ABSTRACT
In the seven-year period from December 1972 through December 1979 the combined prices of the basic necessities of life in America rose at an average annual rate of 10.5 percent. Many of the very poorest families have to go into debt to provide themselves with the basic necessities of life, quite apart from near-necessities, such as clothing, household goods and educational expenses. In comparison to the nonpoor, the poor own fewer nonessential items such as air conditioners, dishwashers, washers, and dryers. The primary response of government policy to the disastrous impact of inflation on poor families has been to attempt to cushion it in one way or another. The concentration of inflation in the prices for the basic necessities–food, energy, housing, medical care–has resulted in a disproportionate impact on the poor. The cost of land has been driven up over the decade by speculation and the increased demand for luxury housing.
