Just came back from grocery shopping. The prices are now higher than a week ago on some goods. It is the highest we’ve seen. We are battening down the hatches. How can people survive?
We old timers remember the Carter years.
The way people did it back then was they just cut back and downgraded in thousands of different ways—since everybody has different needs and wants.
There are always things that can be cut in the household budget—chicken instead of steak, more pasta, staycations instead of travel, buying stuff at yard sales, less or no or lower cost restaurant dining etc.
That is how you get stagflation—the consumers start changing their spending behavior.