Inflation under President Joe Biden is causing more than 80 percent of consumers to cut back on personal spending, according to a Provident Bank poll released Tuesday.
More than 70 percent of American adults have made “some changes to personal travel habits,” while more than 10 percent have eliminated “non-essential purchases,” the poll found.
“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,” according to Provident Bank. “People are feeling an immense amount of financial pressure right now.”
Inflation is at a 40-year high, causing two-thirds of Americans to dip into their savings to pay for daily needs. Some economists, including former Obama administration officials, have attributed the rise in the cost of goods and services to the Biden administration’s $2 trillion American Rescue Plan. Biden has called for a federal gas tax holiday to relieve financial pressure on Americans, even though members of his own party, including former president Barack Obama and House Speaker Nancy Pelosi (D., Calif.), have expressed doubts that the tax suspension would benefit consumers. Obama in 2008 called tax holidays “a gimmick,” the Washington Free Beacon reported.
More than half of Americans surveyed said they spend between $101 and $500 per month on groceries, and 32 percent said they are spending hundreds of dollars more on gas. Survey respondents said baby products, meat, utilities, alcohol, household goods, and milk are particularly draining their bank accounts.
Americans spent less than expected in the first quarter of this year, according to Commerce Department data. Overall gross domestic product had a 1.6 percent annualized decline.
Multiple experts have said that the United States is heading for a recession.