Angelenos are feeling the pressure as the cost of living continues to rise and leave those with less than a 100k salary without the means to provide for their households.
Los Angeles Mayor, Karen Bass, layed out a proposal which would relieve Angelenos from the financial burdens they are currently facing with increased cost of living still on the rise. The proposal is still awaiting approval from the Los Angeles City Council and would require a union ratification vote. If passed, the proposal would offer workers a raise to compensate for the cost of living, raise the minimum wage, and offer increased unused sick leave pay-outs. A similar bill was proposed in 2007 and later counted as a mistake by former Mayor Villaraigosa since it further compounded the issue by contributing to the city budget crisis.
Bass’ proposal is timely as Angelenos are feeling the economic pressure of the consistently increasing cost of living, but it is unclear if this proposal would attempt to preemptively account for budgetary issues.
In a report completed by the U.S. Bureau of Labor Statistics, it was found that Los Angeles residents are contending with a substantial surge in the cost of living. The data illuminates an unsettling 8.6% spike in June 2022, drawing attention to the escalating financial challenges confronting the city’s inhabitants. This surge was accompanied by additional increases in the cost of living in 2023, including a 3.8% rise in food costs, rendering the Los Angeles cost of living 51% higher than the national average.
The escalating cost of living is exerting its impact across diverse income brackets, making it particularly challenging for those with a $100,000 salary, once considered a comfortable income. As expenditures continue to rise, residents are finding themselves under increased financial strain, struggling to uphold their standard of living. Notably, 63% of Los Angeles residents are renters, in contrast to the national average where 65% of individuals are homeowners.
Recent analyses indicate that a $100,000 salary in Los Angeles effectively equates to approximately $44,000 when factoring in the cost of living. In comparison, the same salary in Buffalo, NY, translates to $72,000, and in Memphis, TN, it amounts to $86,000.
In sum, the increased cost of living is pushing out Los Angeles residents who make under six figures, making it impractical to afford housing, transportation, and food. Bass’ proposal, while timely, has potential to offer a long-term solution to the increasing cost of living should it not further contribute to budgetary problems for the City.
