It may be “easy for Wall Street and the Fed to say, ‘We are going to wait,'” before moving to head off inflation, said Michelle Connell, president of Portia Capital Management, a Texas-based investment manager. But for working families, single moms and others already scraping by before the pandemic hit, it likely will get harder to sit tight if prices shoot dramatically higher for basic necessities, including food, housing and child care.
Connell said some of her largest clients are foundations focused on distributing aid to lower-income households, and they’ve already felt the pinch. Connell pointed to how the bottom 90% of U.S. households already were spending 99% of their income before the pandemic, which hit low-income workers the hardest.
President Joe Biden’s American Families Plan aims to make child care free for lower-income families, while looking to cap the cost at 7% of the income of middle-class households. Fed Chairman Jerome Powell has said he wants to see a robust economic recovery from the COVID crisis, including getting most people who lost work back onto payrolls, before dialing back easy-monetary policies.
They already have debt. Increase wages.
Then pay them more.
this is terrible news