Two Americas
This phrase, “Two Americas” was originally used by Dr. Martin Luther King Jr. in his speech, “The Other America” to describe the lack of opportunities, jobs, and support for poor citizens. In 2004 Senator John Edwards made it into a catchphrase that referred to social stratification, a term at that time used by USA Today. During the presidential campaign of 2004, candidate Edwards spoke about the two Americas: the America of the privileged and wealthy, and the America that lived from paycheck to paycheck. That same year Opensecrets.org ranked Senator Edwards’ net worth at number 20 in the US Senate with a modest $18,199,579. This means 19 other Senators in the U.S. Congress were worth more than $18 million. Yes, Senator, there are two Americas.
Two Inflations
Inflation is slowing. Right? Guess it depends on which America you ask. Certainly, one part of America doesn’t believe inflation is getting better. Price increases for certain items, like cable, are cooling. Even prices for vehicles, gasoline, TVs, and plane tickets have dropped over the past year. But prices for many of the things that are hard to do without are still going up at a higher rate than items that are “cooling.” Rent and electricity bills are up more than 10% over the past two years while car insurance costs are up nearly 40% according to the Labor Department’s index. Housing is by far the biggest monthly expense for U.S. households and if you are starting a new family expect to pay close to $1,500 per month in daycare according to the Wall Street Journal. Yes, we can cut out dinner and a movie in favor of a home-cooked meal but other spending is hard to avoid.
The Other Inflation for the Other America
The Other America (OA) believes inflation is getting better. The OA has investments from years of investing in a 401K plan and has benefited from the bull market. The OA has already raised a family and no longer pays for child care or college tuition. The OA doesn’t rent; they own a home. For those in the OA class still working, the commute is not as long. They don’t drive as much and spend less money on gasoline and replacing cars. This OA doesn’t need to cut out dinner and a movie.
I guess Senator Edwards was right. There are Two Americas.
