Some folks on the low end of that spectrum are not going to have more coming in and are simply treading water at best.
In the last year inflation on groceries has been astronomical here.
Cereal that was $2 is now $5-7, and bread from .99 to 3.99.
I notice it, as our monthly savings is down significantly from what it was. For those who don’t have the same income levels, I’m sure it’s extremely tough.
Our societies standard of living has declined. Friction will be felt far more at the lower levels of income than at the higher levels simply due to the nature of money and how it works.
Think back to Psych 101 and Maslow's Hierarchy of Needs:
These are all the things we as Humans need/want. Most people are able to achieve the first two Basic Needs and the Modern Nation State has, in theory, been presented as a solution to providing these needs for everyone although success for everyone remains elusive.
A majority of people are able to achieve the next two, Psychological Needs. While the last one, Self-Fulfillment, remains out of reach for many.
The problem we are dealing with now thoug
Basic Needs have a baseline cost associated with them and those costs are increasing faster than the system we have created is able to cope with.
If a person has to allocate a larger proportion of their income towards basic needs, they will have less money to allocate to savings or other pursuits. This means we will have more people unable to meet their Psychological Needs. We will also, have more people unable to meet even their Basic Needs.
The results of this friction at the lowest end of society is the following:
Poverty isn't usually a choice for many. I learned this at a young age from one of my school friends who grew up in an abusive household with an alcoholic mother and abusive/also alcoholic step-father.
The school had a meals program that he relied on to feed him otherwise he wouldn't have food. At 14, he and his brother, who was 16, were moved to Foster Care after they beat their step-father nearly to death with a baseball bat defending their mother from one of his vicious attacks.
Predictably, my friend didn't have the greatest marks in school and obviously never had the opportunity to attend University. How could he? I don't think any of you would be focused on Math 101 when you're having to fight your step-father?
He is doing ok now, is married, has a job and lives an ok life. His brother is a drug addict and lives on the street. He also had an older sister who just passed away at 40 from a a drug overdose.
Could they have simply worked harder? I don't think it's that simple.
making money ≠ working hard.
I can work as hard as I want but if I lack talent or ability, am physically or mentally disabled, or there is low demand for the work I am providing, that hard work will provide me with very little money.
I could also do no work at all and make a lot of money simply through inheritance, demand for my services, my name, endorsements, etc.
Money also becomes more efficient the more you have of it. If I have $1,000,000.00 and I earn 5% interest a year on it, that's $50,000.00 a year. I did absolutely nothing and I made enough money to, in theory, cover all my basic needs while literally doing nothing!
Contrast this with someone who has $1000.00 and earns 5% interest on that per year, congrats you gained $50.00 a year, enough for a couple of meals at McDonalds! You will also continue to need to work your butt off to make ends meet.
Income from Labour is the least efficient form of income there is!
The idea that all you need to do to make a lot of money is work hard is one of the biggest lies we tell ourselves. There is a lot more to it then that.
Regardless of what anyone says, income inequality is growing and an increasing number of people are unable to afford basic necessities.
It may have been their fault that they got to that point or it may not have been.... that's not important now. What's important is that we find solutions to mitigate the effects of these hard times because if we don't well:
Bolshevism, Fascism, Nazism, Marxism, Communism, etc...
All are essentially socialist revolutions brought about by poor economic and social conditions and their end state looks remarkably similar.