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Christopher Mariani, August 4 2022

How will the economy affect you?

We are now in a period of "stagflation", which combines a recession with hyper-inflation. When we have an inflation rate of 8.9%, it has to be put into proper perspective. If you receive an annual pay increase of 5%, your net income after federal, state taxes and FICA is approximately 3%, but inflation of 8.9% is net/net. In other words, your disposable income drops by 6% a year. Over a 5-year period, that is a net income drop of 30%. That is devastating to any household income. One way of offsetting this loss is to target recession proof industries and advance your career where you can obtain a job with a sizable pay increase. At Resumes Etc, we help our clients to pursue and obtain better career opportunities and higher income. If you want to protect yourself and your family from the stagflation monster, give us a call.

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Written by

Christopher Mariani

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