As Inflation rise to 40-year highs, transportation benefits should be able to turn the tide
Across the board, the United States is seeing rising inflation across various sectors. For example, the price of gas is up 40% on the year while used vehicle prices are also up 40%. Additionally, the average U.S. household spending is up an additional $250 per month. According to the Wall Street Journal, millennials, Latinos and the middle class are feeling the worst of the inflation price squeeze.
Why Transportation Benefits Help Provide a Solution
The issue with inflation in the price of oil and gas is that it creates a domino effect across many industries. In particular, rising oil and fuel prices make it more expensive for food to get from the producer to the point of sale. Therefore, transportation benefits can help mitigate the rising costs and help make inflation transitory rather than permanent.
1). Helps With Budgeting and Economic Growth
Many people are feeling the pinch when it comes to the rising price of key expenses like food and energy. Since transportation plays a large role in people’s lives, a significant rise in this expense can literally break people’s budgets. With transportation benefits, millions of Americans will be able to maintain their key levels of spending which can keep the economy growing.
2). Maintains Mobility Across Many Demographics
From the working poor to the middle class, transportation costs can play a big role in overall expenses. With transportation benefits, many important parts of our community will be able to stay mobile. This will allow hundreds of millions of people to continue to commute to work, operate small businesses and get things done. Keeping the flow of activity at a high level can help bring down the rate of inflation.
3). Keeps the Overall Inflation Rate Lower
The overall inflation rate is created by collecting the cost of goods and services across many sectors. Of course, transportation is a big part of the overall economy With transportation benefits, inflation can be better controlled and prevent overall prices from rising even higher.
Current Transportation Benefits
Transportation benefits may be offered by employers to help subsidize the cost of transportation and parking for employees. This benefits package is not only attractive to many candidates but also helps to fight the effects of inflation for work commutes. For the current tax year, pre-tax contributions for commuter benefits are as follows:
Transit Expenses - $270 per month
Parking Expenses - $270 per month
Source: Bestworkplaces.org
Transportation Benefits as the Ultimate Inflation Fighter
Inflation can be a terrifying economic prospect because of the lasting damage it can cause to the economy. However, transportation benefits will help millions of Americans which, in turn, can help stabilize the inflation rate and return the economy back to normal.
