George Mentz: Inflation Slamming Working-Class Families, Students

If you go to Trading Economics , you can review year-over-year increases in costs of commodities while the stock market has plummeted in the last two years.

According to Rent.com, the rental prices even in the heartland city of Denver are up an average of 15% over last year. The national median rent increased by a record-setting 17.6% in 2021. The cost for food and housing is through the roof for students also, and many students are now struggling with food insecurity.

Here's the short list of items that have experienced extreme inflation just in the last year:

Butter up 80%
Potatoes up 55%
Juice up 36%
Rice up 25%
Milk up 25%
Cheese up 24%
Lumber up 19%
Coffee up 20%
Cotton up 16%
Eggs up 172%
Salmon up 60%
Pork/Hogs up 41%
Lithium for Batteries up 386%
Coal up 134%
Natural Gas for Heating up 125%
Heating Oil up 67%
Oil up 200% (since the presidential election of 2020)
Gas was 95 Cents a Gallon at Election 2020

Even Fortune magazine analyzed a basket of goods and necessities for inflation and found a 24% increase in costs for the poor and middle-class on everyday items since 2020.

These increases in costs plus the rise in auto and credit card loan interest is killing working-class folks in 2022.

If the Federal Reserve raises rates again, that would make credit card rates, school loans, auto loans, and new home loans go up again. Yes, we want to stop inflation, but most experts believe that a friendly energy policy and lowering gas, fuel, and electric energy costs would curb inflation more quickly. Also, the cost of electric vehicles is also up dramatically due to the increased costs of copper, lithium and other commodities; therefore, electric vehicle expenses have been hit hard by inflation.

Elections are coming in November. If the Democrats lose the Congress and Pelosi is replaced by Kevin McCarthy, R-California, and Steve Scalise, R-Louisiana, it could create a confidence factor in the USA whereby other countries have renewed respect for a new consultative leadership process in the USA.

However, for the time being, the U.S. is suffering economically, struggling with inflation with the threat of a recession on the horizon. Women and minorities seem to be hit hardest. America’s young adults are also the most angry about costs according to The New York Times.

As for education costs, tuition and fees at private institutions jumped by a similarly astronomical 2,107% — from $1,706 in 1970, to $37,650 in 2020 while some students are relegated to learning on the computer and charged hefty fees.

Furthermore, Hispanic voters are leaning toward voting for Republicans this year for the first time for many reasons — including bad policies, crime, and inflation.

As for the potential change in power in Washington, Americans and foreign nations have generally preferred divided power between Republicans and Democrats in Washington, D.C., between a presidents and Congress.
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George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is an ESQ EU accredited graduate body that offers certification training in 150+ nations under ISO 21001 and ISO 9001 standards. Mentz is also an award winning author and graduate law professor of wealth management in the USA.

Citations

https://tradingeconomics.com/commodities

Skyrocketing rental market prices people out of Denver metro area | 9news.com

Apartment List National Rent Report

US rent prices rising four times faster than income | Mortgage Professional (mpamag.com)

With inflation soaring, more college students struggle with food insecurity - MSU Denver RED

Opinion | Young Americans Are Stressed. They Are Angry. And They Can Swing Congress. - The New York Times (nytimes.com)

Inflation Anger - The New York Times (nytimes.com)

10 Reasons Why Millennials Are Angry About the Economy - YouTube

Hispanic and minority voters are increasingly shifting to the Republican party : NPR

Chart: Americans Prefer Divided Government | Statista