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Or make out that things are better than they is so they could continue doing what they want.
Same nonsense, different side.
And get reelected, no politician will put a negative spin on economics while they are in office during an election year.
Just look at the spin today “83,000 new private sector jobs!” What is not being reported is the birth/death index. When a company goes out of business and no longer sends the government their employment numbers, the calculation automatically assumes that every person employed the month prior at those now bankrupt companies instantly found new jobs.
This helps to add 147,000 private sector jobs each month, when the reality is many if not most of those people did not find new jobs the day after their company closed down.
Lately, when I've been out to a restaurant, there are usually lots of other people there. And the new IPhone has set record sales. How can people afford these things if we're in a depression?
I wasn't that old during the recession in the early '80s, but I hear that the restaurants were dead during that time. What makes this different?
There are several reasons. For one the examples you give are small ticket items, meals and phones. Go to a car dealership and ask them how their business is doing. Large ticket items are where you will see the drop in sales because banks are not lending for big ticket items. Small business is having big problems getting loans for new equipment. For another thing you are seeing a postponement of much of the pain of the recession due to certain public and private monetary policies. 5 million people living in homes without making payments pumps $10 billion dollars a month into the economy. Extended unemployment has made it possible for people to survive for 2 years without jobs. A trillion dollars of government stimulus has pumped the economy although only temporarily. Finally you have a population that is addicted to credit. While you saw a drop in private debt for a few months in 2009, people soon reverted back to their old ways and are now spending more that they earn once again. It seems we have a very short attention span. Do not make the mistake of thinking this economic downturn is not serious because of what you have witnessed up to now. It is going to get much worse going forward. The actions taken to postpone the effects of the recession have been short sighted and done nothing to address the problems that caused the recession to begin with. We now sit in the eye of the storm and when the second side hits it will be devastating.
Maybe this is what needs to happen to rev up the economy. If everyone on CD just bought one IPhone and went to a Starbucks or Paneras at least twice a week, we could do it. Is everybody with me?
Maybe this is what needs to happen to rev up the economy. If everyone on CD just bought one IPhone and went to a Starbucks or Paneras at least twice a week, we could do it. Is everybody with me?
I will never buy an iphone, and I will never eat at Starbucks or Paneras, I could care less how much money I make, save, or win.
Maybe this is what needs to happen to rev up the economy. If everyone on CD just bought one IPhone and went to a Starbucks or Paneras at least twice a week, we could do it. Is everybody with me?
Plus for Gen-X they are in what should be their peak earning and spending years but they are either saddled with debt or they are the new frugal. Plus there are fewer of them. So when you have fewer people who spend less than the larger generation before them, you get a natural drop off in spending, add in debt, taxes and fear, things don't look good.
I don`t know. My husband seems to think that people are using credit cards. Restuarants here are always busy. Especially Olive Garden. And I don`t live in a huge city.
I don`t know. My husband seems to think that people are using credit cards. Restuarants here are always busy. Especially Olive Garden. And I don`t live in a huge city.
Some people are doing that sure but consumer credit is dropping and the number of credit cards has dropped by millions. As jimhcom (and my older post) pointed out the fact that millions of people are living rent and mortgage free helps a lot. They aren’t out buying and financing new cars but they are going out to eat and buying Ipads etc.
what people don't buy right now, are $350,000 houses.
look at the total value of the U.S. residential housing market, verses the other industries you named, and then you will get some idea of why things are bad.
My brother is one of those diehard new gadget guys along with the new car every few years.
But you know what..he has literally no savings. He's not living paycheck to paycheck mind you but if he would just quit having to "keep up with the Jones" for a few years he could have some nice stash of savings and investments. He has his recommended 6 months salary saved off but other then that he lives the good life.
Outward expression of wealth via consumerism doesn't necessarily indicate that all is well and people are financially thriving. None of us really know the debt level of these types of folks.
As they say..looks can be deceiving.
Yea, same thing with some people I know. They have no savings or investments, always have car loans, and then always buy the "next big thing" when it hits the market.
They live off the emotion of having the newest and what they think is the best thing, but it never ends because something always comes out that is newer and better...and they have to have it. It is like an addiction and they are impulse buyers.
These people are usually our $30,000 millionaires.
Around where I live we had a natural gas drilling boom which has boosted local businesses and related jobs. Otherwise without that traffic, I think it would be pretty slow.
I travel a lot for work around the country and ever since 2008 I have noticed traffic in places of business has gone way down. Overall it's not what it was like a few years ago. I see a lot of empty shops and malls and usually it's not hard to get a table at a restaurant on friday or saturday night. I see a lot of recently closed up businesses and empty storefronts as well.
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