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The fed is at it again raising interest rates and making the cost of borrowing money more expensive for middle-class and low-income Americans. Now, the Fed is hoping to control inflation by raising interest rates sky-high but this solution is hitting low- and middle-income earners even harder. Not to mention, if things get any worse, it’s these people who are going to face layoffs and bankruptcy. Companies that serve more low-income consumers are already reporting a major pullback in spending. According to the chief executive at Target, “Many consumers this year have relied on borrowing or dipping into their savings to manage their weekly budgets. But for many consumers, those options are starting to run out. You know what I’m talking about: fixed expenses vs discretionary spending. Target's stock price is reflecting the sentiment that investors and entrepreneurs are feeling. Families are leaning more heavily on SNAP and EBT benefits this year to cover the rising price of inflated necessities. Target is not the only retailer looking to drive sales in the fourth quarter, let's not forget Walmart, Costco, Bed Bath and Beyond, Sam's Club and Best Buy. Would the Apple iPhone 14 count as a necessity or a luxury? Fixed expenses are for essentials such as a mortgage, rent, food, transit costs and insurance. Discretionary costs include spending on, say, dining out or vacations — things people enjoy but don’t necessarily need. The second installment of December’s payments is higher than the first due to payments increasing in 2023, their own little way of supposedly helping out with inflation. Some renters, section 8 recipients, EBT, SNAP users could benefit greatly from a sizeable deposit hitting their bank accounts in December, going into 2023. A little bit of good news for social security recipients. You guys are set to receive the first of your two December payments in just one week. Eligible recipients will receive their first payment of $841 on Dec. 1 and their second payment of $914 on Dec. 30, equaling a total of $1,755 for the month. Mark your calendars, guys. The first of 2 checks for social security amounting to $1,755 total is due to arrive in 7 days. And just in time as Americans are seeing inflation hit their cash flow with an additional $433 a month in household opening. Yup, you guessed it, guys. The poor keep struggling while the rich billionaire entrepreneurs and investors just keep spending this holiday season.
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#snap #inflation #recession Disclaimer: These are my opinions and not the opinions of my employer. The content shared in this video is for entertainment purposes only.
