It’s quite possible that economic conditions are bad enough that price inflation will continue to persist, much like it did in the 1970s, and well into the 1980s.
In fact, three years into President Biden’s first term Americans are still spending a greater percentage of their income on foodthan at any point in the last 30 years:
That’s according to the latest data from the USDA, which shows that U.S. consumers spent more than 11% of their disposable income on eating – whether at home or at a restaurant – in 2022, the highest percentage since 1991.
But keep in mind that real costs for maintaining a consistent standard of living are probably closer to 10-12%. That’s according to Federal Reserve measurements from the 1980s, before economics became just another tool in the government’s propaganda
I don’t know about you, but the folks I speak to every day are spending a lot more on necessities like food and gas than the media care to admit.
Americans are fed up with the situation, and adopting a more “cautious” spending trend:
Fed up with prices that remain about 19%, on average,above where they were before the pandemic, consumers are fighting back. In grocery stores, they’re shifting away from name brands to store-brand items, switching to discount stores or simply buying fewer items like snacks or gourmet foods.
Lower-income consumers, in particular, are running up credit card debt and falling behind on their payments. Americans overall are spending more cautiously. Daco notes that overall sales during the holiday shopping season were up just 4% – and most of it reflected higher prices rather than consumers actually buying more things.
You might be thinking that since it has only been four years since the pandemic started, prices might return to those levels at some point in the near future.
You would be wrong.
No comments:
Post a Comment