Americans are struggling to pay for basic needs in the U.S.’s current economy.
A new analysis from Republican members of the U.S. Senate Joint Economics Committee found that the typical American household has to spend an additional $11,434 annually to maintain the same quality of life as in January 2021.
Inflation has been rising high since early 2021, with it reaching a 40-year high of 9.1 percent in June 2022. Though it has slowly started to recede, the impact of inflation is still felt, affecting everyday life.
The government report looked into the prices of essentials, such as food, housing, and transportation.
Surprisingly, the highest inflation costs were in transportation, due to the rising gas prices.
And shockingly, Colorado residents are facing the highest rate of financial strains due to inflation.
They’re having to pay a whopping extra $14,995 a year in order to afford the same quality of life as in 2021.
However, the Biden administration thinks the analysis is “flawed.”
In a statement shared with CBS News, a White House spokesman said, “14 million more Americans have jobs today than when President Biden took office and household disposable income is up by almost $21,000 since December 2020. And what Congressional Republicans pushing this one-sided study won’t admit is that their proposals would raise costs on the middle class and cut Social Security and Medicare so they can give rich special interests more tax giveaways.”