Using the time parameters - before inflation and after inflation, I know that the people, legal and other, have had to endure not mere changes to their lifestyles, but suffered emotionally and physically due to the consequences of the present and I believe, expanding inflationary spiral. While Yellen says it is an issue of supply and demand, I posit that current administration policies ignore the real suffering of the people to maintain its political dominance.
Absent of emotion, hard costs have been compiled and attributed to the pain and suffering of the people from before to the present time of inflation. None of it makes sense when the government spends money it does not have, but tells the people to stop spending while raising the costs of their lifestyle.
Mental Health Costs
Impact: Financial strain from rising prices can lead to heightened stress and anxiety, affecting mental health. Estimation: If 20% of the adult population (about 50 million people) require additional mental health services costing $500 per year: 25 billion
Reduced Productivity
Impact: Stress and anxiety can reduce workplace productivity and increase absenteeism. Estimation: If productivity drops by 1% across a workforce of 165 million, with an average productivity contribution of $60,000 per worker: 165 million×$60,000×0.01= $99 billion
Physical Health Costs - Poor Nutrition
Impact: Rising food prices can lead to poorer nutrition as individuals opt for cheaper, less nutritious food. Estimation: If 10% of the population (about 33 million people) experience increased health issues costing an additional $1,000 per year: 33 million×$1,000= $33 billion
Delayed Medical Care
Impact: Higher costs of living may lead individuals to delay or forego medical care. Estimation: If 10% of the population delays care, leading to an additional $500 per person in long-term healthcare costs: 33 million×$500= $16.5 billion
Quality of Life Costs - Housing Instability
Impact: Rising housing costs can lead to housing instability, including increased homelessness.
Estimation: If 1% of households (about 1.23 million households) face housing instability, with an average cost of $10,000 per household: 1.23 million×$10,000= $12.3 billion
Reduced Educational Opportunities
Impact: Financial strain can lead to reduced investment in education for children. Estimation: If 5% of families (about 6.15 million households) reduce educational investment by $2,000 per year: 6.15 million×$2,000= $12.3 billion
Social Costs - Increased Crime Rates
Impact: Economic hardship can lead to increased crime rates, affecting community safety and public expenditures on law enforcement and the justice system. Estimation: If crime rates increase by 1%, leading to an additional $5 billion in law enforcement costs and economic impact: $5 billion
Strained Social Relationships
Impact: Financial stress can strain relationships, leading to increased rates of divorce and family conflict.
Estimation: If divorce rates increase by 2% among 60 million married couples, with an average cost of $10,000 per divorce: 60 million×0.02×$10,000= $12 billion
This approximation suggests that the hard costs of inflation, considering increased expenses, reduced real GDP, decreased purchasing power, higher borrowing costs, loss in savings value, and increased government debt servicing, amount to over $3 trillion annually. This is the price of hardship, but there will never be enough make-goods to address the anguish of this inflationary spiral.
Propaganda was my business. I know BS, so do you. Let’s fix it.
More By This Author:
Comments
Log in or sign up to join the conversation.