YOU DON’T SAY: Inflation Takes Biggest Bite From Middle-Income Households.
Inflation is often called a tax on the poor, but this time it’s hit middle-income households the hardest.
Many low-income households, benefiting from exceptionally low unemployment rates, have found jobs and experienced wage increases that lifted income more than the cost of living, according to studies by the Congressional Budget Office and others. Many were also bolstered by federal payments during the pandemic.
At the high end, many households have seen big losses in stock and bond markets, but their income and savings were large enough that they were able to keep spending aggressively.
The middle has been in a vise.
Previously: Why Team Biden might be purposefully grinding down the middle class.