%>> LATEST NUMBERS SHOW INFLATION
%HAS HIT A 40-YEAR HIGH IN THE
%U.S., WITH INFLATION JUMPING TO
%9.1%.
%"HERE AND NOW" REPORTER NATHAN
%DENZIN HAS MORE ON HOW HIGH
%COSTS ARE HITTING WISCONSIN.
%>> PEOPLE IN THE MIDWEST HAVE
%GRAPPLED WITH HIGHER COSTS FOR
%EVERYTHING OVER THE LAST YEAR,
%AS PRICES INCREASED MORE THAN
%9%.
%LOW INCOME FAMILIES HAVE BEEN
%HIT HARDEST, AS THE PRICE OF
%ESSENTIAL PRODUCTS CONTINUES TO
%INCREASE.
%TAKE, FOR EXAMPLE, THE PRICE OF
%GROUND BEEF.
%THAT'S GONE UP FROM ABOUT $4 PER
%POUND A YEAR AGO TO 4.79 A POUND
%TODAY.
%THE PRICE OF A GALLON OF MILK
%HAS INCREASED FROM $4 TO OVER
%$5.
%GROCERIES IN GENERAL HAVE
%INCREASED 15 TO 18%, PRICE HIKES
%THAT TOGETHER TAKE A TOLL.
%BUT HIGH INFLATION HAS IMPACTED
%TRANSPORTATION AND ENERGY COSTS
%EVEN MORE.
%GAS PRICES HAVE INCREASED
%DRAMATICALLY IN THE LAST YEAR.
%UTILITY COSTS ARE ALSO UP
%BETWEEN 17 AND 36%.
%>> AS WE TALK ABOUT INFLATION, I
%THINK SOMETIMES WE HEAR ABOUT,
%YOU KNOW, THE PRICE OF HOUSES OR
%THE PRICE OF BIG THINGS, BUT
%IT'S LITTLE STUFF THAT REALLY
%HURTS LOW INCOME FAMILIES, AND
%YOU KNOW, IF YOU THINK ABOUT A
%EXTRA $2.50 FOR A GALLON OF GAS
%OR AN EXTRA DOLLAR FOR A GALLON
%OF MILK, THOSE THINGS START TO
%ADD UP BECAUSE YOU BUY THEM SO
%FREQUENTLY.
%>> J. MICHAEL COLLINS IS A
%PROFESSOR AT THE UW LA TO ALL
%RIGHT SCHOOL! SCHOOL OF PUBLIC AFFAIRS
%STUDYING CONSUMER
%DECISION-MAKING.
%HE SAYS EXPERTS AND THE PUBLIC
%HAVE BEEN SURPRISED THAT THE
%RAPID RATE OF INFLATION,
%ESPECIALLY COSTS CONSUMERS CAN'T
%AVOID LIKE GAS AND GROCERIES.
%>> THE PROBLEM FOR LOW INCOME
%PEOPLE'S BUDGETS IS THEY WERE
%REALLY GOOD AT MANAGING THEIR
%BUDGETS SO THEY WERE ALREADY
%SORT OF RIGHT ON THAT LINE SO IT
%USUALLY MEANS SOME NECESSITIES
%HAVE TO GO, NOT BUYING AS MUCH
%FOOD, NOT BUYING THE ORGANIC,
%THE FRESH FOOD.
%IT GOING TO BE ECONOMIZING IN
%DIFFERENT WAYS.
%>> VEHICLE PRICES HAVE RISEN
%OVER 15% IN THE LAST YEAR AS
%WELL.
%THAT CAN ADD EXTRA FINANCIAL
%STRAIN TO HOUSEHOLDS WHO NEED A
%VEHICLE FOR WORK, OR FOR DAY TO
%DAY ACTIVITIES.
%>> MADISON MAY SEEM LIKE A SMALL
%PLACE BUT IT KIND OF BIG.
%>> EDMOND SHOAT, JR. MOVED TO
%MADISON AND QUICKLY REALIZED HE
%WOULD NEED A VEHICLE TO HOLD A
%JOB.
%>> I'M SO USED TO THE CITY LIFE,
%SO I NEEDED A CAR TO MOVE
%AROUND.
%Y'ALL DON'T HAVE NO TRAINS OUT
%HERE OR NOTHING SO I'M LIKE,
%YEAH, I NEED TO GET A CAR.
%>> HOWEVER, SHOAT, JR. ALSO
%QUICKLY REALIZED ALMOST ALL THE
%VEHICLES AT LOCAL LOTS WERE
%UNAFFORDABLE.
%>> I WENT TO A FEW CAR LOTS,
%THEY TURNED ME DOWN, RAN MY
%CREDIT SCORE, MOST OF THEM
%WANTED RIDICULOUS PRICES FOR
%CARS SO I'M LIKE, WHAT AM I
%GONNA DO, I JUST MOVED OUT HERE.
%SO I NEED A CAR TO MOVE AROUND.
%>> AFTER SOME SEARCHING, SHOAT,
%JR. FOUND A PROGRAM CALLED
%WORK-N-WHEELS, WHICH OFFERS ZERO PERCENT LOANS FOR ELIGIBLE
%DRIVERS IN WISCONSIN.
%WITH THE LOAN MONEY AND HIS
%PERSONAL FUNDS COMBINED, SHOAT
%WAS ABLE TO FIND A CAR.
%>> SO I'M LIKE, THAT'S AWESOME,
%I NEVER IN MY LIFE EXPERIENCED
%BUT IT WAS LIKE A GOD SEND,
%BLESSING, BECAUSE I NEEDED MY
%CAR.
%>> WITH THE NEW VEHICLE, SHOAT
%HAS BEEN ABLE TO PICK UP
%MULTIPLE JOBS TO HELP TAKE CARE
%OF HIS YOUNG CHILD.
%>> IT WORKS WITH ME GETTING TO
%WORK, GETTING MULTIPLE JOBS TOO.
%JUST THE CITY TRANSIT, ABOUT A
%30 MINUTE WAIT OR 45 MINUTE
%WAIT, BUT IF YOU DRIVE, IT'S A
%10 MINUTE WAIT.
%>> WHILE SHOAT, JR. WAS ABLE TO
%FIND A CAR, OTHERS IN WISCONSIN
%DON'T HAVE THAT DISPOSABLE
%INCOME.
%>> THIS WINTER IS GOING TO BE A
%TOUGH ONE FOR LOW INCOME
%FAMILIES BECAUSE FOOD PRICES
%PROBABLY AREN'T GOING TO START
%COMING DOWN, YOU KNOW, THEY'RE
%PROBABLY NOT GOING TO EVER COME
%DOWN BUT THEY'RE NOT GOING TO BE
%GROWING AS FAST OVER THE WINTER
%PROBABLY, BUT HEATING PRICES IN
%A PLACE LIKE WISCONSIN IS GOING
%TO BE HARD.
%>> SO AS GOVERNMENTS STARE DOWN
%A WINTER THAT WILL BE DIFFICULT
%ON LOW INCOME FAMILIES, SOME
%TOOLS ARE BEING USED TO DRIVE
%DOWN INFLATION.
%THE FEDERAL RESERVE SYSTEM HAS
%IMPLEMENTED A HIKE IN INTEREST
%RATES ON LOANS WITH THE HOPES OF
%DRIVING DOWN CONSUMER SPENDING.
%HOWEVER, EXPERTS LIKE COLLINS
%WORRY ABOUT POTENTIAL
%STAGFLATION IN THE U.S. ECONOMY.
%>> STAGFLATION IS REALLY WHEN
%YOU HAVE TWO THINGS HAPPENING
%SIMULTANEOUSLY, HIGH PRICES AND
%HIGH UNEMPLOYMENT.
%RIGHT NOW WE HAVE REALLY LOW
%UNEMPLOYMENT, ALMOST RECORD LOW
%UNEMPLOYMENT, PEOPLE CAN GET
%JOBS IF THEY WANT THEM, BUT
%THAT'S RESULTING IN PRICES
%GETTING STIRRED UP.
%THE IDEA OF STAGFLATION IS THE
%FED OR THE GOVERNMENT TRIES TO
%BOTH REDUCE INEMPLOYMENT AND
%PRICES AT THE SAME TIME AND IT'S
%REALLY, REALLY HARD TO DO.
%>> TO FIGHT RISING GAS PRICES,
%WISCONSIN GOVERNOR TONY EVERS
%ISSUED AN EXECUTIVE ORDER THAT
%BANNED PRICE GOUGING ON
%GASOLINE.
%PRESIDENT JOE BIDEN HAS ASKED
%CONGRESS TWICE TO SUSPEND 18
%CENTS PER GALLON FEDERAL GAS
%TAX, THOUGH THAT TAX IS STILL IN
%PLACE.
%DESPITE RELATIVELY LITTLE ACTION
%TAKEN, GAS PRICES HAVE DROPPED
%IN THE LAST MONTH AFTER THEIR
%PEAK AT $4.92 IN MID JUNE.
%AS FOR PRICES IN THE REST OF THE
%ECONOMY, TIME WILL TELL IF THE
%GOVERNMENT IS ABLE TO CURB
%INFLATION.
%>> WE DO EXPECT PRICES TO START
%COMING DOWN CLOSER TO WHAT WAGES
%ARE DOING, BUT THAT COULD TAKE A
%YEAR AND THAT COULD MEAN A TOUGH
%FALL AND A TOUGH WINTER WITH
%FUEL PRICES AND FOOD PRICES HIGH
%AND WAGES NOT KEEPING UP.
%>> FOR "HERE AND NOW," I'M
%NATHAN DENZIN IN MADISON.
%>> WITH PRICES CONTINUING TO
%RISE, THE FED IS EXPECTED TO
%RAISE INTEREST RATES AGAIN NEXT
%WEEK IN AN EFFORT TO FURTHER
%CONTAIN CONSUMER SPENDING.