In the past few months, the inflation rise has deteriorated the living standards of middle and low-income US households. The present inflation rate is the highest since 1982; the price rise has affected the oil industry too. The inflation rate recorded 7.5% by the end of January; the uncontrollable price rise is a warning sign for the country’s economy. Families cannot meet their necessities; the oil price rise has made transportation unaffordable. CNN reports that gas prices hit $4.25 last Wednesday, a two-fold increase in the previous year’s rates. The federal government needs to take active steps to control the oil and gas market.
Prices have increased more after the Russian invasion
CNN reports that an average household spends an additional $276 due to inflation. The Russia-Ukraine fallout has fueled the market, and soon, expenditures will likely shoot up to unimaginable levels. The rise in oil prices will affect most market products due to an increase in transport fare. Millions of low and middle-income families will suffer in the future. The US citizens look up to the federal government to introduce financial benefits in stimulus checks. However, the current economic situation limits national resources. Families pay for gasoline and other commodities; they don’t have sufficient savings to pay for children’s education and other things.
The federal government faces a huge dilemma
The federal must take decisive steps in need of the hour, the US economy has still not recovered from the pandemic, and the inflation has rubbed salt into the wound. The federal authorities have to prepare a financial help program for citizens’ survival. Since the pandemic happened, the federal administration has issued three stimulus checks; there are hardly any signs of further stimulus checks. The stimulus checks helped millions of low-income households and individuals to recover from unemployment.
CNN reports that the federal stimulus program helped families earn less than 80% of the national median income. However, most of these families are struggling now due to the price surge. Several lawmakers call upon Congress to give $1,100 per family for a few months; this might aid the present economic situation. Economists predict that the prices will continue the upward trend in the recent future.