CBS News
Americans need an extra $11,400 today just to afford the basics
The typical American household must spend an additional $11,434 annually just to maintain the same standard of living they enjoyed in January of 2021, right before inflation soared to 40-year highs, according to a recent analysis of government data.
Such figures underscore the financial squeeze many families continue to face even as the the rate of U.S. inflation recedes and the economy by many measures remains strong, with the jobless rate at a two-decade low.
Even so, many Americans say they aren’t feeling those gains, and this fall more people reported struggling financially than they did prior to the pandemic, according to CBS News polling. Inflation is the main reason Americans express pessimism about economy despite its bright points, which also include stronger wage gains in recent years.
“On the edge”
Average hourly pay for workers has increased robust 13.6% since January 2021, although that lags the 17% increase in inflation during the same period, according to government data. The main categories requiring heavier spending for consumers simply to tread water: food, transportation, housing and energy, which together account for almost 80 cents of every $1 in additional spending, according to the analysis from Republican members of the U.S. Senate Joint Economic Committee.
“Middle- and low-income Americans aren’t doing well enough — they are living fragilely on the edge,” said Gene Ludwig, chairman of the Ludwig Institute for Shared Economic Prosperity (LISEP), a think thank whose own analysis found that the income needed to cover the basics fell short by almost $14,000, on average, in 2022.
Where inflation bites hardest
Around the U.S., the state with the highest additional expenditures to afford the same standard of living compared with 2021 is Colorado, where a household must spend an extra $15,000 per year, the JEC analysis found. Residents in Arkansas, meanwhile, have to spend the least to maintain their standard of living, at about $8,500 on an annual basis.
The differences in costs are tied to local economic differences. For instance, typical housing in Colorado requires an additional $267 per month compared with January 2021, while other states saw much smaller increases, the analysis found.
Still, a higher cost of living doesn’t necessarily doom people to financial distress. Ludwig’s group recently found that some expensive cities offer the best quality of life for working-class Americans, largely because of the higher incomes that workers can earn in these cities.
Inflation takes a bigger bite out of lower-income households because by necessity they spend a bigger share of their income on basics than higher-income Americans. And until recently, lower- and middle-income workers’ wages weren’t keeping pace with the gains enjoyed by the nation’s top earners.
“Food costs and basic costs are up more than other costs,” Ludwig noted. “Putting on a Thanksgiving dinner costs the same if you’re a lower- or upper-income American, but for a lower-income American it’s a bigger portion of your spending.”
To be sure, inflation is cooling rapidly, with October’s prices rising 3.2% on an annual basis — far lower than the 9.1% pace recorded in June 2022. But pockets of inflation are still hitting consumers, such as at fast-food restaurants like McDonald’s, where Big Macs now cost 10% more than in December 2020.
Although inflation is cooling, many consumers may not be feeling much relief because most prices aren’t declining (One major exception: gas prices, which are notoriously volatile and which have declined about 5% in the past year.) Consumers are still paying more, albeit at a slower pace, on top of the higher prices that were locked in when price hikes surged in 2022 and earlier this year.
CBS News
Thousands of duloxetine bottles, an antidepressant sold as Cymbalta, recalled over toxic chemical
Thousands of bottles of the antidepressant duloxetine, which is sold under the brand name Cymbalta, have been recalled due to the presence of a toxic chemical, according to a notice from the Food and Drug Administration.
The October 10 recall is due to the presence of N-nitroso-duloxetine, a chemical that is toxic if swallowed and is suspected of causing cancer, according to the National Library of Medicine. The FDA classified the recall as Class II, which means that the drug could cause “temporary or medically reversible adverse health consequences.”
The medication, manufactured by Towa Pharmaceutical Europe, was distributed nationally throughout the U.S., according to the recall notice.
Towa and the FDA didn’t immediately respond to requests for comment.
Duloxetine recall
The recall covers 7,107 bottles of duloxetine, the FDA said. The bottles include 500 delayed-release 20mg capsules. The lot number is 220128, with an expiration date of 12/2024.
Duloxetine, a selective serotonin and norepinephrine reuptake inhibitor (SSRI), is prescribed for anxiety and depression, and can also be used to treat nerve pain for people with diabetes, the Mayo Clinic notes. It’s also used for people with fibromyalgia and chronic pain related to bones and muscles, it adds.
McDonald’s Quarter Pounder hamburgers are being linked to an outbreak of E. coli that has sickened nearly 50 people in 10 states, killing one person, federal health officials said Tuesday.
Most sick people reported eating Quarter Pounders from McDonald’s, and investigators are working to confirm which food ingredient is contaminated, according to the U.S. Centers for Disease Control and Prevention.
A total of 49 cases have been reported so far. Most of the illnesses occurred in Colorado and Nebraska, with 26 sickened in the former and nine stricken in the latter, the CDC stated. Of the 26 sickened in Colorado, an older adult died, the CDC said.
Another person developed hemolytic uremic syndrome, a serious condition that can cause kidney failure. The person who died is not the same same person with HUS.
A total of at least 10 people have so far been hospitalized.
Nine people were reported ill in the outbreak in Nebraska, with Utah and Wyoming reported four illnesses a piece. Other states reporting illnesses include Iowa, Kansas, Missouri, Oregon and Wisconsin.
In a statement McDonald’s posted to its website, Cesar Piña, the company’s North America chief supply chain officer, said that “initial findings from the investigation indicate that a subset of illnesses may be linked to slivered onions used in the Quarter Pounder and sourced by a single supplier that serves three distribution centers.”
McDonald’s is cooperating with federal and state public health officials and has stopped using fresh slivered onions and quarter pound beef patties in several states, where the product will temporarily be unavailable, the CDC stated.
Quarter pound beef patties are only used on Quarter Pounders and fresh slivered onions are primarily used on Quarter Pounder hamburgers and not other menu items, the CDC said.
The illnesses began at the end of September and the most recent occurred as of Oct. 11.
It usually takes three to four weeks to determine if a sick person is part of an outbreak. Most people infected with the toxin-producing E. coli experience severe stomach crams, diarrhea and vomiting. Most recover without treatment after 5 to 7 days.
People are advised to call their health care provider if they ate a McDonald’s Quarter Pounder and have severe E. coli symptoms:
McDonald’s did not immediately respond to a request for comment.
Chipotle Mexican Grill job applicants better get used to conversing with AI — their first interview could be with an artificial intellgence-powered system named “Ava Cado” rather than a human hiring manager.
The fast-casual Mexican restaurant chain said Tuesday that it is partnering with Paradox, a maker of what the technology company calls “conversational” AI, to launch the new hiring platform.
By collecting basic information about candidates, Ava will free up restaurant managers to focus on other tasks, according to the company. The AI can also schedule interviews and even make job offers in real time, the company said. Ava is also a polyglot and able to conduct interviews in English, Spanish, French and German.
The new technology is expected to reduce the amount of time it takes Chipotle to hire an employee for an in-restaurant position by as much 75%, Chipotle said in a statement to CBS MoneyWatch.
Chipotle plans to deploy the system across more than 3,500 restaurant locations in North America and Europe. The technology is currently being introduced at restaurants in a phased approach that’s expected to be complete by the end of October.
In addition to collecting biographical information, Ava can engage with job applicants and answer their questions about the company, according to Chipotle.
“Paradox operates as if we’ve hired additional administrative support for all our restaurants, freeing up more time for managers to support team members and provide an exceptional guest experience. We’re excited about the early improvements we’re seeing,” Chipotle chief human resources officer Ilene Eskenazi said in a statement.
A number of other major restaurant chains, retailers and other companies have turned to Paradox’s AI hiring tech, including Applebee’s, McDonald’s, Panera Bread, Taco Bell and Wendy’s.
Although AI can expedite the hiring process, it can also be controversial as a recruiting tool. Some studies have found that it can lead to biased assessment of candidates and unintentionally discriminate against people based on their race or gender.
To guard against the misuse of AI in hiring, New York City in 2021 passed a law that requires companies that use the technology to disclose its use to job candidates. Employers are also required to conduct annual third-party “bias audits” of their automated hiring systems to ensure the technology isn’t discriminating against certain types of candidates.
Thousands of duloxetine bottles, an antidepressant sold as Cymbalta, recalled over toxic chemical
Minnesota DNR sues Lake County to stop resort expansion near the Boundary Waters
McDonald’s Quarter Pounder hamburgers linked to deadly E. coli outbreak, CDC says
Thousands of duloxetine bottles, an antidepressant sold as Cymbalta, recalled over toxic chemical
Minnesota DNR sues Lake County to stop resort expansion near the Boundary Waters