Effects of inflation since I came to America.
In January 2020, when I first came to the United States, the exchange rate of 1 dollar was 1,100 won. Even at that time, I heard a lot about the exchange rate being high.
When sending money from Korea to the US, if you send 1 million won, about 100,000 won will be decomposed. But up until this point, I had never imagined that the situation would get so bad.
As of November 2022, one dollar is currently worth about 1,400 won. If you convert 1 million won into dollars, you only have $709.26, which means about 30% is lost. Our wage cannot keep up with the ever-rising dollar and inflation. Current research shows that 75% of the middle class say their wages are not keeping pace with this inflation today. But it’s different for the richest 1%.
For example, the average S&P 500 CEO received $18.3 million in total compensation in 2021, an increase of 18% in one year. During that same period, average hourly earnings for workers fell 2.4%. While this increase in prices has a positive effect on the rich, it has a very negative effect on the middle class and the poor.
Using the Living Wage Calculator, the Living Wage in North Carolina, where I currently live, comes out to about $37 based on the members of my family. And our required annual income before taxes is about $75,000.
However, many people’s actual wages do not meet their needs. Even if consumption is reduced as much as possible, it is difficult to make a living and an environment in which money can be collected is not created.
Currently, there is an economic phenomenon in which only a few wealthy people benefit. The top 1% of wealthy people make up 40% of America’s income. Considering that it accounted for only 20% in the 1980s, it is a huge increase. As a result, the wage of the middle class has decreased, and this inflation has taken a huge hit.
A middle class is essential for a country to develop. What can be done to rescue the middle class from this inflation? What was the root cause of this inflation and how did it affect it?
