Cost of Living in U.S. Has Risen 14% Over the Past 3 Years

Sure enough, going to the grocery store feels like robbery theses days.

https://www.msn.com/en-us/money/per...-and-many-americans-cant-afford-it/ar-BBPElEa

On the surface, things are going well in America. The unemployment rate — at 3.7 percent — is at its lowest level in decades. Annual wage growth recently hit a nine-year high. And the latest figures from the Commerce Department show that the U.S. economy continues to grow.

But that doesn’t mean all Americans are doing well. In fact, GOBankingRates found that it’s gotten tougher for many people to afford basic necessities. We examined the cost of living throughout the U.S. over the past few years to see how much it has increased. Then, we surveyed Americans to find out how much they’re spending on necessities. The average spending of respondents in each state was then compared with the median income in each state to determine whether people can realistically afford the cost of living where they are.

 

This was expected to happen when the Federal Reserve (Feds) kept interest rates artificially low for eight years to prop up the Obama economy.

Would have prefered seeing smaller inflation on the store shelves for eight years than being hit all at one time to catch up like we are seeing today.

Trump, Wall Street and Main Street America aren't happy campers rightnow. The Feds should have not kept interest rates artificially low for eight years (2009-2017)

 

That does not seem to be cause for skyrocketing cost of living. It's interesting how localized the problem is where some areas have seen 35% increase, and some others not so bad.

Unfortunately the price hikes caused by the tariffs will only get worse. Already now it costs a lot more to build a house than only a year ago, and the reason is Trump taxing us to death with the tariffs.

 

My house is Americana, every piece of framing lumber, nail, pipe, electrical conductor, etc. was made in the USA.

I'm pretty sure the framing lumber used to frame my house use to be the home of a spotted owl in Northern California so I've been told.

 

The GOP house and senate over the past 2 years have rolled back most of the financial institute safeguards built into our laws following the 2007-8 financial collapse so that we again have run away real estate prices and the reintroduction of no down payment mortgages.The lure of easy money has stoked ever escalating borrowing, so that it is at a new all time high.We are lining ourselves up for yet an other financial collapse.

 

I agree with your post. It's accurate. I've certainly been feeling the change myself, and with mounting concerns. It's a real problem, and we have a President now who is incapable of understanding the problem, how it impacts the lives of common non-wealthy Americans, or what to do about it. It's a sad truth that those who supported Trump the most are the first to suffer from the economy managed by Trump.

 

Part of it is inflation. The other part of it has to do with rising wages.
Wage levels were very low coming out of the recession.

That's why as wage levels go up, say, 20 percent, it doesn't benefit workers 20 percent. They might have, say, a 10 percent rise in consumer purchasing power.
(figures are not exact, just trying to illustrate a simple example here)

Now the inflation... that's to be expected when government keeps spending money it doesn't have and the central bank turns all that debt into money.

We're also seeing real estate prices going up. More population, middle class going back into the market again. That also causes price inflation.

 

So you been told. Counter top? Appliances? I'll bet its not 100% US materials, and even if it was, most people have no idea where the materials come from then they buy a pre-construction home.

 

We have a president who pretends everything is "best ever". How could anyone with that mindset fix anything? You'd have to admit problems exist in order to fix them.

Gas is up by a lot. Rents up by a lot. Houses up by a lot. Food up. Imports up.

 

If you give people more money, prices start going up.

 

Yes, to do that costs a tremendous amount of subsidies and inherently carries an inflationary cost.

(When the Fed expands the money supply while the worth of their reserve assets on their balance sheets becomes diluted relative to that money supply, you get inflation)

 

The comparison is between "Income needed to live comfortable in 2017" vs ""Income needed to live comfortable in 2018" and in come cases it is up by 35% in one year. Seems like Texas is the worst off having 4 in top 10 cities where cost of living has gone up the most.

 

One thing isn't up! Wages.

 

Not where I live. But hey, if we looked at each place individually and stop including liberal tax cities with rural areas, maybe these numbers aren't as dire as some people would like us to believe.

 

There is a problem when prices go up much faster than salaries. That will cut into your purchasing power.

 

I live in Florida and moved her decades ago because it was inexpensive, and being on SSI and government support that was important to me, now I plan to move to another state where rents are a lot less expensive likely Indiana to live in Indianapolis I can find places to live and a lot of places costing half or a bit more the cost in Tampa Bay and live someplace decent. I have no choice my father helps us stay afloat but he is 83 and if he dies I couldn't find anyplace to live decent here so have to go. I'm lucky I can do this.

 

Growing population pushing rents and real estate prices up.
That has a carryover effect to local businesses.

 

All democrat cities.

 

Why not move out of the cities where everything is more expensive and move to plant city or Clermont FL. So many places are cheaper than the city.

 

You want some insider trading poop ?

With all of the homes that were destroyed in California's wildfires, buy Home Depot stocks ASAP.

 

Absurd, were in bad need of some type of rent control. So many people shouldn't have to be homeless because of the greed of businessmen

 

In California where they tax everything and regulate even toilets, electricity is so freaking expensive because of liberal policies and regulations.

One person today suggested that it was Jerry Brown who set the wildfires in California and blame it on Edison and PGE who are going to have to increase the price for electricity to foot the bill with all of the law suits that are in the pipeline.

 

Many people still work, and jobs are on the cities.

 

CA has been expensive for a long time, so it does not explain this recent spike.

 

If you look at the least affordable States, its a mix of blue and red States. Three red and two blue in top-5.