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Do a majority of low-income households report purchases of alcohol or tobacco?

By EconoFact
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.  

This fact brief is responsive to conversations such as this one.
Sources
US Bureau of Labor Statistics Consumer Expenditure Survey
Economic Development and Cultural Change Cash Transfers and Temptation Goods
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EconoFact is a non-partisan publication designed to bring key facts and incisive analysis to the national debate on economic and social policies. Launched in January 2017, it is written by leading academic economists from across the country who belong to the EconoFact Network. It is published by the Edward R. Murrow Center for a Digital World at The Fletcher School at Tufts University.
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