Chairman Zero Forces the Middle Class into Retreat
As the Government goes on a spending spree, the middle class cuts back spending drastically.
Middle-class households reined in spending mainly on discretionary items. On average, from 2007 to 2009, they cut spending 20.1% on alcoholic beverages, 15.2% on clothing, and 9.5% on restaurants and other food away from home. They also spent less on some groceries, cutting back on items such as fresh milk and cream, as well as seafood.
Obamunism isn’t so great for the poor, either.
The lowest earners spent 15.4% more on food last year than in 2007, shelling out more for cereals, meat and processed vegetables. Since many in the lowest income group may already rely on discount shops and make few discretionary purchases, it can be difficult for them to scrimp.
Among the poor, rent expenditures increased 5.3%. Those who managed to stay in homes they owned saw their mortgage payments rise 27.8%.
But Timmy Geithner’s Goldman Sachs buddies get so much money they can barely wrap their arms around it.
And the proud liberal elite is OK with this. You remember how Obama attacked the middle class for driving SUV’s and keeping our thermostats at 72 degrees? This is exactly the outcome he wanted; a diminishing of the American Standard of Living.