The situation: Low-income Americans are feeling squeezed by high prices, declining pay, and public assistance that doesn鈥檛 go far enough.
Bottom line: Declining after-tax income and tariff-driven inflation mean relief for low-income Americans is unlikely anytime soon. Their budgets will tighten, shrinking grocery baskets and curbing discretionary spending.
While Walmart, Dollar General, and other value retailers are currently propped up by higher-income shoppers, that cushion could quickly disappear if those customers expect tax-cut windfalls and return to old spending habits.