Americans reconsider their purchases as job losses and pay cuts mount

Millions of Americans have lost jobs and many others have seen their wages cut as the coronavirus pandemic has devastated many businesses. Consumers have already begun cutting back as the uncertainty of what lies ahead weighs heavily on their purchasing behavior. “An economic shock like this could have a long-term impact on people who have traditionally felt like they were being cautious, that they weren’t profligate with their money, but didn’t have to worry about paying for rent or affording food,” said Stephanie Aaronson, the director of economic studies at the Brookings Institution. “They might have more debt, which will make it harder to spend in the future, or they might just feel less secure, which could boost savings and potentially dampen the recovery.”