>> 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.