This story was originally real clear wire
Written by Patrice Onwuka
real clear wire
This year’s Black Friday and Cyber Monday sales broke records despite inflation. This doesn’t mean that many Americans aren’t still struggling with the high prices of household goods and Christmas gifts.
Liberal policymakers were helpless: Democrats on the Ways and Means Committee; Posts now deleted on X responded cynically to news coverage of the record-setting holiday season by saying, “And here we thought you guys couldn’t afford eggs!” They once again revealed how out of touch they are with the plight of Americans.
This year’s holiday season is off to a strong start, but that shouldn’t be confused with rich household balance sheets. In fact, many consumers aren’t letting high prices deter them from celebrating this year’s holiday season. According to data, spending on Thanksgiving Day ($6.1 billion), Black Friday ($10.8 billion), and Cyber Monday ($13.3 billion) hit record highs. adobe analytics. Probably because of the high price. National Retail Federation project Consumers are expected to spend an average of $25 more per person on gifts, food and decorations this year compared to last year.
Continuing to spend a weekend or a month on consumerism won’t eliminate the feeling of financial strain in your household. What’s more, not everyone is spending money. Many working-class and low-income Americans will change or even skip holiday gift-giving because of high prices. A U.S. News & World Report investigation reveals nearly 70% of Americans are worried about paying for gifts this year, with about 20% saying they are “very” worried.
holiday spending survey data According to a Conference Board survey, households with incomes above $75,000 plan to spend more, while consumers with incomes below $75,000 plan to cut back on gifts and non-gift items this year.
The majority of households feel their budgets are under pressure due to a loss of purchasing power due to years of high prices. two-thirds of Americans (65%) feel like they are living paycheck to paycheck, up from just over half (52.5%) last year. Lack of money is not just a problem for the poor. 1 in 5 people Wealthy households also live paycheck to paycheck. An unexpected expense of $100 can lead to financial ruin. 18% Because that’s the maximum amount of their savings.
Although inflation (or consumer price index) is not as high as it was in 2022, prices are still 20% higher than when Biden took office.
When a shopper swipes the plastic to pay for a gift, their balance will skyrocket. Despite recent rate cuts by the Federal Reserve, average interest rates on retail credit cards have skyrocketed from 24% in 2021 to over 30% in 2024.
Voters were fed up with the economic woes that led to a landslide defeat for conservatives. President-elect Donald Trump won Because he looked at working-class and middle-class households and made increasing their incomes the basis of his platform. Leftist elites spent the better part of almost four years refusing to admit that high prices were a problem, then moved on to telling the uneducated masses how great the economy was.
After weeks of post-mortems, the message from the invisible constituency should be loud and clear. So when Democrats on Congressional tax-writing committees make tone-deaf tweets like this, they’re showing stubbornness, not ignorance.
There is a chance for redemption. Lawmakers on the left side of the aisle need to work with conservatives to get serious about helping Americans in distress. They could start by extending the expiring provisions of President Trump’s 2017 Tax Cuts and Jobs Act (TCJA). Corporate tax and personal tax reduction realized huge benefits For workers, families and businesses. Business investment increased and gross domestic product increased. Add US company 4.7 million new jobs, Median real household income grew up A difference of over $5,000. real wages rose 4.9% in 2 years after signing of lawWhile experiencing the highest growth in 20 years, income taxes have been reduced for virtually all income levels. The TCJA also created bonuses and new benefits for employees.
If the tax cuts are allowed to expire, Americans will be left in the lurch with a massive tax hike after the holidays next year.
The left can gain some goodwill from hard-working Americans by passing tax cuts, even if it means handing Trump an early victory. Or we can continue to downplay and turn a blind eye to the real challenges that hold back too many American families.
This article was originally published by RealClearMarkets and made available via RealClea.r wire.
Patrice Onwuka is Director of the Center for Economic Opportunity at the Independent Women’s Forum and Adjunct Senior Fellow at the Philanthropy Roundtable.
