Workers Struggle to Afford Basics as Inflation Outpaces Pay
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Sarah Beth Ryther, a Trader Joe's worker earning $16-$20/hr, can't afford a car, better apartment, or a child due to low wages and high costs.
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Fed is celebrating slowing wage growth as a sign their interest rate hikes to control inflation are working, but workers struggling to afford basics don't see cause for celebrating.
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Wage growth reached highest levels in decades in 2022 but still hasn't kept pace with decades of stagnant wages and rising costs, leaving many unable to afford a comfortable lifestyle.
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Perspectives differ economists see slowing wage growth as necessary to control inflation while workers want their recent raises to stick so they can better afford basics.
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With inflation slowing, Fed is predicted to cut rates in 2023, but advocates urge looking at what's driving inflation beyond just wages and unemployment.