New Study Finds Shocking Impact Of Rising Inflation On American Families Is Slamming Savings Accounts, Draining Funds

A new study out of Iowa State University found rural families are spending 91 percent of their annual income on expenses, as rising inflation continues to financially cripple the most vulnerable.

“The current wave of inflation over the past two years has made rural families more vulnerable than urban ones to rising gasoline prices, higher fuel costs to heat their homes, and their ability to purchase less expensive used cars,” The Daily Wire, explained. “Increased transportation costs are especially worrisome.”

“Rural discretionary incomes fell by a staggering – 50% since 2020, with most of these losses occurring within the last 12 months,” the report continued. This comes as 40-year high inflation has remained constant in recent months, with a 9.1 percent increase in June alone.

“Rural discretionary incomes dropped by – 8.7% in 2021, but by 2022 rampant inflation cut this income cushion by –40.4%,” the study found, adding, “Over the past two years, expenses rose more slowly at 14.5%.”

“By 2022 expenses rose by 18.5% overall. Earnings were not able to keep pace with inflation, rising by only 6.1%. The net effect cut rural discretionary incomes by – 49.1% between June 2020 and June 2022, reducing the cushion,” the report read.

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The study also explained that urban families are having an easier time compared to their rural counterparts stating, “urban families actually saw discretionary incomes rise by 1% in 2021, but they fell by -13.9% the following year.”

Iowa State’s findings concluded inflation is hitting various parts of the country differently, with the northeast having a 7.6 percent increase in prices, the west coast seeing an 8.3 percent rise in inflation, and places like New York City only experiencing an increase of 6.7 percent.

States like Texas and Louisiana, meanwhile, have seen far higher inflation rates with prices increasing 10.6 percent, and cities like Houston and Atlanta have been hit at around 11 percent.

Noticeably, many states in the south and midwest that regularly vote Republican are feeling the burdens of inflation more so than their coastal counterparts.

As the Biden administration continues to push reckless federal spending, Americans across the country are seeing the effects in their everyday lives and purchases — but especially in rural America.

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