American Shoppers Credit Crunch
For many Americans, it is getting harder to afford some of life's most basic necessities. As was the case earlier this year, majorities now say it is difficult to afford gasoline (68%), retirement savings (59%), and taxes (52%). In addition, nearly half of the public says it is difficult to afford home heating and electric bills (49%) and health care costs (46%). While most Americans still say it is easy to afford food, the percentage saying this is difficult for them has risen dramatically since February. Currently 38% say it is difficult to afford food, up from 27% in February.

The percentage saying it is difficult to afford gasoline also has increased significantly - going from 60% in February to 68% currently. In addition, somewhat more Americans are now saying it is difficult to afford utility bills and retirement savings than said so just five months ago.

The proportion saying it is difficult to afford food is substantially higher than it was in January 1992, in the midst of a recession and widespread economic anxiety. At that time, a quarter of the public (24%) said it was difficult to afford food, compared with 38% currently. In addition, more now say it is difficult to afford heating and electric bills than did in January 1992 (49% now vs. 38% then).

The rising cost of food is having the biggest impact on lower and middle-income Americans. Nearly half (46%) of those with family incomes of between $20,000 and less than $50,000 a year say it is difficult to afford food, up from 34% in February. Among those with lower incomes (less than $20,000), 60% say it is difficult to afford food, up from 50% in February.

While affording food has become more difficult for those in the lower income categories, the rising price of gasoline is felt across all income groups. For those making between $50,000 and less than $100,000 a year, 69% say it is difficult to afford gasoline, up from 57% five months ago. And even among those in households making $100,000 a year or more, nearly half (47%) say it is now difficult to afford gas - up from 38% in February.