For more than two years, U.S. citizens have faced record-high prices for gasoline, food and housing, leaving the most vulnerable communities in dire situations with few opportunities to improve.
Nathan Ganesan, who is the founder of Community Seva, a foundation that looks out for those who do not have food, supporting the community with food, clothing and different needs, said during a briefing held by Ethnic Media Services, that the current economic outlook directly affects the homeless, leaving them in very difficult situations.
“I'm not sure I agree that the economy is getting better, but the struggle, what we're seeing at the grassroots is that it's increasing every day, a study recently came out that says 1 in 4 people in Santa Clara County suffer from hunger, and that's very scary,” said Nathan Ganesan.
Ganesan, who has experienced the community's needs first-hand and has heard many sad life stories, said that the housing problem is constant. On one occasion, a woman even asked for food for nine children she had living in a van, leaving him with the idea that housing is a serious problem.
Rob Warnock, senior research associate at Apartment List, a platform where people can locate rental housing near their area, said that housing prices have risen dramatically in recent years.
After the pandemic, the cost of housing, both for rent and for sale, increased, leaving the community with very few options and directly impacting the family economy.
Speaking about the 2024 outlook, Rob Warnock said, “The buying side is not going to improve much, the Federal Reserve has indicated that they are not going to raise interest rates any further, but there is a lot of demand from people who want to buy homes, so the experts are anticipating that prices are going to continue to rise.”
But in the case of the rental market, there is an improvement, as there are projects in the pipeline that will provide more opportunities for citizens who want to acquire them.
Denton Cinquegrana, an expert analyst in the oil and energy sector, explained that the political phenomena that have impacted the world in recent years, such as wars and tensions between countries, have determined oil prices, generating changes in the economy and making it unstable on some occasions, directly or indirectly affecting the family economy.
“We have not seen any oil production shut down due to these tensions. What has actually happened is that companies are avoiding the Red Sea, which is costing them time and money, as the distance increases to about two weeks more,” said Denton Cinquegrana.
He also said that gasoline prices could drop minimally this year, but he hopes that the outlook will be more optimistic.
However, Denton Cinquegrana mentioned that it is necessary to take into account the natural phenomena that occur in the country, since these can determine the behavior of imports and exports, modifying the behavior of the economy.
Chiling Tong, president/CEO of the National Asian Pacific Islander Chamber of Commerce and Entrepreneurship (National ACE), said they support policies, laws and other issues that impact the AAPI business population, while also having economic development programs for small businesses.
Chiling Tong commented that discrimination against the AAPI community also affects them economically, with more than a thousand reported incidents, most of which are in small businesses, especially for women.
“The biggest challenge we face is accessing the capital we need to grow our businesses, with nearly 30 percent of respondents to a survey reporting little confidence in covering their expenses and no access to more capital to grow their business,” Tong added.
It is of utmost importance to support small businesses to achieve economic stability, and although financing is often sought, it is not possible for all, he said. He also specified that as an association they work to achieve more accessible financing and that already established businesses have the opportunity to improve and grow.
A small restaurant owner shared his experience, saying that when he saw that several restaurants began to close, he wondered how to make his business continue, so he focused on marketing to make himself known, answering emails, planning information content. He also saved resources by doing things between the wife and the business owner, and always looking for feedback from customers. This, showing that anyone who wants to start a business can do it, but it will always be a constant and difficult job.
She added that during the Biden administration, funding has been obtained for the AAPI community. 2023 was a record-breaking year, with more than 5.5 small businesses being created and twenty percent of the owners saying that the economy had improved.
“In our small survey, 74 percent of business owners said they feel very positive, they are happy with the changes and are adapting to them,” Chiling Tong concluded.
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