MSNBC reports that two-thirds of people surveyed by Pew are hurting thanks to flat incomes and rising prices. I've posted on this here, here, and here. But MSNBC's stories of how these numbers affect families make for compelling reading. This could be the key issue that determines the outcome of the 2008 elections.

Pew's statistics suggest that rising prices and flat income are a chief concern for U.S. citizens. In July, 45% of the public -- compared to 24% in February -- say rising prices are the biggest economic problem. 66% say their incomes are lagging behind their living costs. Gasoline prices are hovering below $4 a gallon while prices of fruits and vegetables have risen 7.6%, dairy products have jumped 9.2%, and cereal costs 10.4% more.

Here are three of MSNBC's stories:

• School teacher. Carol Netzel, a retired elementary school teacher, says people feel as though their incomes don't cover their growing expenses. MSNBC quotes Netzel as saying: "It doesn't matter what the economists say. All the people I chat with at the grocery store, the gas station, shopping for school clothes, all are feeling very depressed because of the beating their budgets are taking."

Continue reading How the middle class squeeze hurts

How the middle class squeeze hurts originally appeared on BloggingStocks on Sun, 10 Aug 2008 08:34:00 EST. Please see our terms for use of feeds.

With fuel prices reaching their highest levels since last June, many consumers are worried that by the end of the summer driving season we may actually see $4.00 a gallon. With crude oil moving over $100 a barrel, and with a market driven by speculators and not fundamentals, crude prices moving up are a self-fulfilling prophecy.

But is it possible that the opposite may happen? That prices drivers pay at the pump make actually decrease? The answer may very well be yes. Why? Inventories. The fact is that we have gas supplies that have quietly grown to their highest level in 14 years. With such a big supply, prices may drop. This isn't China, where everything is government controlled, and we have seen shortages on all kinds of consumer staples. In the U.S., the market more or less (except when lawmakers butt in and add taxes on gasoline) sets the price.

Continue reading Will prices at the pump actually decline?

Will prices at the pump actually decline? originally appeared on BloggingStocks on Sat, 23 Feb 2008 18:10:00 EST. Please see our terms for use of feeds.