Joel Solis/The Collegian
AUSTIN FOLKERTSMA
campus editor
austin.folkertsma@my.tccd.edu
Inflation has seemingly been making the cost of everyday necessities go up in price and the TCC community has been affected by it greatly.
According to the consumer price index, inflation rose 7.5 percent compared to last year. TCC business and economics instructors have been watching this unfold.
“Inflation is such a pervasive topic right now because of the significant rise in prices that we are observing. Just stand in the grocery store aisle and listen to the shoppers around you complain about the increase in prices,” NW assistant professor of economics Julie Russell said.
Russell added that she’s had to shop at more discounted food outlets like Aldi because grocery prices are so high.
“I’ve had to cut back on how much I spend on entertainment in order to make more room for spending money on stuff like food and other necessities for me and my family,” NW management instructor Lourdes Ramboa said. “We’ve also had to readjust our budget as a result of higher gasoline prices. As we have to spend more money on necessities, food, transportation, shelter, we have less money to spend on discretionary items.”
The main program Ramboa teaches is entrepreneurship, and she said inflation is causing entrepreneurs to have to pay higher prices on inventory, packaging and shipping.
Although they may try to pass some of these additional costs to the consumer/customers, they may not be able to pass all of the higher expenses without potentially risking losing the customer.
Ramboa said if the entrepreneur or small business owner is having to pay more to produce a product or provide a service, then ultimately, their overall profit/income will decrease. The impact on their overall income may be so large that they may not be able to sustain the business.
Inflation has other effects on the economy, not just business, it also affects real estate.
NE professor of real estate Timothy Murphy said inflation is at the highest level it has ever been in 50 years.
“Inflation has caused the price for every purchase in my life to increase dramatically,” Murphy said. “The number of people requesting food from our church is the highest we’ve ever seen, and we are struggling with purchasing enough food to provide to those in need.”
Murphy said the cost of a starter home in Tarrant County one year ago was around $200,000, and now, the price of the same home is $280,000.
According to Murphy, the cost of all materials and services to construct a new home has increased at a rate never seen before in this country.
“Increasing interest rates will have a terrible effect on starter home purchases. Instead of balancing the federal budget, the federal government will continue the inflation tax,” he said.
Murphy added that property taxes and the amount of down payments needed for a starter home has also dramatically increased, and inflation is causing young people and new families to not be able to purchase a home.
“I have noticed inflation most in restaurant meals,” NW instructor of economics Lanie Ridlen said. “Chipotle has increased their prices three times in the past year and plans to increase them again multiple times this year.”
Ridlen said she is looking forward to teaching about inflation in the coming weeks.
“I know the students will be excited to learn about what is happening, what is causing the problem and what can we do to fix it in the future,” she said.
