Part 4/8:
During the pandemic, there was a perception that wages were outpacing inflation, leading to a false sense of financial security among many. However, most discussions around wage increases fail to account for after-tax income and individual inflationary experiences, which for many, are significantly higher than the reported statistics.
The economic situation led some to take unnecessary risks, including increased spending and debt accumulation, in part fueled by low interest rates. This overextension has now left many individuals financial vulnerable with higher debt levels and less ability to absorb the shock of ongoing inflation.