The American Economy struggles this October as railway unions question work conditions, rental rates rise dramatically, and Social Security payments change for older Americans.
On October 13th, 2022 the CPI data showed an 8.2% increase in CPI from this time last year. At this time housing is taking the biggest hit from inflation data because shelter makes up 1/3 of the CPI measurement taken, and is by far the largest portion of CPI. Rental prices will continue to grow according to this data as more people move into new rental agreements in the next year following an also significant increase in interest rates for house mortgages.
Railroad Unions are against a bill proposed by President Biden that would effectively increase wages for their positions. However, the hesitancy from the union comes from poor working conditions in the U. S railway systems that did not change on account of the recent governmental bill. Consumers and government alike hope that the decisions of one influential union based on gov response to demands don't change the compliance with the proposed government bill and spark change in thoughts of other unions in different occupations. Congress and President Biden will need to grasp a hold of the situation at hand and settle the issue if the railway union does not subside.
Finally, Social Security payments are up 8.7% coming into the new year. Only 10% of people over 65 in the U. S don't receive social security and more than half of the other 90% that receive money depend on social security for more than half their income. With the rising inflation in our economy, the monthly payment expected by the beneficiaries has increased to keep up with the cost of living. It is not yet known whether higher payments will add to the increased inflation in our economy.
Americans should expect an ever-changing economic environment coming into the next few months, and the new year.
- Denis Harkin
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After reading your blog post Dennis I looked up an NBC News video that explained how much money that social security recipients will get with the cost-of-living increase. The Biden Administration calculated those recipients will receive about a $140 increase per month in social security. Even though the increase in payments won't go into effect until the start of next year, the increase should help those on a fixed income fight price levels that have not seemed to go down yet.
ReplyDeleteReading about the railroad situation and seeing how horrible their job conditions are and that they but I was reading an article that was saying of you talk to a railroad worker privatly they will talk about how bad it is but if they speak publicly about it then they will face severe consquenses. I see how they dont want to accept bidens new bill because they want to fix their working conditions and its not as much about the pay or medical time off as it is about them having a safer job.
ReplyDeleteSocial security funds are being used quickly due to the growing older population and number of beneficiaries utilizing it. An 8.7% rise in social security payments is significant. Having to increase these payments to combat inflation are most likely another contributing cause to the rising depletion rate of the funds. I am curious to see if they will continue increasing the payments should inflation continue to rise.
ReplyDeleteWorking at a non-profit for the last few months, I serve many older adults surviving on Social Security. I have had many clients tell me that their bills doubled without an increase in Social Security, so I understand the necessity of increasing the amount received by individuals, but as the population aging into Social Security grows, there are just not enough people working to put money into the program, that I fear we will see sooner rather than later, that the system must change in order to keep serving those most vulnerable individuals in our community.
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