So much for consumption smoothing. Reuters:
And, in a “disturbing” trend, Castro-Wright said Wal-Mart for the first time is seeing a paycheck-related spike in sales of baby formula, suggesting consumers are rushing to buy such necessities as soon as they have the cash.
It is worth noting that Wal-mart’s automation and data-mining of their sales data is insane. If there is a spike or an anomaly among consumer behavior, they’d catch it quickly.
I wonder how well that narrative that Inequality matters less because low-income Americans have less consumption inequality is going to survive this downturn.