Posted on 07/25/2022 7:14:41 AM PDT by BenLurkin
Inflation is crippling rural America and driving some people to consider moving closer to cities in an effort to ease the financial stress, according to the latest analysis from one expert.
Iowa State University professor Dave Peters has been studying the effect of inflation on people in rural communities as part of the school's Small Town Project. He found that this year alone, expenses for rural Americans had increased by 9.2%, but their earnings only increased by 2.6%.
And Peters has pinpointed where it's hurting most.
"Mainly, fuel prices, particularly among the farmer and agricultural community," he said. "They really are worried about the price of gas and diesel."
Inflation soared to a 40-year high in June, and is affecting all American households. But Peters said travel was one of the main reasons it was hitting harder in rural areas.
"Rural people have to drive long distances for work, for school, for health care, just to get the daily necessities of life like groceries ... there is no public transportation," he said.
His analysis found it costs rural households $2,500 more a year to pay for gasoline than it did two years ago. At the same time, prices are also rising for health insurance, veterinarian care, and fuel to heat homes.
"Most rural homes have to buy tanks of liquefied petroleum or liquefied propane, or they have to get fuel oil," Peters said. "And those have really risen in costs as well; that's, I think, something like $1,000 more."
In response to the June inflation figures, President Joe Biden said tackling the issue was his top priority.
He said the administration would continue to release oil from the strategic petroleum reserves in an effort to bring down gas prices, and that he would "continue to give the Federal Reserve the room it needs to help it combat inflation."
"Inflation is our most pressing economic challenge ... we need to make more progress, more quickly, in getting price increases under control," he said in a statement.
The Fed is now attempting the delicate task of lowering inflation without driving the economy into recession, and is expected to raise interest rates for the fourth time in five months when it meets later this week.
"The Fed slows the economy down by raising interest rates, which cuts spending," Princeton economist Alan Blinder told NPR. "If you do too much of that, you're going to get a recession."
Peters warned that if prices stayed too high for too long, it could start a dangerous cycle for some rural Americans.
It begins with people dipping into their savings, which Peters said was already happening. Next, they will be forced to use their discretionary money on essential goods; and after that they will go into debt on credit cards.
But what really worries Peters is the idea that some in rural America will then start taking out home equity lines of credit because the value of their homes has increased, especially in the Midwest region. But he warned this strategy could backfire.
"That's particularly dangerous if home prices fall back down and then they're left with a mortgage that the value of their home doesn't cover," he said.
This combination of factors was driving some people in rural areas to consider moving closer to cities, Peters said. But it's complicated.
"There are people that I've talked to in Iowa and in Nebraska ... that are really trying to do that financial calculation," he said. "They would love to work and get city wages, but they can't commute. It's too expensive with the gas prices. And really, the thing that's holding them back is the cost of homes."
"Some people are contemplating moving closer to a city, moving to the suburbs, or moving to a small community 45 minutes from a city. So yeah, it will probably, if it continues, accelerate rural depopulation in parts of the Midwest and Great Plains."
The plan is to turn us into renters and serfs.
Nothing, NOTHING, would drive me to move to the cities...
Where you (they) won’t need to drive an infernal combustion engine vehicle. Or any vehicle. Almost sounds like it’s part of some plan huh?
No thanks. I prefer walking in cow and horse dung than homeless human dung. The ‘RATS can have that honor and privilege.
Government claims of “controlling inflation” are like wolf claims to cut down on their sheep diet.
In their wet dream
Instead of indulging in wishful thinking NPR might instead focus on the obvious threats caused to those living in urban areas when government policies cause economic dislocation in regions providing the nation’s food.
This has got to be sarcasm.
The Reset is working. Billionaires are buying up land like it’s going out of style and people are moving away from the rural areas. Yep, the plan is definitely in motion.
Moving people from the rural areas to cities is / was part of Agenda 21. Now that 2021 was passed what the new moniker for their evil?
I would rather live in the woods and eat mice…
No way am I going to live in a Democrat-run sh*t-hole, which is what the majority of cities are, regardless of whether the state is red.
Memphis is a prime example, with Nashville quickly becoming the same.
The worst possible decision a person could make is move to the cities.
But consider the source of this propaganda: NPR.
‘Nuff said.
NPR is peddling this garbage from a bullspit study in a desperate attempt to pretend that Jao Bai-din isn't failing miserably and that Democrat cities have any future.
Exactly! Even if you own your home... inflation will both increase property taxes, and steal your ability to pay them. You really own nothing, you are a serf, that will be explained to you in more detail shortly.
There’s going to be a bit of pain for everybody during the “transition” to a Glorious Green Future! Everybody needs to stop complaining and just embrace your new, lower-quality lifestyle. Be Happy! I hear the new Bug Steak is really delicious.
Keep messing with the food producers and find out what happens. Food doesn’t come from cities.
What can go wrong? Look at the success the government had with Indian Reservations!
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