WINCHESTER, Ky. (LEX 18) — A NBC News exit poll after the election in key states covered two hot topic questions: Do you think the nation's economy is in good shape, and has inflation caused severe hardship to your family in the last year?
The majority of Democrats said the nation's economy was in good shape. On the flip side, regarding inflation, the majority of Republicans said inflation has caused a severe hardship to their families.
"Inflation is an increase in the general price level," explained Mike Clark, the director of the center for business and economic research at the University of Kentucky.
Clark told LEX 18 that during the pandemic, inflation hit as much as a 9% increase over the year before. Right now, we're at 2.6% compared to the year before. The Federal Reserve says the ideal percentage is 2%.
Clark said when prices increase rapidly and unpredictably, and incomes stay the same, people don't have as much money to spend.
"They may not be able to purchase the goods and services they need, they may need to cut back," said Clark. "You're seeing them change their spending behaviors in order to minimize the effects on their budgets."
In Winchester, the city is trying to combat the effect of inflation on small businesses. Winchester is doing that via the Downtown Development Investment Fund. The grants cover things like beautification, preservation of historic buildings, and safety.
The money comes from the Clark County Community Foundation, the city, and a private donor. In 2024, they awarded more than $130,000 to small businesses. Only businesses in historic downtown qualify.
"We have a lot of businesses in downtown Winchester that need the help, we haven't needed that help until this year," said Tyler Montgomery, owner of Abettor Brewing.
He said they've been open since 2019 but their profits are down 15% from last year to this year. He attributes that to inflation.
"How long can we feel the impact before where certain situations exist in town where businesses don't exist anymore," said Montgomery.
Abettor is open daily in the afternoons and evenings, and they distribute across Central Kentucky. They do have customers, but not as many as they would like.
"Inflation and it's impact on small communities has been hard and I don't think people really understand it," said Montgomery.
If you'd like to read the NBC News exit poll, click here. To learn more about Winchester's small business grant program, click here.
