Importance Of The Cost Of Living

762 Words 4 Pages
Why the Cost of Living is an Important Issue Money is an important matter, whether it’s being consumed or accumulated. It’s no surprise that to some it can be a struggle; in fact, unemployment rates remain high as many are discouraged to find work. Those who do manage to find work are often working paycheck to paycheck in the food prep or service jobs. So why is money important, because it affects various expenses that are needed to live. The reasons why the cost of living is the cost of living is important is because of the current minimum wage, economy, and inequality. As of present time the current federal minimum wage is $7.25 per hour, while some states may have higher wages; none of the businesses can have a lower wage unless it is …show more content…
Currently the U.S. is slowly recovering from its recession from 2007-09 and is projected to grow at an annual rate of three percent in the coming quarters, it can be said that the U.S. has recovered from the hole it was put in back in 2007 (Economy 2014). However due to the recession many were affected by it whether they were laid off or just couldn’t find a job. When the recession happened many were discouraged to find work or simply just gave up, while some took part-times jobs to help out with growing costs. It was estimated that as of April 2013 that some of 2.4 millions fewer americans were working then on 2007, when the recession began (Economy 2013). That number seen by economist are not pretty and need to change if the U.S. wants to see a more rapid recovery but due to the economy there has been an increase in …show more content…
Inequality as defined is when a corporation uses foreign resources as those resources are often cheaper and make more profit. Due to this inequality corporations have cut the jobs of thousands and force many to compete with workers in countries like China, Bangladesh, and Mexico (Economy 2013). This not only affects the economy but it affects those whose income is already low. It is said that the world’s top one percents owns about half of the global wealth, while the bottom half less than five percent of the global wealth (Glazer). There is an inequality that those that are wealthy still pay the same amount of taxes as those who aren’t are. The reason why it’s a problem is because those that are wealthy don’t understand the struggles of having to pay what other have to pay. To them it could be pocket change, where as to those struggles it could be the brink of poverty. There are policies being introduced to cut the loopholes that these wealthy have in order to prevent income inequality. Altogether these reasons affect the cost of living to millions of Americans. The minimum wage sees a hope in increasing as policies are being created to aid those in need and with hope those increases will aid in the recovery of the economy. As for the inequality of income, policies are being introduced to cut those loopholes. In all the cost of living is important because it could be the difference between

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