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The Impacts of Inflation on Lower-Income Families

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Currently, all Americans are feeling the effects of inflation in one way or another. Middle- and upper-class households can cope with inflation in ways that don’t seriously interfere with their livelihood or well-being, such as cutting back on leisure and luxury spending. However, lower-class and lower middle-class families face lifestyle constrictions that threaten their very survival. Here are some of the challenges that inflation causes for low to moderate income families:

  • Working longer hours and weeks. Although hourly pay is sometimes adjusted for inflation, it usually stays well behind the curve. Because many low-income jobs allow workers to adjust their hours, breadwinners sometimes have to work longer hours and more days per week in order to cover normal expenses. This leads to general fatigue, worsened health, and burnout.
  • Choosing between caregiving and better-paying work. Most caregivers are women. In addition to the existing disadvantages they face as a result of the continued gender pay gap, many are forced to miss opportunities for full-time or higher-paying work because of their limited availability. In households headed by single mothers—a group in which people of color are disproportionately represented—this missed earning potential can contribute to greater racial wealth gaps and generational poverty as well.   
  • Reducing the commute radius for potential jobs. Lower-income employees who work at multiple and varied locations (such as substitute teachers, rideshare drivers, landscaping contractors, and real estate agents) are having to shrink their commute radius due to record-high gas prices. This constrains their livelihoods, as the number of work sites they can afford to drive to necessarily shrink as well.
  • Assistance programs not covering basic needs. Families who rely on assistance from nonprofit programs are finding themselves on waitlists or denied altogether because of funding limits. Eligibility for certain government assistance programs is adjusted at a slower rate than inflation increases, meaning many struggling families are ineligible for the programs they need. During periods of inflation, those who do qualify find that the assistance doesn’t go as far toward meeting their basic needs as before.

Help Vulnerable Americans With the Cristo Rey Community Center

Cristo Rey Community Center (CRCC) is a non-profit basic-needs service center that provides access to food, medical care, and counseling programs to all our neighbors in need. Since 1968 we have been working to heal the sick, feed the hungry, protect and enrich children, engage and honor our elderly, and advocate for the most vulnerable in our community. Please contact us if you need to make an appointment for services.

It’s people like you that make Cristo Rey possible. Whether you enjoy giving your time, talent or treasures, you have something valuable to offer the Greater Lansing community. Please consider partnering with us in any of these ways today, and follow us on social media now for updates on ways to give this holiday season.

The post The Impacts of Inflation on Lower-Income Families appeared first on Cristo Rey Community Center.


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