Saturday, October 16, 2010

Who is Spending?

Gallup Polls reports:

"Lower- and middle-income Americans' self-reported average daily spending in stores, restaurants, gas stations, and online averaged $48 per day during September -- down $6 from August and $16 from July. Consumer discretionary spending by these Americans making less than $90,000 a year is now at its lowest level since Gallup began daily tracking in January 2008, as the recession was just getting underway...."

This drop in lower and middle income consumption no doubt derives from the substantial loss of wages and wealth experienced by these groups.

With 70% of the U.S. economy dependent upon consumption, I am not sure how we can have a "recovery" given this type of data....

See Decline of the Empire for discussion

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