Curious as to what ya'll think. I am seeing articles about "increased consumer spending". Not really seeing people get better jobs or better pay, though. Or any job for that matter. Do you think people are really starting to somehow miraculously have more money to spend on retail items or do you think people are just tired of not shopping? Or maybe they are just bored on unemployment so they go shopping. Or maybe their old stuff just finally broke beyond repair and they have to spend money on replacements?
Maybe the increased consumer spending is "good" but I don't see how it can last if there is still such high unemployment. Just curious as to how this even makes any sense as I am not an economist. Maybe the prices are just finally right. I have no idea.
Re: Increased Spending
James - July 4, 2010
Sam - June 21, 2012
I agree with this comment and also it might be attributed to Income Tax Returns.
I hadn't thought of the tax return thing. Good point.
I also agree with Nozze's POV. Folks who feared losing their job may not feel that way any more and/or they may have been saving long enough for their rainy day fund.
Down here in FL, people are shopping like crazy. The restaurants are packed. I don't think it's all tourists either. In addition, everyone is driving around in these crazy-expensive cars (hummers, corvettes, ferraris). The job market here is awful and their home prices have plummetted big time. Ex. paid $1 Million for house and it's now worth $400K.
All of this leads me to believe that they are all in debt up to their eyeballs, just like that commercial.
Shopping is therapy. Its a quick pick-me-up. So, it makes sense. But just because people are spending, doesn't mean they have the money to spend. They are likely just getting deeper into debt.
Abigail Taylor 09.18.2008