I remember my shock in 2022 when my heating oil company told me that my oil price would be $6.50 per gallon. Thankfully, this year I have been able to lock in my price at about $4.00 per gallon for the coming season despite the war in Iran. Nevertheless, since the election of President Trump, the news has been full of dire stories about affordability and price inflation.
I started thinking about affordability last year during the baseball World Series. I noticed that, whether in Los Angeles or Toronto, the stands were packed with fans most of whom seemed to be young men. I wondered where they got the money to pay more than $1000 for not even a box seat. I wondered where they also got the money to pay the exorbitant stadium prices for hot dogs, beer and soda.
It was the same thing at the Super Bowl, March Madness, and the NBA finals. I have grandchildren, recent college graduates, who were actually able to attend such events. One even flew from California to San Antonio to watch the Knicks beat the Spurs in the season’s finale.
These events paled in significance to the recent World Cup held at packed venues in the USA, Canada, and Mexico. Millions of people from all over the world paid ridiculous sums to attend. It was not just the tickets, but the travel, hotel, and food that hardly seemed to faze them. One day in my dentist’s office, I could overhear the hygienist, who happened to be from Cape Verde, tell the dentist that she had flown down to Miami for the weekend to watch her team play.
Sporting events are just one way people spend money. Entertainers like Taylor Swift have become some of the richest people in the world giving concerts packed mainly with cheering young women. Another of my grandchildren even flew to Europe for one of Swift’s concerts.
From my own limited viewpoint I can say that many of these people have jobs and choose to spend their earnings on their own entertainment. That’s ok, it's their money. But they don’t seem to have an affordability issue.
Others, I suspect, can ‘t really afford to attend these events, but just use their credit cards. Recent studies indicate that credit card debt is at an all-time high, as is the number of people who are more than three months behind in their card payments.
I knew a young man with a good job who had amassed credit card debt of over $100,000. The interest alone on that debt would have been over $18000 a year or $1500 per month with no way in sight to ever pay off the principal. How could he afford to buy a home, or rent a decent apartment? No wonder he might be concerned about the price of food or gas. His out-of-control spending created his own affordability problem.
Yes, I know that most people do not attend these high-priced events, and that many are having to deal with higher prices for their daily living expenses. There are many ways to deal with higher prices, but I will leave that discussion to another day. Here I would just like to point out that government waste and fraud is a major culprit.
Another of my grandchildren is disabled. He is able to live independently and participates in the SNAP program. One month his SNAP payment was stolen from his bank account by a fraudster. This is just one example of how the massive amounts of government aid that have been meant for the truly poor and needy have been hijacked by fraudsters in recent years.
It is not only taxpayers that have been victimized by fraud but also the needy who never received the funds appropriated to help with their living expenses. They can blame the fraudsters and the politicians who enabled them for their affordability crisis.
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