Feeling the financial crunch

I just spent $155 on groceries that probably would have cost about $100 between 2-3 years ago. I know that prices go up, and I understand there are global factors like the price of oil that will elevate prices significantly. I get it. What I don’t understand is how lower middle class families and poor families are making ends meet?

The thing about the price of necessities going up that is often missed is that as a percentage of income, it significantly affects poorer people more. Furthermore, wage increases are negatively affected too. A person working a full time minimum wage job in BC Canada will make less than $40,000 in a year. When wages go up 3% in a year, that minimum wage employee’s salary goes up to $41,200, whereas the same 3% increase for someone that was making $100,000 sees their salary increase to 103,000… that means the higher salary person is making $150 a month more than the lower salary person for that year.

Of course, both of those workers are in a deficit when inflation has sent prices skyrocketing above 3%, but it’s clear to see how this is disproportionately affecting the poorer working class. And so again I wonder, how are these families making ends meet? What sacrifices are they making? What support are they needing that they didn’t need 3 years ago? When the financial crunch is felt, it is felt most by those who have already been struggling.

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