Are you keeping up with inflation?
It isn't imagined, the inflation rate is higher in Minnesota than in the rest of the country and it impacts everyone.
Minnesota Inflation.
"Using the July 2024 Consumer Price Index data release by the Bureau of Labor Statistics, the Joint Economic Committee (JEC) State Inflation Tracker estimates that the average household in Minnesota is paying $1,234 more per month to purchase the same basket of goods and services as in January 2021.
Cumulatively, the average Minnesota household has spent $31,660 more due to inflation since January 2021." -United States Congress, Joint Economic Committee Republicans.
Minnesota, has seen cumulative inflation of 20.5 percent since January 2021. This is 0.3 percentage points higher than the national cumulative inflation since January 2021 of 20.2 percent
Retirement Affordability Index.
And it’s lower income households who tend to spend a larger proportion of their income on essentials. More goes on these essentials and they have less left over for non-essentials. This is why lower income tribes are facing higher rates of inflation.
J.D. Vance responded to this question from a New York Times reporter about inflation
The simple truth is that American credit card debt is increasing, and Americans are finding the basic necessities of middle-class life less affordable. Americans, especially young people, are becoming paupers in their own country. If we don't do better, our young generation isn’t going to own anything; they’re not going to have anything.
Home sales in 2023 were lowest in 28 years as affordability crisis plagued Americans
The price of shelter has consistently outpaced inflation under President Joe Biden, rising 18.6% since the president took office in January 2021.
Sales for existing homes, which make up a majority of the housing market, slumped to the lowest level since 1995.
U.S. Added 818,000 Fewer Jobs Than Previously Thought From March 2023 To March 2024, Government Says
Aug 21, 2024, Prior data far overestimated the recent labor market recovery, the government said Wednesday, a potentially worrisome sign as slowing job growth shakes confidence in the economy.
The U.S. added 818,000 fewer jobs than previously estimated from March 2023 to March 2024, according to the Bureau of Labor Statistics.
The US economy faces a new threat
The biggest danger facing the American economy for years has been inflation.
Now, another problem is emerging as a credible threat on the horizon: Unemployment.
Just as inflation continues to cool, yellow lights are flashing in the still-strong jobs market. The Federal Reserve must now confront the risk that it’s making a mistake by keeping interest rates too high for too long.
The big squeeze
Why Minnesotans are feeling the economic pinch.
"Nearly four years into “Bidenomics” and “Building Back Better,” why are Minnesotans concerned about the economy..."
Minnesotans are concerned about the economy despite repeated assurances that it is “strong.” As prices rise faster than earnings, real incomes are squeezed. Adjusted for inflation, Average Hourly Earnings fell by 4.3 percent from Biden’s inauguration to June 2022 and are still 2.7 percent lower than when he took office. From 2020 to 2022, Median Household Income rose by 9.7 percent in nominal terms but fell by 2.7 percent in inflation-adjusted terms.
Car insurance rates could jump 50% in 3 states.
Auto insurance — one of the biggest drivers of inflation this year — will continue to rise in 2024.
The typical U.S. insurance policy will jump 22% this year to an average annual premium of $2,469 by year-end, the report found. That comes after drivers saw their policies jump 24% in 2023.
Poll: A losing game
Minnesota’s youth are pessimistic about living a nice, Minnesota life.
For an increasing number of younger adults (18-34 y/o), the dream of future summers spent vacationing on the lake, barbecuing in their own backyard, saving for their children’s education, or simply keeping up with the cost of living is out of reach, painting a grim picture of their economic situation.
The dream of homeownership, once a typical benchmark of adulthood, has now become a luxury item for many young adults.
Public’s Positive Economic Ratings Slip; Inflation Still Widely Viewed as Major Problem
May 23, 2024-Pew Research Center
Only 23% of U.S. adults say the economy is in excellent or good shape, down from 28% in January but higher than the 19% who rated the economy positively last April.
Two other economic concerns – the affordability of health care and the federal budget deficit – continue to be seen as very big problems for the country.
What’s in this report?
- National economic and personal financial ratings (Chapter 1)
- Trends in views of the top problems facing the nation (Chapter 2)
Republicans are working on Solutions.
MN Republicans Suburban Solutions Caucus
Suburban families value the quality-of-life Minnesota offers. But, hard-working families are left wondering how affordability is being balanced while it feels like they are paying more and getting less.
