(The Center Square) – A report from Iowa State University shows that rural Americans are feeling the pain of inflation more than the rest of the country.
“Rural households are more vulnerable to inflation,” the report said. “In 2020, rural household post‐tax incomes stood at $58,012. About 82% of rural incomes went towards expenses, leaving $10,661 in discretionary income for savings and unanticipated expenses. However, by 2022 expenses rose by 18.5% overall. Earnings were not able to keep pace with inflation, rising by only 6.1%. The net effect cut rural discretionary incomes by –49.1% between June 2020 and June 2022, reducing the cushion to only $5,426. Expenses now consume 91% of rural take‐home pay.”
Meanwhile, those living in cities saw less of a spike in prices than other Americans.
“Urban households were less affected by inflation, having higher post‐tax incomes ($76,411) and more discretionary incomes ($16,414) in 2020,” the report said. “Over the past two years, expenses rose more slowly at 14.5%, while earnings for urban workers rose by 8.6% This cut discretionary income by only –13.1%, leaving a sizable cushion of $14,270.”
At the same time, rural wages have taken a hit.
“Rural discretionary incomes dropped by –8.7% in 2021, but by 2022 rampant inflation cut this income cushion by –40.4%,” the report said. “By contrast, urban families actually saw discretionary incomes rise by 1% in 2021, but they fell by –13.9% the following year.”
The report comes after the U.S. Bureau of Labor Statistics’ latest inflation data showed consumer prices rose 9.1%, the highest in more than 40 years while producer prices nearly rose at an all-time high.
The study points out that inflation can vary significantly in different regions of the country.
“The northeastern U.S. has slower price gains of only 7.6%,” the report said. “On the other side of the country, Pacific Coast states also have below average inflation at 8.3%. This is surprising given both areas contain some of the nation’s largest cities. For example, prices in the New York City metro area only rose by 6.7%. In California, the cost of living in the San Francisco metro rose by only 6.8%, and in Los Angles prices rose a bit faster at 8.6%.”
Many states that have large rural populations are experiencing more severe impact from inflation.
“On the other hand, inflation is hitting people hard in parts of the southern U.S., in particular the west south central states (including Texas and Louisiana) where prices jumped by 10.6%,” the report said. “Inflation is also a problem in the Mountain West (ranging from Arizona to Montana) and Southeastern states along the Atlantic (from Virginia down to Florida). Inflation in Atlanta, Miami, and Houston are all near or over 11%. Price gains in the Chicago metro are likely driving inflation in the Great Lakes states.”
The Dems showed their disdain for the middle part of our country in 2016. They called it “flyover country”, ignored the opioid epidemic, laughed off out of work coal miners, fought against natural gas drilling. All this cost them at the ballot box. Looks like history is going to repeat itself. This time, they rationalize high gas prices as a reason to buy electric cars, lie about us being in a recession, fixate about Roe v. Wade, and hold never-ending hearings about January 6th. Can’t wait to hear them singing the blues about lost elections on Wed 11/9/2022!
Part of me, fears that is WHY The left has deliberately tanked our economy. TO HURT FLY OVER country the most.
I purchased rural land in East Texas for $3500/ acre 5 years ago. Anyone with 5 acres in a decent rural now can get up to $25000 per acre. The 5 acre homestead next to me that is half swamp just went for $18K per acre. Well-heeled Inner city people are desperate to leave the Democrat run crime cities for anything that used to look like real America again and driving up the Real Estate prices. Between the incredible cost of diesel fuel for planting, fertilizing, harvesting, and transporting to destination, with the added Texas drought of no rain for the past 4 weeks and 100 degree days, a bale of hay I bought for $40 last year is now commanding $110 and rising. Many growers claim there may be no more hay harvests this year where 3-4 are the normal. Ranchers are culling their cattle herds like crazy which means the price of beef should be temporarily going down which they are NOT, then sky rocketing later when scarce. Just who and what foolish government controller wants to starve THE PEOPLE out of food and energy and particularly Beef? It will be the Soylent Green movie soon, where your food will be made up of discarded human body parts. Can adult abortions be far behind? WHo knows what went into that Hambuger with 60 million abortions AND SOLD BODY PARTS on our plates already?