PERSONAL SPENDING

In spite of the tax cut of 2017, many Americans are cutting back on their spending (see figure*).  I encourage you to read the entire cited article.

Americans are cutting back on how much money they spend. More than two-thirds of U.S. adults say they're making an effort to reduce their monthly budget in order to save more, according to a new survey from consumer-financial company Bankrate. But saving isn't the only reason they're cutting back.*

While 36 percent say their priority is saving, 24 percent say they're curbing their spending because their income hasn't changed. About 17 percent say they have too much debt, 11 percent say they're worried about the economy and 5 percent are concerned about job security.*

Trying to spend less makes sense for most people, regardless of the reason. A survey from personal-finance website GOBankingRates found that 42 percent of Americans have less than $10,000 put away for retirement, while a Northwestern Mutual study found that a third of Americans had less than $5,000 for retirement and 21 percent had nothing saved at all. And only 39 percent of adults say they have enough in savings to handle a $1,000 emergency.*

Meanwhile, middle-class incomes have shrunk in all but two states, credit card debt has hit $1 trillion and student loan debt exceeds $1.5 trillion.*

(click on figure t enlarge)

Surprisingly 24% say they are cutting back because their income hasn't changed compared to 36% who say they are saving more.

* https://www.cnbc.com/2018/11/13/heres-why-americans-say-theyre-cutting-back-on-monthly-spending.html