Comment by dudefeliciano
14 days ago
Middle class people also have to buy new cars, maybe want to treat themselves with some foreign alcohol, they still need furniture, coffee is still one of the most traded commodities in the world and americans guzzle it down.
Yep what sets middle class apart from lower class is consumption.
But the lower class will also feel the tariffs. Because the lower class needs that $9.99 sweat pants.
New cars - They are not purchased very often by the middle class and they will lean domestic if they desire new or buy foreign cars on the used market if they really desire them.
Foreign Alcohol as a treat - If it’s a “treat” it’s already likely a more expensive choice than a domestic equivalent and any cost increase becomes part of the luxury of it being a treat. If your $60 bottle of Italian wine that you occasionally treat yourself with is now $80, you won’t really notice that $20. If you do, maybe you opt for a better domestic instead. If the $20 california wine you daily drink becomes $30, you notice that. But I assert that there is quite a bit of exceptional alcohol produced in the US and the middle class electorate is not going to starve for decent alcohol.
Furniture - Like cars, this is not a regular purchase and frankly not one where a price comparison with a prior purchase of a similar item will really notice any price increase due to tariffs. How often do you replace a dinner table? 10 years? Of course it’s more expensive than the last time you needed one.
Coffee is the one example where you have daily consumption and like I said on my original comment, food is one area that if affected, people will notice.