The cost-of-living crisis is now hitting the sales of basic goods

As any American knows now three years into the Joe Biden presidency, the ability to afford basic necessities has become a daily struggle. Weighed down by massive inflation, high interest rates, and wages staying pathetically below the cost of living, people have just started cutting back on basic things like food.

A recent poll by Savings.com of about 1,000 people showed that 80 percent are reducing grocery spending. Mostly the same can be said about buying cars, especially with the Biden electric vehicle push. People are just generally not spending money on themselves or anything anymore because of how out of control the economy has become.

This is hitting retailers just as hard as consumers now, as most have to scramble to find ways to keep their revenues stable to keep up with their rising costs. Economist Dr. Ray Perryman says the inflation, and the used up COVID stimulus money, have people tightening their belts.

"Consumers are having to watch their budget...credit card debt has gone up more...all of this is causing consumers to look at the world a bit differently," he says.

Polls like that of course have their flaws, but in general, if you talk to any American right now, they have the same feelings. Things have become borderline unsustainable for people in the middle class, and it cannot continue.

But the odds are it will continue for both the consumer, and the retailers. As it always does too, it will hurt both at the same time, and work as a double-edged sword.

"Some will lower their prices...their profitability will go down, which will lead to cost cutting," he says. "If it gets severe, we will see more mergers to try and be more efficient and cut costs."

The further reaching impacts include hitting Wall Street a bit, and causing stock prices to fluctuate, which in turn, hits American retirement accounts. That hurts the working folks even more than they have already been.

While this may lead retailers to cut their prices, in efforts to drive customers back, it does not mean the prices will fall to reasonable levels.

"Inflation coming down simply means the rate of increase is coming down, not that you go back to where we were a few years ago," he says.

Perryman adds that some commodities may come back down, but others will likely stay level, or rise further.