Energy costs begin to hurt

Thursday, June 15, 2006

As an AP story by David Carpenter in the Capital Times shows the cost of petroleum-based fuels has begun to pinch the finances of people with lower incomes. As scarcity continues to drive prices higher, the impact will force lifestyle changes for people with more middle-class incomes:

While wealthier households may be absorbing the price shocks painlessly, that's hardly the case at the other end of the wage spectrum, where millions of Americans don't need to check stock portfolios to feel the impact. Especially among lower-income workers, inflation is forcing more and more sacrifices, compromises and budget-juggling.

For Amy and Jacob Lopez, the $70 cost of filling up their Ford mini-van has made it tough to get by every month and may force them to sell their car for a cheaper one. But that's just the tip of inflation's impact on the northern California couple and their two preschool-age children.

Amy, a stay-at-home mom, cited the effects of higher prices for everything from rent to utilities to grocery items from milk to hamburger meat. Meanwhile, wages for her husband, who works in inventory at a flower bulb farm, have stayed the same.

"We have had to cut quite a lot of things out" to make ends meet, such as weekend outings, buying treats for their kids and visiting their grandparents, the 23-year-old said.

With rent now accounting for more than half their monthly income of $1,200, they had to seek help from a local food bank recently. Trying to stretch every dollar, they've switched to cheaper brands of shampoo and soap. Lopez isn't sure what steps to take next.