Inflation causing disposable income squeeze, economics professor Brian Brenberg warns
'When you're living on slim margins, inflation kills you,' Fox News contributor stresses
Fox News contributor and The King's College business and economics professor Brian Brenberg provides insight into how the inflation surge is impacting Americans’ standard of living.
The King's College business and economics professor Brian Brenberg warned Americans are starting to feel their "disposable income squeezed" as inflation continues to surge nationwide.
"Disposable income is falling behind," Brenberg argued on "Making Money with Charles Payne," Tuesday.
"I think it is hard to ask somebody, ‘What do you think inflation's going to be like in the future?’ But when you ask them, how much more money do you need to…cover these costs, they kind of get that," he remarked.
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Brenberg added that Americans haven’t seen wage gains "big enough" to keep up with inflation and suggested that the Fed is "falling behind."
The King's College business and economics professor Brian Brenberg argues the U.S. could combat soaring gas prices if the Biden administration boosts oil production in America.
Americans would have to earn 7% more compared to last year to sustain their standard of living, according to a survey posted by the Cleveland Fed.
The Fox News contributor stressed Americans are making a shift from the products they normally buy at a grocery store to "cope" with inflation and said he’s "concerned" for the U.S. economy since prices are "not abating."
Brenberg’s comments come on the heels of Federal Reserve Governor Lael Brainard stating Tuesday that the Fed is "only beginning to understand the ways in which inflation experiences vary from household to household."
US consumer prices hit a new 40-year high in February 2022 as the world's largest economy continued to be battered by a surge of inflation, which the fallout from Russia's invasion of Ukraine is expected to worsen. (Photo by Patrick T. Fallon/AFP via … (Patrick T. Fallon/AFP via Getty Images / Getty Images)
"This is devastating. The Fed is saying we don't get that inflation hits lower-income house[holds]…we know this already," he told FOX Business host Charles Payne.
"This is the problem. The Fed and the administration have been so far behind and…apparently it's because they don't get that when you're living on slim margins, inflation kills you."
Payne asked Brenberg how are Americans going to get out of the inflation surge.
"Part of it is grind your way…" he answered.
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"The other thing we could do is take the air out of one of those big cost drivers, which is oil and gas. If we put just a total all-on effort in this country to pump and produce…move with pipelines, I do think that would make a difference. It would certainly raise confidence a little bit."