"Only dull people are brilliant at breakfast" -Oscar Wilde |
"The liberal soul shall be made fat, and he that watereth, shall be watered also himself." -- Proverbs 11:25 |
The U.S. economy is limping along with the help of modest business investment in new equipment, some exports to parts of the world that are growing and the last few dollars from the government's 2009 stimulus spending program.
For the time being, it looks like American consumers are AWOL. And until they come back, don't expect to see any real recovery in economic growth and the job market. Consumer spending typically accounts for roughly 70 percent of the U.S. economy.
Fresh data from the government Friday confirmed that American consumers are tapped out. Consumer spending in dollar terms rose 0.2 percent in August. But those extra dollars went to cover higher prices for food and gasoline; when adjusted for inflation, spending was flat.
Wages, meanwhile, slipped 0.1 percent -- the first decline in nearly two years. To make up the difference, American households had to dip into savings: the savings rate in August fell to its lowest level since late 2009.
"What you're basically getting is a scene where consumers are losing momentum, they're losing momentum on income and as a result of that they're slowing down on spending," said Steven Ricchiuto, U.S. chief economist at Mizuho Securities in New York.
That spending slowdown has rippled through the economy, creating one of the biggest drags on an already weak recovery.
Labels: economic death watch, greed, unabashed consumerism
...And then the same genuises tell us the cure for our economic malaise is to....cut taxes for the richest 1%????
The unemployed and underemployed are waiting to get hired before they'll start freely spending again and the corporations withholding these jobs or using scumbag temp agencies are still hoping for that "jobless recovery" to finally kick in.
Eventually, someone will have to blink. But I don't see any way of forcing people to boost spending without giving them paying jobs, so eventually Big Industry will have to blink. Blood, turnips and all that.