Working-class voters John Cataneo, Phillip Downell and Andrew Craig join ‘America’s Newsroom’ to explain the real-world impact of inflation on everyday Americans.
Working class Americans are still feeling the pinch of Bidenomics, causing many to consider voting red in November.
Three blue-collar workers joined “America’s Newsroom,” Wednesday, and outlined the impact of inflation on their wallets.
“This isn’t the good old days of your grandfathers, where hard work was enough to make a living for yourself,” civil inspector Andrew Craig said.
“It takes more ingenuity and wit with that now. It’s very hard to save money with, as you were just saying, gas prices and groceries, insurance rates and many other things that have fed into eating into our pockets.”
HIGH INFLATION IS STILL SQUEEZING AMERICANS’ BUDGETS
Former Assistant Treasury Secretary Monica Crowley discusses the strain inflation is having on the middle and lower class on ‘The Bottom Line.’
The Labor Department said Tuesday that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rent, rose 0.3% in January from the previous month. Prices climbed 3.1% from the same time last year.
A more detailed look at the economy shows other areas of concern. Gas prices, credit card debt, wages and home prices are among the areas most drastically impacted by rising costs.
“Within the past five years, home prices have skyrocketed tremendously, and most lenders want about a 20% down payment. And for a $400,000 house, that’s about $80,000,” Craig explained.
BURRITO, BIG MAC PRICES IN CALIFORNIA TO GO UP AS PAY RISES: ‘SOMEONE HAS TO PAY,’ FAT BRANDS FOUNDER SAYS
Housing costs were the biggest driver of inflation last month. Rent costs rose 0.6% for the month and are up 6.1% from the same time last year. Rising rents are concerning because higher housing costs most directly and acutely affect household budgets.
“The fact the work and material and everything costs so much more money… All the prices have been driven up,” carpenter Phillip Downell said.
Food prices, a visceral reminder of inflation for many Americans, rose 0.4% over the course of the month. Grocery costs also rose 0.4% last month and are up 1.2% compared with the same time last year.
The price of both health insurance and auto insurance also jumped in January, rising 1.4% over the course of the month.
Restaurant owner Andrew Gruel joins ‘The Bottom Line’ to discuss the impact on businesses from an increase in minimum wage in some states.
Wage growth has been another area of concern. While there has been some acceleration in growth, employers note they are not outweighing inflationary pressure.
“We’re hiring as best we can. It’s difficult to find people. That’s that’s been a challenge for several years now. Maybe the past decade. I’m hearing that wages are at an all-time high. I’m certainly feeling that I’m paying my guys more than I ever have. And it’s sort of a misleading statistic, where it seems like we’re paying more because somehow we’re swimming in money and we’re just sharing the wealth, but that’s not really it,” Gateway plumbing and heating CEO John Cataneo said.
FAST-FOOD PRICES SET TO RISE AT MCDONALD’S, CHIPOTLE AND OTHERS AS CALIFORNIA MINIMUM WAGE HIKE LOOMS
“We’re paying more because we have to, we have to pay as much as we can to get people to show up. What used to be [a] top-tier salary is something close to starting salaries these days. So that’s very difficult. Labor is a very difficult cost to overcome.”
Last month, average hourly earnings — a key measure of inflation — rose 0.6%, double what economists had expected. On an annual basis, wages rose 4.5% in January. However, that coincided with a drop in average hours worked, which fell by 0.2 hours last month to 34.1 hours.
The cost of Bidenomics has caused many to consider voting Republican in the upcoming presidential election.
Working class voters John Cataneo, Phillip Downell and Andrew Craig discuss the real-world impacts of inflation and why they are considering voting red in November. (Getty Images/Fox News / Fox News)
“I’m hoping that there will be an administration change. With the current one that’s in order right now, there’s a lot of uncertainties. We need people in this nation who are for Americans and about Americans,” Craig said.
Downell, who did not vote in the last two elections, plans to vote red as well.
“I’m looking for a little more help. And stop charging Americans so much money.”
As Cataneo noted, the “fragile” state of the U.S. economy will undoubtedly be a key issue for voters heading to the ballot box come November.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business’ Megan Henney contributed to this report.
