Do a majority of low-income households report purchases of alcohol or tobacco?
By EconoFact
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NO
Between 2015 and 2019, the Consumer Expenditure Survey found that about one-fifth of families residing in poverty reported household expenditures on alcohol, with a monthly average of $24 for those households. About one-sixth reported expenditures on cigarettes or tobacco, at a monthly average of $153. Spending on core needs and on children exceeds spending on alcohol and tobacco. On average, nearly 75% of total expenditures for these families went to food, transportation, rent, utilities, and cell phone service. There is little empirical support for the claim that cash transfers to low-income families would encourage irresponsible spending.
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Sources
US Bureau of Labor Statistics Consumer Expenditure Survey
Economic Development and Cultural Change Cash Transfers and Temptation Goods
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