday season. American wages are still not keeping pace with rising costs, especially for essential goods like shelter and food.
The 0.3% increase in CPI for November is like coal in the nation’s Christmas stocking. Americans' wages are not rising fast enough to match the cost of living. Despite the year-over-year CPI increase of 2.7%, many workers have not seen comparable growth in their paychecks. The reality of day to day life means purchasing power is weak. This wage stagnation means families are stretching their budgets thinner and facing difficult choices between necessities and discretionary spending.
In addition to being the holiest season of the year. The holiday shopping season is an important time for many families and American small businesses, but this year, Americans are approaching it with increased caution. With shelter costs alone accounting for nearly 40% of the monthly CPI increase and food prices continuing to climb, families must responsibly rethink their spending priorities. Many are likely to cut back on holiday spending is a smarter move than relying on credit cards, which could lead to financial strain in the new year. These inflationary pressures and wage stagnation have a ripple effect on retailers who depend on strong holiday sales.
Under-resourced communities are the hardest hit by the ongoing inflationary trends. These areas often experience a vicious cycle of disinvestment, and rising costs only deepen the economic divide. One of the most effective ways to foster economic growth in these communities is through local spending, but when wages cannot keep up with inflation, that vital investment dries up. Higher costs for essentials like food and shelter disproportionately impact these communities, leaving them with even fewer resources to reinvest in local businesses and infrastructure. To address these challenges, policymakers must prioritize actions that support wage growth, reduce regulatory barriers for small businesses, and encourage investment in under-resourced communities.
---
SUPPORT COMMON SENSE MEDIA
BPALiveWire is not in the pocket of corporate media. We are beholding to our readers and the truth. If you believe it is important to share African American free market, limited government voices in the media, support our work with a one-time or recurring contribution.
Comments