American consumers not cutting back, just changing spending habits

Good description of how the public is cutting back on spending in some areas in order to afford putting gas in the tank, and increased food prices, here:
http://pbp.typepad.com/economy/2008/05/how-do-folks-pa.html

As you may recall, so far I have been surprised that American consumers are not saving more, but simply reallocating their spending, which is one reason the recession either isn't worse, or hasn't happened yet. The above sounds like a good explanation.

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