According to the University of Pennsylvania's Wharton School's budget model, Americans on average will have to spend $3,500 more in 2021 to sustain their consumption of years past in 2019 and 2020.
The study also suggests low-income families will be disproportionally impacted. The study estimated lower-income families will have to spend seven percent more money to maintain their previous consumption patterns, while higher-income families will only have to spend six percent more.
“Lower-income groups spent relatively more on food, energy, and shelter, while higher-income groups spent relatively more on other commodities and services,” the study states.
Across the consumption basket of income groups, the bottom 20 percent of families saw the price of their consumption increase 6.8 percent, or $2,120.
The top five percent of income-earning families will only experience a 6.1 percent ($7,636) increase in consumption.
Meanwhile, the top five percent of income-earning families will only experience a 6.1 percent ($7,636) increase in consumption.
“Since higher-income groups had a bigger increase in expenditures in all categories, they also saw a bigger increase in total expenditure,” the study read. “However, because of variation in the composition of consumption bundles, we find that higher-income households had smaller percentage increases in their total expenditure.”
The Penn Wharton study comes after Bidenflation has reached a 40 year-high, increasing 6.8 percent from 2020. The cost of energy, food, housing, transpiration, vehicles, clothing, and hotels have all increased under President Biden.
Another month of rising prices under Biden:
Gas: +58.1% since last year
Propane & Firewood: +34.3%
Used Cars & Trucks: +31.4%
Hotels & Motels: +25.5%
Car & Truck Rentals: +37.2%
— Jacki Kotkiewicz (@jackikotkiewicz) December 10, 2021
Yet Americans do not have faith Biden will squash inflation. A Monday poll revealed 53 percent of Americans believe the economy, due to inflation, is becoming worse, while only 15 percent believe Biden is improving the economy:
Income doesn't change the perception of inflation. Americans earning less than $50,000 were just as likely to say inflation is a very serious problem as those earning between $50,000 and $100,000 or those earning more than $100,000.
A Sunday poll showed a majority (56 percent) of voters do not think Biden is concerned about American families incurring massive price increases. The numbers among just Democrats are no more favorable. Only 48 percent of Democrats believe Biden is concerned about inflation.
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