Making Ends Meet: How Families Cope with Inflation and Recession

Abstract

A survey of almost 2000 families in 1976 found that 59 percent had fallen behind rising prices and almost as many, 52 percent, were hurting because of inflation. The families most affected by inflation and recession were the less privileged ones, those of low income, the retired, the semiskilled and unskilled, and members of minority groups, the Blacks and Spanish speaking. A variety of coping mechanisms were identified, ranging from income-raising strategies such as taking second jobs, having additional family members go to work, and working more overtime, to lowering consumption, greater self-reliance, bargain hunting, and sharing with others. Lowering consumption was almost the universal response to inflation as families in all walks of life reported cutting back on food, clothing, and entertainment expenditures. About one third of the respondents reported that financial pressures from inflation and recession were causing problems for their marriages, and more than one fourth said that financial pressures had damaged their mental health. The pressures of inflation and recession generated considerable hostility toward government and politicians, who were blamed for the economic ills. Confidence in government was virtually nonexistent among those hard hit by inflation and recession.