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How rising prices are squeezing Americans who were already on a tight budget - YouTube
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[0]
JUDY WOODRUFF: We're going to get the latest聽
U.S. government report on inflation tomorrow.聽聽
[5]
And, once again, many economists believe the spike聽聽
[7]
in prices is going to be quite聽
high compared with a year ago.
[11]
Inflation's bite has been particularly pronounced聽聽
[14]
with some groups of Americans. That聽
includes seniors living on fixed incomes,聽聽
[19]
and millennials who had already lost ground during聽
the financial crisis in the Great Recession.
[25]
Economics correspondent Paul Solman reports.
[28]
HYACINTH YENNIE, Connecticut: Oh,聽
prices has gone way out of control.
[31]
PAUL SOLMAN: At the South End聽
Senior Center in Hartford,聽聽
[34]
Connecticut, rising prices have seniors like聽
67-year-old Hyacinth Yennie feeling the burn.
[39]
HYACINTH YENNIE: You look at your聽
electrical bill, you look at your gas bill,聽聽
[43]
you look now, especially now,聽
food bill, it's ridiculous.
[47]
MARK DEMAIO, Retired Utility聽
Worker: I like hamburger.
[48]
PAUL SOLMAN: Retired utility worker Mark Demaio.
[50]
MARK DEMAIO: It's up a dollar聽
a pound, so I cut back.
[54]
PAUL SOLMAN: In Kennerdell, Pennsylvania,聽
where backwoods broadband is intermittent...
[59]
HANNAH SCHALL, Pennsylvania: I live in聽
the country, so that happens sometimes.
[62]
PAUL SOLMAN: ... 34-year-old Hannah Schall says聽
she can't cut back on formula for her 9-month-old.聽聽
[69]
But the price...
[69]
HANNAH SCHALL: It used to be $35. Now we're paying聽
$50. So that's $15 in nine months. That's crazy.
[76]
PAUL SOLMAN: And in Greenville, South Carolina,聽
Schall's fellow millennial, nonprofit development聽聽
[82]
manager Amanda Rice, got a rude awakening聽
in December shopping for a used car.
[86]
AMANDA RICE, Nonprofit Development Manager: So,聽
I didn't realize how expensive it was until I saw聽聽
[92]
the 2021. I was like, hold on, that's around聽
the same price that they're selling the 2015.
[98]
PAUL SOLMAN: A car she needed for聽
her side gig as a rideshare driver.
[102]
AMANDA RICE: To tide myself over聽
to that next paycheck, because of聽聽
[107]
what's happening in our economy right now.
[110]
PAUL SOLMAN: What's happening聽
is inflation, in economics,聽聽
[113]
more money bidding up fewer goods and services.
[117]
And right now, COVID inflation, the government聽
printing and doling out more money to prevent聽聽
[123]
a pandemic collapse, COVID-clogged聽
supply chains providing fewer goods,聽聽
[129]
workers afraid to catch COVID staying聽
home, providing fewer services.
[134]
No surprise prices have shot up.聽
And no surprise that folks who live聽聽
[138]
paycheck to paycheck, especially the聽
old and young, are the hardest-hit.
[143]
ANTONIO NAJARRO, California: The cost of living,聽
it has become more difficult to sustain myself.
[147]
PAUL SOLMAN: In Riverside, California, Antonio聽
Najarro said his two part-time jobs in retail聽聽
[154]
and for the county were paying less than his聽
pre-pandemic job as a state election worker.
[159]
So, you have been blindsided聽
by the increase in prices?
[162]
ANTONIO NAJARRO: In hindsight, yes,聽
thinking that I would still be able to聽聽
[166]
get by or manage myself the same way in the past.
[169]
PAUL SOLMAN: In that regard, Najarro,聽
age 30, is a typical millennial.
[173]
ALI WOLF, Chief Economist, Zonda: They're used聽聽
[174]
to stable prices really for聽
their entire working career.
[177]
PAUL SOLMAN: Economist Ali聽
Wolf, herself a millennial.
[180]
ALI WOLF: Really, for the past 15 years,聽
they have had roughly 2 percent inflation,聽聽
[185]
and that's what they're used to.聽
So, costs go up a little bit,聽聽
[188]
but their wages go up a little bit, and so聽
their purchasing power has roughly been stable.
[193]
And then the pandemic hit, and it really聽
just turned the dynamics upside down.
[197]
PAUL SOLMAN: Case in point, 38-year-old聽
Alexandra Upton. She shares an apartment in聽聽
[203]
Santa Fe, bikes to her job as a restaurant聽
server, yet struggles to make ends meet.
[209]
ALEXANDRA UPTON, Restaurant Server: I'm angry.聽
I'm very angry. But the fact of the matter is,聽聽
[213]
I'm still in this situation, so I just聽
have to make do, get a second job,聽聽
[218]
pare down, eat one meal a day at the restaurant.
[220]
PAUL SOLMAN: So, you eat one meal a day on your聽
night shift at the restaurant, and that's it?
[225]
ALEXANDRA UPTON: Yes. And we have had pounds of聽
rice and pasta, and we have some beans, you know?
[230]
PAUL SOLMAN: But you can't聽
afford the fruits and vegetables?
[232]
ALEXANDRA UPTON: No. No, absolutely not right now.聽聽
[235]
Nope. And I'm a vegetarian. These聽
aren't abstract issues to me.
[239]
PAUL SOLMAN: Some millennials have聽
resorted to even more desperate measures.
[243]
ANTONIO NAJARRO: Last month, I was聽
kind of in dire straits. I had to聽聽
[247]
donate plasma twice a week to afford rent.
[249]
PAUL SOLMAN: How much do they pay for plasma?
[251]
ANTONIO NAJARRO: For newcomers, you get聽
a bonus, anywhere between $100 to $150聽聽
[255]
per donation, but, after the first month,聽
it will drop to $50 to $60 per donation.
[262]
HANNAH SCHALL: We're pre-planners,聽
so we stock up pretty well.
[264]
PAUL SOLMAN: Even the most self-sufficient聽
millennial we found was feeling the pinch.
[268]
HANNAH SCHALL: Ammunition is聽
super-duper expensive right now.聽聽
[272]
I hunt with a .30-30. A box of shells used聽
to be maybe 20 bucks. They're $40 now.
[278]
PAUL SOLMAN: What do you hunt?
[279]
HANNAH SCHALL: Deer, bear, turkey in our backyard.
[284]
PAUL SOLMAN: Wait a second. You don't聽
kill bears in your backyard, do you?
[288]
HANNAH SCHALL: You betcha.
[288]
PAUL SOLMAN: And you eat the bear meat?
[290]
HANNAH SCHALL: Yes. It's聽
not my favorite, but if you聽聽
[294]
skin it correctly, get all the聽
fat off of it, it's not too bad.
[297]
PAUL SOLMAN: What about deer?
[299]
HANNAH SCHALL: It's absolutely delicious. We have聽
actually shot deer out of our living room window.
[303]
PAUL SOLMAN: You mean, so, you see a deer,聽
you open the window and just shoot the deer?
[307]
HANNAH SCHALL: Yes.
[308]
PAUL SOLMAN: But it's now more expensive聽
because ammunition has gone up in price?
[311]
HANNAH SCHALL: Welcome to the country.
[313]
PAUL SOLMAN: But wait a second. Schall聽
drives into town to work as a nurse.
[317]
Has your salary gone up?
[318]
HANNAH SCHALL: Not to match the prices.
[321]
PAUL SOLMAN: Schall's plight is聽
representative of average American workers.聽聽
[326]
Incomes rose nearly 5 percent last聽
year, but inflation was at 7 percent.
[331]
ALI WOLF: Wages are going聽
up, but they're not going up聽聽
[334]
as much as we have seen the inflation rate.
[336]
PAUL SOLMAN: And inflation isn't聽
just outrunning worker paychecks.聽聽
[340]
How about retired seniors living on so-called聽
fixed incomes, paychecks that never rise?
[346]
HYACINTH YENNIE: They can't聽
just get out and get themselves聽聽
[349]
a big job that can pay them a lot of money.
[351]
PAUL SOLMAN: Some do get聽
small jobs; 71-year-old Inilda聽聽
[355]
Pena works part-time at the Hartford Senior聽
Center to help cover her rising food costs.
[361]
INILDA PENA, Hartford Senior聽
Center: I'm diabetic. And I have聽聽
[363]
to have a certain diet, lettuce and聽
vegetables. Those things are expensive.
[369]
PAUL SOLMAN: But the Social聽
Security payment went up this year.
[372]
INILDA PENA: Yes, but not that much.
[375]
PAUL SOLMAN: In fact, payments from聽
Social Security, which provides most聽聽
[380]
of the typical senior's income,聽
went up 5.9 percent in January,聽聽
[385]
the largest cost of living adjustment in 39 years.聽
But, again, inflation was 7 percent last year.
[392]
And, therefore, says The Senior聽
Citizens League Mary Johnson:
[396]
MARY JOHNSON, The Senior Citizens' League: Their聽
COLA, or their cost of living adjustment, isn't聽聽
[399]
keeping up with those other rising costs.
[403]
PAUL SOLMAN: Rising costs like a $21.60聽
increase in the monthly Medicare Part B premium聽聽
[411]
from $148.50 to about $170, a 15 percent increase,聽
deducted directly from Social Security checks.
[420]
MARY JOHNSON: Medicare Part B has聽
increased over the years three times聽聽
[425]
faster than the annual Social Security聽
COLA. That's been true for decades.
[433]
PAUL SOLMAN: But decades in which prices for聽聽
[436]
other essentials didn't go up as聽
rapidly as they're increasing now,聽聽
[440]
putting the squeeze on seniors, like聽
76-year-old retired housepainter Robert Deray.
[446]
His Social Security, about $1,300聽
a month, mortgage $835, plus:
[452]
ROBERT DERAY, Connecticut: My gas bill is $200 a聽
month. My electricity is about $100, $150 a month.聽聽
[459]
And my water has been about $100 a month. But I'm聽
hoping that goes down since I fixed the toilet.
[465]
PAUL SOLMAN: But when you subtract聽
his Medicare Part B premium of $170,聽聽
[470]
he's underwater by more than $100 a month,聽
sustained by SNAP benefits, food stamps.聽聽
[477]
He says he can't even afford the聽
$2 lunch at the senior center.
[480]
Of course, all these folks want聽
to know just what we all do:聽聽
[484]
How long will the current inflation last? And聽
it provokes furious debate among economists,聽聽
[489]
including a famous one聽
loudly unconcerned a year ago
[493]
PAUL KRUGMAN, Columnist, The New York Times:聽
I was relaxed about the inflationary outlook.
[496]
PAUL SOLMAN: Nobel laureate Paul聽
Krugman has been humbled in retrospect.
[500]
PAUL KRUGMAN: I was wrong. It turns out that聽
inflation is coming way higher than I expected.
[506]
PAUL SOLMAN: But Krugman himself聽
now asks, what's the cure?
[510]
PAUL KRUGMAN: Is it simply, let up on the gas,聽
maybe tap the brakes, or is it slam on the brakes?
[515]
PAUL SOLMAN: Well, there are simply too聽
many unknown unknowns to know, it seems.
[520]
But then, as people from Hollywood producer Samuel聽
Goldwyn, to physicist Niels Bohr, to baseball's聽聽
[526]
Yogi Berra supposedly all said, forecasts聽
are difficult, especially about the future.
[535]
But, hey, we will be living聽
that future, sooner and later.
[540]
For the "PBS NewsHour," Paul Solman.
[547]
JUDY WOODRUFF: We're going to get聽
the latest U.S. government report聽聽
[548]
on inflation tomorrow. And, once聽
again, many economists believe the聽聽
[548]
spike in prices is going to be聽
quite high compared with a year ago.
[549]
Inflation's bite has been particularly聽
pronounced with some groups of Americans.聽聽
[549]
That includes seniors living on聽
fixed incomes, and millennials who聽聽
[550]
had already lost ground during the聽
financial crisis in the Great Recession.
[551]
Economics correspondent Paul Solman reports.
[551]
HYACINTH YENNIE, Connecticut: Oh,聽
prices has gone way out of control.
[551]
PAUL SOLMAN: At the South End Senior聽
Center in Hartford, Connecticut,聽聽
[552]
rising prices have seniors like 67-year-old聽
Hyacinth Yennie feeling the burn.
[552]
HYACINTH YENNIE: You look at your electrical bill,聽聽
[553]
you look at your gas bill, you look now,聽
especially now, food bill, it's ridiculous.
[553]
MARK DEMAIO, Retired Utility聽
Worker: I like hamburger.
[553]
PAUL SOLMAN: Retired utility worker Mark Demaio.
[553]
MARK DEMAIO: It's up a dollar聽
a pound, so I cut back.
[553]
PAUL SOLMAN: In Kennerdell, Pennsylvania,聽
where backwoods broadband is intermittent...
[553]
HANNAH SCHALL, Pennsylvania: I live in聽
the country, so that happens sometimes.
[553]
PAUL SOLMAN: ... 34-year-old Hannah Schall says聽聽
[553]
she can't cut back on formula for聽
her 9-month-old. But the price...
[553]
HANNAH SCHALL: It used to be $35. Now we're paying聽
$50. So that's $15 in nine months. That's crazy.
[553]
PAUL SOLMAN: And in Greenville, South Carolina,聽
Schall's fellow millennial, nonprofit development聽聽
[554]
manager Amanda Rice, got a rude awakening聽
in December shopping for a used car.
[554]
AMANDA RICE, Nonprofit Development Manager: So,聽
I didn't realize how expensive it was until I saw聽聽
[554]
the 2021. I was like, hold on, that's around聽
the same price that they're selling the 2015.
[554]
PAUL SOLMAN: A car she needed for聽
her side gig as a rideshare driver.
[554]
AMANDA RICE: To tide myself聽
over to that next paycheck,聽聽
[554]
because of what's happening聽
in our economy right now.
[554]
PAUL SOLMAN: What's happening聽
is inflation, in economics,聽聽
[554]
more money bidding up fewer goods and services.
[554]
And right now, COVID inflation, the government聽
printing and doling out more money to prevent聽聽
[554]
a pandemic collapse, COVID-clogged聽
supply chains providing fewer goods,聽聽
[554]
workers afraid to catch COVID staying聽
home, providing fewer services.
[554]
No surprise prices have shot up. And no surprise聽
that folks who live paycheck to paycheck,聽聽
[555]
especially the old and young, are the hardest-hit.
[555]
ANTONIO NAJARRO, California: The cost of living,聽
it has become more difficult to sustain myself.
[555]
PAUL SOLMAN: In Riverside, California, Antonio聽
Najarro said his two part-time jobs in retail聽聽
[555]
and for the county were paying less than his聽
pre-pandemic job as a state election worker.
[555]
So, you have been blindsided聽
by the increase in prices?
[555]
ANTONIO NAJARRO: In hindsight, yes,聽聽
[555]
thinking that I would still be able to get聽
by or manage myself the same way in the past.
[555]
PAUL SOLMAN: In that regard, Najarro,聽
age 30, is a typical millennial.
[555]
ALI WOLF, Chief Economist, Zonda:聽聽
[555]
They're used to stable prices really聽
for their entire working career.
[555]
PAUL SOLMAN: Economist Ali聽
Wolf, herself a millennial.
[555]
ALI WOLF: Really, for the past 15 years,聽
they have had roughly 2 percent inflation,聽聽
[556]
and that's what they're used to.聽
So, costs go up a little bit,聽聽
[556]
but their wages go up a little bit, and so聽
their purchasing power has roughly been stable.
[556]
And then the pandemic hit, and it really聽
just turned the dynamics upside down.
[556]
PAUL SOLMAN: Case in point, 38-year-old聽
Alexandra Upton. She shares an apartment in聽聽
[556]
Santa Fe, bikes to her job as a restaurant聽
server, yet struggles to make ends meet.
[556]
ALEXANDRA UPTON, Restaurant Server: I'm angry.聽
I'm very angry. But the fact of the matter is,聽聽
[556]
I'm still in this situation,聽
so I just have to make do,聽聽
[556]
get a second job, pare down, eat聽
one meal a day at the restaurant.
[556]
PAUL SOLMAN: So, you eat one meal a day on your聽
night shift at the restaurant, and that's it?
[556]
ALEXANDRA UPTON: Yes. And we have had pounds of聽
rice and pasta, and we have some beans, you know?
[556]
PAUL SOLMAN: But you can't聽
afford the fruits and vegetables?
[557]
ALEXANDRA UPTON: No. No, absolutely not right now.聽聽
[557]
Nope. And I'm a vegetarian. These聽
aren't abstract issues to me.
[557]
PAUL SOLMAN: Some millennials have聽
resorted to even more desperate measures.
[557]
ANTONIO NAJARRO: Last month, I聽
was kind of in dire straits. I聽聽
[557]
had to donate plasma twice a week to afford rent.
PAUL SOLMAN: How much do they pay for plasma?
[557]
ANTONIO NAJARRO: For newcomers, you get a bonus,聽
anywhere between $100 to $150 per donation, but,聽聽
[557]
after the first month, it will聽
drop to $50 to $60 per donation.
[557]
HANNAH SCHALL: We're pre-planners,聽
so we stock up pretty well.
[557]
PAUL SOLMAN: Even the most self-sufficient聽
millennial we found was feeling the pinch.
[557]
HANNAH SCHALL: Ammunition is聽
super-duper expensive right聽聽
[557]
now. I hunt with a .30-30. A box of shells聽
used to be maybe 20 bucks. They're $40 now.
[557]
PAUL SOLMAN: What do you hunt?
HANNAH SCHALL: Deer, bear, turkey in our backyard.
[558]
PAUL SOLMAN: Wait a second. You don't聽
kill bears in your backyard, do you?
[558]
HANNAH SCHALL: You betcha.
PAUL SOLMAN: And you eat the bear meat?
[558]
HANNAH SCHALL: Yes. It's not my favorite,聽聽
[558]
but if you skin it correctly, get all聽
the fat off of it, it's not too bad.
[558]
PAUL SOLMAN: What about deer?
[558]
HANNAH SCHALL: It's absolutely delicious. We have聽
actually shot deer out of our living room window.
[558]
PAUL SOLMAN: You mean, so, you see a deer,聽
you open the window and just shoot the deer?
[558]
HANNAH SCHALL: Yes.
[558]
PAUL SOLMAN: But it's now more expensive聽
because ammunition has gone up in price?
[558]
HANNAH SCHALL: Welcome to the country.
[558]
PAUL SOLMAN: But wait a second. Schall聽
drives into town to work as a nurse.
[558]
Has your salary gone up?
HANNAH SCHALL: Not to match the prices.
[558]
PAUL SOLMAN: Schall's plight is聽
representative of average American聽聽
[559]
workers. Incomes rose nearly 5 percent聽
last year, but inflation was at 7 percent.
[559]
ALI WOLF: Wages are going up,聽聽
[559]
but they're not going up as much聽
as we have seen the inflation rate.
[559]
PAUL SOLMAN: And inflation isn't聽
just outrunning worker paychecks. How聽聽
[559]
about retired seniors living on so-called聽
fixed incomes, paychecks that never rise?
[559]
HYACINTH YENNIE: They can't just get out and聽聽
[559]
get themselves a big job that聽
can pay them a lot of money.
[559]
PAUL SOLMAN: Some do get small jobs;聽
71-year-old Inilda Pena works part-time聽聽
[559]
at the Hartford Senior Center to聽
help cover her rising food costs.
[559]
INILDA PENA, Hartford Senior Center: I'm聽
diabetic. And I have to have a certain diet,聽聽
[559]
lettuce and vegetables.聽
Those things are expensive.
[559]
PAUL SOLMAN: But the Social聽
Security payment went up this year.
[559]
INILDA PENA: Yes, but not that much.
[559]
PAUL SOLMAN: In fact, payments from聽
Social Security, which provides most聽聽
[560]
of the typical senior's income,聽
went up 5.9 percent in January,聽聽
[560]
the largest cost of living adjustment in 39 years.聽
But, again, inflation was 7 percent last year.
[560]
And, therefore, says The Senior聽
Citizens League Mary Johnson:
[560]
MARY JOHNSON, The Senior聽
Citizens' League: Their COLA,聽聽
[560]
or their cost of living adjustment, isn't聽
keeping up with those other rising costs.
[560]
PAUL SOLMAN: Rising costs like a $21.60 increase聽
in the monthly Medicare Part B premium from聽聽
[560]
$148.50 to about $170, a 15 percent increase,聽
deducted directly from Social Security checks.
[560]
MARY JOHNSON: Medicare Part B has聽
increased over the years three times聽聽
[560]
faster than the annual Social Security聽
COLA. That's been true for decades.
[560]
PAUL SOLMAN: But decades in which聽
prices for other essentials didn't聽聽
[560]
go up as rapidly as they're increasing聽
now, putting the squeeze on seniors,聽聽
[561]
like 76-year-old retired聽
housepainter Robert Deray.
[561]
His Social Security, about $1,300聽
a month, mortgage $835, plus:
[561]
ROBERT DERAY, Connecticut: My gas bill is $200 a聽
month. My electricity is about $100, $150 a month.聽聽
[561]
And my water has been about $100 a month. But I'm聽
hoping that goes down since I fixed the toilet.
[561]
PAUL SOLMAN: But when you subtract聽
his Medicare Part B premium of $170,聽聽
[561]
he's underwater by more than $100 a聽
month, sustained by SNAP benefits,聽聽
[561]
food stamps. He says he can't even聽
afford the $2 lunch at the senior center.
[561]
Of course, all these folks want聽
to know just what we all do:聽聽
[561]
How long will the current inflation聽
last? And it provokes furious debate聽聽
[561]
among economists, including a famous聽
one loudly unconcerned a year ago
[561]
PAUL KRUGMAN, Columnist, The New York Times:聽
I was relaxed about the inflationary outlook.
[562]
PAUL SOLMAN: Nobel laureate Paul聽
Krugman has been humbled in retrospect.
[562]
PAUL KRUGMAN: I was wrong. It turns out that聽
inflation is coming way higher than I expected.
[562]
PAUL SOLMAN: But Krugman himself聽
now asks, what's the cure?
[562]
PAUL KRUGMAN: Is it simply, let up on the gas,聽
maybe tap the brakes, or is it slam on the brakes?
[562]
PAUL SOLMAN: Well, there are simply too聽
many unknown unknowns to know, it seems.
[562]
But then, as people from Hollywood producer Samuel聽
Goldwyn, to physicist Niels Bohr, to baseball's聽聽
[562]
Yogi Berra supposedly all said, forecasts聽
are difficult, especially about the future.
[562]
But, hey, we will be living聽
that future, sooner and later.
[562]
For the "PBS NewsHour," Paul Solman.
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