The average cost of living for Americans is much more in 2021 than it has been in the past two years.
According to the Penn-Wharton Budget Model, from University of Pennsylvania, the cost for Americans to live similarly as they had in the past two years is $3,500 more.
The report also proves that inflation is disproportionately affecting low- and middle-class citizens. Stating that higher earning families have had smaller price increases comparatively.
The study showed that, “inflation in 2021 has resulted in the bottom 20 percent of U.S. households paying an extra $309 for food, $761 for energy, $476 for shelter, $390 for other commodities, and $224 for other services.”
The producer price index, a measurement of the demand for goods and services, is at an all-time high of 9.6 percent. This is expected, however, due to the monetary impacts of COVID-19 and the related government spending.
Noting that this government spending is unprecedented in American History, it has surpassed what the Unites States spent for the Marshall Plan, the plan that won WWII and rebuilt Europe.
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