83% Of Americans Cut Back On Spending As Economy Careens Towards Crisis

News Image By Tyler Durden/Activist Post July 04, 2022
Share this article:

US consumer sentiment and confidence have deteriorated for households amid slowing economic growth and persistently high inflation that suggests stagflation.

A new study lends credibility to the current souring macroeconomic backdrop of high inflation and shortages, altering consumer lifestyles, behavior changes, and expectations, all of which show "Bidenomics" could be one greatest failures since the Carter administration of 1977-1981.

Provident Bank, based in New Jersey, found that 83% of respondents slashed personal spending due to soaring prices of food and gasoline, with 23% indicating they had to make "drastic changes" to their spending for financial survival. 

According to the survey results of 600 adults, 10.5% of respondents eliminated all non-essential purchases, and nearly 72% said they made at least some changes to personal travel habits.

While some consumers have cut back on some non-essential spending, like dining out and unnecessary travel, others reported much more drastic changes such as skipping meals, conserving water, and eliminating meat from their diets. People are feeling an immense amount of financial pressure right now. Unfortunately, this is not surprising after the Labor Department reported earlier this month that the United States Consumer Price Index (CPI) hit a 40-year high in May. -- Provident Bank

Respondents said rising prices of groceries and gas had put the most significant dent in their pocketbooks. According to the survey results, 53% said they now spend between $101 - $500 more per month on groceries, and 32% spend between $101 - $250 more on gas. They also said that skyrocketing prices of baby products, meat, utilities, household goods, milk, and alcohol have led to economic discomfort.

There's no question this survey outlines consumers are being squeezed by negative real-wage growth and inflation at 40-year highs. Many folks have maxed out credit cards and drained personal savings. Much of this economic despair has sent consumer sentiment crashing:

The third reading of Q1 GDP on Wednesday said it all: personal consumption growth has collapsed.

High inflation plus a rapidly slowing economy could be the emergence of stagflation, a dangerous economic environment that the Federal Reserve doesn't want to see. Already, the souring environment is altering lifestyle patterns and expectations of the vast majority of Americans struggling to survive Biden's "Build Back Better" economy.

Suppose the consumer is tapping out under the weight of inflation, maxed out credit cards, collapsed personal savings, and negative real-wage growth. In that case, it is an ominous sign the consumer-driven economy is careening toward a crisis.

Even more shocking is how a very underreported tidal wave of evictions could be imminent as millions of Americans can't pay rent.

History doesn't always repeat itself, but it certainly rhymes with the stagflation era of the 1970s. Back then, former President Jimmy Carter was a one-term president.

Originally published at Activist Post - reposted with permission.

Other News

August 06, 2022Disturbing Symbolism As Commonwealth Games Recreate Worship Of Baal

During the opening ceremony of the Commonwealth Games in Birmingham, England a giant mechanical bull with glowing red eyes was rolled out ...

August 06, 2022Why The Double Standard From Health Officials On MonkeyPox?

The difference between the reaction to COVID and the reaction to monkeypox is not a revelation, per se--but it is certainly a reminder of ...

August 06, 2022Israel Leading The Way To Cashless Digital Surveillance State

Israel has just banned using cash for purchases larger than $1,700 and instead requires residents to use digital transfers or debit transa...

August 06, 2022With All Eyes On China, The North Korean Threat Continues To Grow

In January 2022 alone, North Korea launched a record 11 missiles, including two hypersonic missiles and the first firing since 2017 of a H...

August 04, 2022Here Come The Layoffs - Big Companies Preparing For Recession With Job Cuts

When the economy slows down, layoffs inevitably happen. We witnessed this on a very large scale in 2008 and 2009, and now it is happening...

August 04, 2022The Parable Of The Cancer Pill & The Modern Church

The contemporary gospel presents Jesus as something who adds good things to you but requires nothing of you. 'The Parable Of The Cancer Pi...

August 04, 2022Veteran Arrested For "Causing Anxiety" To Trans Activists With Social Media Post

That's a middle-aged man, being arrested by police, for criticizing the trans movement on Twitter-and not a peep from the media so far unt...

Get Breaking News