RedState: Although President Biden keeps insisting his economic programs are working great, there are plenty of troublesome signs indicating otherwise, including the all-important rate of consumer spending. Simple rule: if people are buying more things, it generally means they feel good about the state of their finances and the economy.
When folks tighten their belts, however, it’s because they either simply don’t have enough money to purchase more than the essentials, or they’re holding on to their wallets because they fear for the future.
Consumer spending is often known as the “engine of the economy”—and it’s out of gas. The Wall Street Journal reports that Americans are “starting to freak out”: MORE
I’ve got my annual meeting with my financial advisor tomorrow. I was going over my portfolio today, and although The Market had a great January, this is what they call in the business a dead cat bounce.
My advisor is the one that usually talks me off the ledge whenever I want to liquidate everything to cash, put it in coffee cans, and bury them in my backyard, but I got the feeling tomorrow’s conversation is going to be pretty sobering.
Deficit spending can not last, it will go until it doesn’t, then we are Venezuela.
Yeah, spending tends to go down when prices skyrocket. Duh!
The elimination of discretionary spending is the very road to, You Will Own Nothing And Be Happy. It’s Obama 2.0. That asshole put damn near every boat, travel trailer, RV business out of business. It’s the Democrats war on Capitalism. All those people that are left with out a job go on un employment. These are all manufacturers to so consider the vendor base. Infuriating when you realize it’s intentional.
They put a lying, greedy, demented flaming jackass in charge so they could let the air out of out economic tires!
My financial guy is usually gung-ho on the market but he suggested I basically stay on the sidelines for now.
But did consumers reduce their debt 3 out of the last 4 months?
@ Tony R
Yup. For one, I stopped buying eggs.
Agreed. That’s what’s happening, in a nut shell.
I’m still surprised so many still don’t see what’s happening and why.
My discretionary income has been reallocated to buying food. Compound interest is taking a beating.
Spending is up but the days of folks buying eggs by the HALF dozen are back.
Unlike the government, when we reach our “debt ceiling” we cannot vote ourselves an increase to keep spending.
When the GOP let the the government shutdown that’ll fix everything right.