It's not the 1% that's killing them - it's the fact that they're spending at their limit and they don't have that 1% available.
"Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery." -- Charles Dickens, 'David Copperfield'
I think this point doesn't get enough attention from people whose salaries are big enough to save lots of money. If you make $60K after taxes and spend $30K, then you can easily eat a $300/year increase in gas expenditures. Your savings rate goes from 50% to 49.5%, big whoop. But if you make $31K and spend $30K, and gas goes up $300/year, it's eaten up a whole 30% of your savings rate. And if you make $30K and spend $30K and gas goes up, you're screwed.
"Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery." -- Charles Dickens, 'David Copperfield'