San Antonio Faces Unique Inflation Struggles Due to Lower Wages; Experts Suggest Solutions
Published on: 13th July 2024
Residents of San Antonio are grappling with higher inflation pressures compared to other parts of the country. While inflation rates remain fairly steady nationwide, the city’s lower wages make it considerably more burdensome for residents.
The Unique Challenges of San Antonio
David Macpherson, an Economics Professor at Trinity University, explains the situation: “It’s the combination of more increases in prices of goods that affect low-income people, combined with the fact that income is lower in San Antonio.” He suggests higher prices for essential goods in conjunction with low wages are crafting an economic tempest particularly severe in San Antonio.
Struggling Sectors and Potential Solutions
Housing
Housing, according to Taylor Collins, an Economics Professor at the University of the Incarnate Word, is the most significant expense for residents. He advocates for an increase in the availability of housing units to potentially reduce housing costs.
Food
In addition to housing, Collins believes more grocery stores could sufficiently increase competition to decrease food prices. He says, “We need more competition within that space. That means having more producers. That means having fewer large firms dominate the structure of these markets,”
Wages
Contrary to lower prices on essential goods, Collins also underscores the significance of raising wages for residents. “If we want to get people’s wage growth accelerating, then we need to find ways to help make them productive within our economic production system, which means maybe things like better access to education,” Collins mentioned.
A Glimmer of Hope Ahead
Despite the prevailing struggles, there appears to be a light at the end of the tunnel. The Congressional Budget Office predicts that wage growth will surpass inflation in the coming years. “The forecasts are from the Congressional Budget Office that wages will be rising faster than inflation in the next several years,” said Collins, offering a semblance of hope amidst the ongoing struggle.
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