Rose Padilla Johnson, the CEO of Davis Street Community Center, Inc. in San Leandro, California, is a community leader who provides aid to low-income families by offering low-cost or free essential services such as childcare and food packages. Based in San Leandro, Rose Padilla Johnson often interacts with people disproportionately affected by national trends such as inflation, resulting in rising rent and energy bill rates, resulting in a cycle of poverty.
Being unable to acquire a mortgage, often due to a lack of financial stability to qualify for a loan, makes an individual reliant on rented accommodations. When more than 30 percent of a person’s income goes to rent, sociologists and economists say it is unaffordable - even if no other accommodation is available. Inflation hit 5.4 percent in early 2022 in the United States, making the cost of ongoing payments like rent and energy bills a serious concern for families in poverty.
Research shows poverty has a cyclical effect. Being in poverty means not having enough money to improve one’s situation, as costs such as rent are a constant drain on income. The longer this situation continues, the more inflation devalues income and makes rent rise. This strain hampers efforts to move out of poverty and often necessitates reliance on government benefits. Alleviating the burden of this constant drain usually involves resources such as food or cash from government and nonprofits.
