It May Be Years Before BidenHarrisflation Shocked Americans Spend Normally

A vote for Kamala is a vote to continue lackluster economic conditions. The Credentialed Media can yammer all the want about how super duper awesome the Biden-Harris economy is and that you should get on your knees to thank them, but, Americans feel different

Inflation-shocked low- and middle-income Americans may not spend normally for years

Putting “fun” back into low- and middle-income Americans’ budgets could be years away with most of their income barely covering the surge in costs for bare necessities, economists said.

Even with annual inflation last month cooling to the lowest level since February 2021 and wages rising faster than inflation, low- and middle-income Americans are just barely covering their essentials, which include groceries, shelter, utilities and gasoline, economists say.

That’s because when inflation slows, it only means prices aren’t rising as quickly, not that prices are declining. So, Americans continue to pay higher prices for everyday needs.

Low- and middle-income Americans were hit disproportionately harder than their higher-income peers because essentials account for a larger share of their budgets, and their discretionary spending, or spending on nonessential items like dining out, vacations and entertainment, is only just recovering, economists say.

So, when all the celebs like Beyonce, Springsteen, DiCaprio, etc, start saying how great things are under Biden-Harris and now want Harris-Walz, none of this affects them. They’re living just fine.

“For a very large share of Americans, the bottom 60% are spending more on essentials than before the pandemic,” said Michael Pearce, Oxford Economics deputy chief U.S. economist. “The burden is hardest among the lowest income but also touches middle income. Spending patterns of low-income Americans will take years to recover.” (snip)

A Gallup poll this month showed 52% of Americans said they and their families are worse off today than they were four years ago. “Inflation likely underlies Americans’ perceptions that the economy is poor, even against a backdrop of generally low unemployment, steady economic growth, and record stock and housing values,” it said.

Americans feel the pain

The last time low-income Americans’ discretionary spending fell this much, which was during the Global Financial Crisis of 2007-2008, it took five to 10 years for spending patterns to return to previous levels, he said.

“And the reason was gas prices fell,” Pearce said. Global oil prices fell by about 70% between 2014-16, which pushed pump prices sharply lower and helped low-income Americans catch up.

The policies of Obama and his Democrats kept the pain alive. Vote Trump and he’ll work to lower gas prices, which can lower the cost of goods and food quickly.

The post It May Be Years Before BidenHarrisflation Shocked Americans Spend Normally appeared first on Pirate’s Cove.