Food up, Gas up, Rents up, taxes up, everything is up this year but our paychecks in America. Official inflation is heading toward 10% and real inflation accounting for energy and food costs are near 19%. This year has presented a huge burden on many American families to find ways to save money and time. The old saying” what goes up must come down” is true now. As long as the “cheap money” and zero interest rates were flowing for the last 13 years many saw it as an opportunity to buy up more cars, houses, and vacation rentals. Now as interest rates and mortgage rates rise, many are left wondering if wall street and their 401K’s will be worth half of what it is now.
Gas is going up to $6 a gallon nationally by the middle of July and that means airline fares, bus fares, train fares will all increase in response to the pressure. The truth is some of the price increases is just greed but there is a supply chain boggle that is affecting worldwide companies at an alarming rate. Would you rather have a full tank of gas or a full stomach? Summer time used to mean traveling nationally and internationally especially for our teachers and those in other service helping professions. But now many in our communities are hunkering down for the impending economic storm. Recessions and depressions are a natural part of the business cycle. As black people around the world, we have always made lemons out of lemonade and have done more with less with God and our family’s help.
But now more than ever before, its paramount that we as a people stick to a budget and be judicious of helping out those businesses in our local communities that need help to stay open. We are the only group of people that will employ us. The Asians, Indians, Latinx, and Native Americans hire their own in their business mostly and that’s a good thing. We need to do the same and help each other out. You don’t always need money, but you can donate your time maybe by babysitting or tutoring someone else’s kids while a parent works the graveyard shift.
All across the world, inflation of the currencies is happening, but the USA is leading the way because everyone is watching us due to our status as the world’s reserve currency. This summer you can enjoy a stay cation, you do not need to post it on Instagram or Facebook for it to happen. Leave the extra credit card debt behind as interest on those will soar to over 35%, leave the extra designer clothes and cars to the upper 1% folks, you do not have to prove your worth or value to anyone. Captialism is great when you have the most capital and own the captial but not so much when you are not in control of the captial that you are spending. We need to get back to the basics of spending and saving- as an added bonus if you save more this year- you might actually get 1% or 2% APY yield this time. Yay! I know right it sucks for savers but all that will be changing in a few more months. Get prepared and stay prepared because this next this next recession or depression will last more than 5 years.