Category: Economics

  • Rep. Sewell releases new report detailing the affordability crisis facing Alabama’s 7th District

    Rep. Sewell releases new report detailing the affordability crisis facing Alabama’s 7th District

    By Alabama Political Reporter

    U.S. Representative Terri Sewell, D-Alabama, released a new report Sunday examining the affordability challenges facing families in Alabama’s 7th Congressional District. The report argues that President Donald Trump’s economic policies and congressional Republicans’ legislative agenda have increased the cost of everyday essentials and threatened thousands of Alabamians’ access to health care and food assistance.

    The report came as House Democrats unveiled their “Fighting for an Affordable America Agenda.” According to Sewell’s news release, the agenda focuses on lowering the cost of groceries, gasoline and housing; providing affordable health care; and fighting corruption.

    The report says Alabama families are paying an average of $2,700 more for basic living expenses and families in the 7th District now spend an average of $1,110 a month on groceries. It projects that about 70,000 district residents will face higher health insurance costs because enhanced Affordable Care Act tax credits expired.

    The report also says the average Alabama household has paid $686 more for gasoline since Trump began the war in Iran and that more than 81,800 Alabamians have lost Supplemental Nutrition Assistance Program benefits under Republicans’ budget law.

    “One hundred days before Election Day, Alabama families deserve to know the truth about who is driving up their costs,” Sewell said. “President Trump promised to lower prices on Day One. Instead, families across Alabama’s 7th District are paying more for groceries, housing, electricity, gas, and healthcare while Republicans in Congress have chosen to cut Medicaid and food assistance to help pay for tax breaks for billionaires.”

    “It doesn’t have to be this way,” Sewell said. “House Democrats are fighting for an Affordable America by lowering the cost of groceries, gas, and housing, making healthcare more affordable, and holding corporations accountable when they exploit consumers and drive up prices. Alabama families deserve an economy that works for them—not just the wealthy and well-connected.”

     

    The report highlights several economic challenges facing Alabama families:

    • Alabama families are paying an average of $2,700 more for basic living expenses under Trump and congressional Republicans.
    • Families in the 7th District paid an average of $233 more for electricity in 2025.
    • The average monthly grocery bill in the district has reached $1,110.
    • The average Alabama household has paid $686 more for gasoline since the war in Iran began.
    • The average annual cost of child care for two children in Alabama has climbed to $16,640.
    • About 24,353 people in the 7th District are projected to lose health coverage because of Republican cuts to Medicaid and the Affordable Care Act.
    • More than 81,800 Alabamians have lost Supplemental Nutrition Assistance Program benefits.
    • More than 20,000 individuals and families in Alabama filed for bankruptcy in 2025, a 6.7 percent increase from the previous year.

    The full report, “The Affordability Crisis in Alabama’s 7th Congressional District: How President Trump and Congressional Republicans Are Driving Up Costs for Alabama Families,” is available online.

    Read the original article here.

    Featured Image: Terri Sewell (Alabama Political Reporter)

  • Newswire: Cashless Payment Systems are the Boring Move Every Black Shop Needs

    Newswire: Cashless Payment Systems are the Boring Move Every Black Shop Needs

    By Amy Kang, BlackPressUSA

    Silently guard your small shop’s revenue with the understated cashless payment systems. Do not let that card-and-phone sale miss your counter. If you want to grow your black-owned business, this clean record really matters compared to any flashy storefront feature.

    Customers are changing their habits as time progresses. Federal Reserve research found that Americans averaged 48 payments a month in 2024 and used cash for only seven of them, leaving credit and debit cards far ahead. Most shoppers who use cash payments would rather use their cards.

    This system, when done right, gives you a clean record of every sale. Cashless payment systems are not glamorous, but they recover lost transactions, document cash flow, and build the records Black businesses need to grow.

    What Cashless Payment Systems Actually Do for a Small Shop?

    A modern setup can turn each of your sales into a dated, searchable entry, not just reading cards. This does not leave you guessing at the end of each month. This visibility is the actual product.

    A connected system handles these tasks at once:

    • Accepts cards, taps, and phone wallets at the counter
    • Logs each sale with a time, date, and amount
    • Tracks which items move and which sit
    • Flags refunds, voids, and tips on their own

    These actions reduce the friction that chases buyers away. Smooth payment processing keeps that line moving.

    Why Cash-Only Quietly Costs a Neighborhood Business

    Going cash-only feels safe, but it narrows your pool of shoppers and sends them to other retailers. Completely dropping the use of cash can also be costly since there are people who solely rely on it. FDIC data shows that two-thirds of unbanked households rely entirely on cash, and Black households are more than five times as likely to be unbanked as white households.

    The smartest move is to adapt to both forms of payment. This balance has modernized black-owned businesses and leaves no buyer out. Cards allow shoppers to leave a deposit for a service, tip on the screen, or order ahead for pickup.

    How Digital Records Open Doors To Credit and Growth

    If your business only uses cash, it is very hard for you to receive loans from moneylenders. Cashless payment systems allow lenders to verify the sales history of your enterprise. This can help them decide to allow or reject your loan request.

    Many business owners struggle to get capital. A Federal Reserve analysis noted that credit availability is a challenge for more than a quarter of small businesses, and lenders lean on documented, steady revenue when they decide.

    Steady digital records help an owner do more than borrow. They;

    • Build a credit profile that lenders trust.
    • Spot best sellers and slow weeks
    • Prove income for leases and suppliers
    • File cleaner, faster taxes each year

    None of this is possible when your earnings are in a cash box. These records also help you receive grants, relief programs, and get a lease for your shop.

    Choosing Payment Hardware That Fits a Small Storefront

    A proper small business payment hardware matches the foot traffic, the counter, and the budget.

    When weighing point of sale systems, a few questions cut through the noise:

    • Does it take cards, taps, and phone wallets
    • Are the fees flat and easy to predict
    • Will it keep working if the internet drops
    • Can it grow with a second register?

    Answering these keeps you from paying for features your small shop will never use. Tools built for accepting cashless payment at a small storefront keep checkout quick and the data clean. For everything to flow, choose a system you can run without a manual.

    This is an excerpt; read the original article here.


    Featured Image: Credit cards in wallet 1 (Chris Potter/Wikimedia Commons)

  • Newswire: More Than 770,000 Children Are No Longer Receiving SNAP Benefits After Trump Changes Federal Food Program

    Newswire: More Than 770,000 Children Are No Longer Receiving SNAP Benefits After Trump Changes Federal Food Program

    BY NICOLE SANTA CRUZ, PROPUBLICA

    As a House committee debated President Donald Trump’s signature domestic policy bill last year, Republican backers repeatedly emphasized that its changes to the Supplemental Nutrition Assistance Program, also known as food stamps, wouldn’t affect vulnerable people.

    SNAP reforms would “restore integrity” to the program and ensure it works for the “most vulnerable among us, including children,” said Rep. Glenn “GT” Thompson, a Pennsylvania Republican and chair of the House Agriculture Committee.

    Passing the bill would be a “historic accomplishment” that will ensure “those in need can continue to receive the assistance they need,” said Rep. John Rose, a Republican from Tennessee.

    And Rep. Dusty Johnson, a South Dakota Republican, said the bill would focus resources on the “neediest” Americans. “If you are a pregnant woman, your benefits are unaffected. If you have young children at home, your benefits are unaffected by this bill. If you are disabled, your benefits are unaffected by this bill.”

    But nearly a year after the measure was signed into law, the number of children receiving food assistance has plummeted by at least 776,000, according to a ProPublica analysis. At least 12 states break down program participation by age, and of the 1,670,011 people who are no longer receiving benefits in those states, 776,134, or 46%, were children.

    Another analysis reached the same conclusion: Just last month, the nonpartisan Center on Budget and Policy Priorities found there were 700,000 fewer children receiving food assistance.

    Arizona has seen the nation’s largest percentage decline in SNAP participants; 205,223 children are no longer receiving the benefit since July 2025, a 55% drop. Louisiana had the second largest percent decline among children, 22%.

    The U.S. Department of Agriculture, which oversees SNAP, hasn’t detailed the impact on children aided by the program, but initial figures show that compared to February 2025, 4.3 million fewer people received SNAP nationwide in February 2026, leaving 37.8 million participants.

    Although children weren’t the intended targets of the legislation’s changes, they’re increasingly “collateral damage,” said Katie Bergh, a senior policy analyst at the Center on Budget and Policy Priorities.

    If states are trying to comply with the law’s changes to SNAP, they’re likely not focusing on making the program accessible, Bergh said. Other experts said that people may be pushed off the program because of increased paperwork requirements to remain eligible.

    States are required to impose work requirements for most adult recipients, while preparing for two major cost shifts. In October, states will begin covering 75% of the program’s administrative costs. States have been paying 50% of those costs.

    In addition, states will have to pay a larger share of SNAP benefits starting in October 2027, based on their error rate. Error rates reflect overpayments or underpayments of SNAP benefits. While sometimes characterized as fraud, such errors are usually the fault of the state agency or the SNAP recipient, according to USDA, which describes them as “largely unintentional.”

    If a state agency is facing staffing shortages and struggling to comply with new regulations, it will be harder for low-income families to access the benefits, Bergh said. “Families are falling through the cracks.”

    In Massachusetts, for example, the share of SNAP applicants who called an assistance line and couldn’t reach a worker rose from 61% in November to nearly 81% in March, according to the Department of Transitional Assistance, which administers SNAP in the state. The state agency did not respond to a request for comment.

    A USDA spokesperson did not address ProPublica’s questions about the number of children who have lost access to SNAP. “There is no shortage of resources for the most vulnerable among us, including children,” the spokesperson said.

    The three members of the House Agriculture Committee who defended last year’s bill before its passage — Rose, Thompson and Johnson — did not respond to ProPublica’s questions about their statements now that many children no longer receive SNAP benefits.

    Rep. Jim McGovern, a Massachusetts Democrat, asked Secretary of Agriculture Brooke Rollins about her recent comments that it was “good news” that millions of people no longer receive SNAP. If more than 700,000 children have been dropped in the 12 states that report those figures, “that number’s going to be into the millions” when other states are included, he said.

    Rollins responded, “The 700,000 number of children is not correct,” contending that most people who were kicked off SNAP were “fraudulent.”

    “That is not a nonpartisan group that gave you that number,” she said. (ProPublica independently verified the figures reported by the Center on Budget and Policy Priorities.)

    McGovern said he has talked to people who have lost food assistance. “These are people who actually need and rely on this food assistance to provide basic nutrition for their families,” he said.

    Pressure to lower error rates “creates a temptation for the states to bump off working families,” said Parke Wilde, a food economist at Tufts University. Working families may have more volatile incomes, making it harder for state agencies to assess benefits accurately.

    “When they say we want to preserve SNAP for those with the greatest need, they’re sort of acknowledging that they want the scale of the SNAP program to be smaller,” he said.

    Mariana Chilton, an expert in child hunger at University of Massachusetts, Amherst, said a smaller program won’t save money in the long run. Research shows that children who receive SNAP benefits are healthier, have better academic outcomes, use hospitals less often and have better mental health as teenagers.

    She called the situation a “public health crisis” in the making. “When children are not healthy, this affects children today and it affects them throughout their lifetimes,” she said, likening hunger during early childhood to a brain injury.

    As Arizona’s SNAP participation drops, nonprofits are feeling the effects. St. Mary’s Food Bank, the largest in the state, has seen a 15% increase in need this year, which translates into 300,000 more visits from people in search of food, said Milt Liu, the chief executive officer.

    “It’s important for everyone to realize that policies have implications for people on the edge, and we’re seeing that in our line every day,” he said.

    On a recent morning, Ana Alvarez waited in a line of vehicles at a St. Mary’s food bank in Phoenix. Alvarez, a single mother of five who works at a restaurant, started coming to St. Mary’s after she lost her SNAP benefits in September.

    She reapplied for SNAP with the Arizona Department of Economic Security in December, but the application is still pending. The department did not respond to questions about its backlog.

    She clips coupons and has cut out trips to the zoo and restaurants with her children. The slow season at the restaurant where she works is about to hit. And as summer temperatures rise, Alvarez wonders how she will afford her electric bill, her rent and her car payment.

    At least once a week she contacts the agency about her application. The last time she called, a worker told her what others have in the past: She will have to keep waiting.


    Featured Image: Mary’s Food Bank in Phoenix (Rob Schumacher/THE REPUBLIC/IMAGN)

  • Public Notices

    The City of Boligee is applying to the Alabama Department of Transportation for a federal capital funding award under Section 5310 of the Federal Transit Act. This funding is for capital assistance to help meet the transportation needs of seniors and individuals with disabilities in Greene County, Alabama. A public hearing will be held on June 12th at noon in the cafeteria at the  Boligee Town Center at 17404 Co Rd 20, Boligee, Alabama for public comments.

    Contact Information: Mayor Hattie Samuels, City of Boligee, 205 336 8531, boligeemayor@yahoo.com

  • Cory Booker Unveils ‘Keep Your Pay Act’ To Make First $75K Of Income Tax-Free

    Cory Booker Unveils ‘Keep Your Pay Act’ To Make First $75K Of Income Tax-Free

    by Shannon Dawson, NewsOne

    New Jersey Senator Cory Booker has announced a new tax proposal called the Keep Your Pay Act, which he introduced in the Senate on March 9. If passed, the bill would be a game changer for Americans, helping citizens to keep their hard earned cash in their pockets come tax season. 

    The Keep Your Pay Act argues for no federal income tax for the first $75,000 in income. 

    According to a press release, at the centerpiece of the plan is a straightforward idea: the first $75,000 of income would be tax-free for households filing jointly, with proportional tax relief for single filers and heads of household. Booker’s proposal would more than double the standard deduction for taxpayers.

    Under current guidelines from the Internal Revenue Service, the standard deduction for 2025 is $15,750 for single filers or those married filing separately, $31,500 for married couples filing jointly or a qualifying surviving spouse, and $23,625 for heads of household. 

    If Booker’s proposal were enacted, many married taxpayers would pay no federal income tax on the first $75,000 they earn. According to NBC News, individual (Single) filers would receive a standard deduction of $37,500 while head of household would receive a standard deduction of $56,250 under the legislation.

    The Child Tax Credit would expand under the bill if passed.

    The Keep Your Pay Act would also expand the Child Tax Credit through the American Family Act. Under the plan, the credit would increase to $3,600 per child ages 6 to 17 and $4,320 for children under six. It would also include a $2,400 “baby bonus” in the year a child is born to help families cover the high upfront costs of welcoming a newborn. The credit would be fully refundable so that families with lower incomes can still receive the full benefit.

    It would also boost age eligibility for the Earned Income Tax Credit.

    In addition, the plan would expand the Earned Income Tax Credit through the Tax Cut for Workers Act. The measure would extend eligibility to younger workers ages 19 to 24 and older workers 65 and above—groups that are currently excluded from receiving the full benefit—while also tripling the value of the credit to deliver additional relief to workers without children in the home.

    Booker says the proposal would be fully paid for by closing tax loopholes used by wealthy individuals and large corporations and requiring them to pay a larger share. Measures could include raising the corporate tax rate, strengthening corporate tax rules, increasing taxes on stock buybacks, tightening limits on deductions for executive compensation, and addressing other tax avoidance strategies.

    “The tax system is rigged, we all know this,” Booker told supporters in a video shared to his X account on March 9. “It’s rigged against working people and all full with things that help people with a lot of money—whether it’s corporations or billionaires—avoid paying taxes.”

    Why is Cory Booker proposing this?

    The plan is designed as a sweeping response to a range of economic concerns, including rising costs and wages that have struggled to keep pace with essentials such as housing and health care.

    “You should keep more of your money,” Booker added in his video shared Tuesday, March 2.

  • Ground-breaking ceremony held for Legends Bingo

    Ground-breaking ceremony held for Legends Bingo

    Above, Attendees of the Legends Bingo groundbreaking ceremony including county commissioners, GCHS CEO, and Greene County Sheriff Joe Benison

    by Barbara Amerson, Office Manager and Reporter

    On April 21, 2026, a groundbreaking ceremony was held to usher in the new Legends Bingo facility located on County Road 220 Knoxville. Many local government officials and administrators were present at the event, including Greene County’s mayors, county commissioners, Greene County Hospital’s CEO, and the Greene County Sheriff Department.

    Pastor Kim Uhren from Alaska and Pastor Michael Barton were also present to bless the land. Legends President Matt Young delivered the welcome, detailing the amenities and multifaceted purpose of the facility. Alongside the bingo hall, the grounds will encompass an RV Park and a 120-person capacity dining hall. Legends hopes to employ approximately 250 people, providing childcare and full and part-time employment benefits.

    Sheriff Benison explained that the erection of the bingo hall is part of his vision to bring more opportunity to Greene County. Benison asserts that bingo proceeds will be allocated to Greene County Hospital, EMS services, Paramount School, scholarships, and more. Benison stated that it’s “time to play ball,” so Greene County can have the “more” that it deserves.

  • Newswire: Mamdani Creates Office to Fight Deed Theft in New York City

    Newswire: Mamdani Creates Office to Fight Deed Theft in New York City

    by Mihir Zaveri, New York Times

    The scammers come in many varieties: The slick broker who “saves” a home from foreclosure, only to vanish with the title. The caregiver who exploits an older man’s trust to hijack his deed. The financial whiz who promises a mortgage renegotiation that ends in an eviction.

    Every year, cases like these afflict homeowners across New York City. The schemes are examples of deed theft, a practice in which people fraudulently take ownership of others’ homes.

    Just two days ago, a Brooklyn city councilman was among several people arrested at a protest against the crime.

    Now, the city is creating an Office of Deed Theft Prevention that will investigate instances of deed theft and try to stamp them out.

    “The theft of a home is the theft of a family’s future,” Mayor Zohran Mamdani said on Friday as he announced the creation of the office.

    “Deed theft preys on the New Yorkers who can least afford it. Today, we are bringing the full force of city government to bear to stop it — to protect homeowners, defend generational wealth and make clear that this City will not tolerate the exploitation of our communities.”

    Deed theft has been a particular problem in predominantly Black neighborhoods, where investors can capitalize on rising property values and gentrification.

    Mr. Mamdani, who has focused much of his attention on helping the city’s renters, is moving to create the office as he seeks to improve his political standing with Black homeowners and their representatives.

    He appointed Peter White, a lawyer who has worked for more than seven years at Access Justice Brooklyn, a nonprofit group, to lead the office. Mr. White worked on several deed theft and foreclosure related cases at the group.

    “My fundamental goal is to make life better for New York City homeowners,” Mr. White said on Friday, appearing alongside Mr. Mamdani at the Brooklyn Bank, a nonprofit based in the Bedford-Stuyvesant neighborhood that helps people build financial independence. “This is something I’ve tried to do since the beginning of my legal career.”

    Mr. Mamdani said the office would have a budget of $500,000 in the current fiscal year, which ends in the summer, and $1 million in the next. The office is expected to find ways to better educate homeowners on the warning signs of deed theft, as well as connect potential victims with lawyers and law enforcement.

    The office will also work on crafting new city and state legislation that could help public officials crack down on the practice.

    It will be part of the city’s Finance Department and will coordinate efforts between the housing department, the commission on human rights and more.

    While government officials have pursued deed theft cases in recent years, it remains a difficult problem to address. It is not always obvious to homeowners that they have been victims, and years could pass before any offense is reported.

    It can also be tough to determine when behavior is criminal and when a homeowner may simply be making a bad decision involving getting rid of their home. And the legal ownership of a home may be murky, particularly if the property was inherited by several different heirs or is in the hands of a guardian or conservator.

    The protest this week where the councilman, Chi Ossé, was arrested, did not center on an actual example of deed theft, according to the state attorney general’s office, but a property dispute between heirs and relatives of the property’s former co-owners.

    Still, officials have worked to more effectively address the issue. In 2024, state officials passed a law, known as the Heirs Property Protection and Deed Theft Prevention Act, that firmly established deed theft as a crime. The law was written in part by Letitia James, the state attorney general.

    One government estimate from 2023 found that there were at least 3,500 complaints of deed theft filed over the previous decade.

    The Furman Center at New York University released an analysis last April that found that tens of thousands of New York City homeowners were vulnerable to deed theft, scams, under-market sales and other legal problems that could strip them of their equity.

     

    Jeffery C. Mays contributed reporting.

  • Alabama and Japan Celebrate 40 Years of Friendship

    Alabama and Japan Celebrate 40 Years of Friendship

    Consul General Kenichi Matsuda and Honorary Consul General of Japan, Mark B. Jackson, at the Sakura Festival in Snow Hinton Park

    The Japanese American Society of Alabama (JASA) hosted the 40th Annual Sakura Festival in Snow Hinton Park to celebrate the economic and cultural connection between the two countries. The festival featured performances, games, snacks, and ceremonies prominent in Japanese culture.

    The beginning of economic ties between Japan and Alabama began in the 1970s and 1980s with the establishment of the Alabama Development Office, which established a Tokyo trade office to attract Japanese investors. The trade office allowed a direct link for Japanese business operations to receive support in Alabama, fostering the need for an organization like JASA to maintain cooperative relationships. In 1999, the organization’s efforts to bridge the gap between cultures resulted in an economic milestone with Honda announcing its first assembly plant in Talladega County. Since then, Japan’s economic influence in Alabama has generated thousands of jobs and investments that have surpassed ten billion dollars.

    Seeing the importance of Japan maintaining relationships, JASA sought to fortify a cultural understanding of Japan.

    It is no secret that Japan is a country with a unique way of life centered on humility and respect. Many customs in Japan require humbling oneself with constant consideration for those who are older or in higher positions of authority. Greetings are soft spoken and involve bowing, the complete opposite of an energetic, southern greeting with a handshake. JASA knew that “Alabama should understand and embrace not only Japanese business concepts and expectations but also cultural and educational issues.”

     

    A person wearing a blue kimono-style outfit dances in a field, holding a fan with writing on it. Others are dancing in the background under a clear blue sky.
    Awa Odori Dance Elaina Agnello

    The Sakura Festival itinerary and stalls were rich with Japanese culture, including information and graphics about Tuscaloosa’s sister city in Japan, Norishino. After a warm welcome, Honorary Consul General of Japan Mark B. Jackson took to the stage. “This is the most honorable thing I’ve been doing,” he stated. Jackson has represented Alabama in Japan for over a decade and deeply appreciates the Japanese way of life. Once he finished addressing the crowd, he welcomed Consul General Kenichi Matsuda, who flew in from Japan for the event. Matsuda is grateful for the “southern hospitality” and welcoming atmosphere he can experience here in the States. He is committed to doing his “utmost to further advance the friendship and partnership between our two nations.” The two participated in a sake barrel-breaking ceremony to signify harmony and good fortune.

    Jackson and Matsuda in the sake barrel breaking ceremony

    Alongside friendship meetings and festivals, JASA sends students to Japan in an exchange program over the summer to further understand education. The program sends twenty high school students to Japan in June to stay with families, and the Japanese students return with them in July for two weeks as well. This exchange is imperative for the current generations to appreciate what each culture offers to the other. As Executive Director of Tuscaloosa Sister Cities International, Shelley Corrill said, “How can you not love each other when you’re eating barbecue or sushi together?”

    The relationship between Japan and Alabama is a vital component of the state’s economy. Companies like Daikin, Toray, and various automotive suppliers have a strong impact on the automotive and manufacturing markets, especially in Birmingham, Huntsville, and Decatur. Without Japan’s friendship, thousands would go unemployed. JASA’s continued efforts remind us of the importance of working with other nations instead of against them. In the words of Honorary Consul Jackson, “It’s all about one word—relationships.”

    To learn more about JASA and future cultural events, visit https://japanalabama.com/

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  • Newswire: Inflation hits highest one month spike in four years due to Iran War

    Newswire: Inflation hits highest one month spike in four years due to Iran War

    Gas station sign in California, showing high gas prices

    By Joe Jurado, NewsOne

    While Iran and the United States have agreed to a two-week ceasefire that’s looking shakier by the day, the impact of the war is still being felt by the global economy. Last month, inflation rose at its sharpest in four years, largely driven by higher gas prices. 

    According to NBC News, inflation rose to 3.3% in March, up 0.9% from the month before. Gas prices increased by 21.2%, their largest single-month increase since 1967. I gotta be honest, folks, I’m getting real tired of living through historically bad economic changes. While a ceasefire was declared last Tuesday, there hasn’t been a meaningful drop in gas prices. Anecdotally speaking, I’ve seen gas prices drop a whopping 10 cents from $4.99 to $4.89 in Arizona. 

    The misguided Iran war has created a series of headaches for the Trump administration. Trump ran on lowering prices, and AP reports that there are growing concerns that if gas prices continue to stay so high, it would have dramatic downwind consequences for the American economy. There was already a cost-of-living crisis before the Iran war, and the inflated gas prices could result in families struggling to afford other necessities, such as rent. Once the essentials become a struggle to afford, it would slow spending in other sectors, slowing the economy and potentially leading to further unemployment. 

    “It’s painful in the near term,” Michael Pearce, chief U.S. economist at Oxford Economics, told AP. “It’s going to get more painful in April,” as a result of further gas price increases lifting inflation even higher. 

    AP reports that there are growing concerns that if gas prices continue to stay so high, it would have dramatic downwind consequences for the American economy. There was already a cost-of-living crisis before the Iran war, and the inflated gas prices could result in families struggling to afford other necessities, such as rent. Once the essentials become a struggle to afford, it would slow spending in other sectors, slowing the economy and potentially leading to further unemployment. 

    From AP: Consumer sentiment plunged to a record low in April, according to a survey released Friday by the University of Michigan, largely because of the Iran war and concerns over higher gas prices. Their Index of Consumer Sentiment fell to 47.6, from 53.3 in March.

    “Many consumers blame the Iran conflict for unfavorable changes to the economy,” said Joanne Hsu, the university’s director of consumer surveys.

    High prices had angered American voters before the war and the spike in prices for oil and everything that entails, from the pump to the grocery store, could make it more difficult for the president’s party to hold on to seats in both the House and the Senate in next year’s midterms.

    Polling by the Associated Press-NORC Center for Public Affairs Research last month found that about six in 10 Republicans are at least “somewhat” concerned about affording gas in the next few months.

    Another point of concern regards the Strait of Hormuz, which has become a focal point in the conflict. While ships were able to flow freely through the Strait of Hormuz before the war, Iran has locked down access and is considering charging a toll for entry. This would obviously lead to a permanent increase in prices, as that cost would definitely be passed down to the consumer. 

    One of the downwind effects of the Strait’s closure is rising food prices. While food costs remained relatively neutral throughout March, much of the world’s fertilizer supply passes through the Strait of Hormuz. Should Iran and the U.S. fail to agree on a permanent ceasefire resolution, it would likely lead to food scarcity, which would obviously increase prices. Those increases would also be compounded by rising fuel costs, as the nation’s food supply is largely transported via diesel trucks.